Package delivery
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Package delivery or parcel delivery is the delivery of
shipping container A shipping container is a container with strength suitable to withstand shipment, storage, and handling. Shipping containers range from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes. In the context of ...
s, parcels, or high value
mail The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal sys ...
as single shipments. The service is provided by most
postal system The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal syst ...
s,
express mail Express mail is an expedited mail delivery service for which the customer pays a premium for faster delivery. Express mail is a service for domestic and international mail, and is in most nations governed by the country's own postal administration ...
, private
courier A courier is a person or organisation that delivers a message, package or letter from one place or person to another place or person. Typically, a courier provides their courier service on a commercial contract basis; however, some couriers are ...
companies, and less than truckload shipping carriers.


Mail order and next-day delivery in the United Kingdom

Welsh entrepreneur
Pryce Pryce-Jones Sir Pryce Pryce-Jones (16 October 1834 – 11 January 1920) was a Welsh entrepreneur who formed the first mail order business, revolutionising how products were sold. Creating the first mail order catalogues in 1861 – which consisted of w ...
formed the first
mail order Mail order is the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote methods such as: * Sending an order form in the mail * Placing a telephone call * Placing ...
company in 1861. He distributed catalogues of Welsh
flannel Flannel is a soft woven fabric, of various fineness. Flannel was originally made from carded wool or worsted yarn, but is now often made from either wool, cotton, or synthetic fiber. Flannel is commonly used to make tartan clothing, blankets, ...
across the United Kingdom, with customers able to order by mail for the first time—this following the
Uniform Penny Post The Uniform Penny Post was a component of the comprehensive reform of the Royal Mail, the UK's official postal service, that took place in the 19th century. The reforms were a government initiative to eradicate the abuse and corruption of the e ...
in 1840 and the invention of the
postage stamp A postage stamp is a small piece of paper issued by a post office, postal administration, or other authorized vendors to customers who pay postage (the cost involved in moving, insuring, or registering mail), who then affix the stamp to the f ...
( Penny Black) where there was a charge of one penny for carriage and delivery between any two places in the United Kingdom irrespective of distance—and the goods were delivered throughout the UK via the newly created
railway Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
system. Price-Jones promised next-day delivery throughout much of the country.


