POSTAL NEWS
No 91 -2019
Formulated by UNI Apro Post and Logistics Sector
Australian competition commission “satisfied” with Australia Post price increases. November 14, 2019.
What’s behind Posti’s rapidly growing parcel locker network. November 13, 2019.
Japan Post to introduce 1,200 EVs for delivery services. November 13, 2019.
Interest Arbitration: APWU rebuts management’s economics and MVS proposals. November 13, 2019.
DHL sees Q3 airfreight volumes and revenues slide but profits rise. November 12, 2019.
Singles’ Day kicks off busiest period of the year for parcel delivery business NZ Post. November 11, 2019.
Australian competition commission “satisfied” with Australia Post price increases
November 14, 2019
The Australian Competition and Consumer Commission (ACCC) has decided not to object to Australia Post’s draft proposal to increase the prices of ordinary letter services delivered to its regular timetable, including the basic postage rate (BPR) from $1.00 to $1.10.
Australia Post is not proposing to increase the price of priority labels (50 cents), concession stamps (60 cents) or stamps for seasonal greeting cards (65 cents), such as Christmas cards.
“We are satisfied that the proposed price increases are unlikely to result in Australia Post recovering more than its cost of providing monopoly letter services, given the forecast decline in letter volumes,” ACCC Commissioner Cristina Cifuentes said.
In reaching its view, the ACCC also considered Australia Post’s progress on achieving efficiency improvements before increasing its letter prices.
“Although Australia Post has exceeded the efficiency targets it set for its monopoly letter services in 2015, it has not yet attained the efficiency levels of comparable overseas postal operators, but is on a path to bridging the gap,” Ms Cifuentes said.
“The ACCC will continue to monitor Australia Post’s progress in this area in considering any future proposal for price increases.”
Bob Chizzoniti, Director of Post Office Agents Association Limited (POAAL), welcomed the decision saying: “The letters service must be self-funding, and not subsidised by revenues from other parts of Australia Post’s business.”
POAAL released a statement explaining: “In the absence of volume growth it is difficult for Australia Post not to seek price increases to offset its growing costs. Other national postal operators have taken different routes to reduce delivery costs, however some of those strategies aren’t available to Australia Post.”
The ACCC will release a final decision after it receives a formal price notification from Australia Post. This is expected to occur in December 2019.
Australia Post must also notify the Minister for Communications of the proposed price increases and must not increase prices if the Minister disapproves within 30 days of receiving notification from Australia Post.
Australia Post currently intends to implement the increases in January 2020.
Source : https://postandparcel.info/117442/news/post
What’s behind Posti’s rapidly growing parcel locker network
November 13, 2019
Finland’s Posti is aggressively expanding its parcel locker network. Ian Kerr, Postal Hub Podcast, and Marek Różycki, Last Mile Experts, analyze what’s driving this push for out-of-home delivery.
Finland’s Posti recently announced it will significantly expand its parcel locker network so that, by 2022, there will be 4,000 Posti parcel lockers in Finland, meaning up to 85% of Finns will have a Posti parcel locker less than one kilometer from their home.
This will make it one of the densest parcel locker networks in the world and way above the minimum level of 1:10,000 inhabitants. But what is driving this push for out-of-home delivery?
Solid growth in e-commerce
E-commerce in Finland is growing, albeit not as quickly as in other European markets. Total e-commerce is estimated to be €13.8bn (US$15.2bn), according to a 2019 study, with key segments including travel, retail and services. This is up 11% on 2018.
According to Kantar TNS’s 2019 online shopping survey (commissioned by Posti), almost one-fifth (18%) of the respondents estimate that they will buy everything or almost everything online in 2025.
Major e-commerce retailers include Verkkokauppa.com, Power, and Gigantti. Zalando, Amazon, Wish, Aliexpress, eBay are also popular, along with Swedish online stores including H&M, CDON, and Adlibris.
Posti is estimated to have the largest market share of the major carriers, ahead of competitors including Matkahuolto, Postnord and Schenker.
