Managerial policies and legislation within Romanian courier services market.

Georgescu, Silviu-Dorin

Postal services represent an extremely important sector for the European Union, their interdependence with other sectors of activity rendering a role of utmost importance in the development of national economies. Since traditional postal services are usually generated and managed by state companies, for the last 20 years one witnessed the appearance and growth of private companies--an increasingly menacing competitor to the supplier of traditional postal services.

The postal services market at European Union level was of approximately EUR 72 billions, representing 0,6% of EU's GDP and ensuring over 1,5 jobs (1).

Postal services liberalisation became one of EU's priorities. This liberalisation process was gradually marked by the adoption of three directives: Directive 97/67/EC of 1997 amended by Directive 2002/39/eC and Directive 2008/6/EC. The third postal directive pinpointed the term for the market opening for most of the EU Member States for December 31st, 2010. however, for Romania and for a few other Member States the deadline was prolonged to December 31st, 2012.

International organisations bearing a mandate in regulating and developing postal services are: the Universal Postal Union (UPU) created in 1874, having 192 member states, establishes rules for international exchanges of goods, makes recommendations towards stimulating the increase in the volume of postal sending and improving services quality; the European Conference of Post and Telecommunication (ECPT) is a pan-European organism where are discussed issues linked to the elaboration and implementation of European polices and regulations in the field of post and telecommunications; the European Committee for Postal Regulations (ECPR) is a committee within the ECPT, specialised on postal issues, having among its attributions informing member states on the need to implement and develop the universal service within the sector of postal services.

In Romania, the legislative framework regarding the functioning and regulation of the postal services market is attributed to the National Authority for Managing and Regulating in Communications (NAMRC) contributing to the development of the postal market and the supply of a quality service. Government Ordinance no. 31/2002 regarding postal services, approved with amendments by Law no. 642/2002 with subsequent amendments had as purpose the creation of a concurrential market, the promotion of users' interests and the increase in the quality of services necessary to cover clients' needs through the establishment of supply conditions for postal services and the access to the universal service.

The Document of policy and strategy of July 18th, 2003 regarding the implementation of the universal service in the sector of postal services, approved by the Order of the Minister of Communications and Information Technology No. 225/2003 had as main purpose the respect of international requests regarding the liberalization of postal market. Thus it ensured the national framework for providing flexible, quality services, the policy and strategy for implementing the universal service within services' sector.

Evolution and dynamics of courier services market

With Romania's accession to the European Union and due to the world economic context during the 2000-2008 period the courier services market witnessed a continuous growth, the number of postal services suppliers increasing from 7 suppliers in 2000 to 248 in 2007 and 889 in 2009. This increase was possible due to the development of local subcontractors who did not activate in their name but in the name of other suppliers. However, 2010 was market by a drastic decrease in the number of postal services suppliers, on the one hand, due to the economic crisis, on the other hand the authorisation obligation was suspended for suppliers who develop their activity in the name of another supplier.

In Romania, 2011 continued the decreasing trend of 2010, the number of authorised suppliers reaching 346.

One can notice the fact that from the 346 authorised suppliers 61,85% were active suppliers and, also, from the 346 authorised suppliers 136, representing 39,31% from the number of authorised suppliers and 46,57% from the active suppliers, have unfolded activities in their name, while 78 active suppliers have carried out their activity in the name of another supplier, based on a contract, which means with less than 43,5% as against 2010.

The main companies appeared in this sector were: Cargus, created in 1991, Pegasus Courier created in 1997, Fan Courier, created in 1998. After 2000 the competition in this sector became even greater through the apearance of a large number of suppliers who chose their entering the courier services market through dumping policies by supplying courier services at extremely low tarrifs: RoCourier Express, Couriero etc. along these companies, the most important international suppliers entered the courier operators' market: DHL, TNT, DPD, GLS etc., who entered the market by acquiring autochtonous companies. The liberalisation of postal services has opened the courier services market for foreign companies, the latter sharing their experience in management and marketing. One can say that the courier services market witness a bunch of strategic options. Most of the companies have chosen to develop through strategies of growth based on local subcontractors.

2. The impact of the economic crisis on the courier services market

The courier services market has also witnessed less pleasent situations. Companies experiencing a rapid increase in their market share could not face the economic crisis entering great difficulties since its beginning. Such an example is Couriero who, although trying its merger with TCE, a company with an aggressive acquisition strategy of smaller companies, the result was negative, TCE's image had to suffer, while clients re-oriented themselves towards more stabile companies. Among companies disappearing with the economic crisis is RoExpress who, just like Couriero, had a rapid growth due to extremely small tarrifs, however, on the long run, its strategy proved to be unfavourable.

Although, beginning with 2009 the economic crisis was highly present within the courier services sector, companies who succeeded in adapting themselves and surpassed these last few years experienced an ascending evolution of their turnover (2). The value of the courier services market increased constantly also due to the sector companies reorientation towards new services generated by the development of new fields such as E-commerce (3), but also due to investments in modern technologies capable of offering quality and performing services which would satisfy consummers' needs.

