An Onslaught of New Rivals in Parcel and Express
Traditional deliverers are under assault from fast-moving digital natives and giant e-tailers. Here’s how the incumbents can protect—and even expand---their turf.Read more
E-commerce, converging technologies, and shifts in local-vs.-global scale are putting extreme pressure on postal, express, and parcel enterprises to digitalize.
Several key digital-centric trends are disrupting the postal, express, and parcel industry.
E-commerce is exploding, and the lines are blurring between traditional services as B2C players encroach upon those in B2B. Further, as networks become more point-to-point and continuous-flow by nature, multiple technologies are expected to converge and significantly alter the way day-to-day operational activities roll out for postal, express, and parcel concerns: the burgeoning Operations 4.0 trend.
Adding to the complexity is the diminishing advantages of local leadership in favor of global scale, while, somewhat paradoxically, receiver intimacy and trust are becoming the new sources of competitive advantage for postal, express, and parcel organizations as demanded by consumers.
Seizing on these opportunities, new digitally advanced entrants are emerging in the space and claiming a share of the most attractive profit pools as the entire value chain splinters. For postal, express, and parcel organizations that are not partially or fully digitally operationalized, this means foundational strategic and tactical frameworks need to be reevaluated and new digital models implemented in order to effectively compete.
Unless established companies adjust their strategies accordingly, they are likely to find digital’s vaunted advantages a burden, or at least a dwindling asset.Read More
The blueprint for transformation draws upon three key digital actions: develop new business models and offerings, digitalize core operations, and build a robust internal digital foundation. For postal, express, and parcel organizations, the success model requires the following: