3 min read

Why Care for Parcel Management, anyway?

By Niklas Hedin on Mar 5, 2021 5:07:58 PM

Topics Reports
Niklas Hedin

There is an inherent human need to organize, structure and put things in boxes, so we can maintain order and predictability. To understand, make sense. The industry nomenclature around supply chain software systems is no different. Categories and distinctions were created in a time when the world was different. And the nomenclature around parcel management, first- and or final mile has yet to catch up.

And by the way, you may or may not agree, this is my opinion. But it’s well-founded. A couple of things are making sure the maps have to be updated, and perhaps new categories invented. Digitization, Pandemic, well, I think I’ll stop right there.

Sure, we have a cloud offering in the space of Parcel Management. It does what it says on the tin really well. It’s just that it is used to do so much more, or perhaps even for other reasons than to just ship a box, and few of our customers – many of which who are changing the game out there as you read this – use that nomenclature. Piling bricks or building a cathedral? I know the winners out there think different.

Intelligent balancing of network capacity across partners. Real time, consumer-facing optimization that takes network capacity, carrier service portfolio, economy and sustainable aspects into consideration while maintaining that the important part – the promise for a given delivery date – is kept. Double-digit percentage savings while increasing capacity, reach and on-time performance. Rapid on-boarding of network partners and thousands of stores to create a virtual, digitally connected network that executes far and beyond your own assets, increasing inventory availability while shortening distance to market, resulting in strategic supply-chain capabilities on par with the biggest and best in the market. Parcel Management? Perhaps. I suggest it’s more than that.

And yes, at the core lies strong functional capabilities that seem trivial at first glance. Of course, there are additions and modules you can extend our Parcel Management offering with like visibility, financial control etc. - still functional, useful and value-creating. Couple that with a clever strategy and assemble the parts and systems in a different way than normal. Boom - that’s when magic happens, and Parcel Management as a tool and even category can move from a System of Record and Execution to become a System of Innovation – a strong catalyst that is core to the empowerment of disruptive strategy, where timelines from ideation to business impact and excellence, shrink. Where differentiation truly happens. I have a lot of good observations, which involves anything from seemingly trivial items like clothes and shoes and transformation of retail to seriously important items like enabling and controlling the distribution of vaccines to fight the corona virus.

So those are my two cents. There is of course more to talk about. There are lots of things to do, to change and to make better, smarter and faster. Perhaps you are in the middle of these challenges and are wondering how to get a grip and structured thought on what to do. Well, don’t be a stranger. This is in fact our daytime job, to help and to modernize supply chains.

In the meantime, I present you with a market guide for Multi Carrier Parcel Management Systems. It’s a good read, and our company is in it. Modules, geographic coverage and all. But I wouldn’t stop there. I encourage you to reach out, as there is so much more to talk about. We’re on a mission. Are you?

Download Gartner Market Guide
Niklas Hedin

Written by Niklas Hedin

Niklas is the CEO of Centiro. Visionary strategist. Passionate leader. Curious learner.