ParcelForce cuts unprofitable customers

ParcelForce has started relinquishing some of its parcel contracts where the margins are too low. The move follows the restructuring plan announced earlier this year.
A spokesman said ParcelForce could not continue running two delivery networks, standard and express, so it is concentrating on building its express and international operations.
Parcelforce had reached a stage where it had to strip out less profitable contracts fairly quickly so that it can focus its customer service, he said. It was working to a fairly strict timescale and needed to ensure restructuring was completed quickly for the future of business.
“The company has tens of thousands of contracts, and the cancellation applies to a few hundred.”
Lian Beveridge, operations director at fulfilment company MetaPack said the announcement that ParcelFoce was radically Rationalising its capacity and services highlighted how vulnerable companies had become to upheaval in the carrier market.
“There is a real threat of unprecedented customer dissatisfaction this Christmas peak.”
MetaPack says the solution is multi-carrier management to enable customers to switch between carriers according to requirements of each consignment. James Roper, chief executive at IMRG, the industry body for global e-retailing says: “Multi-channel retailing is stressing the carrier market in new ways. This is largely because of internet shoppers’ high expectations for speed convenience and flexibility.”