Intensifying competition and ever-increasing volumes have helped fuel the growth in Posti’s parcel locker network.
Locker network growth
In the past two years, Posti’s parcel locker network has tripled in size, from 533 in 2017 to its current network of about 1,600 parcel lockers. The lockers are popular with customers, with up to 59% of Finns reporting having used a parcel locker.
In fact, according to a Posti study, parcel lockers are the most popular delivery option in Finland, with 35% of Finns preferring this option. Delivery to PUDOs isn’t far behind at 32%, with home delivery languishing at 10%.
Posti’s locker network expansion coincides with Deutsche Post DHL’s announcement in October that it will expand its DHL Packstation network in Germany to 7,000 by 2021.
“With Posti’s additional investment, the number of parcel lockers per capita will be six times higher in Finland than in Germany,” says Kaisa Ilola, head of customer experience and channels at Posti.
Not just parcel delivery
Posti is expanding the purpose of its parcel locker network. Instead of just being a parcel delivery/return point, parcel lockers will be used for purposes such as recycling, C2C trade and delivering rental devices.
In addition, Posti recently launched its new physical space, Box, for online retailers in the heart of Helsinki. Box is equipped with fitting rooms, a giant parcel locker and a digital kiosk. It’s also a physical store for online retailers and a testing space for Posti’s new digital services.
Preparing for growth
Posti expects e-commerce volumes to continue to grow, especially as locker delivery makes it easier for Finns to receive their orders.
“In Finland, households receive around 10 parcels per year. In central Europe, however, the figure is twice as high and, in the USA, it is three times as high. As the e-commerce sector grows, the volume of parcels is also expected to increase,” adds Ilola.
In tune with the environment
Posti sees its locker network as part of its effort to curb climate change. “Online shoppers can reduce their CO2 emissions by up to 70% by routing their parcels along their everyday routes, for example to a parcel locker located at their workplace or the grocery store that they use,” says Ilola.
While that figure of 70% sounds extreme, delivery to lockers and PUDO points offers greater delivery efficiency, and when combined with pre-existing customer trips, the overall emissions per delivery can be reduced.
“We are the only 100% carbon neutral operator in the Finnish market and we are about to move to further increase renewables and alternative power sources in our operations, which will significantly reduce our emissions going forward,” says Arttu Hollmérus vice president of large domestic customers, parcel and e-commerce at Posti.
Customers can also offset emissions for C2C parcel deliveries via Posti.
Digital delivery
Posti is striving to improve digitization in the last mile, including live-tracking of deliveries, date- and time-specific parcel delivery, real-time notifications of any deviations real time, and more.
Conclusion
The last mile in Finland is undergoing a quiet revolution. Thanks to Posti, we have been able to share information about one of the most exciting ‘out of home’ last-mile markets in Europe – one that has been flying under the radar!
Out-of-home has enabled Posti to offer a cost-effective and customer-centric solution that is environmentally friendly and a great basis for other parcel related activities. The future of letter delivery will also play a role in shaping Posti’s approach to the last mile.
It will be interesting to see what the next step is; will Posti open up to other carriers in a super-powerful carrier-agnostic model? Will it work with e-commerce to offer last-mile subscriptions? One thing is for sure: Posti won’t be able to rest on its laurels, as competition will continue to drive innovation in the last mile.
Source : https://www.parcelandpostaltechnologyinternational.com/analysis
Japan Post to introduce 1,200 EVs for delivery services
November 13, 2019
POSTAL NEWS
No 92 -2019
Formulated by UNI Apro Post and Logistics Sector
Austrian Post Q1-3 2019. November 14, 2019.
On-demand storage with UPS and JD. November 13, 2019.
Competition appeal tribunal upholds £50 million fine on Royal Mail. November 12, 2019.
New PostNL parcel sorting centre in Tilburg.
November 11, 2019.
UNI supports striking Finnish postal workers.
November 11, 2019.
