About the Author
Eugene N. Orunga is a Product Marketing Manager at Doban Africa in charge of the D-Trail product, a Parcel Tracking and Management System designed to help couriers/errand companies to optimize their services and manager their delivery operations efficiently.
Doban Africa Ltd is a small IT Services firm based in Nairobi. The company was founded in 2010. The primary focus of Doban Africa is in developing solutions in data and text mining solutions and other customer facing solutions to help businesses improve their efficiency in marketing and operations. Doban Africa has been delivering customized solutions in data and text collection and analysis, market research and consultancy.
The author holds a Bachelor of Arts Degree in Sociology from Kenyatta University, and has wide experience in the field of Marketing, having worked at Doban Africa for over a year. While Marketing D-Trail, he engaged in both online and offline marketing strategies to popularize the new product in the market. He has great experience in Search Engine Optimization (SEO), Search Engine Marketing (SEM), Social Media Marketing (SMM) and Internet Marketing. He currently manages social media accounts for D-Trail on major social media sites as well as managing the D-Trail blog at https://www.d-trail.co.ke/blog.
Acknowledgements
I would like to express gratitude to all the people who have made this ebook possible. I would like to thank Elvis Bando, the CEO of Doban Africa for the opportunity he awarded to me to be in charge of the D—Trail brand. It is through my daily duties at work that I got ideas to write this ebook. I would also like to appreciate the help accorded to me by my coworkers both past and present, notably Safan Yudah for his immense ideas and support, James Nyokabi, for the efforts he put in developing the D-Trail system as well as providing me ideas to improve the marketing strategy for the product.
I would also like to acknowledge the courier companies who welcomed the DTrail idea, and who either have started using the system, or whose plans are underway to be incorporated in to the system. They include Data Rush Couriers, Petty Errands, NTL Couriers, Easy Coach Bus Ltd among others.
ISBN: 978-1-300-95347-0
Copyright Statement
All contents copyright © 2013 by the author. All rights reserved. No part of this document or the related files may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording, or otherwise) without the prior written permission of the publisher.
Limit of Liability and Disclaimer of Warranty:
The author has used its best efforts in preparing this book, and the information provided herein is provided "as is." The author makes no representation or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages.
Trademarks:
This eBook identifies product names and services known to be trademarks, registered trademarks, or service marks of their respective holders. They are used throughout this book in an editorial fashion only. Use of a term in this book should not be regarded as affecting the validity of any trademark, registered trademark, or service mark.
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Doban Africa
Attn: Eugene N. Orunga
P.O.Box 1026, 00100,
Nairobi.
Cell: +254 723 023 027
Website: www.d-trail.co.ke
Email:
[email protected] Abstract
Technology has greatly transformed business transactions. Internet gave rise to ecommerce and more web bases systems have been developed to make business even much better. With current technology customers can make orders of their items from favorite stores, make payments online or via mobile money transfer services and they will be delivered right at their doorstep.
Most delivery companies haven’t yet aligned their strategies with the changes in technology. This has led to huge differences between delivery companies in terms of the market share. The companies that have adopted technology stand out as market leaders while these other companies are left struggling for clients and a place in the industry. Lack of proper technology in place has led to most companies experiencing problems hindering their growth and expansion.
D-Trail is a parcel tracking and management system designed to help delivery companies optimize their delivery services through web based reports and analytics. The system uses mobile tracking technology to track parcels and rider/driver locations. D-Trail helps delivery companies monitor performance of their firm, including subsidiary offices in various locations, management of employee performance, and most importantly, tracking of deliveries and sending delivery notifications. The reports and analytics generated by the system give you a detailed analysis and summary of employee performance, movement of parcels in and out of the company as well as performance of subsidiary offices.
The huge popularity of mobile phones and the use of mobile money transfers in Kenya have also contributed to a large extent on the growth of online shopping. For one who has not yet shopped online, questions like, how distinct are the online and in-store shopping experiences and what benefits does online shopping present to consumers continue to ring in their heads.
Communications Commission of Kenya (CCK) is a state owned corporation credited with the responsibility of ensuring fair play in the airwaves, as well as controlling and regulating the postal and courier services industry. It is an independent regulatory authority for the communications industry in Kenya. Its role is to license and regulate telecommunications, radio communication and postal/courier services in Kenya.
