“Forward ever, backward never: onwards with Breaking Through”
No 66 -2018

Formulated by UNI Apro Post and Logistics Sector

Toll Group to replace Bass Strait vessels in 2019.
Aust Post calls on banks to pay more. August 16, 2018.

Competence Funds From the Year’s Tariffs. August 15, 2018.

ROYAL MAIL Trials The Uk’s First Parcel Postboxes. August 13, 2018.

PostNL opens a parcel sorting centre in Apeldoorn.
13 August 2018.

Toll Group to replace Bass Strait vessels in 2019
TOLL Group expects to have two new ships on the Bass Strait run by mid-2019. The new ships will replace the Tasmanian Achiever and the Victorian Reliance.
SeaRoad Shipping announced on Wednesday it was in the process of buying a new gas-powered ship for the Bass Strait run. Toll Group spokesman Christopher Whitefield said yesterday the company was committed to replacing its current Bass Strait vessels with new generation vessels.
"The range of new ships currently being evaluated for construction will help us meet Tasmania 's freight requirements for decades to come and are a demonstration of Toll's commitment to meeting the state's long-term freight transport needs," Mr Whitefield said.
He did not rule out a gas-powered vessel or a hybrid version.
He said the ships under evaluation would offer a range of benefits including:
greater operational capacity;
more flexibility for switching capacity from domestic container freight to domestic trailer freight;
reduced loading and unloading time through the use of multiple decks;
a reduced carbon footprint through the use of cleaner or alternative fuel;
the ability to cater for domestic trailer and container freight; and
The ability to cater for current and additional 20-foot and 40-foot export containers.
The Toll Group would not reveal the cost, size or freight savings the new ships could bring.
Yesterday The Advocate revealed SeaRoad Shipping chairman Chas Kelly's plans to berth a world-first natural-gas fuelled roll-on roll-off freight vessel at Devonport. Both shipping investments were great news for Devonport, Mayor Steve Martin said.Alderman Martin is member of the Tasmanian Logistics Committee.
"It's an injection of confidence into Tasmania and certainly the business and agricultural sectors," he said.

State Infrastructure Minister Rene Hidding said the Liberal government had been aware of the private sector's plans for Bass Strait and expected the plans to be delivered.
"A robust private sector freight industry is key to our overall freight strategy," Mr Hidding said. "We welcome the recent announcements from both Toll and SeaRoad as a vindication of our policy stance on Bass Strait freight."State Opposition leader Bryan Green welcomed the news Toll was backing exporters by investing in two new freight vessels. "This will give exporters confidence about the long term," he said."In government, Labor was determined to get a better outcome on freight and there are still big challenges in the short-to-medium term."Fresh freight is a serious issue right now, but the Liberals seem too busy patting themselves on the back to address it."

Source : http://www.mastermariners.org.au/news-and-articles

Aust Post calls on banks to pay more

August 16, 2018
Australia Post boss Christine Holgate wants the 209-year-old institution to play a bigger role in providing banking services, but says she needs more money from the banks to do so.
The call comes after a new report by Deloitte Access Economics found Australia Post contributes $6 billion to the economy by providing a host of services, including 376 million annual transactions for customers of 70 financial firms, including the big four banks.
Ms Holgate says Australia Post loses money on providing banking services that include cash deposits and withdrawals, money transfers and bill payments - many of which are of vital importance to people living in the 1500 communities that don't have bank branch.
While Ms Holgate isn't interested in Australia Post obtaining a banking licence, she is in talks with the banks about them paying more for the services post offices provide on their behalf and expanding into opening and closing accounts.
"We can become the teller of the nation and be a trusted place," Ms Holgate told AAP.
"We don't have to be the banks. They can be the engine rooms as they've got all the systems in place, but we have the people, the people the community trust, and we're still there."
The Deloitte Access Economics Report found that post offices undertake $12.6 billion worth of Bank@Post transactions and $34.9 billion in Post Billpay transactions annually.
Ms Holgate said that given more than half of Australia's 4379 retail post offices are in regional and remote areas, it makes sense for them to provide a wider range of banking services at a time when so many bank branches have closed.
"With the banking royal commission there looks like there's a lot of more regulation coming to make it fairer for customers and if that's the case then maybe that's an opportunity for Australia Post to represent them," she said.
"All I ask is, given they make a profit of somewhere between $6 billion and $10 billion, that we get paid fairly for doing what we're doing for them."
Ms Holgate commissioned the Deloitte Access Economics report not long after taking on the top job at Australia Post last October and beginning a strategic review of the business, which has been weathering dramatic falls in letter deliveries and revenues, as well as staff cuts.
The report found that 92 per cent of Australians have visited a post office in the past six months.
And while most will have a mail-related reason for going to the post office, Australia Post also provides services on behalf of 750 businesses and government agencies.
The report found it also facilitates 82 per cent of the nation's $14 billion e-commerce market, with most customers relying on the organisation to receive parcels.

