UNI Apro Post & Logistics
1 POSTAL NEWS No 25-2022
Formulated by UNI Apro Post and Logistics Sector
1.CEO interview – Croatian Post invests in modernisation and CSR. April 01, 2022.
2.DHL freight breaks ground on new site in VillingenSchwenningen. March 31, 2022.
3.PRC: USPS needs to “take corrective action to restore service performance”. March 30, 2022.
4.Apply Now! Join the Steering Committee for building the power to win. March 29, 2022.
5.UPU calls for donations to support postal services in Ukraine. March 28, 2022.
1.CEO interview – Croatian Post invests in modernisation and CSR April 01, 2022 Croatian Post (Hrvatska Posta) is investing heavily in modernisation, digitalisation and corporate social responsibility (CSR) for continued profitable growth in the coming years, CEO Ivan Čulo told CEP-Research in an exclusive interview.
The postal operator has remained financially stable and continued to serve Croatian society throughout “the unprecedented crisis” of the Covid-19 pandemic, he stressed in wide-ranging remarks following various recent achievements. Big investments Under its ‘Post2022’ strategy, Croatian Post officially completed its biggest ever investment cycle, worth HRK 1 billion (€130 million), in early March with the opening of the HRK 60m Kukuljanovo sorting centre, about 10km from the coastal city of Rijeka. This 4,200 sqm facility, with 300 workers, is the fourth and final new state-of-the art sorting facility, following those in Zadar, Osijek and its biggest facility at Velika Gorica (near Zagreb). Speaking at the opening of the Kukuljanovo facility, Čulo declared: "I am proud that today we stand alongside the most successful and greatest post offices not only in Europe, but also in the world. We have also been recognised by a number of global companies with whom we are building partnerships, and I would definitely single out Amazon, Zalando and About You. Every day we deliver tens of thousands of packages for them."
Last month, Croatian Post also stepped up its CSR activities by joining The Climate Pledge initiative. Signatories to this international initiative commit to implementing decarbonisation programmes (avoiding, reducing and offsetting CO2 emissions) in order to reach net-zero CO2 emissions by 2040. In parallel, the postal operator has so far installed more than 150 out of a planned 300 parcel lockers across the country under a cooperation partnership with Omniva. Deliveries to parcel lockers and expansion of its electric vehicles fleet will help the company to reduce its CO2 footprint over the coming years. Against the background of these activities, Čulo took time to respond to questions from CEPResearch about the company’s strategy, experiences during the pandemic, and plans for the coming years.
How has Croatian Post got through the pandemic? What are the main lessons learned?
“There is an apocryphal Chinese curse “May you live in interesting times”. We live in an unprecedented crisis which changed the entire world and we, personally and professionally, had to adapt quickly to the new circumstances. Many industries suffered greatly during the pandemic, but all postal operators continued to offer their services and saw tremendous growth in both number and volumes of parcels. “Our business operations never stopped, and we continued to connect people, businesses, and countries. Fortunately, we have already built strong business foundations before the pandemic happened, so we were quite ready for all the challenges. Companies that were undergoing an investment cycle were much more prepared and even came out of the crisis stronger.”
How did Croatian Post perform financially in 2021?
“Our financial results have been stable. We finished the year with around €6.5 million net profit and EBITDA of €22.9 million, with an EBITDA margin of 10.1%. “Our investments have reached more than €17 million and our parcel volumes were 15% higher compared to the previous year. I would like to emphasise that in 2021 we have paid almost €17 million in rewards to operational workers.
What is Croatian Post’s overall strategy?
“Two core philosophies of our strategy are digitalization and corporate social responsibility. Our Development Strategy Post2022 defines three directions of development. We are developing our core business by improving our processes and introducing innovations. We are promoting excellence by developing our employees’ skills and competences, and we are developing our logistics through new market penetration.”
What are your main priorities for 2022, strategically, commercially and operationally?
“Croatian Post implemented its biggest investment cycle in the company’s history. We have invested in infrastructure, technology, digitalization, processes, and people. The biggest priority was to transform the Croatian Post into a modern logistics company, fit for modern logistics market and all the challenges of the ever-changing business environment. “In September 2019 we opened the New Sorting Centre which was the largest business investment in Croatian Post’s history. Our parcel sorting machine can sort up to 15,000 items per hour and we can sort around 23,0000 letters per hour, which proved to be sufficient even with higher parcel volumes. “We also invested in the parcel locker network. A total of 300 parcel lockers will be placed throughout urban and vibrant areas in Croatia. Croatian Post’s partner in implementing parcel machine technology is Estonian Post, and half of the parcel lockers are already operational.
How will your recent investments make the post fit for the future?
