Courier Business Training: Excellence Delivered by Ianstar Ltd.
Join us at AFRALTI in February 2018 for a comprehensive Postal and Courier Training facilitated by Charity Mwanzia of Ianstar Ltd. Explore topics like courier industry overview, marketing strategies, operational functions, and more. Enhance your knowledge and skills in running a successful courier business. Register now for an enriching experience!
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Presentation Transcript
POSTAL AND COURIER TRAINING Facilitator: RUNNING A Charity Mwanzia, Lead Consultant, IANSTAR LTD. COURIER EXCELLENCE. DELIVERED BUSINESS Venue: AFRALTI FEBRUARY 2018 AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 1
House rules Registration Geography of the venue Punctuality after Tea break 10:30am breaks 11:00am Phones on silent Lunch 1:00pm- 2:00pm Class president and deputy appointment Active participation AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 2
Participant Introductions All participants Delivering introduce themselves excellence ensures giving their names, you are one of the company, position, and stars in the galaxy! a challenge experienced in running their courier business. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 3
Expectations tree AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 4
Course objectives General objective: To instill knowledge and skills on the fundamental aspects of running a courier business or operations (in PCK) Specific objectives: After a successful completion of the course, participants should be able to: Understand the basic concepts of courier business Understand and manage contemporary issues concerning planning and operation of a courier business. Understand strategic options and solutions in handling the challenges in running a courier business The participants will also share and learn from each other s experiences. 1. 2. 3. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 5
Course topics Overview of the courier industry. 1. Basic concepts of courier business. 2. Marketing and selling courier services. 3. Courier operations support functions. 4. Performance measurement in a courier business. 5. Economic & social value of the courier industry (KE) 6. Strategies to address challenges in the courier 7. industry. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 6
Topic 1: Overview of the courier industry AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 7
Definition: Courier service Courier service involves conveyance of documents, parcels and distribution or parcels, catalogues, publications or any other material that needs to be delivered. It is a premium service. On the other hand, Postal services are basic services. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 8
Conveyance is by use of: Motorcycles i. Delivery vans ii. Delivery trucks iii. Passenger buses iv. Bicycles v. Foot/ ground couriers vi. vii. Aircrafts AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 9
Elements of courier service Speed 1. Efficiency 2. Reliability 3. Flexibility 4. Safety 5. Proof of delivery 6. Compliance 7. Priority handling from acceptance to final delivery 8. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 10
Definition: Courier business An organization which offers courier services to customers in exchange for money. A courier business can be publicly owned, or privately owned- PCK and private operators AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 11
The Regulator - Communications Authority of Kenya Mandate: Licensing, promoting development of standards, monitoring operator activities, protect consumers, manage competition. Maintains active licensee register. Prepares annual industry reports. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 12
Relevant legislation Kenya Information and Communications Act 1998. Amendments in 2009 and 2013 Postal and Courier services regulations, 2010 Universal access and services regulations, 2010 The Kenya Constitution, 2010 Guidelines for postal and courier licensees on promotion of e- commerce Courier License conditions AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 13
License conditions Compliance Revocation Type of operation and annual fees. 1. Compliance returns- courier revenue stream. 2. USF fees. 3. Service standards. 4. Customs. 5. Safety and security. 6. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 14
License conditions contd Tariffs and reviews 7. Interconnection 8. Business permits 9. 10. Tax obligations AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 15
Competitive services Offered by both public and private courier operators Include courier services, distribution services and electronic mail services AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 16
Services exclusive to PCK Acceptance and delivery of postal articles weighing up to 350 grams. Provision of private letter-boxes and bags. Printing and issuance of postage stamps. Financial remittances. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 17
Courier services There are a variety of service levels and names in the market, including Within the hour courier service Same day courier service Overnight service J+ 2, J+3; extended delivery services Export courier services Import courier services In- house courier services AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 18
Postal and Courier Industry stakeholders Definition: Stakeholders: Groups that have an interest in the company. Without these groups the company ceases to exist. They provide resources. Not all stakeholders are equal! AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 19
Stakeholders contd It is important for managers and owners of postal and courier businesses to understand, manage, control, influence, monitor, advise, cooperate and comply to stakeholder interests and expectations for smooth business operations. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 20
i. Internal stakeholders Employees Managers Owners/ Shareholders AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 21
ii. External stakeholders Customers- existing and potential customers Government- CA, KRA, UPU, PAPU Competitors Industry groups- CIAK, KEPSA, KIFWA Professional associations- HRM, ICPAK, ICX, MSK Suppliers and partners Financiers and investors Communities- local, national, general public Trade unions AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 22
Critical success factors in courier service provision Reliability and flexibility Routing and work flow chart Security Information- track and trace Fleet and transport services Price of provided services AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 23
Critical factors contd Service Level Agreements Customer service line, desk, department or call center Courier waybill, consignment note, collection or delivery note. Working time calculation sheet AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 24
Trends in the postal courier service industry 1. Competition: Own customer delivery systems Increasing number of local courier/ city courier service operators Entry and expansion of international companies AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 25
