Interviews have shown movements of consolidation of firms over
the past few years, from purchases to acquisitions of company shares,
which enhance the growth of CEP companies created in recent decades.
In most cases, horizontal concentration occurs between heirs and new
players. For the former, this concentration follows the innovation
process, but also the ongoing internationalization of the parcel market
since the seventies, enhanced by the constant rise of cross-border ecommerce.
For the latter, it is about saving weight and volume. As an
example we can analyze UPS' latestmovements in 2012: despite failing
to purchase TNT Express, this American integrator bought the pickuppoints
network Kiala and invested in the city courier portal Shutl,
illustrating the movement towards innovative new players and a
geographical strategy towards the Europeanmarket. Another important
movement of consolidation is beginning between parcel providers and
e-commerce logistics providers. This vertical concentration leads to
the integration of the parcel delivery process, from order preparation
at the e-merchant's stock point, to the final delivery. For example, in
France in 2013, the national Post Operator bought two French logistics
providers from the online market, Orium and Morin Logistics, enhancing
its position as a leader in the e-commerce logistics sector.
3.3. Urban parcel providers' logistics strategies: defensive and offensive
strategies
Throughout Europe, actors of the urban parcel sector exhibit similar
logistics strategies for the creation of new delivery services. Based on
the French case, we can differentiate between defensive and offensive
strategies according to the level of innovation, investment and sustainability,
the use of subcontracting and the transportation network.
Offensive strategies, reflecting the willingness to provide innovative
services dedicated to parcel delivery and urban distribution prerequisites,
rely on service innovation. For instance, scheduled delivery,
weekend or delayed delivery, redirected delivery, fitting services, return
logistics offer, e-grocery delivery, convenience store delivery, samehour
or same-day delivery, and so on. They are based on innovative
routing, scheduling and information tools. They are also characterized
by the use of electric and carbon neutral city delivery vehicles fitting
urban prerequisites and constraints. Despite their ability to deliver in
cities silently, limiting GES and polluting emissions, these vehicles
have a limited carrying capacity and autonomy, so a dedicated organization
must be implemented, for example a city hub. That's why, innovation
in vehicle and logistics organizations are usually linked to offensive
strategies. Because of innovation and because they usually offer niche
market and high value delivery services for the well-off active urban
population, able andwilling to pay, offensive strategies are risky investments.
Only a slight profitmargin can be generated at first, but the progressive
industrialization of the process compensates for the
investment. These strategies are mainly implemented by new players,
but the heirs and the other players of the CEP sector also follow them.
For example, traditional providers of the mail order sales sector have
provided pickup-point networks since the 80's, so, as pioneers, they
can be considered as new players at the same time.
At the opposite end, defensive strategies are mostly used by traditional
parcel providers to provide innovative services at a lower cost
thanks to subcontracting and partnershipswith innovative new players
of the parcel sector or even purchase, i.e. pickup point networks and
specialized delivery service providers. That's why the heirs are
mentioned sometimes in two categories. For example UPS has been
one of the most important CEP players since its birth, so the firm is
mentioned as an heir. But thanks to its strategic purchase of Kiala and
the creation of UPS Access Point the player is also representative of
the attitude and service of a new player. In fact, subcontracting gives
only a slight distortion in the logistics organization of the decision
makers, while creating a dedicated and fully integrated offer, or a
dedicated supply organization, not only representing a huge change for
old-structured players, but also requiring robust investments.Moreover,
defensive strategies do not consider sustainable development as a basis
for innovation, contrary to offensive players, but rather as an obligation
with regard to public authorities and European Commission concerns.
3.4. Urban parcel providers' logistics organizations: shared innovation
Parcel providers organize their supply chain on different scales, from
a national and European scale to a very local one. Similar logistics