“With the biggest investment cycle in Croatian Post’s history we created the necessary prerequisites to become the most successful postal operator in the region. Now we can concentrate our efforts on building a better user experience and transforming the way people interact with their Post.
Why has Croatian Post joined The Climate Pledge Initiative?
“It is no longer enough to just achieve growth. We need to think about the future and our impact on environment and all stakeholders. Croatian Post is recognised as one of the leaders in digital transformation in Croatia and now we are working hard to become a bright example of corporate social responsibility. Joining the Climate Pledge is an opportunity to redefine our business model and create a better world for all of us.”
Source : https://www.cep-research.com/news/ceo-interview--croatian-post-invests-inmodernisation-and-csr
2.DHL freight breaks ground on new site in VillingenSchwenningen.
March 31, 2022 ▪ New freight terminal to supplement DHL Freight network in southern Germany ▪ Efficiency and service quality improvement to serve rising demand for transport capacities ▪ New site planned for completion in September 2022
DHL Freight, one of the leading providers of road freight services in Europe, is further expanding its transport network in southwestern Baden-Württemberg with a new site in Villingen-Schwenningen. Reacting to rising demand, DHL Freight will have an additional approximately 5,780 square meters of hall and office space at its disposal there to support international and domestic customers with tailored logistics solutions and transport management in road transport.
In line with Deutsche Post DHL Group’s Sustainability Roadmap, DHL Freight has committed to making all new buildings carbon neutral, and as such the new site satisfies stateof-the-art building and environmental standards. The building is air-conditioned using electric heat pumps. Furthermore, the electricity required for its operation is generated entirely from renewable energies. The new DHL Freight terminal is planned for completion in September 2022. The groundbreaking ceremony was attended by Mayor of Villingen-Schwenningen Jürgen Roth, DHL Freight DACH CEO Dr. Thomas Vogel, DHL Freight Area Manager South Gunter Bosch and Black Forest Terminal Manager Thomas Hilzinger of DHL Freight. “It is important that we continue to systematically expand our transport network in Germany,” said Dr. Thomas Vogel, CEO of DHL Freight DACH. “The continuous modernization and expansion of handling and transport capacities is a crucial factor in offering our customers efficient logistics solutions and top-quality service. Our new terminal in VillingenSchwenningen strengthens our presence in southern Germany and will also allow us to provide the best possible service in the area between Lake Constance and Albstadt/Balingen in the Schwarzwald-Baar district.” As a further hub in the DHL Freight network, the Villingen-Schwenningen terminal will deliver primarily to customers in the automotive supply, medical technology and mechanical engineering sectors. With a total of 26 loading bays, the facility will be able to process some 800 incoming and outgoing domestic and international transport shipments daily. The expansion and development of the dense network is a key element of DHL Freight’s corporate strategy aimed at continuing to provide customers with fast, reliable and highquality transport and logistics solutions. By expanding the network of smaller locations, the company wants to improve customers’ access to domestic and international transport routes at the regional level.
Source : https://www.dhl.com/global-en/home/press/press-archive/2022/dhl-freight-breaksground-on-new-site-in-villingen-schwenningen.html
3.PRC: USPS needs to “take corrective action to restore service performance” March 30, 2022 Postal Regulatory Commission (PRC) directs USPS to address compliance issues with pricing and service: flat-shaped mail and service performance continue to be major areas of concern.
The PRC (Commission) yesterday issued its FY 2021 Annual Compliance Determination (ACD) assessing the Postal Service’s compliance with rates and service standards. The Commission is required to issue its ACD 90 days after the filing of the Postal Service’s Annual Compliance Report (39 U.S.C. Section 3653). This ACD is the first compliance review by the Commission following its implementation of new pricing rules for Market Dominant products in FY 2021. Those rules included new rate authority mechanisms, new requirements for workshare discounts and non-compensatory products, and several procedural changes. The Commission’s primary areas of review, its findings, as well as recommendations and directives, include.
Market dominant rates and fees
Workshare Discounts: Guided by the Efficient Component Pricing principle, the Commission’s review of workshare discounts focused on increasing pricing efficiency. The Commission found six workshare discount classes with passthroughs equal to 100 percent in FY 2021. Another six workshare discounts had passthroughs exceeding the 100 percent threshold and 63 workshare discounts with passthroughs that fell below 85 percent. The Commission finds that the workshare discounts equal to 100 percent cannot be changed in any rate adjustment proceeding prior to the issuance of the 2022 ACD. The Commission further directs the Postal Service to bring the latter 69 workshare discounts into compliance in the next rate adjustment proceeding.
Non-compensatory Products: The Commission’s evaluation of Market Dominant non-compensatory products provides additional rate authority to non-compensatory classes and more strictly governs how rate authority must be used for non-compensatory products in compensatory classes.