Austrian Post Q1-3 2019
November 14, 2019
Revenue
Revenue up by 3.2 % to EUR 1,462.2m
Good parcel growth (+11.3 %) and slight increase in the Mail & Branch Network Division (+0.6 %)
Earnings
Positive EBIT development in the core business
Reported EBIT down by 8.4 % to EUR 130.0m due to provision for data protection in Q3 2019
Earnings per share of EUR 1.48 compared to prior-year level of EUR 1.56
Cash flow and balance sheet
Increased operating free cash of EUR 153.2m
Balance sheet total increase to EUR 1,975.4m due to capitalisation of right-of-use assets (leases) pursuant to IFRS 16
Outlook 2019 and 2020
Austrian Post anticipates the revenue to increase in both 2019 and 2020
Earnings (EBIT) outlook: Targeted stability in operating earnings in 2019 (before provision for data protection) and also in 2020 (before start-up costs for new financial services)
Austrian Post’s Group revenue developed very satisfactorily in the first three quarters of the current financial year, amounting to EUR 1,462.2m. This implies an increase of 3.2% from the prior-year level. Both the Parcel & Logistics Division (+11.3%) and the Mail & Branch Network Division (+0.6%) showed a positive development in the reporting period.
The mail business (+0.6% to EUR 1,033.5m) continues to be characterised by the ongoing substitution of traditional letter mail by electronic forms of communication. Similar to addressed direct mail volumes, it is subject to a structural decline which is also impacted by uncertainty relating to the General Data Protection Regulation. Financial services revenue in the branch offices of Austrian Post is continuously declining as a consequence of the termination of the cooperation with BAWAG P.S.K. The division achieved positive revenue effects in the first half-year on the back of a new product and postal rate structure and, in the course of the year, due to one-off mailings and elections.
In the reporting period, significant volume increases were generated in the parcel business (+11.3% to EUR 437.2m), as Austrian Post capitalised on dynamic market growth resulting from the ongoing online shopping trend. However, the related competitive intensity and price pressure remain high. Parcel revenue growth was driven primarily by the e-commerce trend and the related increase of parcel volumes in Austria. “The partnership with Deutsche Post DHL Group to deliver parcels in Austria had a very good start. Since 1 August 2019, DHL parcels for Austria are delivered by Austrian Post. As a consequence, total monthly transport and delivery volumes are now about 25% higher than in the previous year”, says Austrian Post CEO Georg Pölzl.
Against the backdrop of this parcel volume development, Austrian Post is intensifying its parcel logistics capacity expansion drive. Capacities were already substantially increased as of September 2019 when the parcel logistics centre Lower Austria (Hagenbrunn) became fully operational. The next milestones will be the completion of the parcel logistics centre Styria (Kalsdorf) and of the delivery base Thalgau/Salzburg in the middle of next year.
From an earnings perspective, EBIT of the Austrian Post Group showed an upward operating trend in the first nine months of 2019, consistent with the previous two quarters. The reported EBIT of EUR 130.0m was down by 8.4% from the previous year due to the provision for data protection totalling EUR 19.8m, allocated in the third quarter of 2019. Earnings per share equalled EUR 1.48, compared to EUR 1.56 in the first three quarters of 2018.
In addition to the investment programme designed to provide sufficient capacities and quality against the backdrop of parcel growth, Austrian Post’s top priority in the upcoming quarterly periods is to further develop its product portfolio and the set-up of the Bank of the Post.
The product portfolio of ECO and PRIO products in the mail business is being adjusted in order to meet customer requirements and counteract declining volumes and cost increases. Starting in April 2020, innovative solutions in the product line will be introduced and postage rates will be increased moderately to compensate the inflation. As part of the universal service, the ECO rate for standard mail items for example will be increased from EUR 0.70 to EUR 0.74 and the PRIO rate from EUR 0.80 to EUR 0.85. The postage rate for small packets (Packet S) will amount to EUR 2.55 compared to the previous cost of EUR 2.50.
A new independent offering of financial services is planned to be launched in the second quarter of 2020. Following the positive decision of the European Central Bank, the goal is to make all the required technical and operational arrangements in order to offer a focused and risk-averse service portfolio, both online and through physical outlets, in just a few months from now. It will be done via Austrian Post’s about 1,800 postal services points.
