Courier
Introduction
So you've decided you want to run a courier services business. Maybe you've been working for someone else and feel the time is right to go it alone or perhaps you've spotted a gap in the local market. Whatever the reason, this guide will take you through the issues you need to consider and give you practical pointers on getting started.
Sector trends
1.1 Changes in demand
Many courier firms used to rely on the demand for the rapid delivery of important documents as a large source of their work. Modern communication technology (email, video conferencing and fax machines) has reduced this demand in recent years. As a result, some firms have been forced to look elsewhere for work and have often turned their attention towards delivering more bulky packages. This sector of the market is growing, with internet shopping and mail order leading to more goods being delivered straight to customers' homes. Increasingly, goods ordered over the internet or by mail order are expected to arrive within one or two days and courier firms are usually chosen to deliver them. The current economic downturn has led to more people shopping online, where they can find more choice and better bargains. This means more work for courier firms.
1.2 Drivers' working hours
In August 2003, changes made to the Working Time Regulations introduced a maximum 48-hour working week for delivery drivers. Firms with their own delivery fleets may have found that this leaves their drivers unable to carry out the necessary work. Rather than taking on additional drivers, some of these businesses opted to use courier firms to cover any excess work.
Since May 2006, all new vehicles that require a tachograph must be fitted with a digital tachograph rather than the old analogue type. One of the main objectives of this rule change is to enable operators and the enforcement agencies to monitor driver hours better. You can find out more information on the Business Link website.
1.3 Increasing numbers of courier firms
Government statistics show that the number of firms involved in courier activities has risen in recent years. This indicates that the demand for courier services is strong, but it also means that you will face stiff competition.
So overall, whilst there is plenty of delivery work available, you may have difficulty attracting customers in the face of competition from established local businesses and high profile national firms.
1.4 Keeping up to date with developments
Joining a trade association is an excellent way of keeping up to date with developments in your industry.
The Despatch Association is an independent trade association, which exists to protect the interests of its members and raise the profile of the industry nationally. It provides various benefits for members including model Terms of Trade and Conditions of Carriage, a Code of Practice for drivers and networking and insurance facilities. Members also receive a free subscription to Despatches magazine to keep up to date with industry news.
The Delivery Magazine is a trade journal dedicated to the professional courier industry and caters for all sizes of firm.