Source : https://www.perthnow.com.au/business/retail

Competence Funds From the Year’s Tariffs

August 15, 2018
In this year's tariff settlement between Posten Norway and Postkom, a pot of NOK 3,000,000 was negotiated for competence measures. This in order to remedy future change and downsizing needs. The protocol is now ready and it has been opened to apply for funds.
"We urge members to take this opportunity to increase competence and thus stand stronger in the face of working outside the company," says 1st Deputy Gerd Øiahals.

Management of funds
The funds will be distributed on application from employees, and will be discussed below as course / study compensation.

Target group
The prerequisite for applying for course / study compensation is that the employee receiving funds can help solve future conversion needs if the employee resigns.
Course / study compensation can only be granted to employees in Posten Norge AS, and among these only to employees such as:

have a position at risk of being affected by staffing  or
in case of termination of their own leave leave a vacant position with the same basic features such as posts that could be lost during staffing, thus contributing to internal job mobility.

Employees who are on leave may apply.
You can not apply for a course / study compensation after you have received a grant from Posten Norge AS for the same competence measures (course / education etc).
You can not apply for a course / study compensation if you have signed a severance pay agreement under the rescheduling agreement, other resignation agreement or on termination date.

This can be requested:
Full or partial coverage of labor-relevant courses. The courses must lead to documented competence in the form of eg course certificate / certificate.
Full or partial coverage of vocational education.
Full or partial coverage of studies.

Maximum amount per assignment is normal: 100,000, - In exceptional cases this limit may be exceeded.

Employer's funding of courses and education through this scheme will not result in tax liability for the employee.

How to apply
Employees who have their employment in a part of Posten Norge AS where it has been informed of conversion / retrenchment can apply until the date of overtime is defined and the individual knows whether their position will cease. There will be application deadline the 1st of each month.

Applications are sent to the region. All attachments must be attached to the application and marked with full name.

The application must contain:

the specific competence measures and supplier of this that the applicant wishes to attend,
the expected date of commencement and termination of this competence,
why the employee wishes to take the course / education for which funding is sought.
expected need for free in connection with attending course / education and completion of any exam. The funds only cover expenses, and any free leave must be settled with the manager in each case after possible grant of course / study compensation.

How to evaluate the applications
Applications are assessed on a continuous basis and the funds are distributed until the central pot per year is empty. Course / study compensation is awarded from a central pot. The assessment is conducted by a central, group-based group, following a recommendation from the company regionally. In the setting from the region, it must be stated whether the applicant meets the criteria. The central, group-based group will, if necessary, evaluate which applications should be prioritized. If this is necessary, job-relevant courses should be prioritized rather than vocational education, which in turn is prioritized rather than higher education. Secondly, applicants who best associate the competence-based approach to actual demand for skills in the labor market will be prioritized. This can be done in the application by, for example, referring to competence requirements in job vacancies from businesses where the applicant wishes to apply for a job.

Payment The course / study compensation is refunded against documentation (receipt) or paid directly to the supplier by the employee entering the company as the invoice recipient. The company only covers study expenses incurred within 12 months of granting. The right to a granted course / study compensation will expire unless the company has received a bill from the supplier or remuneration has been submitted to PNAS within 15 months of grant. The support can be taken at the semester / course fee at the course / study provider / school, examination fee, study material and travel / stay in connection with studies / courses. It is not a prerequisite that the person who has been awarded the funds is in PNAS's position when paying the cost cover.

