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Logistics franchises and technology

Sarah Stowe

Courier class

Richard Thame, chief operating officer of Fastway Couriers, the hub and spoke courier franchise business, says one of the biggest influences in the past year has been technology. “This is the component where we’re doing something for the customer and the franchisee. In software we are improving our online track and trace system. Customers have instant information, and they are increasingly using the internet to order.”

Thame describes it as the ‘I need it now’ approach. “Once they’ve clicked and used their credit card they’re sitting there tapping their foot waiting for delivery. When phone call ordering was more dominant there was an acceptance that paperwork needed to be completed. Now there is a greater focus on delivery.”

The company’s smaller customers can take advantage of a system that often is just available for the larger firms, he says. And for big business, the technology is cheaper because its Fastway’s niche, the company owns its technology, and the franchise network has the benefit of speed.

Other couriers have big mainframe systems, unlike the Fastway Couriers’ more modern architecture which allows the company to tailor solutions for business to business clients, and that might include tracking or special messaging.

The trend is that people want instant access, Thame says, and the more details the franchise can glean from its customers and throw back into the system to be ready with answers, the less manual the process.

For courier franchisees uploading intelligence into the scanners, their daily tool, can help them develop business relationships because instead of spending time with manual label systems, they scan an electronic freight label and then spend time learning more about the customer’s business needs.

“We provide a local service but we provide franchisees with freight analysis to collect information. Once they are back to their regional depot we can analyse this, and provide solutions.”

It equates to more time spent on business generation and less on administration.

“The second point is the niche online marketing space,” says Thame. “Home businesses are a great fit with the independently-owned courier service.”

Someone sending five parcels a week will grow their company and this is what the business is targeting now; through the online retail association and expo last year the courier business has got a foot in the online market.

Thame cites one specific sector, the wine industry. “It’s a terrific fit because we have people rather than machines handling the delivery. There are more and more wine vendors going online. Wine is delivered to homes or offices. We sort by hand to lower the breakage rates and provide a second delivery if needed for no extra charge.”

It’s quick and efficient.

A lot of traditional employees are looking for their first step into business, says Thame, and despite the technological advances that back up the system, it remains a low entry cost franchise.

When franchises are signed up, identifying the right customers for the business means a better chance at profit, so providing the tools to sales growth is paramount.

“Value brands are the trend now. It’s all about keeping costs contained and giving franchisees a competitive price,” says Thame. “We provide infrastructure, development and research. It’s a cost shared. What we’re looking for is someone that goes beyond a delivery focus.”

Thame’s vision is to dramatically grow income for franchisees, a task on the way to completion he believes, as Fastway Couriers is now on the radar of much larger customers as a significant player in the market.

“We’re not a niche operator, we have our own operating style and proprietary methods and provide a compelling service. Anybody can pick up and deliver a parcel, but we have the systems and the calibre of people. Customer

relationships are built between the franchisee and the customer.”

Pack it and send it

A number of innovations have marked the last few months at retail delivery franchise Pack & Send, as founder Michael Paul explains. The network of stores across the country includes franchised and company owned stores.

The network has launched an e-learning program designed for franchisees and staff to be able to undertake online courses specific to their business. Paul is confident the company is training franchisees well on packaging high value items but the online tool allows the information to be more accessible to staff. And with more staff being employed, lessons online allow for greater consistency of training, he says, which helps maintain high standards.

Also at the pointy end, a new Point of Sales system has been installed in stores across Australia, New Zealand and the UK and a proprietary freight management system has enhanced the network’s service with the right solutions at the right price.

“We’re a one-stop shop service,” explains Paul. “We work with different freight companies delivering anything from urgent express to furniture to high tech equipment.”

Pack & Send’s database for all the different services means franchisees can quickly come up with answers to the customer’s needs, professionally presented.

“For instance, return programs can offer a convenient returned goods process to the existing customer. It’s all about innovative solutions to existing problems. We are also exploring more economic products for certain target markets,” reveals Paul.

But the innovations are not just directed at customer options. A new financial benchmarking system provides more detailed information for the franchisees who report monthly profit and loss statements and this is clearly giving them more guidance, reports Paul.

Pack & Send has an innovation team made up of staff from head office, company stores and franchisees and regularly reviews innovations and ideas which may be trialled in company-owned outlets.

“We see innovation as being a part of what we do,” insists Paul.

“We’ll continue to focus on building a world class system. We’re going to put more focus on product development and new services to take advantage of the scale of the network.”

The company has registered its trademark in more than 42 countries. “We’ve expanded through mostly franchise concept and we’re looking to expand through direct franchise area development as well as master franchisees. We have a range of difference mechanics to enter the market.

“Our vision is to be number one in retail logistics services worldwide. We will have a global focus over the next 10 years. We’ve had a successful launch in the UK and New Zealand that has brought a lot of synergy to Australian franchisees.”