Package delivery in the United States

In 1852
Wells Fargo Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California; operational headquarters in Manhattan; and managerial offices throughout the United States and intern ...
, then just one of many such services, was formed to provide both banking and express services. These went hand-in-hand, as the handling of California gold and other financial matters required a secure method for transporting them across the country. This put Wells Fargo securely in the stagecoach business and prompted them to participate in the
Pony Express The Pony Express was an American express mail service that used relays of horse-mounted riders. It operated from April 3, 1860, to October 26, 1861, between Missouri and California. It was operated by the Central Overland California and Pi ...
venture. They were preceded, among others, by the
Butterfield Overland Stage Butterfield Overland Mail (officially the Overland Mail Company)Waterman L. Ormsby, edited by Lyle H. Wright and Josephine M. Bynum, "The Butterfield Overland Mail", The Huntington Library, San Marino, California, 1991. was a stagecoach service i ...
, but the failure of the latter put the business in Wells Fargo's hands and led to a monopoly on overland traffic that lasted until 1869 when the transcontinental rail line was completed. During this period they carried regular mail in addition to the package business, defying the post office monopoly; eventually, a compromise was worked out wherein Wells Fargo charged its own fee on top of federal postage, in recognition of the limitations of the post office reaching all areas easily. From 1869 on, package services rapidly moved to the rail, which was faster and cheaper. The express office was a universal feature of the staffed railroad station. Packages travelled as "head-end" traffic in passenger trains. In 1918 the formation of the
United States Railroad Administration The United States Railroad Administration (USRA) was the name of the nationalized railroad system of the United States between December 28, 1917, and March 1, 1920. It was the largest American experiment with nationalization, and was undertaken a ...
resulted in a consolidation of all such services into a single agency, which after the war continued as the
Railway Express Agency Railway Express Agency (REA), founded as the American Railway Express Agency and later renamed the American Railway Express Inc., was a national package delivery service that operated in the United States from 1918 to 1975. REA arranged trans ...
(REA). On 1 January 1913,
parcel post Parcel post is a postal service for mail that is too heavy for normal letter post. It is usually slower than letter post. The development of the parcel post is closely connected with the development of the railway network which enabled parcels to ...
service began, providing rural postal customers with package service along with their regular mail and obviating a trip to a town substantial enough to support an express office. This, along with
Rural Free Delivery Rural Free Delivery (RFD) was a program of the United States Post Office Department that began in the late 19th century to deliver mail directly to rural destinations. Previously, individuals living in remote homesteads had to pick up mail themsel ...
, fueled a huge rise in catalogue sales. By this time the post office monopoly on mail was effectively enforced, and Wells Fargo had exited the business in favour of its banking enterprises. Motor freight services arose quickly with the advent of gasoline and diesel-powered trucks.
United Parcel Service United Parcel Service (UPS, stylized as ups) is an American multinational shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company specializing in telegraphs, UPS has grown t ...
had its origins in this era, initially as a private courier service. The general improvement of the highway system following
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
prompted its expansion into a nationwide service, and other similar services arose. At the same time, the contraction of rail passenger service hurt rail-based package shipping; these contractions led to the cancellation of the mail contracts with the railroads, which in turn caused further passenger cuts. Eventually, REA was dissolved in bankruptcy in 1975. Air mail was conceived of early, and scheduled service began in 1918. Scheduled airlines carried high valued and perishable goods from early on. The most important advance, however, came with the "hub and spoke" system pioneered by Federal Express (now known as FedEx) in 1973. With deregulation in 1977, they were able to establish an air-based system capable of delivering small packages—including mail—overnight throughout most of the country. In response, the postal service initiated a comparable
Express Mail Express mail is an expedited mail delivery service for which the customer pays a premium for faster delivery. Express mail is a service for domestic and international mail, and is in most nations governed by the country's own postal administration ...
service. In the same period, they also began contracting with
Amtrak The National Railroad Passenger Corporation, doing business as Amtrak () , is the national passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous U.S. States and nine cities in Canada ...
to carry mail by rail. Thus at the beginning of the 21st century, the U.S. consumer can choose from a variety of public and private services offering deliveries at various combinations of speed and cost. By 2018, parcel carriers are hauling 14% of U.S. goods, up from 10% 25 years ago, and FedEx’s US domestic volume increased 4.9% in 2018, while UPS reported a 3.3% increase and a 5.6% increase in domestic next-day air package.


