“Forward ever, backward never: onwards with Breaking Through”
No 87 -2019

Formulated by UNI Apro Post and Logistics Sector

Posti to open new premises focused on e-commerce in the city center of Helsinki as a new initiative. October 29, 2019.

Zebra lands $570 million Postal Service contract.
October 29, 2019.

Major upgrade to UPS’ healthcare network.
October 28, 2019.

Third quarter 2019: Continued positive progress.
October 25, 2019.

Subcontractor liability for parcel services decided! October 24, 2019.

Posti to open new premises focused on e-commerce in the city center of  Helsinki as a new initiative

October 29, 2019
Posti will open new premises focused on e-commerce for Posti’s consumer customers and online retailers on Keskuskatu in Helsinki. Box will be opened on November 1, 2019. Posti’s new initiative aims at more growth in e-commerce. The new premises are equipped with fitting rooms, a giant parcel locker and a digital kiosk. Box is also a physical store for online retailers and a testing space for Posti’s new digital services.
E-commerce is growing rapidly. Finnish consumers estimate that they will make more online purchases in the future than they do now. According to a survey conducted by Posti, almost one fifth of the respondents estimate that they will buy everything or almost everything online in 2025.

“The new space on Keskuskatu is an accurate illustration of the historically quick change of e-commerce and Posti. Due to the growth in online and C2C sales, a significant share of the consumers’ visits to Posti have to do with collecting or sending parcels. This is why we need to change. Box is our response to the growth of e-commerce and to the new consumer habits of the Finnish people. Box is a great example of how Posti is reforming,” says Posti’s Head of Customer Experience and Channels Kaisa Ilola.

Consumers can try on clothes straight away

The Finnish way of consuming is changing: physical stores are disappearing while online stores are growing.  Finns shop online for electronics and information technology, for example. Finns also buy more and more clothes both online and via C2C channels.

Any customer of Posti can have their order delivered to Box and pick it up, for instance, on their way to work or in-between a shopping spree in the city center. The purpose of Box is to make it as easy as possible to pick up and send online orders.

“If a customer has placed an order for clothes online, they can try on the clothes straight away. If the clothes fit, that’s great. If they don’t fit, the customer can return them immediately without having to go home first. Other kinds of orders can also be opened at Box straight away. The customers can leave the packaging materials here to be recycled or used by other customers. The consumer behavior of the Finnish people has changed significantly. Before, there was a piece missing between the online store and home. Box was created to fill in the missing piece,” Ilola says.

Online store emissions do not differ from physical store emissions

Contrary to popular belief, emissions from e-commerce transport do not significantly differ from those generated by other types of retail. Regardless of whether the consumer buys the product from an online store or a physical store, the transport route of products from the country of origin to Finland is essentially the same. All of Posti’s delivery, transport, freight and warehousing services in Finland are carbon neutral Posti Green services for our customers – without additional fees.

“Box has also been designed to be as climate-friendly as possible. Online shoppers can reduce their CO2 emissions by up to 70% by routing their parcels along their everyday routes. The location of Box on Keskuskatu is close to many of our customers’ daily routes. Box cannot be reached by car – it is located along excellent public transportation connections. In addition, special attention has been paid to the packaging materials and their recyclability”, Kaisa Ilola says.

New things are tried at Box

Box is a space for trying out new things for Posti and its customers. Online retailers can use Box for organizing their own events and use it as a display window for their products.
“Box is a space for both consumers and online retailers. Box will become a physical store in the heart of Helsinki for many of the domestic and foreign online retailers. Online retailers can organize their own events, pop up events and sell their own products at Box. Our display windows are also available for their use”.

 Posti’s own digital services are also tried out at Box. For instance, parcels and letters can be sent via the new self-service terminal, where the customer can pay for shipping and speak to Posti’s customer service team via a video connection, if necessary. The self-service terminals are currently being tested, as they will be used in the OmaPosti kiosks that will be opened in the future.

Posti’s service designers are continuously working on the premises. They design and try out the digital services of Posti together with the customers, such as the OmaPosti application.