The Commission finds that there are two non-compensatory classes – Periodicals and Package Services, and four non-compensatory products within those classes – Periodicals In-County, Periodicals Outside County, Bound Printed Matter (BPM) Parcels, and Media Mail/Library Mail out of compliance. For Periodicals In-County and Periodicals Outside County, the Commission reiterates that the costs of these products continue to rise despite cost reduction initiatives and the maximization of its pricing authority, while unit revenue has remained relatively flat, negatively affecting cost coverage. For BPM Parcels, the Commission finds that the Postal Service has not taken adequate steps to improve cost coverage and directs the Postal Service to increase BPM Parcels’ prices by at least 2 percentage points above the class average in each rate adjustment affecting the Package Services class until the FY 2022 ACD. Continued price increases have resulted in improved cost coverage for Media Mail/Library Mail prompting the Commission to strongly recommend that the Postal Service continue its above-average price increases in future rate adjustment proceedings. The Commission finds five non-compensatory products in compensatory classes – First-Class Mail Flats, USPS Marketing Mail Flats, USPS Marketing Mail Carrier Route, USPS Marketing Mail Parcels, and Money Orders (from the Special Services class) out of compliance. First-Class Mail Flats failed to cover its attributable costs for the first time. As it relates to USPS Marketing Mail Flats, the Commission discusses the product’s continued struggle to cover its attributable costs despite various prior ACD directives. The Commission finds that all of these products failed to cover their attributable costs, and directs the Postal Service to increase the prices for these products by at least 2 percentage points above the class average in each Market Dominant rate adjustment proceeding affecting these products through the issuance of the FY 2022 ACD, consistent with 39 C.F.R. part 3030, subpart G. As it relates to issues that continue to plague flat-shaped products in general (i.e. First-Class Mail Flats, USPS Marketing Mail Flats, and USPS Marketing Mail Carrier Route) the Commission directs the Postal Service to continue to explore and implement opportunities to reduce unit costs, as discussed in Chapter VI.
Competitive products rates and fees
The Commission’s review of Competitive Products shows that revenues for three products – International Money Transfer Service—Inbound (IMTS—Inbound), International Money Transfer Service—Outbound (IMTS—Outbound), and International Ancillary Services did not cover attributable costs and, therefore, did not comply with 39 U.S.C. § 3633(a)(2). The Commission directs the Postal Service to take remedial action as it relates to these products. The Commission further directs the Postal Service to file quarterly reports on a Pilot Program, which allows customers to use payroll and business checks to purchase gift cards, including updates on volume and revenue, as well as future plans for the Pilot Program. All other competitive products were in compliance.
The Commission finds that most Market Dominant products failed to meet their service performance targets for FY 2021 and directs the Postal Service to take corrective action to restore service performance for its Market Dominant products in FY 2022. Notably, FY 2021 was the seventh consecutive year that no First-Class Mail product category achieved its service performance target. Of the 27 Market Dominant products/categories measured, 21 products/categories (more than 77 percent) did not meet their targets in FY 2021, and some were substantially below the applicable target.
The Commission’s evaluation of the Postal Service’s service performance takes into consideration the effects of the COVID-19 pandemic, which exacerbated pre-existing service performance challenges. It further recognizes three primary challenges resulting from the COVID-19 pandemicreduced employee availability, transportation disruptions, and changes in the mail mix that affected the Postal Service’s service performance in FY 2021. As a result, the Commission has developed specific directives that are designed to elicit information and data from the Postal Service regarding the effectiveness of the Postal Service’s service performance initiatives and the steps that the Postal Service will take to restore service performance for its Market Dominant products in FY 2022.
The Commission’s review of issues related to flat-shaped mail products (flats) finds that the processing and delivery of this mail category continue to be a problem for the Postal Service despite operational initiatives and cost-reduction efforts. The associated challenges have led to continuous and persistent increases in costs, with five out of eight flats products not covering costs in FY 2021. In addition, no flat-shaped mail product met its service performance target in FY 2021. The Commission focused its analysis on five areas: (1) flats financial performance, (2) flats service performance, (3) the impact of operational initiatives and methodological changes on flats, (4) pinch points that impact flats operational performance, and (5) flats unit costs for mail processing, delivery, and purchased transportation operations. The Commission makes several recommendations for data collection and analysis regarding ongoing and future Postal Service initiatives designed to reduce flats costs, improve flats service performance, and/or improve flats operations. The fact that in FY 2021 flat-shaped mail products collectively had a cumulative negative contribution of almost $1.3 billion highlights the urgency and importance of improvement on this issue. ・The Commission recommends that the Postal Service continue to estimate and report the additional cost that bundle breakage adds to flats processing. ・ The Commission directs the Postal Service to implement initiatives to reduce mail processing costs. The Commission further directs the Postal Service to target those mail processing facilities that have extreme (unusually high or low) productivity values or missing workhours or volume at the operation and daily-tour-level to improve the reporting of these facilities or explain why the provided productivity is accurate for a given facility, mail processing category, fiscal year, and quarter.