Source : https://postkom.no

ROYAL MAIL Trials The UK’s First Parcel Postboxes

August 13, 2018

Royal Mail is trialling parcel postboxes that mean small businesses and marketplace sellers can  post pre-paid* parcels through postboxes in the same way that they currently post letters
This is the first time parcel postboxes have been trialled in the UK. The trial of 30 parcel postboxes is taking place in Northampton and Leicester and will last until 5th November
The trial boxes are based on existing Royal Mail meter mail drop boxes. They have  a wider aperture and secure design for deposits, making the posting of larger prepaid items both safe and convenient
It marks the first potential major change in use for the UK humble postbox in the last 160 years. The first ever UK postboxes were trialled in Jersey in 1852. They were subsequently rolled out across the UK in 1853 by Anthony Trollope, the novelist and senior GPO executive

Royal Mail is trialling the UK’s first ever parcel postboxes in Northampton and Leicester.
Parcel postboxes mean small businesses and marketplace sellers can post pre-paid* parcels through securely designed parcel postboxes, in the same way that they currently post a letter.
This is the first time parcel postboxes have been trialled in the UK. The trial will last until November 5 2018. Parcel postboxes represent the first potential major change of use for the humble postbox in its last 160 years of existence.
For the proof of concept trial, we are repurposing some existing meter mail drop boxes. With a wider aperture and secure design for mailing larger items, the parcel postboxes make the posting of larger prepaid parcels both safe and convenient.
For the trial, 17 parcel postboxes will be sited in Northampton and 13 in Leicester. At the end of the trial, Royal Mail will review consumer feedback and usage of the parcel postboxes. A decision will then be made whether or not to introduce some parcel postboxes in various locations across the UK.

A spokesperson for Royal Mail Parcels, said “The trial of parcel postboxes is one of the many ways we at Royal Mail are looking to make the lives of customers easier, giving them more options that suit how they want to do business. The trial is aimed at giving more flexibility to online sellers who might be running a business in their spare time and not keeping regular office hours.”

Source : https://www.royalmailgroup.com

PostNL opens a parcel sorting centre in Apeldoorn

13 August 2018
The Hague, 13 August 2018 — PostNL starts using its twentieth parcel sorting centre in the Netherlands. In this building of 7,700 m2 in Apeldoorn, between 50,000 and 100,000 parcels are processed every day. This building achieved the (highest possible) BREEAM certification rating of 'Outstanding', indicating that the building is sustainable and has a minimal impact on the environment. Also, the building doesn't use gas. PostNL invested in sustainable materials and systems (like heat recovery systems and LED lighting, amongst other things) including solar panels.
National coverage
Every year, more and more parcels are sent out in the Netherlands. Last year, for example, PostNL delivered 675,000 parcels per day. This added up to a total of 207 million: 17.2 per cent more than in 2016. This parcel sorting and distribution centre in Apeldoorn contributes to the national coverage so that parcels can be delivered seven days per week everywhere in the Netherlands.
Liesbeth Kaashoek, Director of Parcels & Logistics at PostNL, says: ‘Opening this parcel sorting centre in Apeldoorn is one of the ways that PostNL anticipates and responds to the growth of e-commerce and is how we choose to invest in our parcel and logistics infrastructure. Therefore, we are growing with the expansion of large and small e-commerce parties, and this parcel sorting centre makes us even more easily accessible to companies in the region.
Alderman for Economic Affairs, Jeroen Joon of the municipality of Apeldoorn, is thrilled with the parcel sorting and distribution centre's arrival in Apeldoorn. “With 400 job opportunities, it means a wonderful boost for employment”. Also, Joon is very pleased with the use of sustainable materials in the construction process. “Sustainability is mainly a matter of taking action. And PostNL does just that, which we truly appreciate”.
Regional and Benelux
The parcels that are sorted here in the evenings and at night, are mainly from customers in the Apeldoorn region. These parcels go to households throughout the Netherlands and Belgium.
In the mornings, the centre processes the parcels from customers throughout the Benelux. These parcels undergo sorting at other PostNL locations, and PostNL delivers them to households in the Apeldoorn region from this parcel sorting centre.
Source : https://www.postnl.nl
No 67 -2018

Formulated by UNI Apro Post and Logistics Sector

How to compete with Amazon. August 16, 2018.