The key players in the Courier industry in Kenya include the Postal Corporation of Kenya, international delivery companies, security companies as well as upcountry bus companies. The Courier companies have joined forces to promote fairness and help improve the industry through the Courier Industry Association of Kenya (CIAK).
Table of Contents Page
About the Author 2
Acknowledgment 3
Copyright Statement 4
Abstract 6
The Courier industry in Kenya 10
The Courier Industry Association 11
The Communications Commission of Kenya 13
How to Start a New Courier Business in Kenya 14
Key Players in the Courier Industry in Kenya 15
The Postal Corporation of Kenya 15
International Companies 17
Courier Companies 19
Bus Companies 20
Security Firms 20
The Legal Frame work of the Courier Industry in Kenya 21
Shipping items to Kenya 21
Online Business in Kenya 24
Parcel Management and Tracking in Kenya 25
The D-Trail Parcel Tracking and Management System 28
The Future of Home Delivery Services 37
References 41
CHAPTER ONE:
THE COURIER INDUSTRY IN KENYA
The postal and Couri
er service industry in Kenya begun before independence in 1948, services were mainly provided by the East African Posts and Telecommunications Corporation operating in all East African Countries including Tanzania and Uganda. The dissolution of the first East African Community since that era forced Kenya to establish its own monopoly communications company, the Kenya Posts and Telecommunications Corporation (KPTC)
In 1999, KPTC’s board of directors was dissolved by the government of Kenya after a controversy over its privatization as well as concerns from International Monetary Fund (IMF) over corruption allegations within the government came to light. The corporation was broken down in to three different entities namely:
Telkom Kenya providing telecommunications services,
Postal Corporation of Kenya to offer postal services,
Communications Commission of Kenya (CCK), a separate national regulatory authority.
The industry has been experiencing a huge growth, with several firms joining the market. The industry is now occupied by Courier companies that mostly do intra and intercity deliveries, bus Companies and Security firms that mostly deal with upcountry deliveries. There are also international companies that have established themselves as reputable companies in the Kenyan industry. Upcountry delivery companies have established networks across the country so as to reach more people. Among the services offered by delivery companies in Kenya include Same Day Delivery, 48 hrs Delivery, 72 hrs delivery as well as one weeks’ delivery.
In major cities and towns in Kenya, restaurants and hotels have also adopted delivery services by delivering cooked meals to their clients’ homes. The home delivery of meals has been gaining popularity in major cities and towns in the country due to the tight schedule that most city dwellers have. This makes it hard for them to prepare meals at home and therefore opt to have food delivered to their homes instead. Grocery stores have also adopted the delivery model, where they delivery groceries to people’s homes.
The internet has also had a huge impact on the delivery services in the country. Online businesses ranging from clothing lines, jewelry stores, bookshops, flower vendors among other have all gone online with the aim of reaching out to the ever increasing online market. There are various businesses that allow customers to purchase products online and have the goods delivered to their homes.
Retail outlets are also finding it necessary to deliver goods to their customers at some fee. This is largely attributed to the changing lifestyles in towns and major cities which have seen more people being involved in a lot of occupational issues. This leaves them with little or no time to go for shopping, hence the need for online shopping and home delivery services where people can do their shopping right from the comfort of their homes.
The Communications Commission of Kenya (CCK)
Communications Commission of Kenya (CCK) is a state owned corporation credited with the responsibility of ensuring fair play in the airwaves, as well as controlling and regulating the postal and courier services industry. It is an independent regulatory authority for the communications industry in Kenya. Its role is to license and regulate telecommunications, radio communication and postal/courier services in Kenya. It also issues licenses to ISP's Internet Service Providers as well as other communication devices that go beyond unlicensed frequencies. It is responsible for developing and co-coordinating the policies and strategies with respect to development and operation of telecommunications services in Kenya.
CCK was established in February 1999, when the Kenya Post & Telecommunication Corporation (KP&TC), was split into CCK, the Postal Corporation of Kenya (CCK) and Telkom Kenya.
The following are some of functions of the CCK:
Licensing all systems and services in the communications industry, including telecommunications, postal/courier and broadcasting.