Posti seeks growth in the sectors of parcels, online store and logistics

Posti’s strategy is to add significant growth in the sectors of parcel and online store and logistics. The ongoing structural change is the biggest in the history of Posti: the consumers’ needs are changing, digitalization is increasing, the use of paper mail is declining more and more, the number of sent parcels is growing and the operating environment is increasingly more competitive.

Box is an accurate illustration of this change: customers are making online and C2C purchases more and more.

“As we build the future of Posti, we have to seek growth increasingly more in the e-commerce and logistics sectors. To us, it is important to make sure that our services are flexible and better respond to the rapidly changing needs of our customers,” Ilola says.
Posti’s change can also be seen in its profit performance. During the first half of 2019, the number of parcels grew at a record-breaking rate. A historical shift could also be seen during the first half of the year: Parcels, e-commerce and logistics amounted to over half of Posti’s total net sales.

Source : https://www.posti.com/en/media/media-news/2019

Zebra lands $570 million Postal Service contract

October 29, 2019
The Lincolnshire-based company wins a deal to supply 300,000 hand-held scanners.

Zebra Technologies has landed a contract with the U.S. Postal Service worth more than a half-billion dollars.

The Lincolnshire-based maker of bar-code scanners will supply more than 300,000 of the handheld devices to the Postal Service, which is grappling with the real-time demands of e-commerce and competitors such as FedEx and UPS. The deal is valued at $570 million.
Zebra will begin shipping handhelds early next year. The devices, a mainstay of delivery companies and retailers, will allow postal workers to scan, track and trace packages. As traditional letters give way to email, the Postal Service is increasingly turning to delivering packages, its second-largest line of business.

The deal validates Zebra’s $3.5 billion gamble to buy Motorola’s bar-code scanner business five years ago. Zebra had long been the top maker of bar code printers and label supplies when it bought into the scanner business. It has since built out the portfolio as hardware moved to Google’s Android software platform from Microsoft.

At $222 a share, Zebra's stock is clawing its way back toward its 52-week high, $235.44 on April 24. A year ago the stock traded at $155.

Source : https://www.chicagobusiness.com/john-pletz-technology

Major upgrade to UPS’ healthcare network

October 28, 2019

UPS has announced that its U.S. healthcare warehouse and distribution space will total 4 million sq. ft. by 2020.

It is adding 1.3 million sq. ft. of total distribution space to key U.S. markets.
In addition, UPS received European Union’s Good Distribution Practice (GDP) compliance certification for its healthcare operations in France and Germany.

Among the largest upgrades include a new 450,000 square-foot facility near the healthcare campus by UPS’s Worldport air hub in Louisville.

A new centre in Harrisburg, PA, will measure 315,000 sq. ft. and strategically located near UPS’s local transportation hub that has the capability of reaching key Northeast markets in one day. The centre is also near UPS’s Swedesboro, N.J., healthcare operations. This Swedesboro facility, opened in 2015, is the first in the UPS network to offer medical device services such as autoclave capabilities, decontamination and replenishment of surgical kits, and instrument inspection, among other services.

“UPS offers top-notch healthcare supply chain services that can meet specialised customer needs,” said Darren Cockrel, UPS president of global logistics. “By increasing warehouse and distribution space and optimising multi-client facilities, our customers have greater opportunity to reduce supply chain costs, and get their shipments to the right places globally at the right time and in full regulatory compliance.”

Key features in the new facilities include climate controls and validated coolers and freezers for customer products requiring strict temperature environments. Secured, special-access cages and vaults help protect high-value specialty pharmaceuticals. The upgrades meet international guidelines – including cGMP, cGDP, and PDMA regulatory mandates – and maintain applicable government accreditations and licenses. Adherence helps maintain quality assurance to reduce risk and ensure compliance across various geographies.

Other cities with expanded healthcare warehouse space will include: Atlanta, GA; Columbus, OH; Reno, NV; and Tracy, CA.

