British logistics company DX Business Direct is targeting the European B2C sector with its ParcelExchange drop boxes and is in talks with various Posts and logistics firms, its managing director
told CEP-Research.One year after the takeover by the DX Group, the company is now profitable, growing fast andready to expand internationally, managing director Ian Cummings said in an exclusive interview atlast week’s Post-Expo in Hannover.
In the first few months after the acquisition, the focus was on internal integration,creating back-office synergies and assessing the potential of the new business, he explained. “Weturned the business into profitability in January 2009. That was very symbolic for us and showed wehad turned the corner,” he said. “We have continued in profitability for the rest of the financialyear.” From September 2008 to June 2009, the company increased revenues by 20%, and continuedgrowing in August, he added.
The Parcel Exchanges have now been extended to 360 units, with a total of 5,000electronically controlled lockers, across the UK. The DX Group invested £500,000 in a further 50exchanges, Cummings said.
In Britain, the company operates a mixed business model with both network operations andinfrastructure. The core business is B2B in-night delivery of stock and spare parts to serviceengineers, with pick-up by contract couriers from distribution centres, night-time sorting at acentral hub in Nuneaton, and delivery by 08:00 to secure locations, including vehicles (In-Boot),drop-boxes (Parcel Exchanges) or manned sites. But other customers, including UPS, TNT and DHL,also use the Parcel Exchanges for drop-offs, either with or without the company’s collection anddelivery service.
DX Business Direct is now focusing strongly on international expansion and aims in particularto target the worldwide B2C market for parcel collection/drop-off. “The Parcel Exchange can be usedin any country. There is a worldwide market, e-commerce is growing at a double-digit rate, peopleare shopping online and logistics companies are looking at last-mile delivery,” Cummings said. “Worldwide we are looking for partners such as logistics companies or retailers. We are open topartners using our capacity as infrastructure.”
DX Business Direct is currently in talks with Posts, logistics carriers and others about thepotential use of the Parcel Exchange, he said. Pilots have already been conducted with a number ofEuropean operators including Itella, Ciblex and Hungarian Post, as well as with Hewlett-Packard inSingapore and an unnamed B2B carrier in Australia.
Key benefits of the Parcel Exchange include the ability to track parcels by GPS and remotelymonitor all activities at the box, interactive two-way communications and remote door-opening wherenecessary, added Danielle Venthen, the company’s international development director.