The service offering will focus on current accounts and payment transactions, complemented by financial services and insurance products provided by external cooperation partners.
For the full-year 2019, Austrian Post expects an increase in revenue as in previous periods. Based on the good trends in the core business, a stable operating earnings (EBIT) is broadly being targeted, including various start-up costs for setting up the financial services business. This does not include the administrative fine by the Austrian Data Protection Authority. For 2020, Austrian Post also forecasts a stable to slightly higher revenue and plans further broad stability in operating earnings (EBIT). In addition, start-up costs in the process of setting up the new financial services business are expected. “On the back of the high level of liquidity, Austrian Post is in a position to finance on its own targeted growth investments in the logistics infrastructure and new financial services. The generated operating cash flow will continue to be used for investments in the operating business and for maintaining the company’s attractive dividend policy”, adds CEO Georg Pölzl.
Source : https://www.post.at/en/footer_about_us_press.php/presse
On-demand storage with UPS and JD
November 13, 2019
In the space of a fortnight, UPS and JD.com launched on-demand storage services. Are there big bucks to be made in storage? Or are both companies experiencing an excess of warehouse space?
UPS storage on demand
UPS’s Storage on Demand service allows customers to request delivery of empty storage bins directly to their home or business. Customers fill the bins with their belongings then schedule a pickup for their items to be driven to a nearby UPS facility for storage. The “valet storage” concept also enables customers to use the website to retrieve their warehoused items and have them delivered to their front door with same-day service.
Self-storage is a US$38 billion industry that has experienced 7.7% annual growth since 2012, with one in 11 Americans spending an average of $91.14 per month on self-storage according to SpareFoot Inc., a company that tracks the self-storage industry. UPS Storage on Demand adds digital, on-demand functionality, meaning customers don’t need to leave home to store or retrieve their belongings.
“Storage on Demand solves a problem that is becoming nearly universal as our population and demographics evolve. Millennials are moving into small homes in crowded urban areas. Baby boomers are downsizing for retirement. And small businesses need space for excess inventory.” - Darren Kamensek, strategy and innovation manager for UPS and one of the co-founders of Storage on Demand.
The idea was conceived and pitched at an internal UPS innovation competition, going from concept to reality in nine months.
Storage on Demand currently serves a limited number of communities. Prices start at $5 per month per bin.
JD’s new storage service
JD’s storage service is an extension of its programme to open up its logistics capabilities to people and companies outside the JD network.
Using the service, customers can track every stage of the storage process from start to finish on their phones, via the JD Express Delivery mini-program on WeChat.
JD says it has seen demand for storage solutions rise exponentially, particularly as rents in China’s first and second tier cites continue to increase every year.
Good value for UPS and JD?
It’s a smart move by UPS and JD to leverage their existing logistics and warehousing expertise to provide a new storage service for businesses and individual consumers. Self-storage is often focused less on storing individual cartons and more on leasing storage units.
What’s also smart is UPS adding pick-ups to existing delivery rounds. It’s a similar concept to collecting parcels or e-commerce returns on delivery rounds.
Switched-on companies operating in the self-storage sector could add a similar service, perhaps partnering with UPS or another delivery/technology company.
Let’s see if more logistics operators follow in their footsteps… or if the self-storage sector is forced to innovate to avoid disruption.
Source : http://www.thepostalhub.com/blog
Competition appeal tribunal upholds £50 million fine on Royal Mail
November 12, 2019
In a hearing today, The Competition Appeal Tribunal upheld the £50 million fine imposed by Ofcom on Royal Mail on 14 August 2018.
The penalty, the largest ever imposed by Ofcom, is the result of an investigation into a complaint, made to Ofcom by Whistl. The complaint was about changes Royal Mail made to its wholesale customers’ contracts in early 2014, including wholesale price increases it was introducing.
At the time, Whistl was expanding its business to compete directly with Royal Mail by delivering business letters (known as ‘bulk mail’) to addresses in certain parts of the UK – becoming the first company to challenge Royal Mail’s monopoly in the large-scale delivery of bulk mail.
