Courier Business Training Workshop at AFRALTI by Ianstar Ltd.

Join the upcoming Courier Business Training Workshop at AFRALTI facilitated by Charity Mwanzia, Lead Consultant from IANSTAR LTD. Discover essential aspects of running a successful courier business, explore course objectives, topics, and expectations. Engage in participant introductions, understand the key concepts of the courier industry, and learn strategies to overcome challenges. Enhance your knowledge and skills to excel in the competitive courier industry in Kenya.

• Courier Business
• Training Workshop
• AFRALTI
• Ianstar Ltd
• Kenya

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1. POSTAL AND COURIER TRAINING Facilitator: RUNNING A COURIER BUSINESS Charity Mwanzia, Lead Consultant, IANSTAR LTD. EXCELLENCE. DELIVERED FEBRUARY 2017 Venue: AFRALTI AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 1

2. House rules Registration Punctuality after breaks Phones on silent Class president and deputy appointment Active participation Geography of the venue Tea break 10:30am 11:00am Lunch 1:00pm- 2:00pm AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 2

3. Participant Introductions All participants should introduce themselves giving their names, company, position, and a challenge in running the courier business that starts with their first name initial. Delivering excellence ensures you are one of the stars in the galaxy! AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 3

4. Expectations tree AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 4

5. Course objectives General objective: To instill knowledge and skills on the fundamental aspects of running a courier business or operations (in PCK) Specific objectives: After a successful completion of the course, participants should be able to: Understand the basic concepts of courier business Understand and manage contemporary issues concerning planning and operation of a courier business. Understand the challenges, options and solutions in courier business The participants will also share and learn from each other s experiences. 1. 2. 3. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 5

6. Course topics Overview of the courier industry. Basic concepts of courier business. Marketing and selling courier services. Courier operations support functions. Performance measurement in a courier business Economic and social aspects of the courier industry in Kenya. Challenges of running a courier business in Kenya. Strategies to address challenges in the courier industry. 1. 2. 3. 4. 5. 6. 7. 8. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 6

7. Topic 1: Overview of the courier industry Definition: Courier service Courier service involves conveyance of documents, parcels and distribution or parcels, catalogues, publications or any other material that needs to be delivered. It is a premium service. On the other hand, Postal services are basic services. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 7

8. Introduction contd Conveyance is by use of: Motorcycles ii. Delivery vans iii. Delivery trucks iv. Passenger buses v. Bicycles vi. Foot/ ground couriers vii. Aircrafts i. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 8

9. Introduction contd... Definition: Courier business (courier service provider) An organization which offers courier services to customers in exchange for money. A courier business can be publicly owned, or privately owned- PCK and private operators AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 9

10. The Regulator - Communications Authority of Kenya Mandate: Licensing, promoting development of standards, monitoring operator activities, protect consumers, manage competition. Maintains active licensee register. Prepares annual industry reports. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 10

11. Relevant legislation Kenya Information and Communications Act 1998. Amendments in 2009 and 2013 Postal and Courier services regulations, 2010 Universal access and services regulations, 2010 The Kenya Constitution, 2010 Guidelines for postal and courier licensees on promotion of e- commerce Courier License conditions AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 11

12. License conditions Compliance Revocation 1. Type of operation and annual fees. 2. Compliance returns- courier revenue stream. 3. USF fees. 4. Service standards. 5. Customs. 6. Safety and security. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 12

13. License conditions contd 7. Tariffs and reviews 8. Interconnection 9. Business permits 10. Tax obligations AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 13

14. Competitive services Offered by both public and private courier operators Courier services customized; overnight, same day, express, premium, within the hour Distribution services- publications, magazines, trade journals, invoices Electronic mail services AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 14

15. Courier services There are a variety of service levels and names in the market, including Within the hour courier service Same day courier service Overnight service D+ 2, D+3; extended delivery services Export courier services Import courier services In- house courier services AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 15

16. Services exclusive to PCK Acceptance and delivery of postal articles weighing up to 350 grams. Provision of private letter-boxes and bags. Printing and issuance of postage stamps. Financial remittances. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 16

17. Postal and Courier Industry stakeholders Definition: Stakeholders: Groups that have an interest in the company. Without these groups the company ceases to exist. They provide resources. Not all stakeholders are equal. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 17

18. Stakeholders contd It is important for managers and owners of postal and courier businesses to understand, manage, control, influence, monitor, advise, cooperate and comply to stakeholder interests and expectations for smooth business operations. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 18

19. i. Internal stakeholders Employees Managers Owners/ Shareholders AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 19

20. ii. External stakeholders Customers- existing and potential customers Government- CA, KRA, UPU, PAPU Competitors Industry groups- CIAK, KEPSA, KIFWA Professional associations- HR, Accounting, CS, MSK, Legal Suppliers and partners Financiers and investors Communities- local, national, general public Trade unions AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 20

21. Critical factors in courier service provision Reliability and flexibility Routing and work flow chart Security Information- track and trace Fleet and transport services Price of provided services AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 21

22. Critical factors contd Service Level Agreement Customer service line, desk, department or call center Courier waybill, consignment note, collection or delivery note. Working time calculation sheet AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 22

23. Trends in the postal courier service industry 1. Competition: Own customer delivery systems Increasing number of local courier/ city courier service operators Entry and expansion of international companies AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 23

24. Trends contd 2. Client needs Value added services Quality improvement Guaranteed delivery - speed - low cost Price sensitivity AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 24

