Reckoning Benefits of Courier Industry in a Downturn

Courier business is a critical service sector of the Nigerian economy, generating an annual revenue of some N12 billion and counting, even in a global economic recession.
The inability of state run postal system to meet the demands of changing trends in terms of speed, security and expanded delivery, has led to the establishment of non-government owned courier firms now at the forefront of the business in Nigeria and blazing the trail in technology and business best practices.
Major players in the Nigerian market include global giants like DHL, UPS, FedEx Red-Star and TNT/IAS, and so called local players such as Tradeways, Tranex, Courier Masters, Ifex, Quality Express, among others which have negligible international presence due to lack of capacity, but continue to gain foothold in the domestic market with considerable national network.
As a major directive of cargo aviation, the courier industry is a major facilitator of world trade through foreign direct investments, offering greater scope for economies of scale for businesses by providing increased specialization in areas of core competence which allows for efficiency.
It also facilitates effective networking and collaboration over long distances, employs labour, and a major backbone for growth sectors such as banking, telecommunications, communications and tourism among others.
The courier industry has helped businesses to go about their operations in a more cost effective manner, reducing inventories, cycle time and carrying costs, in addition to raising productivity and levelling playing fields for small and medium enterprises. The most influenced is the transportation industry with advancements such as guaranteed services, time-definite delivery and overnight delivery services, among others.
As for consumers, the courier industry has contributed to the lowering of consumer prices, creating more shopping options, such that they can order through catalogues and the Internet. Likewise, it has created access to entirely new categories of consumer products ranging from groceries to hardware electronic products.
By integrating the pickup and delivery components with the line haul system and by mastering information systems needed to support booking and billing for shipments, courier companies have made centralized logistics a reality.
Be that as it may, the courier industry is still bedevilled with such challenges as lack of well developed and secure payment system, infrastructural deficiencies, poor import and export information on rights, obligations, concessions and privileges; inconsistent regulatory environment, and extensive prohibition of import items.