The 2014 wholesale price increases meant that any of Royal Mail’s wholesale customers seeking to compete with it by delivering letters in some parts of the country, as Whistl was, would have to pay higher prices in the remaining areas – where it used Royal Mail for delivery.
Royal Mail have released a statement saying they were “disappointed” by today’s judgement: “We are considering all legal options, including whether to seek permission to appeal and to request that payment of the penalty, which would otherwise become payable, be stayed pending any appeal. We will provide an update once we have completed our legal review.”
Source : https://postandparcel.info/117419/news/post
New PostNL parcel sorting centre in Tilburg
November 11, 2019
The Hague, 11 November 2019 – Today, PostNL puts its 25th parcel sorting centre in the Netherlands into operation. An average of 32,000 parcels are to be delivered each day from this new sustainable 7,600m2 building on Ledeboerstraat in Tilburg. In 2018, PostNL delivered 251 million parcels. In order to optimise the delivery process for the Netherlands and Belgium in the growing parcel market, PostNL has opened three new parcel sorting centres in the Netherlands this year, in Dordrecht, Almere and Tilburg. With 25 parcel sorting centres, PostNL is well prepared for the busy Christmas period, which will begin at the end of November.
Sustainable building
The new sorting centre in Tilburg has been awarded the BREEAM certificate ‘Outstanding’, a certification for the most sustainable buildings with minimal environmental impact. Gas is no longer used, and there have been investments in sustainable materials and installations including heat recovery ventilation and LED lighting. The solar panels on the roof generate approximately half of the electricity needed to sort all of the parcels at this location. In the future, some of the parcels from this sustainable sorting centre will be delivered completely emission-free using electric delivery vans. The premises have been specially equipped with smart charging infrastructure for charging these delivery vans. PostNL is aiming for completely CO₂-free mail and parcel delivery in 25 city centres by 2025 and an emission-free last mile throughout the Benelux by 2030.
Employment in Tilburg
This new PostNL location in Tilburg is part of a network of in total 25 parcel sorting centres in the Netherlands and six locations in Belgium. From these locations, the parcel deliverers will deliver parcels seven days a week across the Netherlands and Belgium. The location in Tilburg employs approximately 350 people in the region. From the new parcel sorting centre, parcels will be delivered in and around Tilburg, for example in Waalwijk, Boxtel, Rijen, Hilvarenbeek and Reusel.
Liesbeth Kaashoek, Director of Parcels and Logistics at PostNL: “With this parcel sorting centre in Tilburg, we are responding to the growth in e-commerce and investing in the optimisation of our parcel and logistics infrastructure. It is the third sustainable location that we are adding to our network this year, and with 25 sorting centres we are entering the busy Christmas period well prepared.
We employ around 350 people in Tilburg and in doing so, we are contributing to the Municipality of Tilburg’s ambition to create sustainable employment opportunities.”
Berend de Vries, alderman for Economic Affairs in Tilburg: “We are delighted about the opening of the new PostNL location in Tilburg. Not only has it created new jobs - it also appeals to our organisation’s objectives. The emission-free aspect of parcel delivery plays a significant role in the development of a lively, economically sustainable city.”
Source : https://www.postnl.nl/en/about-postnl/press-news/news/2019
UNI supports striking Finnish postal workers
November 11, 2019
After Finnish postal union PAU kicked off a strike today, UNI Post & Logistics is joining the call for the country’s postal service, Posti, to respect workers’ right to dignity and fair pay.
Roughly 9,000 Finnish mail delivery, handling and transportation workers will be on strike for two weeks in November unless a fair contract is negotiated before then. The work stoppage is currently scheduled between Monday, 11 November at 6 am and midnight on Sunday, 24 November.
Posti claims that the current collective labor agreement should be torn up and replaced by terms forcing workers—who are already underpaid, overworked and undervalued—to toil for even longer hours for less money. The proposed agreement would also make it hard to balance work and personal life.