“We align our healthcare distribution network to deliver a broader 1-2 day coverage, giving customers transit time benefits and later pickups they need to provide competitive advantage, said Dan Gagnon, UPS vice president of global healthcare and life science strategy.

To further enhance its healthcare distribution network, UPS recently received EU Good Distribution Practice (GDP) certification for pharmaceutical shipping in France and Germany. The European Union’s stringent healthcare-product distribution guidelines are set by the European Medicines Agency, describing the conditions that a wholesale distributor must meet to ensure the quality and integrity of medicines throughout the supply chain.

This GDP certification validates the France and Germany networks as following proper standards for shipping pharmaceuticals, diagnostic products (including reagents), and stable blood products.
“This additional accreditation further demonstrates our commitment to the healthcare and life sciences segments,” said Tom Page, vice president of UPS Supply Chain Solutions healthcare compliance and quality assurance. “Our long-term strategy is built around four pillars that will continue to drive UPS’s success in handling critical healthcare and life science goods: quality assurance, visibility, control and customer experience.”

Source : https://postandparcel.info/117216/news

Third quarter 2019: Continued positive progress
October 25, 2019
Third quarter 2019*
Net sales totaled SEK 9,026m (8,840), an organic increase of 1%
Operating income totaled SEK 57m (-73)
Adjusted operating income was SEK 103m (-65)
Net income for the period was SEK -51m (-122)
Earnings per share were SEK -0.03 (-0.06)
Cash flow from operating activities totaled SEK 0m (-371)

*The Group applies IFRS 16 Leases as of January 1, 2019. In accordance with IFRS 16, figures for comparison have not been restated.

Comment from Annemarie Gardshol, acting President and CEO
The year’s third quarter shows continued positive progress and, in comparison with the same quarter in 2018, improved income. A clearer focus on the business and the ongoing transformation process are delivering improved profitability in Sweden, Denmark and Norway.

A more focused strategy was established in the quarter. Under the strategy, PostNord is focusing purposefully on its core business - parcels and mail - in order to secure a leading position in a world where patterns of communication and consumption have changed. In recent years, PostNord has brought in major changes to address the decline in mail. At the same time, we have taken to the offensive in gaining a leading position in e-commerce deliveries. Our prime business opportunity lies in our parcel services for end consumers. This fast-growing segment is characterized by high demands from recipients for convenient deliveries.

“An offering adapted to consumer expectations, for example, sustainable delivery options, is essential. We are now working on all this within the Group’s new, customer-oriented and simplified organization. The most important factor driving the positive trend of the business is good efforts of all our employees,” says Annemarie Gardshol, acting President and CEO.

Three out of four online buyers in the Nordics say that they always, often or sometimes take the issue of sustainability into account. One important issue is to increase the capacity utilization in our trucks by reducing the volume of air in parcels and by coordinating transport operations. As regards our target of reducing the Group’s overall carbon dioxide emissions by 40% by the end of 2020 - relative to the levels in 2009 - we are now at just over 35%. The returns issue also affects the climate impact of the parcels business. In September, PostNord published its E-barometer report for the second quarter. According to the report, free returns are now less common in Swedish e-commerce and the expectations of Swedish consumers for free returns has fallen since last year.

The end consumer and the customer experience are becoming more and more important to our business. In Denmark, our delivery network has expanded considerably and PostNord has established a presence even closer to the end consumer. Since year-end, more than 300 new delivery points have opened in Denmark. The aim is to have nearly 500 in operation before the intensive Black Friday period.

To secure a long-term future for the postal service under the strategy, we need to strive to achieve a service level that meets the market’s needs at reasonable cost. PostNord Denmark has entered the final phase of the ongoing transformation of the Danish business, and with a new, efficient service model in place the focus is now on improving the customer experience. At the same, the process of developing and establishing a new delivery system for mail in the Swedish market is ongoing.

“In addition, the current systems of regulation on Sweden and Denmark need to be updated and constructive dialogue is under way with both Swedish and Danish decision-makers. One step in the right direction was Sweden’s new Postal Ordinance in August, which opens the way to higher postal rates to offset falling mail volumes. On September 30, we announced that we would be raising the letter rate for domestic letters in Sweden from SEK 9 to 11 on January 1, 2020,” says Annemarie Gardshol, acting President and CEO.

