Ep 403: How to be profitable in parcels

Gordon Steward, Marketing Director, The Information Factory, shares how cost allocation can help drive profitability in parcel delivery and avoid the race to the bottom. We cover: • What senior executives need to know about cost allocation in the last mile • Balancing costs with USO obligations • Parcel volume growth while revenue per parcel is under threat • Cost allocation and the letters service • Responding to regulators' USO demands • How to be profitable in parcels and avoiding being in the race to the bottom • Identifying unprofitable customers • Measuring end-to-end costs - including hidden costs such as customer service • The importance of understanding the true floor cost position • The risk of reducing prices to win business • Bringing operational, sales, finance and business data together • Identifying avoidable costs • Pricing for profit • Creating a new service and setting profitable pricing