The recent receivership of Fastway Couriers (Ireland) in late October 2025 exposed a structural vulnerability in the Irish parcel-delivery market and revealed how exposed many SMEs, online retailers and smaller manufacturers remain when a critical distribution partner fails. Fastway’s parent company, Nuvion Group, appointed joint receivers Mark Degnan and Brendan O’Reilly of Interpath Advisory, placing roughly 300 direct jobs at risk. Within days, Irish media reported that up to 50,000 parcels were still in Fastway’s network and would need to be returned to senders via the company’s main hub in Portarlington, Co Laois. This collapse did not occur in isolation. The receivers cited sustained inflation, rising operating costs and ongoing price pressure in the parcels market as factors rendering the business no longer viable in its current form.

For many SMEs who relied heavily on a single courier at low per-parcel rates, the receivership is a stark reminder that distribution is not a commodity service. It is a core operational risk. To protect themselves against future shocks of this kind, businesses should strengthen three procurement disciplines: due diligence, value-based selection and whole-life risk assessment.

Strengthen Supplier Due Diligence and Financial Viability Checks

Fastway’s receivership followed sustained commercial pressure, rising operating costs and the broader competitive strain within Ireland’s parcel-delivery market. While the company’s internal financial metrics remain confidential to its auditors, several public reports noted that the business was under significant pressure well before the formal appointment of receivers. This underlines why SMEs must incorporate proportionate financial checks into their supplier-selection process. Buyers should review publicly available information, including Companies Registration Office filings, to identify patterns such as delayed submissions, recurring losses or liquidity concerns.

It is equally important to understand a courier’s operating model. Many parcel firms in Ireland rely heavily on subcontracted or self-employed drivers, a structure that can become fragile when volumes fluctuate or when cash-flow difficulties emerge. In such models, delivery reliability may deteriorate quickly during peak seasons or disruptions. Operational resilience should form part of due diligence. A prospective supplier ought to be able to explain how it manages seasonal surges, depot outages, driver shortages and route disruptions. Buyers should also confirm that insurance cover, particularly goods-in-transit insurance, is adequate. When a courier collapses suddenly, inadequate cover can expose retailers to direct financial loss.

Buy on Value, Not Price

The Irish courier market has spent years driving delivery rates downward, with per-parcel pricing becoming a key competitive battleground. This has created what ISME CEO Neil McDonnell has described as a race to the bottom. While low delivery prices are appealing, they can signal structural weaknesses, including underinvestment in IT systems, thin operating margins, a high dependence on subcontracted drivers and limited customer-service capacity. Fastway’s receivership illustrated the real cost of these weaknesses. Price alone cannot indicate reliability, network strength or continuity of service. Not all promises has the same value. If UPS or DHL are more expensive, their global brand and reach reflects the value of premium brands in this space. This is perhaps a new version of the old procurement maxim: nobody ever got fired for hiring IBM.

A value-based procurement approach should consider proven delivery success rates, customer-support capability, tracking technology, responsiveness during peak periods and overall operational stability. These criteria protect a business far more effectively than a superficial saving per shipment. The internal cost of courier failure is frequently underestimated. Customer complaints, refunds, reshipments and reputational damage typically outweigh the small savings associated with ultra-low delivery rates. A courier that charges slightly more but delivers consistently will almost always be cheaper in the long term.

Apply Whole-Life Value Thinking

Whole-life value means assessing not only the immediate transport cost but the downstream risks. A small saving on delivery becomes meaningless if the collapse of a courier jeopardises tens of thousands of euro in stock or prevents fulfilment during critical trading periods. Fastway’s failure occurred as retailers were preparing for peak demand period at Christmas. With up to 50,000 parcels stranded in the system and major operators such as DPD, UPS, and DHL often operating near full capacity during November and December, many SMEs were unable to secure alternative capacity at short notice. Limited spare capacity is a well-known structural feature of the Irish market, particularly in the run-up to Christmas.

Businesses should therefore avoid relying entirely on a single courier. Maintaining a pre-qualified alternative provider, even at low volumes, ensures continuity if the primary provider collapses or becomes overwhelmed. Scenario planning should include how the courier manages cyber-incidents, sudden falls in driver availability, depot closures and unexpected volume spikes. A supplier unable to outline credible contingency measures is, by definition, a higher-risk partner.

