How Do You Build A National Courier Service

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How Do You Build A National Courier Service?
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My Perspective Colorados Courier

• 2007 LRS study found Colorado libraries using
  the states courier saved 250 over the least
  expensive alternative - the U.S. Mail
• 470 libraries ship about 5 million items

COLORADO STATISTICS

• www.lrs.org

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Who Currently Manages Library Courier Systems?

• Large public library systems (Denver, Chicago)
• Large university systems
• Some multi-state college systems (CIC- Big 12)
• Regional library systems (MO, MA)
• Statewide systems (CO, WI)
• Multiple state consortium systems (Orbis/Cascade
  - WA, OR, ID)
• Links between separate courier systems (Mintex
  WI)

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Trucks, Vans, Llamas, and Camels

• Self-run, home-grown systems
• Own trucks and hire drivers, etc.
• Contractual Services with Delivery Vendors
• Velocity Express, American Courier, U.S. Cargo,
  Lanter, etc.
• Hybrids
• Wisconsin uses both its own trucks drivers and
  uses a vendor service

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What Would a National CourierService Look Like?
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Two Models

• Monolithic Structure
• New federally, funded government program
• Federal legislation
• Central administration
• Own a fleet of trucks
• OR
• Contract with Fed Ex, UPS, etc.

• Regional Structure
• Link existing regional couriers together
• Help new couriers form
• Forge links between existing couriers
• Regional autonomy

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Linked Regional Couriers A Three Legged Stool

• Ordering (ILL) system
• Rethinking Resource Sharing
• Physical delivery systems
• Agreements

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Coverage A Map with Blanks
Many states have at least partial courier service

• Some states have NO service
• Can existing couriers expand or link?
• Example Could Colorado link with TexShare?

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A Regional Approach

• Create regional courier systems
• Geographically contiguous regions
• Reduces moving time, cost system complexity

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Line Hauls and Sorting Hubs
Tiered system
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Labeling

• No label consistency
• Need META-LABELING System
• National code system
• Allow for easy sorting at hubs
• Each package has 2 labels
• A national local label

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Packaging

• Standardized totes, large bags, or individual
  packages?
• What type do you use?
• Large totes for regional sorting hub
• Smaller bins to redistribute materials within a
  region

Talk about individual packaging costs later
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Courier Management Systems (CMS)

• New commercial product on market
• Quipu Group www.quipugroup.com Others?
• Provides a searchable interface for member
  libraries
• Locations, codes, etc.
• Management functions
• Billing module, routing information, etc.
• Could a CMS be used to help manage regional
  systems?

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Coverage and Cost Questions

• Standardized pricing
• Can we get reduced pricing through economy of
  scale?
• Do we have geographic price neutrality?
• Or do we charge per line haul and sort?
• 48 state or 50 states involvement
• What about Alaska and Hawaii?
• International
• Canada, Mexico, and beyond?

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What about FedEx or UPS?

• Advantages
• Link to home delivery
• Widespread availability
• Lots of return drop-off points
• Name recognition
• Best when 1 or 2 day turn-around is required
  (GWLA)

• Disadvantages
• May not be their market
• Price increases based on
• Package weight
• Delivery Time
• Distance traveled (regions)
• Individual packaging is labor material
  expensive
• Not suited for high volumes (millions of
  transactions)

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Per Piece Pricing (3 day delivery)
Criteria
Price
Weight
High volume example
Low Volume Examples
Regional price variation
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2003 LRS Study

• Typical packing costs for UPS, Fed Ex
• Materials include bubble wrap, envelopes or
  shipment boxes, tape and labels.
• Prices vary but can add from 1.79 to 3.99 per
  bundle shipped
• Individual Packing Labor Time
• 3 DVDs 3 minutes
• 4 books 5 minutes
• 5 large books or DVDs 6 minutes

• www.lrs.org

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Awareness

• How widely accepted is resource sharing?
• Will librarians allow patron-placed holds, agree
  to link their ILL systems, open their collection
  to other libraries?
• Are librarians aware that some existing courier
  systems move 5, 10, or 15 million items annually?
• Imagine how many items regional systems could
  share?

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Agreements

• We have to
• Find funding
• Link ILL systems
• Create courier coverage in every state
• Develop agreements on labeling, packing, etc
• Develop a regional management structure
• Work with BCR, AMIGOS, SOLINET, etc
• OR create a new non-profit organizations

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A Proposal

• Create 4, 5, or 6 overlapping national regions
• Move 95 of items within regions
• Whenever possible use existing regional couriers
• Use a national service (UPS, FedEx, etc) when you
  need to cross regional lines
• Keep as much autonomy per region as possible

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A Proposal (cont.)
Whos driving?

• Regional Management Structure
• Non-profits like BCR or AMIGOS
• Initial Funding IMLS Grant
• Pilot program to create a successful regional
  system linking several existing couriers
• We can explore this idea at ALA Midwinter
• ASCLA ICAN Physical Delivery Discussion Group

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BOTTOM LINE

• FAST
• Quick turnaround time (a few days max)
• Very low cost
• Around 2 - 3 per item
• MUST be both faster and cheaper than the US Mail