The potential of BHU

DB Schenker has a dedicated process for handling BHUs which differs from typical courier firm processes. It does not use integrated high-speed sorters. BHU parcels are handled in a separate zone in the terminal, but are transported along with general cargo (pallets). Parcels therefore travel together with pallet shipments, whereas in areas with limited access for large trucks, deliveries are made using vans.

DB Schenker also differs from many other courier firms in that it focuses on the B2B segment and this affects the types of parcels that we handle most frequently. Hence our network handles a far higher share of BHU parcels in the total pool of parcels compared with other courier firms.

Customer requirements and differences in handling BHUs compared with standard parcels

Core client expectations in any transport service include high quality and punctuality, responsibility for the shipment and securing the parcels. However, BHU packages are more susceptible to damage, and therefore must be handled manually, outside the automated process.

At DB Schenker, we handle all parcels in a dedicated BHU process which sometimes requires specialized equipment, such as drum grippers or tools typical for pallet handling, which can be used to handle parcel baskets. Therefore, in transit between branches, parcels are placed in special baskets which use a Euro-pallet base. This enables appropriate protection of the goods transported and allows for the effective and safe handling of non-standard shipments. The standards of conduct defined in the process itself are also important along with the attitude of the staff, in particular their sensitivity to ensuring that parcels are not damaged in the course of handling. Transporting parcels together with general cargo (pallets) makes it possible to use the strength of our whole network to ensure on-time delivery.

Approach to securing the contents is another dedicated element of the BHU process – sometimes customers do not want or cannot use additional measures to secure what they ship. Dog food in large bags is a good example. Traditional couriers require bagged dog food to use additional cardboard packaging, while it is quite possible to handle this kind of shipment in its original packaging, This means that the BHU process can use less packaging, letting us better address sustainability overall. Courier shipments often leave lots of packaging materials behind, such as plastic foil or cardboard which can be avoided in the BHU process.

The BHU process is carried out based on transport law, which also means that on one hand it is subject to other restrictions (it can handle parcels containing high value goods), while at the same time offering higher accountability in case of damage, although of course it is crucial to minimize damage anyway.

BHU parcel logistics in the context of smaller production batches

The size of a shipment (the number of packages shipped at once) and the shape of the shipment affect whether or not handling the shipment on a pallet is efficient. The rise of Industry 4.0 and e.g. using Kanban methods for production planning, mean that smaller batch sizes are used in production cycles and this in turn causes increasingly fragmented flows on the market. This trend supports the development of BHU parcel services, creating a need for a service with a size between a parcel and a pallet or a non-standard solution. Since the goods transported sometimes have specific shapes, it is not always possible to secure such goods on a pallet (e.g. it is not possible to secure long parcels in this way).

Customers of the BHU market

For traditional couriers, BHU parcels are characterized by “difficult contents”. These are often metal products, liquids, parcels with protruding parts, heavy parcels such as hydraulic fittings, but also bicycles and spare parts increasingly purchased online. Therefore, traditional couriers do not always want to handle such goods. Products of the chemical  and automotive industries, agricultural machinery and spare parts, as well as construction materials, for example, have different needs that usually cannot be handled efficiently in standard courier processes. It is also important to remember the differences between business customers (B2B shipments) and consumers as recipients (B2C shipments). We are seeing an increase in the interest in parcel handling among both customer groups, although the B2C segment is growing much faster due to the growth of e-commerce. The development of the parcel and courier services markets is also influenced by the nature of the Polish economy, still considered an emerging economy by some institutions.

In recent months, the COVID-19 pandemic has accustomed both consumers and business customers to shop online and order various items to their homes or businesses. However, the B2B and B2C segments require different distribution networks located in different places. In the case of B2C, these are largely urbanized areas, while for B2B, industrial zones are more common. It is relatively difficult to make BHU deliveries in consumer-dedicated networks and these difficulties impact how traditional couriers handle B2B flows, which is why we see the potential for further growth within the specialized BHU process.