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Postal and Parcel

Postal operators and their competitors continue to face serious threats from the digitalization of mail, a trend that will only intensify in the years ahead.

Government-owned postal organizations are being challenged to transform their traditional role as domestic mail carriers into preferred e-commerce shipping partners, and in some instances to become global parcel operators. At the same time, the rapid emergence of e-commerce is boosting parcel volumes and opening an opportunity for traditional postal operators to reinvent themselves as preferred parcel vendors due to the density, reach, and low-cost nature of their networks.

Three Steps to Long-Term Postal Transformation

Based on business transformation research and best practices, here’s a three-step approach for a long-term postal transformation plan:

Understand the evolution of market requirements. Focus on overall volume, product mix, and future service definitions—by customer and by product segment. This understanding should be based on deep knowledge of both sender and receiver requirements (consumer and business). Develop a clear view of the competition—both direct competition from other postal operators and indirect competition from other communications and media channels.
Determine the target picture of the service and network model. Account for various tradeoffs, such as network economics versus product service differentiation. Similarly, evaluate whether to use pricing to match volumes to capacity versus designing enough capacity to accommodate all possible volumes in order to prevent competitors from building economies of scale.
Define the phasing of the long-term migration. This requires the evaluation of different options to sequence the major changes required to reach the target model. Consider the viewpoints of all stakeholders: senders, receivers, employees, unions, regulatory bodies, and shareholders.

Postal Transformers Share Their Secrets

Postal leaders from across Europe shared these insights about how their organizations tackle transformation.

Reduce Costs, Starting at the Center

Fix the Basics

Start Early and Never Stop

Start the Hard Things First

Online Sales Growth Is Earned

In a multichannel world, consumers have high expectations for sales, service, and fulfillment. Companies that meet these expectations will cement relationships with their consumers and generate long-term growth in online and overall sales. These guidelines can help retailers develop a comprehensive approach for expanding online sales:

Solve for Segments and Categories

Fix Organizational Constraints

Cooperate Across the Value Chain

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