Notable business transactions during the period include a scanning and EDI contract between PostNord Strålfors and Telia, new contracts for PostNord Sweden with Volvo Cars and Ahlsell and a logistics contract signed by Thanke AS and PostNord Norway. In the Swedish market, we recorded good growth in Value Letter (Varubrev) and a continued flow-back of mail volumes following withdrawals by competitors from certain geographical areas, as well as renewed interest in unaddressed direct marketing (UDM).

Delivery quality for mail in Sweden (SWEX) ended the quarter at 96.74%, above the legal requirement of 95%. In Denmark, delivery quality for the Danish standard mail service (DEX) was slightly above the legal requirement of 93%. Overall delivery quality for parcels across the PostNord Group was 95.6%.

During the autumn, we held two widely-covered launches of new stamps; a set of Danish stamps with dog motifs, which resulted from PostNord’s “My Dog on a Stamp” competition, and a set of Swedish stamps designed to highlight the export success of Swedish fashion.

Source : https://www.postnord.com/en/media/press-releases/postnord/2019

Subcontractor liability for parcel services decided!

October 24, 2019
The Vereinte Dienstleistungsgewerkschaft (ver.di) welcomes today's Thursday (24.10.) In the Bundestag passed law on subcontractor liability for the parcel sector. "The unsustainable conditions in the industry scream for political action. The law on subcontractor liability for social security contributions places companies who outsource work responsibility. That's right, and there needs to be controls against exploitation in the industry, "said ver.di chairman Frank Werneke.

The labor market in the package industry, which has been growing robustly for several years, is divided into two parts. On the one hand, there are collectively agreed and socially protected jobs. Secondly, it works with subcontractors and subcontractors. Here the working conditions are often precarious or catastrophic.

According to the raids of the financial control undeclared work is systematically violated against the working time law, the minimum wage law and social security law. In many cases, employees are employed from Eastern Europe who do not know their rights or do not demand them for fear of losing their job. The employees of the parcel services provide with their work an important infrastructure service for the citizens and the economy. The law passed now helps to contain the social upheavals in the industry.

With the passing of the law in the Bundestag, a demand made by ver.di for some time has been implemented. In March, Federal Labor Minister Hubertus Heil announced that it would initiate such a law to protect workers in the parcel sector.

Source : https://psl.verdi.de/presse
No 88 -2019

Formulated by UNI Apro Post and Logistics Sector

All-Craft Conference: Postal Clerks Are “One family fighting together for all!” October 31, 2019.

Austrian Post fined €18 million for selling customer data. October 30, 2019.

Royal Mail and Unite members agree pay package.
October 30, 2019.

Canadian Courier Purolator Resets for E-Commerce Growth. October 30, 2019.

Informed Delivery gets new service. October 30, 2019.   

All-Craft Conference: Postal Clerks Are “One family fighting together for all!”

October 31, 2019
On Wednesday October 30, the Clerk Craft held its General Session after days of in-depth training at the All-Craft Conference.

During the training workshops, clerks received training on topics such as Lead Clerks, TACs, Large Office Issues, Retail and Small Office Issues (Function 4), PSE Issues and Discipline (Article 16).

Much of the morning on October 30 was spent honoring several retiring Clerk Craft National Business Agents, welcoming newly-elected leaders, and setting the goals ahead. “The Clerk Craft provided a well-rounded selection of training to the delegates to take home and continue the fight. What happened in Vegas did not stay in Vegas,” said Assistant Director Lynn Pallas-Barber.

“I’m pleasantly surprised by the impressive turnout at the ACC this year,” said Assistant Director-elect Sam Lisenbe. “The classes have gone really well. The educational classes will really help out the members on the work room floor.”
The General Session had a theme of passing the torch and moving forward with strength and direction.

“I’m proud of how the week has gone in the Clerk Craft division,” said Clerk Craft Director Clint Burelson. “I look forward to our members taking the lessons from this conference and bringing them back to the work room floor.
At the General Session, several NBAs honored their outgoing brothers and sisters before a roll-call of newly elected NBAs and Regional Coordinators.

In his report opening the session, Director Burelson illuminated the pay disparities that exist in the APWU and the appalling three-tiered system.

Assistant Clerk Craft Director and Director-elect Lamont Brooks detailed his plans for the future, asking the membership to hold him accountable. He also outlined his goals, including the elimination of three-tier wages; contract enforcement; addressing hostile and unsafe workplaces; weekly work hour guarantees for all clerks; improved communication with members; assisting and supporting clerk NBAs and Local Officers and Stewards; and improving Clerk Division National Officer visibility on the work room floor.

“The meeting went excellent. I see a new, reinvigorated Clerk Craft division. We’re going to be more progressive and bold,” Brooks said. “One family fighting together for all!”

Source : https://apwu.org/news

Austrian Post fined €18 million for selling customer data

October 30, 2019

The Austrian data protection authority (DPA) has imposed an administrative fine of 18 million Euros on Austrian Post after conducting administrative fine proceedings.

During an oral hearing, the Austrian DPA heard evidence that Austrian Post, used customers’ data, such as ages and addresses, to calculate a probability of which political party they might support and sold its findings.

In addition, another violation was determined due to the further processing of data on package frequency and the frequency of relocations for the purpose of direct marketing, as this is not covered by the GDPR.

These violations of the GDPR were committed unlawfully and culpably, which is why the above-mentioned administrative fine is appropriate to prevent other or similar violations.
The penalty is not final, as it can be challenged before the Federal Administrative Court within four weeks after the delivery of the penalty notice.
Austrian Post has reportedly said that it will appeal the decision.

Source : https://postandparcel.info/117238/news/post

Royal Mail and Unite members agree pay package

October 30, 2019

Royal Mail has announced that Unite members have voted in favor of a pay deal for junior and middle managers, which was recommended by the union. Following a turnout of 69%, 68.4% of Unite members voted in favor of the offer.

The agreement includes a cumulative two-year package of 5.37%. Managers will receive a pay increase of 2.6% this year, backdated to September 1, 2019, and a pay increase of 2.7% from September 1, 2020.

In addition managers, including part time managers, in this pay-bargaining group and who are part of the standard Royal Mail Group Annual Bonus plan, will receive a £1,000 bonus advance in November 2019. This payment will be subject to tax and national insurance deductions and will be deducted from any final bonus payment in June 2020.

Separate discussions are taking place for Unite-represented managers in Parcelforce Worldwide.

Sally Ashford, chief HR officer at Royal Mail, said, “We are pleased to announce that Unite members have today voted in favor of Royal Mail’s pay offer to junior and middle managers. This offer recognizes the continued hard work and dedication of our junior and middle managers. Working together, we are committed to creating a strong platform for the continued success of our business.”

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

Canadian Courier Purolator Resets for E-Commerce Growth

October 30, 2019
A $760 million investment seeks to expand capacity and speed delivery despite the country’s tough geography, logistics hurdles

Canadian parcel-delivery company Purolator Inc. is retooling its operations to meet growing e-commerce demand in a country with big hurdles to fast, cheap delivery.

The company is spending more than $760 million (C$1 billion) on an effort that includes a new automated hub in Toronto, a bigger delivery fleet and adding more specially outfitted service vans to urban neighborhoods where consumers can opt to pick up packages instead of having them delivered to their homes. Purolator is also testing electric cargo bikes and self-service parcel lockers in downtown Toronto.

The plans are aimed at helping Purolator shift from its focus on business-to-business parcel delivery as consumer demand drives more retail sales online.

“All the things we’re doing with the billion-dollar investment are designed to handle e-commerce down the road,” Purolator Chief Executive John Ferguson said in an interview. “About 70% of our business is still what we call core B2B and it’s growing. The e-commerce is about 30% but growing faster.”