The Fastway receivership is a clear warning to Irish SMEs that distribution is a critical supplier category requiring structured procurement discipline. Business owners can outsource delivery responsibility but they can never outsource accountability for key supplier relationships. Strengthening due diligence, shifting from price-led to value-led decision-making and applying whole-life risk assessment are essential steps for business continuity. As operational costs rise and peak-season pressures intensify, these measures will help SMEs avoid disruption, protect revenue and ensure that the final, crucial step in the supply chain, getting goods to customers, remains secure.

(Article source: https://keystoneprocurement.ie/derisking-the-procurement-of-distribution-services/)

Sources:

Fastway Couriers Ireland (part of Nuvion Group) did enter receivership. https://www.hgvireland.com/fastway-couriers-update-receivership-announcement/

The move placed approximately 300 jobs at risk. https://www.irishtimes.com/business/2025/10/28/hundreds-of-jobs-under-threat-as-fastway-couriers-enters-receivership/ 

Fastway staff left without pay while up to 50,000 packages yet to be returned https://www.irishtimes.com/business/2025/11/01/fastway-staff-left-without-pay-while-up-to-50000-packages-yet-to-be-returned 

Packages-yet-to-be-returned Costs drive Fastway Couriers Ireland into insolvency https://www.cep-research.com/2025/10/30/costs-drive-fastway-couriers-ireland-into-insolvency

London private equity firm backs buyout of Irish group Fastway Couriers https://www.irishtimes.com/business/london-private-equity-firm-backs-buyout-of-irish-group-fastwaycouriers-1.486866

The impact of Currency Volatility

Currency markets are influenced by various global factors, including economic policies, geopolitical events, and market sentiment.

For instance, within 24 hours of the Brexit vote, the pound dropped about 6.02% versus the euro, marking the sharpest single-day decline in the pair’s modern trading history.

In the past 12 months, currency volatility has been a significant issue for businesses trading overseas.
In 2025 alone, the EURUSD has moved from just above 1.02 in January, to close to 1.17 (end August), a move of 14%.
When an SME commits to a future supplier payment or expects to receive funds for an overseas sale, the final value in euro is uncertain. This uncertainty makes budgeting difficult and puts pressure on finance managers responsible for protecting margin.

What is a Forward Contract?

A Forward Contract is a tool designed to remove that uncertainty. It allows a business to lock in an agreed exchange rate today for a currency payment or receipt at a date in the future. Instead of hoping the market holds steady, the SME secures certainty in advance.

There are two main types used by growing Irish businesses:

• Fixed Forward Contract – The SME agrees a rate today and commits to exchanging a set amount on a specific future date. This suits confirmed payments like machinery imports or supplier invoices with a clear due date.
• Window Forward Contract – The business secures a rate but has flexibility to draw down the currency anytime within a defined time window, giving more control over cash flow.

Forward Contract in Action:

Your business imports components from the US every quarter. The supplier invoice is $80,000 payable in six months. If EUR/USD moves just 2% in the wrong direction, that small shift could wipe out margin on the entire shipment. By agreeing a Forward Contract, you lock in today’s rate, knowing exactly how many euro will be required. Budgeting becomes accurate, and profit is protected regardless of market swings.

The benefit is not about chasing the best rate. It is about certainty and control. When costs are predictable, pricing decisions become more confident, and cash flow planning becomes sharper. For many SMEs, that clarity is what separates growth from constant firefighting.

Are there disadvantages of A Forward Contract?

While Forward Contracts offer clear protection, they also require commitment. Once a rate is agreed, the business is tied to that rate for the duration of the contract. This removes uncertainty but also means the company will not benefit if the market later moves in its favour.

In other words, if the euro strengthens after you lock in your rate, you are still obligated to complete the contract at the original level. It is important for any business considering this approach to weigh the value of certainty against the possibility of missing out on a more favourable rate down the line.

How Fexco International Payments can help

Forward Contracts are already used by larger companies as part of standard treasury process. More ISME members are now adopting the same approach but in a way that suits the scale and cash cycle of smaller businesses.

If your business makes or receives regular international payments, it may be time to put structure around your currency risk rather than reacting month by month. Our team works with ISME members to assess exposure and put simple solutions in place that fit naturally into existing payment routines.