“In practice, this means wrecking the salaries and other working conditions of low-paid workers”, said Heidi Nieminen, Chairperson of PAU.
PAU is leading the fight against the deterioration of working conditions in the sector and has called on other unions for support. In the sector, the unions are demanding that the current terms of employment and the current pay schedule stay in place.
“We stand with postal workers in Finland and support their decision to take strike action,” said Cornelia Broos, Head of UNI Post & Logistics. “Postal workers deserve better – we join the call to protect Finnish workers from lower wages, longer working hours and unreasonably physically demanding working conditions.”
Source : https://uniglobalunion.org/news
No 91 -2019
Formulated by UNI Apro Post and Logistics Sector
Australian competition commission “satisfied” with Australia Post price increases. November 14, 2019.
What’s behind Posti’s rapidly growing parcel locker network. November 13, 2019.
Japan Post to introduce 1,200 EVs for delivery services. November 13, 2019.
Interest Arbitration: APWU rebuts management’s economics and MVS proposals. November 13, 2019.
DHL sees Q3 airfreight volumes and revenues slide but profits rise. November 12, 2019.
Singles’ Day kicks off busiest period of the year for parcel delivery business NZ Post. November 11, 2019.
Australian competition commission “satisfied” with Australia Post price increases
November 14, 2019
The Australian Competition and Consumer Commission (ACCC) has decided not to object to Australia Post’s draft proposal to increase the prices of ordinary letter services delivered to its regular timetable, including the basic postage rate (BPR) from $1.00 to $1.10.
Australia Post is not proposing to increase the price of priority labels (50 cents), concession stamps (60 cents) or stamps for seasonal greeting cards (65 cents), such as Christmas cards.
“We are satisfied that the proposed price increases are unlikely to result in Australia Post recovering more than its cost of providing monopoly letter services, given the forecast decline in letter volumes,” ACCC Commissioner Cristina Cifuentes said.
In reaching its view, the ACCC also considered Australia Post’s progress on achieving efficiency improvements before increasing its letter prices.
“Although Australia Post has exceeded the efficiency targets it set for its monopoly letter services in 2015, it has not yet attained the efficiency levels of comparable overseas postal operators, but is on a path to bridging the gap,” Ms Cifuentes said.
“The ACCC will continue to monitor Australia Post’s progress in this area in considering any future proposal for price increases.”
Bob Chizzoniti, Director of Post Office Agents Association Limited (POAAL), welcomed the decision saying: “The letters service must be self-funding, and not subsidised by revenues from other parts of Australia Post’s business.”
POAAL released a statement explaining: “In the absence of volume growth it is difficult for Australia Post not to seek price increases to offset its growing costs. Other national postal operators have taken different routes to reduce delivery costs, however some of those strategies aren’t available to Australia Post.”
The ACCC will release a final decision after it receives a formal price notification from Australia Post. This is expected to occur in December 2019.
Australia Post must also notify the Minister for Communications of the proposed price increases and must not increase prices if the Minister disapproves within 30 days of receiving notification from Australia Post.
Australia Post currently intends to implement the increases in January 2020.
Source : https://postandparcel.info/117442/news/post
What’s behind Posti’s rapidly growing parcel locker network
November 13, 2019
Finland’s Posti is aggressively expanding its parcel locker network. Ian Kerr, Postal Hub Podcast, and Marek Różycki, Last Mile Experts, analyze what’s driving this push for out-of-home delivery.
Finland’s Posti recently announced it will significantly expand its parcel locker network so that, by 2022, there will be 4,000 Posti parcel lockers in Finland, meaning up to 85% of Finns will have a Posti parcel locker less than one kilometer from their home.
This will make it one of the densest parcel locker networks in the world and way above the minimum level of 1:10,000 inhabitants. But what is driving this push for out-of-home delivery?
Solid growth in e-commerce
E-commerce in Finland is growing, albeit not as quickly as in other European markets. Total e-commerce is estimated to be €13.8bn (US$15.2bn), according to a 2019 study, with key segments including travel, retail and services. This is up 11% on 2018.