Same-day delivery

Same-day delivery for local parcels (such as documents) has long been available by local courier. Rail and air transport made same-day delivery feasible over longer distances; for example, packages shipped in the early morning can be delivered (at relatively high cost) anywhere in the mainland United States. Retail goods were seldom sold with shipping any faster than overnight. Some
online grocer An online grocer is either a brick-and-mortar supermarket or grocery store that allows online ordering, or a standalone e-commerce service that includes grocery items. There is usually a delivery charge for this service. Brick-and-mortar superma ...
s such as
AmazonFresh Amazon Fresh is a subsidiary of the American e-commerce company Amazon in Seattle, Washington. It is a grocery retailer with physical stores and delivery services in most major U.S. cities, as well as some international cities, such as Berlin, Ha ...
and
Webvan Webvan was a dot-com company and grocery business that filed for bankruptcy in 2001 after 3 years of operation. It was headquartered in Foster City, California, United States. It delivered products to customers' homes within a 30-minute window o ...
, and delivery services operated by grocery stores like Peapod and Safeway have had same-day or next-day delivery windows. Many restaurants have long delivered
takeout A take-out or takeout (U.S., Canada, and the Philippines); carry-out or to-go (Scotland and some dialects in the U.S. and Canada); takeaway (England, Wales, Australia, Lebanon, South Africa, Northern Ireland, Ireland, and occasionally in Nort ...
locally on-demand, and
online food ordering Online food ordering is the process of ordering food, for delivery or pickup, from a website or other application. The product can be either ready-to-eat food (e.g., direct from a home-kitchen, restaurant, or a virtual restaurant) or food that h ...
services have expanded this to many restaurants that would otherwise not deliver. In the 2010s, various experimental services launched, using
online shopping Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the ...
and retail warehouses or chain stores local to the ordering consumer for fulfillment at relatively low cost. The
United States Postal Service The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the U ...
"Metro Post" started in 2012, which by 2014 was shipping Amazon orders to 15 cities. In 2013,
Walmart Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
was delivering same-day packages from its own stores in test cities via UPS.
Kozmo.com Kozmo.com was a venture-capital-funded online company that promised free one-hour delivery of "videos, games, dvds, music, mags, books, food, basics & more" and Starbucks coffee in several major cities in the United States. It was founded by yo ...
started a general one-hour local delivery service for small items in 1998, but failed in 2001. Same-day retail service
Postmates Postmates is a food delivery service, founded in 2011, and acquired by Uber in 2020. It offers local delivery of restaurant-prepared meals and other goods. It is headquartered in San Francisco, California. , Postmates operates in 2,940 U.S. ...
began in 2011, and
Google Express Google Express, formerly Google Shopping Express, was a service from Google.Sarah Perez"Google Shopping Express Expands To More Cities, Rebrands As Google Express", ''TechCrunch'', October 14, 2014 At Google Marketing Live in May 2019, Google an ...
began in 2013 with a limited number of vendors and cities. By September 2015,
Amazon Prime Now Prime Now, LLC is a subsidiary of Amazon that oversees its same-day grocery shopping and delivery service. The name also originated a brand, including a custom app, to distinguish the service from Amazon's other offerings, but both the branding a ...
(which includes selected goods including some groceries) offered 1-hour delivery in 13 cities, and the company launched Amazon Flex, which is a service similar to Postmates using part-time workers to deliver Amazon Prime Now packages. Some
vehicle for hire A vehicle for hire is a vehicle providing private transport or shared transport for a fee, in which passengers are generally free to choose their points or approximate points of origin and destination, unlike public transport, and which th ...
companies offer courier service and delivery of items ordered online from local vendors. Startups with similar services include Doorman in San Francisco, Chicago, and New York City, Deliv in San Francisco, WeDeliver in Chicago, and Shutl in Manhattan and Chicago. An alternative to same-day delivery is in-store pickup, which has been adopted even by previously online-only retailers like Amazon.


Regional parcel carriers

In addition, a number of regional parcel delivery companies have sprung up since the 1990s. They combine the track and trace capability of the national carriers with the ability to guarantee next day delivery at ground rates over a larger delivery footprint. Because they are regionally based, they are able to improve shipment time in transit and increase shippers productivity with later pick up times. The regional parcel carriers can be a cost-effective enhancement to UPS and FedEx because they do not charge the full array of accessorial charges mentioned in the section above.


Heavy goods delivery

Delivery of heavy goods, such as furniture or large appliances, requires a different logistical process than most small parcel couriers. For example, the supply chain of shipping large household goods from their manufacturers, to residential or business locations throughout the country and world is more complex and carries with it a higher potential for damage and error than with smaller packages. Specialized less than truckload shipping carriers handle shipping furniture and other heavy goods from the manufacturer to a last mile hub." The last mile problem can also include the challenge of making deliveries in urban areas. Deliveries to retail stores, restaurants, and other merchants in a central business district often contribute to congestion and safety problems. Once the goods arrive at the last mile hub, which is typically located less than 200 miles from the final delivery location, a dedicated last-mile carrier, also known as a white glove delivery company, will handle the final leg of the delivery. White glove refers to the highest service level for last-mile delivery of heavy goods. It involves the delivery team bringing the item to the room of choice, unpacking and assembling it, and removing all packaging and debris from the customer's home. There are over 4,000 white glove delivery companies in the United States, most of which only perform local deliveries. Some large less-than-truckload shipping carriers also offer white glove delivery service, and in recent years start-ups have emerged that offer nationwide networks of white glove delivery coverage. With the growth of
E-commerce E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain managem ...
websites that sell heavy goods throughout the country and world the white glove delivery marketplace is shifting from mostly regional carriers working with local
brick and mortar Brick and mortar (also bricks and mortar or B&M) refers to a physical presence of an organization or business in a building or other structure. The term ''brick-and-mortar business'' is often used to refer to a company that possesses or leases r ...
stores to E-commerce websites working with national delivery networks.


