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Derek Osborn walks us through the advantages and disadvantages of carrier-owned postal delivery routes. He concludes that more testing and experimentation is required in this area.
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Carrier Owned Delivery Routes
Derek Osborn
Whatnext4u
17.10.13
Facilitator: Derek Osborn Director Whatnext4u
International postal business coach
Previously - 22 years in management roles in RM
Derek Osborn International Postal Business Coach Whatnext4u
Vision and strategy
The future of post
Fostering innovation
Thinking differently
Customer centricity
Engaging customers
Delivery operations
Operational improvement
Human resource development
Leading change, modernisation and transformation
Reinventing the post
Last 12 years I have worked with the postal industry around the world as a business coach – often to:
Research postal topics and to lead, design and facilitate workshops, and deliver management training, seminars, forums and master classes on:
Reinventing the Post published and launched 2 weeks ago at Post Expo
Section 2 is entitled Reinventing Delivery and the Last Mile
Webinar Programme
• Background and context
• Advantages and disadvantages of carrier-owned routes
• Operational, quality and customer issues – and opportunities
• Is ‘final mile consolidation’ a sensible way forward in a liberalised market?
• Final thoughts
So what is the context and what are the challenges in postal delivery?
Some GENERAL trends
From
• ‘Information poor’
• Different suppliers of products and services from different places
• You get what they decide to give you and when
• Fixed channels - shops, telephone and catalogues
• Then you had to work hard to get what you want
To
• ‘Information rich’
• Everything (products and services) available in one place - integrated
• You choose – eg options and ‘comparison’ sites
• Streamed on-line via broadband internet
• Now you control and decide what you want and when and how
MORE TRENDS
From
• Fixed
• Hard-wired
• Land-lined
• Physical
• Hardware dependent
• Inflexible
• At given times
• Customer has to use different channels
To
• Location independent
• Hand-held
• Cordless
• Virtual
• Cloud-based
• Very flexible
• 24/7 on demand
• Integrated to customer via one channel
Major postal trends
From
• Volume
• 2 D (letters)
• Sender
• Push
• Physical
• End to end quality
• Monopoly providers
• Single, separate businesses
• Product/service focus
To
• Value
• 3 D (packets and parcels)
• Receiver (and sender)
• Pull
• Integrated physical/digital
• Precision delivery quality
• Open competitive market
• Different business configurations
• Customer needs focus
Postal industry balance sheet
Glass ‘half-empty’
• Declining volumes
• Electronic substitution
• Environmental concerns
• Greater competition
• Greater regulation
• More demanding customers
Glass ‘half-full’
• Trust and Brand
• Ubiquity – everywhere
• Universal service
• Delivery capability
• Address knowledge
• Value of mail
• Integrating physical and digital solutions
• Global connectivity
• Agency for Governments
• Committed employees
Postal industry leveraging assets
Glass ‘half-full’
• Trust and Brand
• Ubiquity – everywhere
• Universal service
• Delivery capability
• Address knowledge
• Value of mail
• Integrating physical and digital solutions
• Global connectivity
• Agency for Governments
• Committed employees
Accentuating the Positive
• Recognisable and secure access Wide/easy access to services
• Biggest customer database
• Everything ‘to the door’
• Granular knowledge of locations
• The personal ‘Mail Moment’
• Uniquely connecting physical and electronic – hybrid options
• Global connections if needed
• E-government applications
• Experience, ideas and resources
Leveraging your assets
Which brings us to delivery….
• Posts used to focus on senders but now there is as much, if not more, focus on recipients
• Delivery customers are becoming critical in determining the carriers and the service
• For postal operators, delivery remains, perhaps more than ever, their “core business”
• It is where you can differentiate yourself from the competitors
• BUT it is also costly, with fluctuating workload and the out door element is hard to supervise or manage
Senders Receivers
Advantages
• Ownership
• Level of effort
• Commitment to customers
• Customer engagement and customer service
• Efficiency
• Fixed costs
• Quality
• Leave cover
• Less overheads
• Contracts
Disadvantages
• Ownership
• Level of effort
• Commitment to customers
• Customer engagement and customer service
• Efficiency
• Fixed costs
• Quality
• Leave cover
• Less overheads
• Contracts
Operational issues and opportunities
• Optimising - discretion over route
• Flexibility with volumes, exceptional situations
• Weather conditions - adaptable timing
• Self-regulated - less need for supervision
• Standards and efficiency – can be exceeded
• Local knowledge and consistency
• Investment and equipment – can leapfrog
• Work-rate and effort – self-motivation
Quality issues
• Not in total control – but can go extra mile
• Can blame others – but totally accountable
• Knows what customers want – meets their individual needs
• Maybe unable to satisfy all customers – but can work out the best compromise
• Will ‘feel’ poor quality of service directly - incentive to improve and deliver quality
Customer issues
• Can fall out with individual customers – but knows customers and can build good relationships
• Maybe split loyalty and does more ‘own’ business – but works interactively with customers to deliver what they need
• Feels remote from company but can drive personal service and attention
Final Mile Consolidation?
Reasons why it could make sense
• ATM’s
• Mobile network wireless masts
• Environmental – emissions
• All the above – better efficiency, quality, customer service and relationships
• Liberalised market to avoid confusion and duplication of effort, cost etc
Challenges to overcome
• Trust
• Compatibility of systems – eg track and trace
• Contract management
• Pricing
• Quality assurance
• Ownership of customers
• Brand loyalty
• Advantages and disadvantages
• Not been extensively tried
• Could be explored a bit more
Questions?
I’m happy to discuss further with anyone
Reinventing the Post continues
18–20th Nov 2013
Bangkok
25–27th Feb 2014
Durban
20–21st May 2014 Hong Kong Post Expo Asia-Pacific 2014
3–5th June 2014 Oslo – E-BISS International Delivery Benchmarking Workshop
10-12th June 2014 Gibraltar – Small Posts and Islands Postal Forum
9th Sept 2014 Canada – America-Pacific Benchmarking Workshop
Whatnext4u in the postal industry: workshops, facilitation, research and training
Postal industry and strategy
Understanding the global postal industry
Good practice, benchmarking ideas and knowledge sharing
Research into innovation and ideas for promoting the value of mail
Innovative strategy thinking - developing an effective business vision, mission and strategy. Strategy and business plans – make it happen
People, innovation and change
Developing a motivated workforce
Managing change effectively
Fostering innovation - turn problems into opportunities. Embedding innovation and implementing good ideas
Engaging employees/ improving internal communications
Customers, quality and markets
Growing mail volumes by understanding your markets and engaging your customers
Developing account management for key customers, building customer relationships
Creating a customer-focused culture in the organisation
Building a quality organisation on business excellence and improving service quality
Postal operations
Improving operational efficiency and deploying best practice in postal delivery
Recipient based delivery solutions
Embracing new technologies
Reviewing your operation through facilitated self-assessment
Internal benchmarking for performance improvement