・The Commission recommends that in FY 2022, the Postal Service develop an accurate method to track flat-shaped mail that is manually processed. Once there is an accurate measurement of such flat-shaped mail, the Postal Service shall develop a specific plan to continue to decrease the quantity of flat-shaped mailpieces processed manually, and achieve a proportional reduction in unit mail processing costs for manual operations. ・The Postal Service must develop a plan to reduce the costs associated with allied operations and gain additional insight into allied operations. Further, the Postal Service must use the updated version of the Cycle Time report to generate detailed data/reports on mail entry points. The Postal Service must also indicate the work in process cycle time for each processing point, and the corrective action(s) taken when delays occur in processing points.
・The Postal Service must develop a plan to reduce the costs associated with transporting flat-shaped mail in FY 2022. The plan shall establish specific achievable goals to reduce transportation costs for flat-shaped mail. ・The Postal Service must develop a plan in FY 2022 to reduce the costs associated with delivering flat-shaped mail. The plan should establish specific achievable goals that reduce delivery costs for flat-shaped mail. The Commission’s full review of the Postal Service’s compliance with rates and service in FY 2021 is available at www.prc.gov, along with related documents filed in this docket.
Source : https://postandparcel.info/147542/news/post/prc-usps-needs-to-take-correctiveaction-to-restore-service-performance
4.Apply Now! Join the Steering Committee for building the power to win March 29, 2022 The Building the Power to Win campaign was launched in February 2021 and is moving at a good pace to continue CUPW’s preparation for mass education and mobilizing in view of the next round of bargaining.
In the coming weeks, CUPW will set up a steering committee made up of two members per region, and they will set down the framework to further our efforts. We are at a critical juncture. We all agree that the current world, national and regional contexts will call for solid mobilizing to ensure that we are ready to face down the boss and the government as we prepare to fight for the necessary changes and improvements to our working conditions, expanded postal services, our health and safety as well as the climate emergency. The steering committee for Building the Power to Win, will meet in April in order to develop an action plan for rolling out the mass education program using strategies from “Secrets of a Successful Organizer” at a local level. This committee will meet periodically thereafter, to assess the fulfillment of the action plan and make adjustments where necessary. Members in good standing who attended either Building the Power to Win sessions, or who have experience in organizing and wish to contribute to the campaign, are encouraged to apply. Please provide as much information as you can about your experience and what motivates you to lead this important work. Fill out this application form in order to be considered for selection as a member of the steering committee. The deadline to apply is April 1st . Applications must be signed by an officer of the applicant’s Local. Regions will submit their recommendations to the National Office by April 6. Selection of members for the steering
5.UPU calls for donations to support postal services in Ukraine March 28, 2022 The Universal Postal Union (UPU), the United Nations specialized agency for international postal cooperation, has appealed to its 192 member countries for their solidarity in raising emergency funds to provide assistance to the Ukrainian Post (Ukrposhta).
“The Post is a lifeline delivering essential items, services, and humanitarian assistance to civilians everywhere, especially in times of crisis. I encourage UPU members to stand in solidarity with the global postal family by contributing to this special fund, which will help ensure the Ukrainian Post can continue to serve those who depend on it,” said UPU Director General Masahiko Metoki. Although Ukrposhta has reported the deaths of several postal workers and the destruction of postal property and infrastructure since the start of the Russian Federation’s military actions within the sovereign territory of Ukraine, the Post has continued to deliver postal items, donated humanitarian goods, and social welfare payments to civilians, including to those who have been internally displaced. Donations from member countries will be managed as part of the UPU’s Emergency and Solidarity Fund (ESF), a special account that allows the organization to provide emergency assistance to support postal activity in countries affected by disasters and armed conflicts. The Fund relies entirely on voluntary contributions from UPU’s member countries, restricted postal unions and other postal sector partners. The funds collected by the UPU will support direct assistance to Ukrposhta, but, depending on needs, could also support humanitarian initiatives launched by Posts in neighbouring countries. The Posts of neighbouring countries – including Latvia, Poland and Slovakia – have helped ensure the continuance of international postal exchanges with Ukraine by collecting postal items sent from abroad. Other UPU member countries are also assisting Ukraine through the free transit of humanitarian items, as well as the introduction of services in support refugees who have fled Ukraine.
Source : https://www.upu.int/en/Press-Release/2022/Universal-Postal-Union-calls-fordonations-to-support-postal-services-in-Ukraine