Case study: CORREOS ESPAÑASociedad Estatal Correos y Telégrafos, S.A.

CONTENT

Product: Postal crates range

Boxerpac

Motorcycle coffer

Sociedad Estatal Correos y Telégrafos, S.A.

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Customer Details

Customer/ User Name: Sociedad Estatal Correos y Telégrafos, S.A.

Market segment: Postal Services

Company’s mission: Correos began in 1716 as a public service, for and belonging to everyone. Today Correos is the best provider of physical and digital communications and deliveries in Spain, providing an efficient, high quality and sustainable service; with the best professionals, the largest presence throughout the territory, and the most innovative equipment.

The Correos Group comprises Correos and its affiliates Correos Express, Nexea and Correos Telecom.

General info about customer(s)/user(s)

What is his business :Correos is a global provider of physical and electronic communications and parcel delivery solutions. It is also the company responsible for providing the universal postal service in Spain, with efficiency, quality and sustainability

His product: Correos manage 2,774 million postal items, daily delivered to every home and business

How big/important is the customer

Market share or position Nr. 1 - Correos is one of the leading Spanish companies in terms of size, capillarity and human resources with 18 automated processing centres, where 95% of mail items are sorted automatically.

Turnover in € : 1.590,5 M€ in 2016

Number of employees: almost 50,000 people, two thirds of which are employees dedicated to carry out daily delivery. As a proportion women are 50% of employees and men 50%.

Customer agrees for external use: Yes / No

High resolution photos available: Yes / No

Market drivers of the customer

Analyze the market environment and needs of the customer: As all logistics services, Postal Services is an activity requiring a high level of efficiency in every stage of the process. In the mid nineties Correos started working on an ambitious plan they called “ Plan de Contenerización” with the objective to improve efficiency by implementing the most modern handling and automation equipment. After some years working on the project and testing several alternatives solutions, in 1999 Correos posted some tenders to select the best suppliers for each area. Schoeller Allibert was the selected one to develop a new Postal range of plastic RTPs.

How was the old situation? One of the areas to improve was how to handle efficiently postal items by moving from their mailbags to a most modern and efficient means based on “plastic RTPs”

What has to be solved at the current application? Several countries in EU were at that time using specific plastic RTPs developed by Schoeller Allibert to handle postal items. However, none of them met all Correos specific requirements: minimum space when empty, being able to coexist with current roll containers and new specific dollies, …

Which results have to be reached? To develop a new range of Postal crates meeting with all Correos requirements.

Why is there a need for SA product? Because plastic RTPs had showed to be the best solution for this application from several reasons: cost effectiveness, sustainability, logistic efficiency, useful life,..

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Challenges

Define the required improvements from the customer’s view:

• What challenges do they face?

– Correos is a very big company on which implementing significant changes always means a challenge

– The easiest and safest way to implement the “Plan de Contenerización, would have been to imitate process already working in other Postal Services in EU and to use the same RTPs which were performing properly for this application.

– However Schoeller Allibert proposals were based on the knowlegde of their specific needs and therefore included several improvements that other solutions did not meet:

• Excellent nesting ratio to minimize space occupied by the crates when empty.

• Specific dimensions fitting with old and new roll containers

• 3 different interstackable crates fiting with all postal items

• Bicolor crates for an easy handling and quick labels reading.

• Specific low cost lid

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Ambition & Solution

Explain the ambitions & solutions SA provides:

Ambition:

• To gain competitiveness by reducing logistics and handling cost through the required level of efficiency.

• To keep the best level of sustainability. This is always a key target for

Correos matching with the use of reusable long life plastic crates.

• Ergonomics: improve working conditions

Solution

What did SA suggest as a solution?

• SA proposed to develop an specific range of interstackable plastic RTPs

meeting with all Correos requirements composed of:– 3 specific postal crates

– 2 low cost lids

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Solution

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Conclusions

• The successful implementation of the” Plan de Contenerización” meant a big leap forward for Correos to gain competitiveness and remain leading the

market through innovation.

• All important RTP manufacturers in EU, proposed different alternatives but

finally the proposal from SA was the one selected for Correos .

• Since then, Schoeller Allibert has been their most reliable and competitive supplier being capable to supply more than 2,5 million plastic crates.

• Furthermore, Schoeller Allibert has also been one of the suppliers for other

projects related with other RTP solutions as the one to replace old containers

by Plastic Foldable Large containers (Boxer Pac)

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Innovating your logistics for a better world