Voluntary Severance Programme To Be Offered To An Post HQ Staff. August 15, 2018.

Value to be found in social procurement. August 14,  2018.

Moratorium on Grievances Agreement Due to Convention in August. August 13, 2018.

USPS records US$1.5bn losses for Q3 2018.
August 13, 2018.   

How to compete with Amazon

August 16, 2018
Just as plants and animals adapt to changes in the environment, so Australian retailers are starting to evolve their strategies to compete with Amazon. Some noteworthy recent developments include:
Ebay offering its merchants a fulfilment service through Australia Post-subsidiary Fulfilio.
Coles introducing a premium Flybuys subscription option with benefits such as free online deliveries and an online movie service.
Woolworths launching Endeavour Marketplace, an online platform for drinks suppliers to offer niche and specialty products to customers.

Other retailers interested in evolving their strategies might benefit from this simple model, which helps explain the big picture and how to position yourself for success when competing with Amazon.
The horizontal axis categorises an online retailer according to its product range:
Niche players target a specific segment with a differentiated service or curated range. An example is Appliances Online, which offers full-service installation of home appliances.
Category retailers are based in one category, or a few related categories, such as Booktopia or JB Hi-Fi.
Multi-category players offer products from several unrelated categories. Examples include marketplaces like Amazon, Ebay and Catch, and retail conglomerates like Wesfarmers and Woolworths, even though their brands operate independently.

The vertical axis categorises an online retailer according to its delivery model:
Combined delivery is when the consumer normally receives products in one delivery, when ordering through Amazon Prime, for example.
Split delivery is when the consumer typically receives several deliveries, such as with Ebay, where most sellers currently dispatch products independently.

Let’s assume that in a few years Amazon will offer a similar range and fulfilment model in Melbourne and Sydney to its current UK proposition. Amazon would sit in the top-right quadrant, offering products from every category (including fresh) in one combined delivery.
The challenge for competitors is that if Amazon sits alone in the “blue ocean” of the top-right quadrant, it will have a superior customer proposition to most other players. They will be left fighting in a “red ocean” of cut-throat competition for a dwindling share of sales. Let’s look at some specific examples.

Niche retailers
Strong niche retailers have least to fear from Amazon because the latter is unlikely to compete head-on. Amazon will sell whitegoods, but for customers looking for hassle-free installation Amazon will struggle to match Appliances Online’s exceptional customer proposition and product knowledge.

Category retailers
The challenge for category retailers is that Amazon may match their range and also offer combined delivery. If you currently buy books from Booktopia and clothes from The Iconic, Amazon can make your life simpler by delivering everything in one go. My prediction is that many of these retailers will either become niche players, seeking to differentiate themselves so they are not competing directly, or will collaborate with other retailers to offer a combined delivery option.

Multi-category retailers
These retailers are at greatest risk but also have the greatest opportunity. The risk comes because if their business model stays unchanged, Amazon will have a superior offer – a similar or better range but ordered and delivered together. The opportunity comes if these players can find a way to consolidate fulfilment.

