Source: Adapted from Accenture (2015). Adding Value to Parcel Delivery.
The Courier, Express and Parcel Market
Freight can be carried as full truckloads (FTL), less than
truckloads (LTL) and as individual units such as parcels and documents.
The parcel delivery market, also called CEP (Courier, Express and
Parcel), is characterized by the time sensitivity of its shipments with
consignments usually less than 70 pounds (32 kg) delivered on a door to
door basis. There are different levels of service, each associated with
a cost structure. Same day deliveries are usually costly and done by
specialized air or road services under specific circumstances, such as
within downtown areas. Next day deliveries are offered in many
metropolitan markets, again using specific and costly distribution
channels. The most common parcel delivery service, deferred express, is
when the carrier can provide an accurate delivery date once the point of
pickup and delivery is known, usually between 3 to 7 days. Since parcel
carriers have well established distribution networks, they are able to
provide accurate delivery estimates once a parcel has entered their
network. Postal type deliveries commonly do not provide a specific
delivery date, but usually deliver within 2 weeks.