More than halfway through 2021, consistency continues to define on-time performance. In a welcome change from 2020, on-time percentages for the major carriers remain steady at much higher levels than last year. In some cases, for example UPS, carriers have surpassed pre-pandemic levels for retail parcel delivery.
But growth is the name of the game in 2021 for Convey. We’re proud to power exceptional customer delivery experiences for 200 of the world’s most recognizable brands in retail and logistics – leaders like The Home Depot, Walmart, Build.com, and Ingram Micro. Our commitment to innovation and client success has fueled 5 consecutive quarters of accelerating revenue growth and a 163% increase in new logos over the past 12 months.
As last mile emerges as a key battleground for retail experience, we achieved an exceptional 140% net retention rate (NRR) with more than half of clients expanding their investment with Convey. Expanding global operations, our growing partner network, and innovation in data management and storage prove the importance of positive experiences for today’s brands.
Our success depends on our clients, so please reach out if you have topics or areas that you’d like us to explore. In the meantime, here are key findings from the June 2021 Performance Index:
On-time performance (OTP) remains consistent
Overall parcel OTP has hovered above 80% for the past quarter, and last month was no exception. Convey found 83% of parcel shipments were delivered on time in June 2021 – a substantial improvement from June 2020 where overall OTP stalled at 73% as increased parcel volume stressed carrier networks.
Looking at individual carriers, FedEx improved performance slightly in June but remained significantly behind UPS and USPS – and the industry baseline — when it comes to on-time delivery. June 2021 OTP by carrier was 73% for FedEx, 89% for UPS, and 91% for USPS. UPS in particular has shown marked improvement in OTP over the same period last year (89% OTP in June 2021 vs 69% in June 2020) due to more manageable volumes and discipline in their “better not bigger” approach.
UPS gains market share
FedEx and UPS are the clear leaders in June 2021 market share with 32% and 30% respectively, followed by USPS (9%), DHL (12%), Regional Carriers (17%). UPS gained 3 percentage points as compared to May 2021 with gains predominantly coming from regional carriers and USPS as peak demand continues to unwind.
Monthly Deep Dive: Data & Methodology
Clients and media contacts sometimes ask us what this data represents and how we get to these findings. The short answer is that data is derived from Convey’s network of leading-edge companies in retail and logistics and represents retail final mile deliveries.
Convey actively tracks shipments across 6 continents and 140 countries with more than 1,500 carriers integrated into the platform. On average, Convey’s clients integrate with at least 7 carriers, indicating the sophistication of their delivery approach.
To create the Performance Index, Convey analyzes data derived from tens of millions of packages shipped from more than 500,000 locations in North America each month. We strive to make our data as useful as possible for brands and retailers that care about driving loyalty and better business decisions by aligning to consumer expectations and perceptions around delivery.
For example, Convey’s on-time performance (OTP) data measures whether the carrier delivered the package by the original delivery date they gave to both the shipper (for ex, a retailer) and the recipient (for ex, a shopper). Our methodology measures whether a package arrives when the recipient / consumer expects it - and this delivery date is provided to them when they track their package. If the carrier misses this original delivery date, Convey counts it as late - and so does the consumer.
Convey’s data is regularly cited by Wall Street Journal, Reuters, AP, Forbes and more. Check out these recent stories in our newsroom.