Strategies and managerial policies adopted by courier services companies during 2009-2012 had as starting point, on the one hand, the analysis of costs and tarrifs evolution, but also inclinations towards increasing the quality and diversity of the sevices delivered. A fair as possible analysis of the existing relations among sector companies and the market show the variety of the development opportunities offered to those companies (4). Thus, focusing on e-commerce development opportunities ensured the growth of the market value for the courier providers who embraced this niche segment (5).

Companies that in this period of economic crisis have adopted policies based on the services' quality/consumer's needs analysis, implementing different marketing policies, services quality models, are those having an ascending evolution during this period in spite of the economic crisis experienced within the courier services sector. For these companies, improving services' quality is made with high costs, for this matter they have to learn where to focus their resources in order to obtain the best results (6). Also, during crisis, public relations and external communication on the one hand, made the difference between companies succeeding to overpass the crisis and those who failed to do so, and, on the other hand, were an indicator of the management capacity to plan ahead and to follow a strategic objective (7).

As one can notice in Table 1, durin 2009-2011 the main companies present on the courier services marketin Romania have increased their turnover by adopting managerial polices and marketing strategies whose essence is represented by the quality of the service through its foundamental elements: promtness, fairness in service delivery, speed, education and training of the personnel, assessment system and performance reward system (8).

Managerial policies--policies of price, policies of product, policies of personnel--adopted within the courier services sector have as purpose the fulfillment of long-term objectives, the increase in productivity, the increase in the degree of service provider-client cooperation in order to enhance the efficiency of services and satisfy clients' needs.

Product strategies are based of three criteria: quality, novelty degree and diversity degree. Improving the quality of the service requires, on the one hand, the fulfillment of promisses and providing the basic service at a higher level--in the case of the courier services this is translated through expeditions delivery, while, on the other hand, winning and maintaining the trust of both clients and personnel. Within the courier services sector, quality is rendered by the speed of delivery, flexibility, transparency, innovation. As regards the strategy of diversification of existing services, it applies by extending supplimentary services. Within the courier services it is translated through supplimentary ensurance, exchange, delivery on Saturday, collection request.

Policies of price have a determining role in the increase and development of companies, in the influence on demand, in the rentability of activity, they influence the aggregate perception on the product or service.unlike the other components of the marketing mix which create value, the price turns this value into profit (9). Within the courier services sector, policies of price take into account certain peculiarities: offering a group of services or establishing the price according to services attributes as perceived by the consumers. The objectives that courier companies wish to reach are: gaining a profit as large as possible, attracting a number of clients as great as possible and maximum use of the company's capacities. Thus, strategies of price can be oriente in relation to costs, demand or competition (10).

Politicies of personnel within services sector are established based on two different approach segments: employees of the providing company and the consumers. The interaction between the personnel of the services supplier and the consumer increases the role and importance of personnel policies and of organisational culture from these companies.

Within services sector the labor productivity and the improvement in the quality of services delivered depend on the promotion of organisational culture within the company. Within courier companies the management must create an environment that ensures the necessary conditions for employees to deliver quality servicesin order to satisfy consumers' needs in the best circumstances.

One can thus notice that the courier services sector remains one of the few activity sectors which witnesses an ascending evolution and in which the employees evolution is also ascending.

In 2011 within the private sector legally activated 12291 employees representing 25,55% of the total personnel from the postal sector, 8903 being employed full-time and 3388 being part-time.

Conclusions

Postal and courier services have a special importance contributing to the free movement of goods and to communication. The development of this sector had a strong social impact. During the economic crisis period companies activating in this sector have focused on strategies of costs-cutting which allowed them to reduce prices and obtain profit (11). The success of courier services supplying companies is based on their capacity to offer quality sevices which reflect indicators such as speed, safety, flexibility. Future researches should focus on studies regarding consumers' behavior and attitude, as well as on consumers' perceptions regarding the quality of postal and courier services provided by private companies within this sector in Romania.

Bibliography

* Ilie Budica, Management, Sitech Publishing House, Craiova, 1999

* luliana Cetina, coord., Marketingul servciilor. Fundamente si domenii de specialzare, Uranus Publishing House, Bucharest, 2009

* Adina Constantinescu, Management of the IT&C and E-Commerce integration process by the enterprises in Romania, International Conference EMQFB 2012 Emerging Market Queries in Finance and Business, 24-27 October 2012

* Adina Constantinescu, The potential of E-commerce in developing countries, The International Conference Compettiveness and Stability in the Knowledge-Based Economy, iCOnEc 2011, Craiova, Romania, November, 2011

* Sorina-Raula Garboveanu, Silvia-Mihaela Pavel, How to Manage a Publc Relatons Criss, in Annas of the Universty of Craiova, Economics Series, 2010, volume 3, issue 38, Universitaria Publishing House, Craiova, pp. 320-331.

