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One-hour deliveries and parcel tracking lift DPD revenues

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DPD says the services it offers the online retail market, such as its one-hour delivery slot Predict service, and its parcel tracking Follow my Parcel service fuelled revenue growth of 18.6% over the last year.

The success of the two services, it says, have helped it to boost revenue by more than €100m for the second year running.

At the same time it expects to take on 1,000 new workers this year, with 927 already in post, and to open seven new depots.

DPD’s chief executive Dwain McDonald said it had been very satisfying to create 1,000 new jobs in a year, contributing to the economy.

“Online retailers can see a clear advantage in partnering with a delivery company that is investing hugely in technology, infrastructure and customer service,” he added.

In November 2012 DPD announced a £175m UK expansion programme which included a £100m parcel sorting hub at Hinckley in the East Midlands, the refurbishment of two existing hubs and the expansion of its depot network. Work on the Hinckley site has begun and the 330,000 sq ft hub, which will be one of the largest of its kind in Europe, will be operational by 2015.

Our view: We don’t often report on delivery companies’ results, but we were struck by the emphasis placed here on the services that DPD offers to online retailers. For us it underlines the important part that logistics now plays in multichannel retailing, largely because of its potential to differentiate the services offered by different retailers.

Of course, it would also be interesting to know whether all of that extra revenue adds up to extra profitability in a fiercely competitive market.

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