Take control of your FX costs before volatility takes control of your margin. Speak to us today on 1800 246 800 or visit the dedicated ISME member page at https://www.fexco.com/payments-and-fx/international-payments/isme/ and see how a Forward Contract can be tailored around your payment cycle.

Why SMEs can’t ignore this

Expanding into foreign markets brings opportunity, but it also exposes firms to fees, weak exchange rates, and delays. More than a third of Irish SMEs report difficulties with cross-border transfers. For businesses already operating on fine margins, this can be a serious drain.

Breaking down the hidden charges

International transfers are rarely as simple as they appear. Beyond the visible transaction fee, Irish SMEs often face:
• Transfer charges of €15–€50 per payment
• FX markups of 2–3% over the mid-market rate
• Receiving bank deductions of €10–€40
• Undisclosed intermediary fees
These add up quickly. Send €100,000 abroad and a poor exchange rate alone could cost €2,000, dwarfing the upfront fee.
The danger of exchange rate swings
Without a hedging strategy, SMEs leave themselves exposed. A sudden market shift can turn a profitable order into a loss. For some, one badly timed payment could mean strained supplier ties or cash shortages at home.

Operational headaches

According to LexisNexis, almost half of businesses report serious costs from failed payments. Simple mistakes, like mistyping an IBAN, can stall transfers, tie up funds, and add costly repair charges.
The growing risk of fraud

Invoice redirection scams are rising fast. FraudSMART figures reveal Irish SMEs lost more than €17 million through such schemes in just two years. Criminals know smaller firms often lack specialist defences, making vigilance vital.
Invoice redirection and CEO impersonation scams remain as top threats to businesses, which have seen average losses of €11,500.

Practical steps for ISME members

• Explore alternatives: Specialist FX payments companies often deliver much more competitive rates and lower costs than traditional banks.
• Lock in rates: Forward contracts provide certainty in planning and safeguard profits.
• Insist on clarity: Don’t accept vague fee structures—demand upfront transparency.
• Build awareness: Train your team to recognise fraudulent payment attempts. Never reply by email to requests to change bank account details. Fraudsters may be impersonating your supplier. Always verify change of bank detail requests by phone using the supplier number which you have on record.

Turning risk into control

Cross-border payments need not be a drain on resources. With the right systems, SMEs can take charge of costs, protect their bottom line, and trade with greater confidence.

Fexco International Payments, an Irish company headquartered in Kerry, partners with ISME to support members with smarter, safer payment solutions. We combine ZERO TRANSACTION FEES, competitive rates, and advanced safeguards designed for SMEs.
For ISME members, every euro saved strengthens competitiveness. Take the next step—review your payment processes and see what you could save with Fexco International Payments today.
Visit our dedicated ISME Member page for more – https://www.fexco.com/payments-and-fx/international-payments/isme/

The multimillion euro deal builds on HRLocker’s momentum following the HireHive merger earlier this year and advances parent company Invincible Software Holdings (ISH) in its strategy to bring together category-leading HR solutions for SMEs. By combining HRLocker’s core HR, time and absence, and compliance tools with WorkCompass’ modern performance framework, customers gain a unified platform designed for organisations of 50 – 1000 employees.

With WorkCompass embedded directly into HRLocker, customers will experience a single, coherent workflow where goals and OKRs, continuous feedback, check-ins and performance reviews sit alongside core HR, time, absence and compliance. Managers can set objectives, track progress, prompt real-time conversations and close out review cycles without jumping between tools or exporting spreadsheets, cutting admin, improving data accuracy and helping teams focus on meaningful performance conversations.

Existing WorkCompass customers will continue to enjoy the platform and support they know, while gaining the benefits of HRLocker’s broader ecosystem over time, tighter integrations, a clearer view of the employee lifecycle and a more intuitive user experience from onboarding through to performance.

The combined organisation will also bring greater scale, reliability and security, with shared product and engineering resources accelerating delivery of new capabilities and integrations that further streamline HR workflows for SMEs.

“WorkCompass brings a coaching-led, outcomes-focused approach to performance that fits perfectly with our mission to make HR simpler, faster and more human,” said Crystel Robbins Rynne, CEO of HRLocker. “By integrating WorkCompass’ strengths in goals, feedback and actionable insights, we’re giving customers a tighter, more seamless employee journey, improving the way HR works businesses across Ireland.”

