Courier service worldwide has witnessed monumental change since the time the courier service has started. Rising economic development has been a universal phenomenon. Apart from revolutionizing other industries this factor has really fuelled the growth in the international courier market. Time is the biggest factor in international business. Most of the frenzied economic activities face time constraint. There are large numbers of transactions, documents and mails which need to be exchanged, sent and transported. All these factors play a crucial role in courier industry. From a quick, swift deliverance service, it is covering a wide gamut including complete range of logistics, supply chain management, online tracking etc.
Globally, courier companies are leveraging their services. They are also concentrating on synchronizing their various operations. International companies earn their revenue mainly from two sources. One, road transport for the domestic market and secondly, air transport for the deliverance in overseas market. Despite increasing usage of air service, most of the heavy industries companies still rely on rail service. Many courier and parcel companies like FedEx, DHL are focusing on supply chain market as large companies tend to assign this specific task to specialized companies. Biggies already hold expertise in the entire process of picking up the consignment and finally its delivery. So in line with their natural extension, these global behemoths are concentrating on integrating their express service with logistics. This makes sense because logistics is growing monstrously.
New changes can also be seen as more and more companies are adopting just-in-time (JIT) concept which is extremely helpful in speeding up the distribution system. The changing dynamics in courier international market clearly reflects other shades of the industry. Apart from the basic express mail and logistics service, companies are earning revenue through earlier non-existent sources like, inventory management, re-ordering of stocks, warehousing, packaging and shipping etc.
The positive effect of globalization can be seen in courier industry. Because of globalization, the restrictions in international business market are decreasing. Reduced tariffs, much improved infrastructures, large numbers of airlines are the few factors which has changed the way world business used to function. The supply of consumer goods and raw materials come from various sources and countries. This has been very instrumental in promoting air transport service and shipping courier. The business has seen large escalation in size and volume terms. The companies are matching up with their large scale business by adopting various technological measures. To keep the accurate details of the goods, companies are deploying special electronic equipments that help them to monitor and keeping track of the goods and about its location.
In sheer volume terms, industry is on upward swing and is expected to continue the momentum. But in real revenue terms, industry is not likely to attain large gains in near future. Because competition is very tough and few major players dominate the industry. It prevents them from increasing the price. From that point of view, even air courier fares are not likely to see much hike because, if one company increases the price, the customer can easily switch onto the competitor. In real terms, there is not much difference in the quality of the service by the top companies. So even air courier fares where the air courier normally gets huge discounts is not expected to see much change.