Delivering the goods
Ebay already looks to be pursuing this strategy, having recently announced a partnership with Fulfilio. This is a fascinating development, believed to be a world-first for Ebay, and hats off to the Australian team for such a bold move.
Catch Group is enjoying fantastic success with its new marketplace and already possesses Australia’s most sophisticated pick-and-pack operation. Catch also looks to have the potential to offer combined delivery across a number of categories.
Perhaps the most interesting situation is that facing Wesfarmers and Woolworths. Wesfarmers in particular could match Amazon’s range across their portfolio of brands (groceries, liquor, hardware, general merchandise and office supplies) if it chose to co-locate in a single fulfilment centre.
The massive challenge is that it would require a transformation of Wesfarmers’ business model – not to mention its culture – to enable collaboration. With the decision to spin off Coles, it seems that Wesfarmers has decided not to pursue such a strategy. From a shareholder perspective, this may be the right decision. However, it remains an extraordinary opportunity for anyone interested in retail strategy, as Wesfarmers is one of the few companies in the world with the potential to match Amazon’s range without relying on third-party suppliers.
 For anyone still unsure whether Amazon will be an important player in the Australian market, relative stock market valuations provide a sobering reality check. Valuations are based on the market’s collective assessment of future prospects and, at the time of this writing, Amazon is worth around nine times the combined value of Wesfarmers, Ebay and Woolworths.
Retailer market capitalisations in AUD million, as of August 10, 2018.
Within a few years Amazon will have a much stronger hand in Australia than most retailers currently selling online, if the latter do not find a way to either differentiate themselves or consolidate deliveries and extend their range. But recent moves show us that some of Amazon’s largest Australian competitors are moving in the right direction.

Source : https://www.insideretail.com.au/news

Voluntary Severance Programme To Be Offered To An Post HQ Staff

August 15, 2018
1,200 individuals, most of whom are based in the GPO, will be able to apply for the scheme following a work re-design process, which identified where roles could be eliminated.
Since this is the first significant HQ Voluntary Severance programme for many years it is estimated that 200-300 staff may leave the organisation under recently agreed terms as recommended by the Labour Court.
David McRedmond An Post CEO said:“ The voluntary leaver programme is the latest step in An Post’s plan to modernise every aspect of the business as An Post transitions from the old mails world to the new world of e-commerce and digital services. We have made great strides in the frontline delivery service, relaunched our parcels business and reached agreement on the transformation of the post office network. A reshaped HQ will be core to achieving the vision of An Post in the new world.”
An Post will also explore options for the future location of its headquarters.  The GPO headquarter offices were last refurbished when An Post was created out of the old Posts & Telegraphs in 1984. In addition to exploring refurbishment options for the GPO offices, the Company will explore other locations appropriate to a leading, modern logistics and retailing company.
Recognising the historic and social significance of the GPO, An Post will always maintain its main Post Office in the iconic building, regardless of any decision on the location of the Company’s HQ.
David McRedmond commented:“The company is determined to provide office accommodation fit for the business and its employees. The GPO offices are dilapidated and in their current form are no longer fit for purpose as the modern Headquarter of one of Ireland’s leading companies. It is 34 years since the last refurbishment and this time lapse far exceeds the accepted norm of 15-20 years for an office refurbishment (and typical depreciation period of 10 years). Initial estimates to refurbish the building are extremely high requiring a budget of tens of millions of euros and will take a long time to complete, especially as much of the building is listed.”
“The Board of An Post has agreed that I explore potential alternative locations in addition to the refurbishment option. We have made no decisions yet and will consult with staff, unions and Government (the owner of the GPO). We are proud to call the GPO home but our commitment is to modernise our business for all our customers and our frontline staff.”
Earlier this year An Post announced a return to profit and growth, having achieved a 30% increase in parcel volumes to help offset an 8% decline in traditional mail; and the establishment of two distinct businesses – An Post Mails & Parcels and An Post Retail – under the An Post Group.   A breakthrough agreement was concluded with the Irish Postmasters’ Union for a rejuvenated post office network.   Cost-reflective bulk mail tariffs were introduced in April and the Company’s Management Board and Senior Management Team have been significantly streamlined.