Denis Coleman, Founder and CEO, at WorkCompass, said: “Joining HRLocker accelerates our vision to move beyond rear-view appraisals toward real-time coaching and measurable results. Our customers will see the same intuitive performance platform they love, now backed by a broader product ecosystem and roadmap.”

Adam Reynolds, co-founder and managing partner of ISH, added: “This acquisition strengthens our commitment to SMEs: a comprehensive, integrated HR stack with high-touch support. We’re excited about the innovation pipeline this combination unlocks for customers.”

About HRLocker
HRLocker is an Ireland-based SaaS HR platform serving SMEs in Ireland and the UK. With a broad suite of HRIS functionalities, including performance management, ATS, and time tracking, HRLocker simplifies workforce management for growing businesses. The platform has built a strong reputation for innovation and customer focus, enabling SMEs to streamline HR processes and foster productive, engaged teams. For more information, please visit https://hrlocker.com/.

About Work Compass
WorkCompass provides software for organisations to manage their talent through agile goal setting and ongoing performance check-ins. WorkCompass is pioneering the application of management science via artificial intelligence in human organisations. WorkCompass has been recognised by CIO Review as one of the “20 Most Promising HR technologies” and by Silicon Review as one of the “50 Smartest Companies”. For more information, visit, https://workcompass.com/

About ISH
ISH was created with the vision of building a strong portfolio of founder-run SaaS companies by investing early and providing support to existing teams. Combining the expertise of private equity specialists and experienced SaaS entrepreneurs with multiple successful exits, ISH aims to elevate the businesses it invests in by introducing capital and skills while preserving the entrepreneurial spirit and existing management. For more information, visit https://invsholdings.co.uk/.

1. Currency Conversion Costs
Smaller businesses often receive poor exchange rates compared to larger firms. Banks typically mark up FX exchange rates significantly, shrinking profit margins. Lack of hedging services (e.g. FX Forwards) also expose small and medium enterprises (SMEs) to foreign exchange risks. Many SMEs underestimate these risks, leading to unexpected financial losses.

2.High Payment Processing Fees
Cross-border payments often carry high fees, such as international wire and currency conversion charges. For urgent transactions, some providers charge up to €50. These costs hit smaller firms harder, especially those with thin margins, making low-cost payment options essential for competitiveness.

3. Lack of Dedicated Account Manager
Unlike in the past, today many businesses, especially smaller firms do not have a dedicated account manager at their banks. This creates stress for finance teams when payment issues arise, as personalised support is harder to access. Studies show 46% of customers prefer human interaction in banking, highlighting the demand for better service.

4. Transaction Delays
Complex regulations and manual checks often cause delays in foreign currency payment processing. Incorrect details, like IBANs or SWIFT codes, can add days or weeks to transactions. Banking infrastructure differences between countries can also slow down processing times, disrupting operations. Not having a dedicated account manager to help resolve the issue can further add to the delays.

5. Regulatory Compliance
Navigating the regulatory environment for cross-border payments can be overwhelming for many firms but particularly SMEs, which often lack the resources to handle compliance issues. Meeting anti-money laundering and other regulations adds complexity and increases operational costs.

6. Fraud and Security Risks
Cross-border transactions expose businesses to security threats, such as phishing scams and fraudulent activities. In 2023, SMEs in Ireland lost €10 million to email-related fraud, with cases rising by 25%. Stronger fraud protection measures are essential to safeguard businesses.

7. Limited Access to Payment Options
In some markets, many Irish businesses face restricted access to international payment methods. Without the ability to pay in local currencies (e.g. Chinese renminbi or Indian rupee) businesses risk losing out on more advantageous pricing, and potential global growth opportunities.

Addressing these challenges is key to Irish success in global markets. By adopting transparent, innovative and cost-effective payment solutions, businesses can protect their bottom line and improve operational efficiency.

If you would like to find a solution to address any cross-border payments challenge you may have, please reach out to John Barry, jobarry@fexco.com or visit the dedicated ISME member Fexco page  https://www.fexco.com/payments-and-fx/international-payments/isme/

The Merger represents a major strategic step in consolidating ISH’s portfolio offering as an end-to-end HR and recruitment platform, providing ISH’s 3,000+ customers with a single solution to manage and oversee the employee journey from beginning to end.

