Hermes Germany is raising prices for private customers including domestic and international parcels by an average of 8% as of 1 February 2019 and is starting to hire its own delivery staff with the aim to employ around 1,000 own employees in the medium term, which would equal 10% of its workforce.
Prices for private customers had been unchanged since May 2017. In spring last year, Hermes was one of the first parcel operators to increase prices for business customers by an average of 4.5% and introduce an additional peak surcharge per shipment during November and December for retailers.
“Against the background of rapidly increasing shipment volumes, Hermes is investing heavily in logistics infrastructure, fleet electrification, digitisation and technology as well as alternative delivery methods, especially in city centres. In addition, Hermes is investing €100 million in increasing wage and personnel costs on the last mile in the coming years,” the company said to explain the latest price rise measures.
Meanwhile, Hermes has expanded its product portfolio with the new “Shop-to-Shop” service enabling customers to send parcels in the sizes S, M and L from one parcel shop to another, starting at a price of €3.70. They benefit from the company’s extensive network of over 15,000 parcel shops nationwide. Liability and shipment tracking are included with all parcels shipped via Hermes.
Despite the rising volumes, especially during the Christmas peak season last year, the company was able to deliver all the shipments for its major customers in time for the holidays, Hermes Germany CEO Olaf Schabirosky said in an interview posted on the company website.
“The Christmas season is always an enormous effort for the entire industry – 2018 was no exception. However, Hermes' balance is positive. We prepared ourselves very early and intensively for the peak season. Right from the start, we closely coordinated with our customers and significantly increased our vehicle and personnel capacities,” he said.
Schabirosky confirmed that Hermes, which has been widely relying on sub-contractors for delivery, plans to start hiring its own delivery staff.
“In 2018, we already started the first trials with employees being directly employed in the Kassel and Cologne regions. Further pilot projects are planned. Depending on the outcome of the tests, I can imagine in the medium term to employ around 10% of all delivery staff in Germany directly at Hermes – which would equal around 1,000 own employees in total. But one thing is certain: recruiting delivery staff is not an easy task. The acute lack of drivers is one of the strategic core issues that will continue to occupy the CEP sector in 2019.”
He said that Hermes is continuously relying on digital solutions to support its delivery staff in the best possible way and to increase productivity on the last mile. “For example, we are currently investing tens of millions in new, app-based handheld scanners. We are also further developing the digital route planning system we introduced in 2018 – an important building block for an even more efficient and precise delivery process.”
“On the other hand, in view of the increasing volumes and the shortage of drivers, we are continuing to work on relieving the last mile with attractive, convenient alternatives to traditional home delivery. The further expansion of our parcel shop network and the promotion of consolidation points such as parcel locker stations play a major role.”
As the main highlights in 2019, Schabirosky mentioned three new logistics centres in Hamburg, at Münster-Osnabrück Airport and in Leipzig which will become operational this year. “I am also looking forward to further advancing the topic of electromobility with our partner Mercedes-Benz Vans, among others. And last but not least, the focus will be on further developing and expanding the measures for the last mile,” he concluded.
