Courier Companies finding it hard dealing with increasing operating costs.

UK Couriers are now finding it extremely difficult to operate in a very competitive industry. Their clients, who are either large enterprise businesses who are able to negotiate discounted prices, or small business and consumers who always want the cheapest service. On top of that, UK Fuel prices and taxes have not helped the industry one bit and many courier and haulage firms have bitten off more than they can chew and have gone under.

Larger logistics businesses are finding that, due to rising costs, that their profit margins are gradually being squeezed more and more, but due to the competitive nature of the industry they are unable to pass these costs onto their demanding customers.

Cost rises don’t stop there though. The UK Courier and Logistics firms have to contend with congestion charges, motorway toll charges and a rise in insurance premiums.

Many Couriers give their customers contract rates, so that the customer knows where they stand, and can make informed decisions about the pricing and sales strategy of their products. This means that when unexpected increases occur, for example in fuel, that the courier is left absorbing the cost.

A courier company that operates 50 delivery vans can see their fuel costs increasing to over one hundred pounds a day, just by a small price of a few pence on a litre. Because of this, it’s now not feasible for a courier to only half load his van – he has to make sure that they are making as many deliveries as possible in one area to maximise their profit margin.

With over 800 courier and logistics companies registered, a good courier company can be hard to find.

IC Consulting can help to review your International Courier and UK Courier supplier/s and save you the time and effort! Through customer surveys and benchmarked cost-analyses, ICC helps organisations to source those suppliers that are not only best suited to requirements but also those that offer the very best service at the best rates.

Please get in touch with our sales team for more information.