The Polish courier, express, and parcel (CEP) industry has been around for nearly 20 years. The first “swallows” of new transport services appeared in the 1980s. Initially, shipments were handled by the state-owned operator PSM C. Hartwig, which acted as an intermediary for all foreign carriers. At that time, the law prevented foreign capital from entering the Polish market. However, at the turn of the 80s and 90s, companies were founded that play a key role in the industry today. The beginnings of their operations were focused on creating an operational network and technical-organizational infrastructure. At that time, express carriers were building sorting centers and branches and investing in their fleets – mainly vehicles. Competition between companies boiled down to price rivalry. In the second half of the 90s, companies began to compete using modern information technologies. This resulted in the automation of certain activities and the widespread availability of information regarding transported shipments to customers. Companies operating in Poland very quickly caught up with global enterprises, both in terms of technology and quality.
– The Polish courier market was built based on the experiences of Western companies. Consequently, we can often boast of more advanced solutions. Furthermore, all additional services offered in the West are also available in Poland – assesses Rafał Nawłoka, CEO of DPD Polska. The development of the CEP market was also influenced by changes in management, both in terms of corporate logistics and the entire supply chain. – A dozen or so years ago, express deliveries were used only in emergency situations. Today, when the value of capital is of great importance, companies use express deliveries more and more often because it gives them the opportunity to manage more effectively. It does not pay to freeze money in goods that end up in a warehouse instead of production – claims Rafał Dziura, Sales and Marketing Director at TNT Express Poland. – Customer awareness of the benefits they can achieve by working with a courier company that has the latest technological solutions on the market is simply growing. This undoubtedly influences the increase in competitiveness and sets the directions for the industry’s development. Customers demand better and better solutions and certainty that they have full control over the shipment – adds Grzegorz Kochman, Commercial Director at UPS Polska.
A market with potential
The CEP industry is part of the TSL sector. However, unlike the rest of the sector, it is much less fragmented, even though dozens of companies have been trying their hand at this business every year for years. According to data from the Office of Electronic Communications (UKE), there are currently 172 entities operating in the Polish CEP industry. Three years ago there were 100 such companies, and five years ago there were 50. However, these data do not reflect the true picture of the market. On one hand, only a portion of the companies listed in the UKE register provide courier services to other entities. On the other hand, it is estimated that there are actually many more express carriers. There is a similar problem with accurately determining the number of shipments transported and the value of this market. – There is basically no single reliable source regarding the size and market shares of individual domestic and international courier service companies in Poland. There is a lack of a single, independent organization on the market that would collect and publish such data – emphasizes R. Nawłoka.
This year, the company A.T. Kearney attempted to study this market, based on an analysis of secondary sources and interviews with key industry representatives and experts. The research shows that the total CEP market in Poland is 0.6 billion euros, which accounts for just over 1% of the European market, yet our market continues to develop rapidly. Although the times when company revenues grew by 50-60% annually have passed, the growth momentum remains at a high level. Last year, according to A.T. Kearney, this growth was 25%. – Market growth is related, among other things, to the fact of Poland’s accession to the European Union, and consequently, to the increase in trade between EU countries and Poland. The activity of our entrepreneurs and interest in Poland as a target market are increasing, which also has a significant impact on the increase in the number of shipments, mainly international ones. We are also observing this very positive trend on the domestic market. The increase in investment and the increasingly active promotion of domestic products and the Polish brand further strengthen such rapid market growth – notes the CEO of DPD Polska. – It is worth remembering that the frequency with which companies from our part of Europe use express transport services is still many times lower than in the countries of the ‘old’ Union – adds G. Kochman.
The article comes from the magazine “Logistyka” 5/2008.