Trends contd 2. Client needs Tracking and tracing High quality service levels Guaranteed delivery speed, time Price sensitivity- low cost Value added services- returned documents, packaging... AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 26
Trends contd 3. Regulatory framework Market structure clustered- public, national or international operator Disproportional price regulation- PCK price controls vs. private operators notification of price changes Access to network by competitors- interconnection contract filing AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 27
Trends contd 4. Technologies Real time correspondence E-commerce Mobile and desktop applications Amazon s delivery drone service Uber taxis entry into the parcel business Orion by UPS- route optimization for UPS drivers and fuel saving AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 28
Technology trends contd GPRS- Maps and physical addresses applications- enabling fast and efficient collections and delivery. Barcode scanning- real time data capture that reduces duplication of work, increases accuracy and ease of access. Threat of cyber crime. AFRALTI 29
Participants activity- Discussion Name the top 3 courier service providers in Kenya. Give 3 reasons as to why the above companies are the best courier service providers in Kenya ( 20 minutes) AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 30
Topic 2: Basic concepts of courier business operations Elements of a courier operations strategy i. Operations Network ii. Interconnection iii. Documentation and record keeping iv. Performance standards v. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 31
i. Elements of courier a operations strategy Range of services (costing & pricing) Information management/ system; IT Location of premises and outlets Fleet Management; Routing and scheduling Courier process work flow HR and job design AFRALTI 32
ii. Operations Network Courier service providers use a hub and spoke network model. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 33
Hub and spoke model contd The branches form the spokes in the network. Large-sized players own and operate from many branches and service points. Smaller players have a lower number of branches or an interconnection with an established operator. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 34
Hub and spoke model contd The branch networks could be owned or outsourced i.e. a pharmacy acting as a drop-off point. Investments in a network are required to be made in terms of facilities, equipment, labor, fleet and information technology. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 35
The Courier Hub The central part of the wheel where the spokes come together Strategically located facility where a courier company's major facilities and operations are housed, and where most of its scheduled fleet originate from or terminate at. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 36
Question How does the hub and spoke model differ from point-to-point or direct-route operations? AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 37
Characteristics of the hub- and- spoke network model Detailed planning and coordination required Cut-off Times along with limited sorting time Labour-intensive environment Highly sensitive (wrong sorting generates multiple problems) Continuous operations at the hub e.g. administrative, customer service Capacity management during peak & non-peak hours AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 38
Advantages of the Hub-and-Spoke network model Provision of express courier services at minimum 1. cost Efficient sorting: small number of sorting centers 2. Time accuracy 3. Easy incorporation of new points in the network 4. Reduction of long-distance transportation 5. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 39
Performance of the operations network At the highest level, the performance of a courier network should be evaluated along two dimensions: Meeting customer needs- delivering value a. b. The cost of meeting customer needs- to ensure profitability AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 40
iii. Interconnection A tie- up of an operational nature between courier businesses. The tie- ups help in extending the geographical reach of a courier business. These tie- ups are largely on a non- exclusive basis. An example: tie- ups between international operators and national operators. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 41
iv. Documentation and record keeping Documentation process is manual, semi- automated or automated. Archive- collection of utilized documents over time. This is either in hard copy or soft copy formats. Waybill- It is a document used by a courier company giving details and instructions relating to the courier item in reference. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 42
Contd Some companies use alternative documents for the same purpose e.g. consignment notes, collection notes and dispatch notes. PCK to outline their process documents The consignees sign on the waybill upon receipt of the courier item, indicating the name of recipient, date and time of receipt. This piece of information is known as the proof of delivery. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 43
Contd Manifest- A document that serves as a tally- sheet, giving a detailed summary of all courier way bills issued by a courier company for a particular vehicle, vessel or journey. It contains all the details of the number of courier items exchanged. Invoice/ Cash receipt- Used to indicate the price of the courier service offered. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 44
Dead weight limit Every country, region or area has its own definition of courier package dead weight limit. In Kenya, the dead weight limit for courier service is 30kg per package. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 45
v. Performance standards Observable behaviors and actions which explain how the job is to be done, plus the results that are expected for satisfactory job performance. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 46
Standards contd PCK and private courier companies are required to comply with operational standards defined by the regulator. The market also has industry standards based on the competitive environment. The third set of standards are customized and based on service level agreements with customers. AFRALTI 47
Standards contd The quality of service standards by CA range from J, J+1...J+5 for national deliveries. For international deliveries, courier companies define their delivery standards. CA monitors and tracks quality of service performance through compliance returns filed by the courier operators. AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 48
Participant activity Discuss: 1. Terms and conditions of courier service provision 2. Compensation policies AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 49
Summary- end to end courier service management Bookings- coordination Courier item pickup with an option of packaging Document digitization, filing and recovery Data management Fleet routing and scheduling Sorting and distribution Supervision and reporting. Returns and disposal management AFRALTI 4/4/2025 Ianstar Ltd. Excellence. Delivered 50