Promising unparalleled HR and recruitment capabilities explicitly developed for small-to-medium-sized businesses, HRLocker empowers organisations with a comprehensive suite of tools to manage their workforce efficiently, offering solutions ranging from employee records and time tracking to performance evaluations and absence management. The addition of HireHive’s intuitive tech will bring significant time-saving, deeper analytics, multilingual capabilities, and dedicated human support for more intelligent, faster hiring.

HRLocker CEO Crystel Robbins Rynne expressed her enthusiasm about the merger: “HireHive’s powerful hiring functionality was the missing piece in the HRLocker puzzle. As businesses, we already shared a vision of empowering SMEs with innovative HR and recruitment solutions. We’re thrilled to welcome the HireHive team to the HRLocker family. As Ireland’s largest home-grown HRIS we are committed to developing cutting-edge solutions to our customers, now with more seamless integration between talent and employee management.”

HireHive’s interim CEO Joe Winthrop shared Rynne’s sentiment: “Joining HRLocker is an exciting opportunity. Our merger reflects the market appetite for integrated recruitment and talent management solutions. We’ll work closely to offer a complete solution that allows organisations to manage the entire lifecycle, from application to onboarding and the ongoing employee journey.”

Adam Reynolds, co-founder and managing partner of ISH, comments: “The merger between HRLocker and HireHive means customers can expect an enriched platform with new features, improved user experience, and a continuation of the unmatched customer experience for which both companies have become so well known. We’re confident the shared success of both businesses will fuel us as we empower organisations to attract, manage, and develop talent.”

An exact value for the acquisition, which has been completed, was not disclosed by the Irish company, but industry sources estimated it to be a seven-figure sum.

As part of the deal, chief executive Adam Coleman will step back from the business he founded, and current chief operating officer Crystel Robbins Rynne will take over the leadership of the company.

It will open up HRLocker to faster innovation and expansion of its offering in domestic and overseas markets, and the potential integrations with other ISH portfolio companies, providing access to new opportunities.

Ms Robbins Rynne cited the ISH founders background in software as a service (SaaS) businesses, which allow companies to cut costs by effectively renting such software rather than buying applications which can quickly become obsolete.

“It’s giving us an opportunity to learn from the other companies in the group. We are at a growth phase,” Ms Robbins Rynne said. “The ISH company founders have come from growing SaaS companies. So as well as being part of a bigger group and learning from the other companies in the group, it’s also having the ISH leadership, to bring that to the next stage, because they’ve kind of been there and done it before.”

However, the company was first planning to focus on growth and becoming a leader within the Irish market, she said.

Founded in 2014, HRLocker offers a digital HR information system that manages the employee life cycle, including GDPR-compliant employee databases, time management, performance management, and HR and payroll reporting.

“HRLocker’s commitment to supporting SMEs and its robust HRIS platform make it an excellent addition to our portfolio,” said Adam Reynolds, co-founder and managing partner of ISH. “With Crystel stepping into the CEO role, we’re confident in HRLocker’s continued success and in our shared vision for empowering businesses to attract, manage, and develop their talent.”

ISH is backed by Mr Reynolds, Michael Richards and Strada Partners. It was founded to build a portfolio of SaaS companies, investing early and providing support to teams.

Celebrating over two decades of delivering innovation and excellence in HR technology, HRLocker has solidified its position as a leader in the field and consistently demonstrated its dedication to customer success. Founded by Adam Coleman in 2004, HRLocker has grown from a local HR consultancy to a global leader in cloud-based HR management tools.

The company’s platform offers a comprehensive suite of services designed to automate essential HR tasks so organisations can focus on more strategic growth and employee engagement. It serves customers in more than 55 countries, enabling them to drive efficiency and foster a more productive work environment.

“I am delighted to commend HRLocker as the Business All-Star Customer Success Company of The Year 2024-25,” said Kieran Ring, deputy chair of the AIBF adjudication board. “This award recognises HRLocker’s dedication to customer success, showcased through their exceptional support, user-friendly solutions, and significant contributions to their clients’ organisational achievements.”

As noted by the AIBF, the HRLocker’s approach goes beyond improving HR operations to fostering a culture of inclusion and continuous improvement, making it a trusted partner for organisations seeking to enhance their HR capabilities and employee experience.

In reaction to the award, HRLocker founder and CEO Adam Coleman said, “Our customers are at the heart of our business, and their success is our driving force. We prioritise quality and trust in all our relationships and work diligently to provide exceptional service.”

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