Purolator, which is majority-owned by Canada Post Corp., generated $1.42 billion in revenue last year and nearly $124 million in profit, up 13.4% and 31.7%, respectively, from 2017.

Retail e-commerce spending in Canada is projected to reach $49.8 billion this year, up 21.1% from 2018 and accounting for about 10% of all retail sales, research firm eMarketer estimates.

The growth of e-commerce has challenged margins at U.S. parcel carriers United Parcel Service Inc. and FedEx Corp. Ferrying packages to homes and apartment buildings is more costly than business-to-business deliveries, where drivers might unload dozens of packages per stop.

Delivering e-commerce orders in Canada tends to take longer and cost more than in the U.S., where delivery companies can reach much of the population in two days or less by placing inventory in warehouses near big population centers.

As Purolator takes on more business-to-consumer volumes, “chances are it’s not going to be as profitable as the B2B,” said Marc Wulfraat, president of Montreal-based logistics consulting firm MWPVL International Inc. “We see that happening in the States.”

Canada’s rugged geography and a population that is largely concentrated along the U.S. border “creates a very expensive supply chain,” Mr. Wulfraat said. It typically takes two days or more to reach smaller towns, he said, and population centers beyond the Great Lakes region are spread out, making it expensive to stock warehouses nearby.

“Most Canadian businesses will opt for cheap” and provide free shipping through Canada Post, Mr. Wulfraat said. “The whole notion of e-commerce on steroids, where everyone has to have it right now, that’s not here yet. People are still thrilled when they get it in two days.”

Part of Purolator’s solution is a planned 430,000-square-foot automated hub in Toronto intended to triple capacity as customers like Amazon.com Inc. and furniture retailer Wayfair Inc. field more online orders from Canadian consumers.

Mr. Ferguson, the Purolator CEO, said online orders have added packages to the company’s network, which includes more than 170 terminals in Canada and 30 in the U.S. Purolator is also pursuing more business from midsize U.S. e-commerce businesses looking to increase their reach in Canada.

Mr. Ferguson said Purolator had benefited from Amazon’s push to narrow the delivery window for Prime members to one day.

However, Amazon, which has been handling more of its own logistics as it tries to tamp down shipping costs, is building out a network of warehouses in Canada. The company has opened seven buildings there, with another five under construction, according to MWPVL.

An Amazon spokeswoman didn’t respond to a request for comment.

Mr. Ferguson said, “There’s still a strong need for us,” although he expects Amazon will want to control more of its Canadian transportation. “We’ve decided to lean in to Amazon…. And we think there’s enough complexity to Canada and enough need, and their growth is still super high, for us to be a player in there for some years to come.”

Source : https://www.wsj.com/articles

Informed Delivery gets new service

October 30, 2019
The Postal Service has added an electronic signature service to Informed Delivery that removes the need for customers to physically sign for eligible deliveries requiring a signature.

The USPS Electronic Signature Online service allows Informed Delivery customers to use an electronic signature to sign for Priority Mail Express, Signature Confirmation and items insured for $500 or more.

The service, which was added Oct. 7, is only available for Informed Delivery customers.
Here’s how USPS Electronic Signature Online works:

Customers will be presented with the option to sign up for Electronic Signature Online within the Informed Delivery application.
Tracking numbers for eligible eSignature mailpieces will appear on the customer’s Informed Delivery “Packages” dashboard.
Once the eSignature is applied, a USPS carrier’s handheld device will receive an alert.

The carrier must confirm the address and deliver the mailpiece without obtaining a physical signature.

The addition of USPS Electronic Signature Online to Informed Delivery is part of the organization’s efforts to improve efficiency and customer service. Customers can use the new tool to provide the Postal Service with a preferred delivery location if a package is too large for their mailbox.

USPS Electronic Signature Online also will help reduce failed delivery attempts.
In fiscal 2018 (Oct. 1, 2017-Sept. 30, 2018), there were approximately 253 million failed first delivery attempts that inconvenienced customers and delayed delivery.

Source : https://www.postaltimes.com/postalnews