A Glimpse Into The Evolution of Delivery Dynamics

The landscape of the Turkish courier market has long diverged from the global hub and spoke system, particularly in the operational structures of local players. Unlike the worldwide norm, where companies dispatch couriers from central hubs for pick-up and delivery, Turkish courier companies have historically established branches not just for customer support but for comprehensive pick-up and delivery operations within their interlands – a practice known as first and last-mile operations. Consequently, each Turkish courier company typically boasts around 1,000 branches nationwide, with over half of these managed by franchisees.

Now, the pivotal question emerges: will the existing system persist, or is the Turkish courier sector poised to transition to the hub and spoke organization, a strategy embraced by emerging players? To gain insight, let's delve into the innovative model introduced by Trendyol Express, a paradigm also adopted by other industry entrants.

This progressive model involves establishing intermediate hubs in central locations. Independent merchant couriers, compensated per parcel and not employed directly by the company, then venture into their designated regions for distribution and pick-up tasks. This approach enables companies to harness a flexible workforce without bearing the overheads of full-time personnel. The compensation structure is based on Key Performance Indicators (KPIs), presenting an opportunity for efficient operations. While this system exhibits efficacy, experiences indicate potential slowdowns and service disruptions owing to these teams occasionally falling short of expectations.

Contrastingly, the traditional method encompasses rental offices, incorporating additional operational layers, and incurring office expenses – undeniably elevating costs. Nevertheless, the advantage of having easily accessible points for customers constitutes a significant edge. Relationships between branches and clients, confined to more limited and manageable areas, cultivate a robust structure. Customers place trust in their neighborhood branches, easily reachable in case of issues. Furthermore, they appreciate the flexibility to adjust package pick up based on the courier's arrival time.

Examining the current scenario, the industry appears inclined toward a transformative phase. Customers can now handle nearly all barcodes and shipment processes on their computers, track deliveries on their mobile phones, and experience fewer issues with expedited deliveries. Companies have solidified agreements with thousands of "pudo" points for pick-up and delivery, complemented by the installation of automatic "pudo" machines at entrances to sites, shopping centers, and gas stations – collectively indicating an inevitable shift towards the hub and spoke system.

Yet, significant players operate like ponderous vessels, requiring time to navigate changes. While they cannot effect immediate, radical transformations, the pace of evolving user habits presents a challenge. Trendyol Express stands out, transporting the very high shipment volumes with the new model. Hepsijet, equipped with robust software and an experienced management team, is rapidly expanding this model, pointing towards stable growth and potential consolidation within a year or two.

In this dynamic landscape, the key to success lies in finding the optimal hybrid solution – one that facilitates customer access in specific strategic points, transitioning to a dynamic distribution and acquisition model. Companies adept at crafting dynamic solutions to enhance customer access in pivotal points and embracing the correct hybrid approach are destined to emerge as the unequivocal winners in the medium and long term.