Managing the country’s frequency spectrum and numbering resources.
Facilitating the development of e-commerce.
Type approving/accepting communications equipment meant for use in the country.
Protecting consumer rights within the communications environment.
Managing competition in the sector to ensure a level playing ground for all players.
Regulating retail and wholesale tariffs for communications services.
Managing the Universal Access Fund.
Monitoring the activities of licensees to enforce compliance with the license terms and conditions as well as the law.
Creation of CCK allowed other private players to enter the courier industry. The Communications Commission of Kenya (CCK) is the national body charged with the responsibility of regulating the postal and courier industry in Kenya. CCK issues operating licenses to couriers to enable them carry out their delivery service within a legal framework. Couriers that do not register with CCK are considered to be illegal businesses.
The Courier Industry Association of Kenya (CIAK)
All courier companies have to get licenses from the industry regulating body, CCK, before they begin their operations. All courier companies are also advised to join the Courier Industry Association of Kenya (CIAK) so as to help improve the industry together with other stakeholders.
CIAK is an association brings together players in the Courier industry in Kenya. The members meet to deliberate on various issues affecting the industry such as pricing and regulation. The Courier Industry Association of Kenya seeks to advance the interests of all courier companies and works in line with the industry regulation body, CCK, to help improve the industry. The members of the association agree on pricing so as to promote fairness in the industry.
The members of the association range from international companies operating in the country, to bus companies as well as other courier companies. The Current chairperson of the Courier Industry Association of Kenya is Jane Babsa-Nzibo.
How to Start A Courier Company in Kenya
The courier industry in Kenya still has more than enough room for new players. If running a courier company has always been your dream, you can make it come alive after getting more insights from this section of this eBook.
The best way to go about starting a courier service business is by exploring various options available at your disposal. You can operate a courier service in several ways. You can team up with an established courier company and have them subcontract your business. This is good for you if you do not have past experience in the industry and you do not have the basic skills to run your own business. You can also Start your own company from the scratch if you have the resources and enough experience to run the company to be among the biggest in the industry and to withstand competition from some of the industry heavy weights.
Decide the legal structure of your courier business, whether it should be a sole proprietorship, limited liability company or a partnership. Look for ways to finance the business, either from your own savings or loans from financial institutions.
Find a good location for your business, a place easily accessible by your prospective clients and customers. Register your business with the local authorities of the location where the business is to be situated. Liaise with the communications commission of Kenya to understand the legal framework within which your business is going to operate. You will also apply for a license of operation form the CCK.
After understanding the scope of your services, get to know the market structure of the postal and courier industry. The market has been segmented in to seven categories with different responsibilities. CCK gives all courier companies a 15 years’ operating license while the Postal Corporation is given a 25 year operating license. The different categories include Public Postal Operator, International Operators, International In-bound Only, Regional Operators, Intra country Operators, Intra city Operators and Document exchange operators.
Once you receive your license, you are free to start running your business. You should also join fellow industry players in the Courier Industry Association of Kenya (CIAK) so as to share opinions on how to run
the industry and contribute to the growth of the industry as a whole.
CHAPTER TWO:
KEY PLAYERS IN THE COURIER INDUSTRY IN KENYA
The courier industry in Kenya is growing very fast and is attracting more and more investors. The delivery sector contributes a lot to the economy of the country and the key players in this industry include the Postal Corporation of Kenya, international courier companies, local courier companies, Security Service Firms as well as Up Country bus companies.
The Postal Corporation of Kenya (PCK)
As far as the scope of delivery services is concerned, the Postal Corporation of Kenya (PCK) has been given exclusive rights by the Communications Commission of Kenya to offer certain services which other couriers cannot offer to their clients. This is because PCK is the body designated as the public postal licensee. Among the services offered exclusively by the PCK include; Acceptance and delivery of postal articles weighing up to 350 grams, Provision of private letter boxes and bags and Printing and issuance of postage stamps among others.
The Postal Corporation of Kenya and other courier companies are mandated to offer the following services to the public:
Courier services – faster and more efficient means of delivery mainly same-day or overnight
Parcel service’s – catering for all postal items other than letters
Direct mail marketing services – passing message to a larger audience-customer communication, distribution of catalogues, orders, statements etc