According to Kantar TNS’s 2019 online shopping survey (commissioned by Posti), almost one-fifth (18%) of the respondents estimate that they will buy everything or almost everything online in 2025.
Major e-commerce retailers include Verkkokauppa.com, Power, and Gigantti. Zalando, Amazon, Wish, Aliexpress, eBay are also popular, along with Swedish online stores including H&M, CDON, and Adlibris.
Posti is estimated to have the largest market share of the major carriers, ahead of competitors including Matkahuolto, Postnord and Schenker.
Intensifying competition and ever-increasing volumes have helped fuel the growth in Posti’s parcel locker network.
Locker network growth
In the past two years, Posti’s parcel locker network has tripled in size, from 533 in 2017 to its current network of about 1,600 parcel lockers. The lockers are popular with customers, with up to 59% of Finns reporting having used a parcel locker.
In fact, according to a Posti study, parcel lockers are the most popular delivery option in Finland, with 35% of Finns preferring this option. Delivery to PUDOs isn’t far behind at 32%, with home delivery languishing at 10%.
Posti’s locker network expansion coincides with Deutsche Post DHL’s announcement in October that it will expand its DHL Packstation network in Germany to 7,000 by 2021.
“With Posti’s additional investment, the number of parcel lockers per capita will be six times higher in Finland than in Germany,” says Kaisa Ilola, head of customer experience and channels at Posti.
Not just parcel delivery
Posti is expanding the purpose of its parcel locker network. Instead of just being a parcel delivery/return point, parcel lockers will be used for purposes such as recycling, C2C trade and delivering rental devices.
In addition, Posti recently launched its new physical space, Box, for online retailers in the heart of Helsinki. Box is equipped with fitting rooms, a giant parcel locker and a digital kiosk. It’s also a physical store for online retailers and a testing space for Posti’s new digital services.
Preparing for growth
Posti expects e-commerce volumes to continue to grow, especially as locker delivery makes it easier for Finns to receive their orders.
“In Finland, households receive around 10 parcels per year. In central Europe, however, the figure is twice as high and, in the USA, it is three times as high. As the e-commerce sector grows, the volume of parcels is also expected to increase,” adds Ilola.
In tune with the environment
Posti sees its locker network as part of its effort to curb climate change. “Online shoppers can reduce their CO2 emissions by up to 70% by routing their parcels along their everyday routes, for example to a parcel locker located at their workplace or the grocery store that they use,” says Ilola.
While that figure of 70% sounds extreme, delivery to lockers and PUDO points offers greater delivery efficiency, and when combined with pre-existing customer trips, the overall emissions per delivery can be reduced.
“We are the only 100% carbon neutral operator in the Finnish market and we are about to move to further increase renewables and alternative power sources in our operations, which will significantly reduce our emissions going forward,” says Arttu Hollmérus vice president of large domestic customers, parcel and e-commerce at Posti.
Customers can also offset emissions for C2C parcel deliveries via Posti.
Digital delivery
Posti is striving to improve digitization in the last mile, including live-tracking of deliveries, date- and time-specific parcel delivery, real-time notifications of any deviations real time, and more.
Conclusion
The last mile in Finland is undergoing a quiet revolution. Thanks to Posti, we have been able to share information about one of the most exciting ‘out of home’ last-mile markets in Europe – one that has been flying under the radar!
Out-of-home has enabled Posti to offer a cost-effective and customer-centric solution that is environmentally friendly and a great basis for other parcel related activities. The future of letter delivery will also play a role in shaping Posti’s approach to the last mile.
It will be interesting to see what the next step is; will Posti open up to other carriers in a super-powerful carrier-agnostic model? Will it work with e-commerce to offer last-mile subscriptions? One thing is for sure: Posti won’t be able to rest on its laurels, as competition will continue to drive innovation in the last mile.
Source : https://www.parcelandpostaltechnologyinternational.com/analysis
Japan Post to introduce 1,200 EVs for delivery services
November 13, 2019
POSTAL NEWS
No 92 -2019
Formulated by UNI Apro Post and Logistics Sector
Austrian Post Q1-3 2019. November 14, 2019.
