Cargo turnover growth for 9 months of 2021 was 28%. Challenges and realities.
Every day any business operates under conditions of constant adaptation, now to legislative requirements, now to consumer demand or to the behavior of competitors. And in the last few years even in the rigid instructions of the Ministry of Health. And the rule "money likes silence" in our realities does not work. Doing business under constant change and unpredictable expectations is extremely difficult for the present. But another rule applies - "survival of the fittest"! Exactly the business that quickly transforms to market demands, and wins.
The company "Delivery" has been working in the logistics operations market for almost 20 years. Market challenges for the entire period of operation were many and all of them have been effectively overcome. And the challenges of 2021 have become more technological. Along with the timing, cost of cargo transportation and service is the challenge of the rapid transformation of existing digital services - from the client's personal account and mobile application to a seamless productive remote user experience. Thus, in 2021 Delivery published a new mobile application, which in addition to quick access to transportation data, tracking, news and promotions of the company is the ability to perform online actions on the receipts, the processing time of which does not exceed 5 minutes. The mobile application is systematically supplemented with new functions to make it even more convenient to use, including adding the main and subsidiary organizations, writing off and exchanging points for the loyalty program, and improving the payment service. Now our specialists are working on improving the user experience in the personal account on the company's site. We expect the release of the updated personal account "Delivery" in early 2022. The company is actively working to integrate with the services of "Delivery" and simplify the procedure for delivery.
"Delivery" improves the efficiency of not only digital services, but also the current tariff schedule. Along with the branch tariffs "Automotoprice", "Veloprice", "Construction Price", "Horse Cargo" the Company has introduced to the market the new tariff "Agroprice", which allows farmers to expand opportunities for their business at lower cost. Agroprice is a universal solution, created specifically for the transportation of cargo of the agrarian sector of business, namely: seeds, crop protection products, canisters with micro and macro fertilizers, small and mounted agricultural equipment, spare parts for agricultural machinery, tires for heavy-duty vehicles, tractors and other agricultural machinery.
During the 9 months of 2021 "Delivery" has increased its geographical presence by 41 representative offices without weight limits in different settlements of Ukraine and introduced 128 cash desks cash on delivery. This allowed the company to attract new customers twice as much compared to the same period last year and increased the share of accepted freight by 27.4%. Last year tendency in the structure of cargo turnover remains the same: the share of parcels transportation has increased on 31%, the share of over 30 kg cargo - on 52% and the share of pallets - on 14%.
At the same time we state the fact of negative moments in our work. Timeliness of arrival of shipments to the representative offices decreased by 2.3%. The company makes maximum efforts every day to improve the situation, building new direct routes of transportation, arranging the work of transit terminals, expands the fleet of our own and hired vehicles and increases the number of forklift trucks, because the considerable part of the company cargo are large-sized cargoes and pallet format cargoes.
One of the challenges of 2021 was the shortage of qualified linemen for the sorting terminals. To overcome the challenge, the Company engages the resources of outsourcing staffing agencies, carries out continuous search, selection and training of warehouse specialists and forms its own talent pool.
There has also been a slight increase in loss and damage during shipment. Our customers' shipments travel hundreds of kilometers before reaching the recipient. Therefore, it is extremely important to ensure that your shipment is properly packaged using appropriate materials that will maintain its integrity throughout the duration of the shipment. It is primarily the sender's responsibility to ensure that the shipment is properly packaged. Saving on packaging material when shipping a shipment results in damage during transit. And it is cargo insurance for its real value that can protect a shipper from unexpected losses. The volume of cargo insurance by clients of SK QUORUM increased by more than 50% comparing last year. This is a significant level of confidence of the clients in SK QUORUM, which according to the results of work in 2020 took 5th place in the top 25 insurance companies of Ukraine in freights and luggage insurance. Each type of cargo requires different levels of protection and use of different types of packing materials. Representatives of the representative offices of the company will help you to make the right choice.
For the high active season of 4Q 2021 "Delivery" has developed and implemented for its customers a number of special promotional programs, in particular for the transportation of palletized cargo, transportation of tires and disks.
Justify the confidence of customers is the first priority of each employee of the Company. "Delivery" is working intensively to improve internal processes, transport chains and digital services and aims to confirm the position of the leading logistics company of Ukraine in the B2B sector by the end of 2021!