* Kasper, H., Helsdingen, P., Gabbott, M., Servces Maketing Management. A Strategic Perspective, second edition, John Wiley & Sons, LTD, West Sussex, 2006

* Gheorghe Meghisan, Tudor Nistorescu, Bazele Marketingului, Economic Publishing House, Bucharest, 1998

* Tudor Nistorescu, Silvia Puiu (2011), "Considerations regarding behavior and strategic orientations of Romanian retailers during the economic crisis",Management & Marketing, 9, pp: 183-194

* Radu Florin Ogarca, Liviu Craciun, Silvia-Mihaela Pavel, Corporate Spiritual Crisis in the Context of Global Crisis, in Proceedings of the WSEWAS/IAASAT 1st International Conference on Tourism and Economc Development (TED'11), Drobeta Turnu Severin, Romania, ISBN: 978-1-61804-043-5, WSEAS Press, October 27-29, 2011, pages 391-396.

* http://ec.europa.eu/competition/sectors/postal services/overview_en.htm

* http://www.ancom.org.ro

* The Ministry of Public Finances--www.mfinante.ro

Silviu-Dorin GEORGESCU

University of Craiova, Faculty of Economics and Business Administration

E-mail: [email protected]

Notes:

(1) http://ec.europa.eu/competition/sectors/postal_services/overview_en.html

(2) For a discussion on economic crisis and its effects on the "organizational soul" see Radu Florin Ogarca, Liviu Craciun, Silvia-Mihaela Pavel, Corporate Spiritual Crisis in the Context of Global Crisis, in Proceedings of the WSEWAS/IAASAT 1st International Conference on Tourism and Economic Development (TED'11), Drobeta Turnu Severin, Romania, ISBN: 978-1-61804-043-5, WSEAS Press, October 27-29, 2011, pages 391-396.

(3) For a discussion on the potential of e-commerce in developing countries see Adina Constantinescu, The potential of E-commerce in developing countries, The International Conference Competitiveness and Stability in the Knowledge-Based Economy, iCOnEc 2011, Craiova, Romania, November, 2011, p. 9.

(4) Ilie Budica, Management, Sitech Publishing House, Craiova, 1999, p. 212

(5) Adina Constantinescu, Management of the IT&C and E-Commerce integration process by the enterprises in Romania, International Conference EMQFB 2012 Emerging Market Queries in Finance and Business, 24-27 October 2012

(6) Kasper, H., Helsdingen, P., Gabbott, M., Services Marketing Management. A Strategic Perspective, second edition, John Wiley & Sons, LTD, West Sussex, 2006, p. 175

(7) Sorina-Raula Garboveanu, Silvia-Mihaela Pavel, How to Manage a Public Relations Crisis, in Annals of the University of Craiova, Economics Series, 2010, volume 3, issue 38, Universitaria Publishing House, Craiova, pp. 320-331.

(8) luliana Cetina, coord., Marketingul serviciilor. Fundamentesi domenii de specializare, Uranus Publishing House, Bucharest, 2009, p. 77

(9) Gheorghe Meghisan, Tudor Nistorescu, Bazele Marketingului, Economic Publishing House, Bucharest, 1998, pp. 186-187

(10) luliana Cetina, coord., Marketingul serviciilor. Fundamentesi domenii de specializare, Uranus Publishing House, Bucharest, 2009, p. 95

(11) Tudor Nistorescu, Silvia Puiu (2011), "Considerations regarding behavior and strategic orientations of Romanian retailers during the economic crisis", Management & Marketing, 9, 183-194

Table 1 Turnover of the most important companies during 2006-2011
(mil. RON)

                  2006     2007     2008     2009     2010     2011

Fan Courier      75,93   104,05   153,73   167,41   190,16   222,63
DHL              75,69    94,87   127,88    136,1   151,96   175,53
TNT              95,89   111,09   126,62   129,37    143,5   160,82
Cargus           64,04    86,46   111,19   102,99    92,96    93,31
Urgent Courier    7,58    15,99    29,34    39,89    51,61    68,39
DPD               9,15    14,06    23,37    22,39    30,04    36,02

Source: Author's analysis based on data acquired from the Ministry
of Public Finances

Figure 1. Situation of postal services providers in Romania
in 2011

Authorized suppliers   346
Active suppliers       214
Active independent     136
  suppliers
Mandate suppliers      78
Non-active Suppliers   123
Non-respondents        9

Source: Author's analysis
based on data obtained from
the National Authority for
Managing and Regulating in
Communications (NAMRC)

Note: Table made from bar graph.

Figure 2 Evolution of courier services in Romania
2006-2011 (mil. EUR)

2006     2007     2008     2009     2010     2011

85,97   110,96   156,87   172,01   200,39   232,85

Source: Author's analysis based on data acquired
from the Ministry of Public Finances

Note: Table made from bar graph.

Figure 3 The evolution of employees number in private sector
during 2004-2011

4730   6835   8364   8896   11578  8478   10662  12291

2004   2005   2006   2007   2008   2009   2010   2011

Source: Author's analysis based on data obtained from the National
Authority for Managing and Regulating in Communications (NAMRC)

Note: Table made from bar graph.