Source : https://postandparcel.info/97880/news

Value to be found in social procurement

August 14,  2018
Australia Post today released a whitepaper highlighting how social procurement creates a competitive advantage and better workforce engagement for organisations, leading to increased economic, social and environmental value.
Releasing 'Unlocking the Value of Social Procurement and Supplier Diversity: Leading Practice Insights' today at Social Traders' social procurement conference, Australia Post's research features findings from organisations such as Salvos Legal, Fortescue Metals, ARA Indigenous Services and Westpac.
Launching the whitepaper, Australia Post Group Chief Financial Officer Janelle Hopkins said that changing social needs, government policy, competitive advantages and workforce engagement made up the four key factors behind social procurement's momentum in recent years.
"Choosing a social enterprise as a supplier can make a positive impact to the community. It creates work for minority groups by leveraging money that would have been spent elsewhere," said Ms Hopkins.
"For example, Indigenous businesses offer 70 times the average rate of employment opportunities for Indigenous jobseekers. This means that your choice of supplier can have a huge impact in changing the community you operate in.
"Social enterprises don't just offer employment opportunities to otherwise marginalised groups, they also provide economic value for our country. For example, there are nearly 12,000 Indigenous businesses contributing around $6.5 billion to the Australian economy every year.
"That's not to say there aren't challenges, but we hope this paper will provoke discussion around how social procurement can be a regular fixture in business activity."
Further facts from ''Unlocking the Value of Social Procurement and Supplier Diversity' include':
There are an estimated 20,000 social enterprises operating across Australia generating up to 3% of GDP and employing 300,000 Australians
Over 95 per cent are small to medium sized enterprises
There are nearly 12,000 Indigenous businesses contributing up to $6.5 billion to the Australian economy each year
It is estimated that for every $100,000 spent with social enterprises, 1.5 jobs are created for those suffering or at risk of disadvantage
Research suggests that for every $1 spent with an Indigenous business, $4.41 is generated in social return.

Source : https://auspost.newsroom.com.au

Moratorium on Grievances Agreement Due to Convention in August

August 13, 2018
The APWU(American Postal Workers Union, AFL-CIO) and the Postal Service have agreed to a moratorium on grievances, disciplinary actions and arbitration hearings at the national, regional, state and local levels from Aug. 13 until Aug. 27 due to the 2018 APWU Biennial Convention, Industrial Relations Director Vance Zimmerman has announced. The period spans a total of 15 days.
According to the agreement, for all grievances and appeals to arbitration, the time for filing and/or appeal will be extended for a period of 15 days beyond those specified in the National Agreement. In addition, suspensions that would otherwise be served because no grievance had been filed within 14 days or because no appeal had been filed to the next step of the grievance-arbitration procedure will be deferred for the 15-day extension period.

Source : http://www.apwu.org/news

USPS records US$1.5bn losses for Q3 2018

August 13, 2018
The US Postal Service (USPS) reported total revenue of US$17.1bn for the third quarter of 2018 (April 1–June 30, 2018), an increase of US$402m, or 2.4%, compared to the same quarter last year.
First class mail revenue declined by US$134m, or 2.2%, and marketing mail revenue increased by US$63m, or 1.6%. Total mail volume declined by a combined 397 million pieces, or 1.2%, compared to the same quarter last year. Shipping and packages revenue increased byThe net loss for the quarter totalled US$1.5bn, a decline in net loss of US$651m compared to the same period last year; this is the result of nonrecurring adjustments to retirement and retiree health benefit plans to account for revised actuarial assumptions. Excluding the effects of these adjustments, the net loss for the quarter increased by US$507m.
Megan J Brennan, postmaster general and CEO, USPS, said, “The root cause of our financial instability is a flawed business model that is imposed by law. We encourage congress to engage in a broad public policy discussion and pass postal reform legislation.
“We support legislation under consideration in the current congress which would provide immediate flexibility to the organization, allow the postal service to invest in our future and continue to provide the prompt, reliable, efficient and universal service the public expects.”
 UTotal operating expenses were US$18.5bn for the quarter, a decline of US$240m, or 1.3%, compared to the same quarter last year. Inflationary pressures on salaries and benefits, as well as fuel and transportation costs were offset by the actuarial changes referred to above.
Joseph Corbett, chief financial officer, USPS, said, “After adjusting for actuarial changes related to retirement and retiree health benefit plans, the quarter results reflect ongoing trends.
“The secular declines in mail are somewhat offset by package growth, and labor productivity continues to improve. However, absent changes to our business model, net losses are expected to continue.”
S$475m, or 10.2%, on volume growth of 102 million pieces, or 7.5%.

Source : https://www.postalandparceltechnologyinternational.com/news