Logistics consolidation and the retailer’s dilemma
Retailers and brands can retain control even as choice in the logistics industry shrinks explains Rory O’Connor, founder and CEO of Scurri.
“The UK delivery landscape is currently consolidating; major players are merging, smaller carriers are being absorbed, and fewer logistics partners are available to retailers, particularly those without Amazon-sized clout. For ecommerce retailers already trading on slim margins and rising customer expectations, the shrinking pool of carrier options poses a significant threat to control, flexibility and ultimately, customer experience.
But the real problem isn’t simply having fewer carriers to choose from, it’s being overly dependent on them and managing them inefficiently. Retailers that rely on manual processes or outdated systems will have to deal with missed service level agreements (SLAs), rising costs, inconsistent service and possible damage to brand reputation.
Yet paradoxically, this consolidation moment presents an opportunity. If approached strategically, it is a chance for retailers to wrest back control by using modern carrier management software to build smarter, more agile delivery operations.
From dependency to control
Retailers often focus too much on which carrier is best, rather than how they are managing those carriers. Perceptions of quality can be misleading; some carriers excel in certain regions or service types but are weak elsewhere. What retailers need is not just the best carrier, but the right carrier for the job every time.
This is where tech comes in; by centralising control over delivery operations and using intelligent automation to route orders based on pre-defined rules, retailers can balance cost, service level and performance, dynamically and at scale.
It then becomes easier to route heavier parcels to the most cost-effective carrier for that weight bracket, while ensuring high-value orders are assigned to the most reliable service. Or rapidly switch volume between carriers in response to delays or broaching peak capacity.
With the right tools, consolidation gives leverage
In a tightening carrier market, it is tempting to assume that less choice means less control. But with the right technology in place, it can actually mean more leverage. Retailers who can demonstrate flexibility, volume predictability and operational efficiency are in a far stronger position to negotiate favourable terms, even with major logistics providers.
Using carrier management software retailers can integrate with multiple UK and international carriers through a single interface; set granular routing rules using an intuitive rules engine; monitor real-time delivery performance and cost per parcel; and ensure consistency in post-purchase customer experience with branded tracking and notifications. In short, retailers become better partners for carriers while retaining autonomy and brand control.
Smarter fulfilment without adding headcount
For ecommerce retailers shipping over hundreds of thousands of parcels per month, operational complexity is a daily reality. Balancing different SLAs, pricing tiers, surcharges and customer promises manually is a recipe for inefficiency and even burnout.
Carrier management software doesn’t just bring automation, it brings intelligence. By analysing carrier performance and cost metrics in real time, retailers can identify patterns, adjust routing logic and optimise fulfilment without expanding their operations team.
And when paired with AI-powered tools, retailers can extend this intelligence into customer service. By automating common WISMO (Where Is My Order?) queries and embedding marketing messages into delivery updates, the post-purchase phase changes from a cost centre to a brand-building opportunity.
Brand maintenance across multiple partners
One of the biggest risks in terms of customer experience of delivery outsourcing is the erosion of brand experience. A clunky, unbranded tracking page or a missed delivery can undo months of careful customer acquisition. But using a carrier management platform, retailers can maintain control over every touchpoint, from the shipping label to the SMS notification to help reinforce brand identity and build trust. And with analytics dashboards, retailers can pinpoint and pre-empt issues before they escalate into poor reviews.
Looking ahead
In an environment of consolidation, the key differentiator is less about the carrier chosen and more about speed of adaptation. Retailers that treat carrier management software as a strategic layer in their tech stack, rather than just a back-office tool, are better positioned to flex – absorb disruption, scale during peaks and pivot quickly when markets change.
Retailers can’t afford to treat delivery as an afterthought. In a market where carrier options are narrowing and customer demands are rising, smart, integrated data-driven delivery operations are no longer a luxury.”
About Rory
Rory O’ Connor is the founder and CEO of Scurri, a customisable next generation delivery management software that puts retailers back in control of their business by cutting costs, coordinating carriers, scaling capabilities, and enhancing their offer. In developing a technology that connects delivery companies with retailers sending the deliveries, Scurri found a gap in the market.
Since its launch in 2010, Rory has focused on building and leading an impressive team who have grown Scurri to a business that has processed over €10Bn worth of global shipments in ‘22. Rory has acquired significant investment for the software business, raising €15.3 million investment to date from private angel investors, Institutional VC investors and the Irish government development fund, Enterprise Ireland. He is a regular speaker at international tech conferences and media commentator on the eCommerce sector.
Prior to founding Scurri, he worked in Waterford Wedgwood Plc, as a Management Consultant and for AOL broadband, during which he accumulated a broad range of skills and worked in sales, marketing, technology and strategic roles in those businesses. Rory has a number of business qualifications including a degree in Business Studies, post grad qualifications in Leadership, Marketing, Entrepreneurship and an MBA from Henley Management College at the University of Reading.