Package design for distribution

The individual sorting and handling systems of small parcel carriers can put severe stress on the packages and contents. Packaging needs to be designed for the potential hazards which may be encountered in parcel delivery systems. The major carriers have a
packaging engineering Packaging engineering, also package engineering, packaging technology and packaging science, is a broad topic ranging from design conceptualization to product placement. All steps along the manufacturing process, and more, must be taken into a ...
staff which provides packaging guidelines and sometimes package design and
package testing Package testing or packaging testing involves the measurement of a characteristic or property involved with packaging. This includes packaging materials, packaging components, primary packages, shipping containers, and unit loads, as well as the ...
services. Many e-retailers have specific packaging requirements for their suppliers and also offer assistance in package design. When shopping retail order from a warehouse, such as for
online shopping Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the ...
, multiple items are often placed in a single box (secondary packaging) for cheaper and easier transportation and tracking. This creates waste when there is only a single item that could be transported without an outer box (for example something that already has durable retail primary packaging). To avoid this problem, some items are designated in the industry as ''ships in own container (SIOC)'' and will receive only a shipping label. Some products are specifically designed as SIOC for environmental or cost reasons.How COVID-19 might change packaging for good
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Package testing Package testing or packaging testing involves the measurement of a characteristic or property involved with packaging. This includes packaging materials, packaging components, primary packages, shipping containers, and unit loads, as well as the ...
procedures include: *
ASTM International ASTM International, formerly known as American Society for Testing and Materials, is an international standards organization that develops and publishes voluntary consensus technical standards for a wide range of materials, products, systems, ...
D7386- Standard Practice for Performance Testing of Packages for Single Parcel Delivery Systems. *International Safe Transit Association ::Project 3K: Fast Moving Consumer Goods for the European Retail Supply Chain ::6-FEDEX-A: FedEx Procedures for Testing Packaged Products Weighing Up to 150 lbs ::6-FEDEX-B: FedEx Procedures for Testing Packaged Products Weighing Over 150 lbs ::6-SAMSCLUB, Packaged-Products for Sam’s Club® Distribution System Shipment ::Procedure 7D: Thermal Controlled Transport Packaging for Parcel Delivery System Shipment


Recipients

Recipients, if they are to receive packages in a timely and appropriate manner, must accommodate carriers. With the rise of the sharing economy multiple family dwelling with restricted access face difficulties due to increasing volume of deliveries, some of which, such as food, may be time-sensitive. Some have built storage rooms for packages and installed refrigerators. Recipients often choose to use a high capacity “parcel box” which will store large numbers of items and mail at the same time. Deposited items are securely stored with the use of internal security baffles which allow parcels to drop down into the lower portions of the box whilst restricting the theft of items through the aperture opening.


See also

*
Shipping list Freight transport, also referred as ''Freight Forwarding'', is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has bee ...
*
Document automation Document automation (also known as document assembly or document management) is the design of systems and workflows that assist in the creation of electronic documents. These include logic-based systems that use segments of pre-existing text and/or ...
*
Mail carrier A mail carrier, mailman, mailwoman, postal carrier, postman, postwoman, or letter carrier (in American English), sometimes colloquially known as a postie (in Australia, Canada, New Zealand, and the United Kingdom), is an employee of a post ...
*
Last mile (transportation) Last mile in supply chain management and transportation planning is the last leg of a journey comprising the movement of people and goods from a transportation hub to a final destination. "Last mile" was adopted from the telecommunications indus ...
*
Parcel post Parcel post is a postal service for mail that is too heavy for normal letter post. It is usually slower than letter post. The development of the parcel post is closely connected with the development of the railway network which enabled parcels to ...
*
Delivery drone A delivery drone is an unmanned aerial vehicle (UAV) used to transport packages for use cases that include medical supplies, fresh food, live ammunition, or other goods. Delivery drones are typically autonomous and electric, and operated as a pa ...
*
Autonomous car A self-driving car, also known as an autonomous car, driver-less car, or robotic car (robo-car), is a car that is capable of traveling without human input.Xie, S.; Hu, J.; Bhowmick, P.; Ding, Z.; Arvin, F.,Distributed Motion Planning for Sa ...


References


Further reading


A Brief History of the Package Delivery Industry
United States Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and ...
{{DEFAULTSORT:Package Delivery Postal systems Express mail Packaging