The biggest factor in the current shape of the market is the shortage of people - even the sources of staff on the temporary workers' side are running out. The situation in the professional driver market is radically different from what it was a year ago. Even big transport operators are having problems with drivers, although a lot depends on their policy towards them, which, as users of the services, we have no direct influence on. It does happen that drivers don't turn up for work and even with the best contracts, there are situations where the risk of not delivering on time cannot be mitigated. We expect operators who have relied on platforms and smaller hauliers to move towards direct contracts with drivers, thus giving them a guarantee of work and income, thanks to the link to a larger operator. Drivers are already able to push for higher rates, but above all, they are now also demanding more comfortable working conditions, particularly in terms of working time and organisation. The ability to offer good working organisation conditions will be key to driver retention and there are already companies working on this. Comfort can also refer to the stability of salary levels.
The progressing process of digitisation or the tendency of companies to digitise, integrate and move away from paper documents is also becoming important for the conditions and development of the industry. Flexibility of the operator's IT architecture and openness to system interfacing can significantly reduce the effort related to integrations with supported customers. For example, these days, information about the current status of a shipment is sometimes worth almost as much as the shipment itself. Ensuring full transparency (shipment tracking) will be even more important and surely, it is by guaranteeing high transparency of services that transport operators will win. Labour is becoming more and more expensive and recipients need to organise resources on their side to receive deliveries. Therefore, information about the fact that a delivery does not fit within the time window is crucial - retailers sometimes refuse to take delivery when they do not have the capacity to handle it. Deliveries live their own lives, dates change, roadblocks occur, so things don't always go as planned. It's not enough to deliver, you need to deliver on time, and in emergency situations ensure communication of changes as early as possible.
The expectations of retail trade companies in this regard are changing. Risks associated with delays in the delivery of goods from offshore markets, including Asian - are becoming commonplace in the market. Moreover, the previously mentioned requirements for a comprehensive tracking process for all shipments are becoming an expected standard. Another important element remains the complaints handling. Building mechanisms, to quickly respond to the needs of the service recipient and resolve the complaint, is fundamentally important.
COVID-19 has also changed a lot in consumer preferences. It is difficult to judge whether consumers have actually started buying more goods and fewer services, but their preferences are certainly changing in terms of what goods they buy and where they buy them. The changes may affect different groups of consumers in different ways, but the most dynamic growth can be seen in the e-commerce sector which drives parcel volumes.
There are many opportunities to integrate different types of flows of goods. It is critical that these activities do not adversely affect the level of service quality indicators provided for any of the areas to be consolidated. It is possible to consolidate dedicated transports to hubs, a little less often different flows on the last mile are consolidated (mainly for "similar products"). An important factor determining the “flows’ integration” process is the distribution channels we want to integrate. Criteria shaping the delivery process to the consumer (parcel, parcel machine, parcel pick-up point), differ from criteria shaping the delivery process to the PSD (retail outlet). Flows integration is a very difficult and responsible task, which requires deep analysis of potential optimizations, which aren’t always feasible.
Tadeusz Szlassa
Head of Non-Fuel Sales Logistics Management Department
PKN Orlen