25. Trends contd 3. Regulatory framework Market structure clustered- public, national or international operator Unclear requirements of universal service Disproportional price regulation- PCK price controls vs. private operators notification of price changes Access to network by competitors- interconnection contract filing AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 25

26. Trends contd 4. Technologies E-correspondence E-commerce AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 26

27. Participants activity 1 Name the top 6 courier service providers in Kenya. (Class discussion) Give 3 reasons as to why the above companies are the best courier service providers in Kenya i.e. the distinguishing features from the other operators. ( 30 minutes) AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 27

28. Topic 2: Basic concepts of courier business operations Elements of a courier operations strategy i. Operational Network ii. Courier hub iii. Interconnection iv. Manifest v. Way bill vi. Dead weight limit vii. viii. Performance standards AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 28

29. i. Elements of courier a operations strategy Range of services Location of premises and outlets Fleet Routing and scheduling Courier process work flow HR and job design AFRALTI 29

30. ii. Operational Network Courier service providers use a hub and spoke network model. The branches form the spokes in the network. A large-sized player owns and operates from many branches and service points whereas a smaller player has a lower number of branches. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 30

31. Operational network contd The branch networks could be owned or outsourced i.e. a pharmacy acting as a drop of point. Investments in a network are required to be made in terms of facilities, equipment, labor, fleet and information technology. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 31

32. Operational network contd At the highest level, the performance of a courier network should be evaluated along two dimensions: a. Meeting customer needs- delivering value b. The cost of meeting customer needs- to ensure profitability AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 32

33. Operational network contd Measures influenced by the structure of the network include: 1. Lead times 2. Service variety- routes and schedules 3. Customer experience- quality service levels 4. Courier business visibility- marketing tool 5. Service costs- capacity vs. utilization rates AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 33

34. Hub and spoke model illustrated AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 34

35. Hub and Spoke model To better understand the hub-and-spoke system, imagine an intricate bicycle wheel, with the hub as the strategic center of the network, and the spokes radiating out to connect it with remote points. The functionality of the hubs and spokes differ according to the company size and operations. It differs from point-to-point or direct-route operations. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 35

36. Characteristics of the hub- and- spoke network model Detailed planning and coordination required Cut-off Times along with limited sorting time Labour-intensive environment Highly sensitive (wrong sorting generates multiple problems) Hub continuous operation Capacity management during peak & non-peak hours AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 36

37. Advantages of the Hub-and-Spoke network model 1. Provision of express courier services at minimum cost 2. Efficient sorting: small number of sorting centers 3. Time accuracy 4. Easy incorporation of new points in the network 5. Reduction of long-distance transportation AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 37

38. iii. Courier Hub The central part of the wheel where the spokes come together Strategically located facility where a courier company's major facilities and operations are housed, and where most of its scheduled fleet originate from or terminate at. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 38

39. iv. Interconnection A tie- up of an operational nature between courier businesses. The tie- ups help in extending the geographical reach of a courier business. These tie- ups are largely on a non- exclusive basis. An example: tie- ups between international operators and national operators. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 39

40. v. Manifest A document that serves as a tally- sheet, giving a detailed summary of all courier way bills issued by a courier company for a particular vehicle, vessel or journey. It contains all the details of the number of courier items exchanged. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 40

41. vi. Way bill It is a document used by a courier company giving details and instructions relating to the courier item in reference. It shows the name of the consignor, consignee, point of origin, point of destination, courier item type, weight, volume, number of packages, charges paid, details of the courier staff who collected, time and date of collection, along with special instructions e.g. hold at destination, deliver duty paid AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 41

42. Way bill contd Some companies use alternative documents for the same purpose e.g. consignment notes, collection notes and dispatch notes. (Engage PCK for PCK documentation names) The consignees sign on the waybill upon receipt of the courier item, indicating the name of recipient, date and time of receipt. This piece of information is known as the proof of delivery. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 42

43. vii Dead weight limit Dead weight limit: 30kg per package. Every country or area has its own size and weight limits. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 43

44. viii. Performance standards They are the observable behaviors and actions which explain how the job is to be done, plus the results that are expected for satisfactory job performance. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 44

45. Standards contd PCK and courier companies are required to comply with the CA defined operational standards, industry standards as well as customized standards as per signed SLAs with customers. Key factor: Quality of Service Standards National and International delivery standards range from D, D+1 D+5 Monitoring and tracking AFRALTI 45

46. Participant activity 2 Define the following: 1. Courier tariff 2. Work calculation sheets AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 46

47. End to end courier service management Courier item pickup Data management Packaging Document digitization, filing and recovery Return management Courier item preparation for routing and distribution Warehousing, classification and distribution Supervision and booking coordination Receipting Reporting. AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 47

48. Topic 3. Marketing courier services It is geared towards creating awareness about the existence of the courier company. Marketers design and provide information about the courier company for access by customers. Marketing activities include development of content, design of the message and decisions on the appropriate channels to use- TV, print, Radio, billboards, online, social networks, internet and mobile marketing AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 48

49. Marketing contd Communication programs are designed for specific market segments; target marketing On the other hand, sales/ selling is concerned with revenue generation and return on investment AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 49

50. Focus areas in marketing courier services Promotional and CSR activities- awareness creation, 1. remind and persuade clients to buy from your company Market share, customer loyalty, image 2. Pricing- discrimination strategy; different prices for 3. courier services; different geographical areas, customers, transit and conveyance times, categories of services. Relationship: cost vs. price AFRALTI 11/22/2024 Ianstar Ltd. Excellence. Delivered 50

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