Six Pitfalls Postal Operators Must Avoid

Many postal operators are considering a complete redesign of their current business model in order to remain competitive. Designing a new postal business model in line with current and future market realities requires steering clear of six common pitfalls:
  1. Avoid starting too late. Ensure that profitability levels are high enough to fund continuous transformation and growth in adjacent business areas. Starting too late would mean the need for sudden significant interventions, which lead to a stop-and-go approach that permanently upsets all stakeholders.
  2. Avoid significant overcapacity and over-specification. Rather, design the model for future volumes and service levels.
  3. Avoid focusing on current regulatory constraints rather than on market needs.
  4. Avoid doing the easy things first. Postponing all difficult changes “until the next election” will result in an insurmountable transformation agenda that is politically unacceptable. This is especially true because the hard changes require more lead time than the easy ones.
  5. Avoid engineering the next two to three years of changes without first understanding the longer-term requirements of the business model. Lacking that understanding, organizations risk investing in the wrong technology, location, or workforce.
  6. Avoid “suboptimization.” Traditionally, process and automation intelligence have been focused on sorting. However, to make a difference, end-to-end optimization is required. Start by assessing customer needs in order to maximize revenues. Secondly, evaluate all aspects of “last-mile” delivery to reduce the principal costs. Line-haul and sorting operations will have to sort out how to connect the two perspectives.