| CASE STUDY >
Guaranteed delivery from A to Z
Written by: Jason Hovet
Photo by: Tomáš Kubeš
Satisfied clients have made Express
Parcel System (EPS) one of the three largest messenger services
in Prague. Now the firm is preparing to export its quality of
service across borders.
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Barbora Cornelio
Photo: Tomáš
Kubeš
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BARBORA CORNELIO could have started a lucrative
side business 13 years ago, the same time she was creating EPS.
As one of the founders of this messenger service she developed
a strong grounding in security. "We became specialists in
bicycle locks," she says, illustrating the problem theft posed
when she and her Italian co-founder (who has since left the company)
set up business in a cellar office in Prague 4. Fortunately, she
concentrated on EPS, helping to build it from a one-room, four-courier
operation that averaged 20 local deliveries daily to a firm that
currently delivers hundreds of packages each day around Prague
- and Europe.
Now with 45 couriers, the firm handles about 550 packages a day,
and last year's turnover topped CZK 20 million. More importantly,
the company now offers a list of services in addition to a simple
drop off. "The customer today doesn't want just to have their
consignments delivered," Cornelio says, mentioning some of
the services added over the years like electronic invoicing, proof
of delivery, not to mention same day delivery to Bratislava and
connecting to international routes, which it started last year. "Our
company has been developing gradually," she adds.
That development took off after the first year when EPS started
using computers running its own software. "In the beginning
we did everything on paper and it was quite time consuming," Cornelio
remembers. Soon the company outgrow its original office and moved
to a bigger space in Prague 6 - Hanspaulka. By 1997, EPS was ready
for its big break when it began capturing some big clients - those
who often have 100 consignments going out on a single day. That
year, 10 new couriers and three dispatchers were added to the staff,
and vans and pickups appeared in the company fleet. "In 1997
we made a small jump," Cornelio says.
Early on, EPS targeted the usual suspects who had to move a lot
of paper, like advertising agencies, translating companies, as
well as clients located in large office buildings. Quickly, though,
the company had to adapt to changing times. "Ad agencies aren't
our biggest customers anymore," Cornelio says, pointing out
that projects once sent on film are now passed on by email. "The
internet has taken a lot of work from us," she admits, "but
now it also brings us some." To compensate, EPS just started
adding more services like delivering heavy consignments or secure
documents, for example, and adding more value-added services like
cash on delivery or call back, which notifies the sender by whom
and when a package was received. "Those are things we didn't
do before because it wasn't necessary,' Cornelio says.

Photo: Tomáš Kubeš
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Photo: Tomáš Kubeš
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EPS is also looking for more work out of Prague today. In 2000,
the company recorded a big increase in the packages going out of
the city and now delivers regularly to Plzeň, Brno, Ostrava and
other regional centers. Also in that year, the messenger service
started offering same day deliveries to Bratislava. On this route,
EPS teamed up with a Slovak partner delivering to Prague, meaning
the two companies' vans pass each other each day promising regular
deliveries while cutting costs. EU entry has helped this route,
Cornelio says, by cutting tariffs. Accession, too, made it easier
to connect into international courier networks, which EPS started
with last year by forming partnerships with a number of transport
companies. "A wider portfolio of international partners enables
us, compared to the big international transporters, to have a much
more individual approach to the client," Cornelio believes.
Currently about one-third of revenues are generated out of Prague.
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Benchmark
- Establishing a strong client base
- Adapting services to customers' changing demands
- Building an international network
- Optimizing operations via the latest technology |
Cogs in the machine
To manage EPS's growing workload, the firm started using a new
IT system in the middle of 2004, which helped introduce the call
back service. The system, which took a half year to develop, has
helped the company lower prices and gives it the capacity to process
up to 5,000 orders an hour. Despite all of this, the backbone of
the company's operations - which have been located in Holešovice
since 1998 - remain its staff of couriers and back office employees.
Of the 15 office staff, the majority of these are dispatchers. "It
is quite a demanding job," Cornelio says. "It's mostly
the dispatcher's responsibility for consignments to be delivered
on time without problems." For that reason, EPS now takes
dispatchers' training a little more seriously. "At the beginning
it was very easy because we would put a dispatcher in an office
and tell them to distribute consignments to couriers," she
says. "[Now a new hiree must] observe the work of a dispatcher,
learn gradually and only then start doing the job themself."
In communicating with couriers, EPS still relies on the same type
of radio dispatch that it has used since the beginning. "The
advantage of a radio set is that you can start speaking right away
without having to dial a number first," Cornelio says, comparing
radios to mobile phones. "Everything in our company is about
time." That's why couriers, besides being able to physically
handle the job, must know Prague like the back of their hands.
Cornelio says only about one out three new couriers will quit after
a short time, and, surprisingly, many of EPS's couriers have been
with the company for more than five years. She admits finding the
right runners can sometimes be difficult, especially in the build-up
to the busy holiday season. "When we need new couriers there
is never enough high-quality labor force on the market," she
says. "That is a big problem."

Photo: Tomáš Kubeš
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Photo: archive
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With EPS's future plans, it should be adding
more couriers soon. Besides improving the quality of existing services,
EPS will continue
to build partnerships on international levels, and it is considering
opening Slovak branches. The firm is hoping to increase its market
share on the home front, through the efforts of its three sales
managers. "We are still addressing new customers and trying
to satisfy their needs," Cornelio says. In many ways it's
the same philosophy the company has always had: grow constantly
but gradually.
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Blooming business
Whether courting or conveying condolences, sending flowers
is a time-honored tradition. EPS realized this eight years
ago when it started approaching flower shops to set up a
delivery partnership under the name Floral Express. Customers
buying a bouquet in any shop with a designated sticker in
the window could then have the option of having EPS deliver
it. In 2003, after better-than-expected demand, EPS created
the website E-flowers.cz, where customers can order a standard
bouquet, make their own, or send roses. According to the
owner, on an average day five fellows will feel romantic
enough to order flowers.
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