Race against time
With the rise of e-commerce, there are great changes taking place in the freight transport industry, especially for logistics companies.
This article is available for reading in Trade magazin 2024/10
The rapid growth of online shopping has drastically increased transport volumes, putting companies under pressure. They need to develop more advanced processes that allow reliable and fast delivery to meet shopper expectations. As e-commerce is expanding globally, competition is also intensifying in the domestic market, particularly due to the increasing volume of parcels from China.
An innovative period
“We have the biggest electric fleet in the country. Within the framework of the MPL+ project, by December 2023 we equipped our logistics plants with automated conveyor belts capable of processing up to 3,000 parcels/ hour at 17 locations across the country”,
says Mihály Panyi, parcel logistics technology and product management director of Hungarian Post Zrt.
He adds that Hungarian Post is in an innovative phase, where development is part of everyday life. This will mainly be reflected in the launch of new applications, new payment methods and environmentally friendly solutions.
Ádám Nándor Bengyel, CEO and co-founder of FoxPost Zrt.:
“FoxPost specialises primarily in parcel delivery to pick-up points, including parcel lockers, but we also offer door-to-door delivery. We focus on environmental awareness and sustainable last-mile delivery, so the whole structure is optimised for this”.
The most important development task for the coming year is to continue to operate and improve the network of more than 3,000 parcel lockers and nearly 2,000 parcel points in a unified fashion, together with Packeta.
Software support
Packeta Hungary uses several modern technologies to increase the punctuality of deliveries. Automated systems, continuously updated tracking platforms and advanced logistics software all contribute to the optimisation of the transport process.
“We are improving our services by collecting and analysing data, and we are also focusing on the development of our parcel point network”,
informs Gábor Kovács, head of sales and marketing at Packeta Hungary Kft.
They deliver to 33 countries outside Hungary, supporting e-commerce businesses entering international markets. Customers want contactless parcel receipt, predictability, real-time tracking, SMS notifications and direct access to the courier. Demand for parcel lockers and parcel points is showing impressive growth, while the market share of door-to-door delivery is declining. According to the latest research, 29% of online shoppers opted for parcel pick-up in December 2023 and this proportion grew to 38% by 2024, while the proportion of those preferring home delivery fell from 59% to 49%.
GLS Hungary’s services include home delivery as the most popular delivery option, as well as pick-up point of delivery. They operate more than 1,850 GLS Parcel Lockers, which is currently the largest such network in Hungary.
“We are expanding our network in cities and rural areas to offer flexible parcel delivery solutions to customers living in the countryside. Plus we have nearly 1,100 GLS ParcelPoints nationwide. We now also offer the GLS XXL service with 24-hour delivery, which can handle small parcel shipments of up to 80 kg”,
informs Attila Balázs, managing director of GLS Hungary.
More parcel lockers
DPD Hungary Kft.’s state-of-the-art distribution centre is the heart of their parcel delivery chain. More than 10,000 parcels/hour pass through the fully automated conveyor system, supporting economical and fast sorting. Data is transferred via a modern IT network, which tracks shipments and provides information on the lifecycle of the parcel.
“Our core services include door-to-door deliveries, with time-guaranteed next-day delivery and a 1-hour time window. We offer a wide range of delivery options with more than 800 parcel points and almost 200 parcel lockers”,
says László Varga, sales and marketing director of DPD Hungary Kft.
To increase the efficiency and accuracy of freight transport, DHL uses a range of advanced technologies, including online tracking and real-time T&T systems, to ensure that the movement of goods can be monitored at all times. Smartphone app use for drivers and smart stickers improve the accuracy of the delivery process.
“Our services include door-to-door delivery with time-bound and optional delivery options for maximum flexibility. Globally we operate more than 26,000 alternative fuel vehicles”,
informs Árpád Szabó, business development manager of DHL Supply Chain Hungary.
In recent years the transport industry went through dramatic changes due to Covid, the economic downturn and inflation. During the pandemic demand for parcel delivery surged, creating major logistics challenges, while the recession led to a decline in purchasing power and a drop in sales for domestic online stores. Sustainability requirements and environmental regulations are an increasing burden for companies. Rising fuel prices and labour shortages, especially of skilled couriers, are hampering the sector.
Pioneering technologies
Boxy Logistics Zrt.’s fulfilment customers have access to practically the entire domestic and international transport palette. They have contracted with every well-known domestic courier services and have entered into a strategic partnership with DPD.
“Our fleet is state-of-the-art, with the most optimal routes – there is no unnecessary mileage. The warehouse car park has several electric charging stations, so our employees can arrive at work with green licence plates and a peace of mind”,
says Dániel Schmidt, chief strategy officer of Boxy Logisztikai Zrt.
For Palletways the traceability of shipments is essential. Their cloud-based system makes it possible for everyone to get information about their shipment. Goods are tagged with barcode labels, which are scanned by colleagues at each intermediate station, in order to ensure that interested parties have the information they need.
“Other technologies that increase our efficiency include estimated time of delivery notifications, which allow recipients to see exactly when their pallet will arrive”,
says Balázs Balatonyi, sales manager of the Hungarian network of Palletways.
DODO has integrated data analytics, machine learning and real-time tracking into its in-house developed platform to optimise routes and schedules.
“Thanks to this we can predict demand patterns, minimise delivery times and ensure exceptional accuracy for our services. In addition to this, our platform guarantees full transparency with real-time updates”,
explains Lukáš Gold, CEO of DODO Magyarország.
DODO offers same-day and next-day 2-hour and 4-hour time window delivery, as well as express options for fresh food on request. //
Packeta and FoxPost join forces
With Packeta joining FoxPost, Hungary’s largest personal parcel delivery point network has been created, offering customers more than 2,700 parcel lockers and 1,800 parcel collection points.
Following the merger FoxPost will have access to the more than 40,000 online shops that work with Packeta, as well as Packeta’s cross-border business opportunities.
“This merger is a major start-up success story even by international standards. With this step we have created unparalleled innovation potential: we are committed to building a company that is more than the sum of its parts, while preserving the best practices of both FoxPost and Packeta”,
told Ádám Bengyel, founder of FoxPost.
“We look at the Hungarian market as a key part of our portfolio and I am pleased that this acquisition will allow us to provide an even better service to our customers. FoxPost is a big player in the parcel locker market, with 1,500 machines and delivering nearly 10 million parcels to Hungarian customers last year alone”,
added Erich Čomor, CEO of Packeta Group. //
Capacity-multiplying investment
Hungarian Post has reached another milestone: in order to serve its customers more efficiently, it is building a high-capacity automated logistics centre in Budapest. The objective is to provide a digital, 21st century and customer-centric service in line with changing shopping habits, at every location in the country. The modern 25,000m² facility will open in the West Industrial Park of Ecser in Budapest in early 2026. It will be capable of processing more than 30,000 parcels per hour. //
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