On-demand storage with UPS and JD. November 13, 2019.
Competition appeal tribunal upholds £50 million fine on Royal Mail. November 12, 2019.
New PostNL parcel sorting centre in Tilburg.
November 11, 2019.
UNI supports striking Finnish postal workers.
November 11, 2019.
Austrian Post Q1-3 2019
November 14, 2019
Revenue
Revenue up by 3.2 % to EUR 1,462.2m
Good parcel growth (+11.3 %) and slight increase in the Mail & Branch Network Division (+0.6 %)
Earnings
Positive EBIT development in the core business
Reported EBIT down by 8.4 % to EUR 130.0m due to provision for data protection in Q3 2019
Earnings per share of EUR 1.48 compared to prior-year level of EUR 1.56
Cash flow and balance sheet
Increased operating free cash of EUR 153.2m
Balance sheet total increase to EUR 1,975.4m due to capitalisation of right-of-use assets (leases) pursuant to IFRS 16
Outlook 2019 and 2020
Austrian Post anticipates the revenue to increase in both 2019 and 2020
Earnings (EBIT) outlook: Targeted stability in operating earnings in 2019 (before provision for data protection) and also in 2020 (before start-up costs for new financial services)
Austrian Post’s Group revenue developed very satisfactorily in the first three quarters of the current financial year, amounting to EUR 1,462.2m. This implies an increase of 3.2% from the prior-year level. Both the Parcel & Logistics Division (+11.3%) and the Mail & Branch Network Division (+0.6%) showed a positive development in the reporting period.
The mail business (+0.6% to EUR 1,033.5m) continues to be characterised by the ongoing substitution of traditional letter mail by electronic forms of communication. Similar to addressed direct mail volumes, it is subject to a structural decline which is also impacted by uncertainty relating to the General Data Protection Regulation. Financial services revenue in the branch offices of Austrian Post is continuously declining as a consequence of the termination of the cooperation with BAWAG P.S.K. The division achieved positive revenue effects in the first half-year on the back of a new product and postal rate structure and, in the course of the year, due to one-off mailings and elections.
In the reporting period, significant volume increases were generated in the parcel business (+11.3% to EUR 437.2m), as Austrian Post capitalised on dynamic market growth resulting from the ongoing online shopping trend. However, the related competitive intensity and price pressure remain high. Parcel revenue growth was driven primarily by the e-commerce trend and the related increase of parcel volumes in Austria. “The partnership with Deutsche Post DHL Group to deliver parcels in Austria had a very good start. Since 1 August 2019, DHL parcels for Austria are delivered by Austrian Post. As a consequence, total monthly transport and delivery volumes are now about 25% higher than in the previous year”, says Austrian Post CEO Georg Pölzl.
Against the backdrop of this parcel volume development, Austrian Post is intensifying its parcel logistics capacity expansion drive. Capacities were already substantially increased as of September 2019 when the parcel logistics centre Lower Austria (Hagenbrunn) became fully operational. The next milestones will be the completion of the parcel logistics centre Styria (Kalsdorf) and of the delivery base Thalgau/Salzburg in the middle of next year.
From an earnings perspective, EBIT of the Austrian Post Group showed an upward operating trend in the first nine months of 2019, consistent with the previous two quarters. The reported EBIT of EUR 130.0m was down by 8.4% from the previous year due to the provision for data protection totalling EUR 19.8m, allocated in the third quarter of 2019. Earnings per share equalled EUR 1.48, compared to EUR 1.56 in the first three quarters of 2018.
In addition to the investment programme designed to provide sufficient capacities and quality against the backdrop of parcel growth, Austrian Post’s top priority in the upcoming quarterly periods is to further develop its product portfolio and the set-up of the Bank of the Post.
The product portfolio of ECO and PRIO products in the mail business is being adjusted in order to meet customer requirements and counteract declining volumes and cost increases. Starting in April 2020, innovative solutions in the product line will be introduced and postage rates will be increased moderately to compensate the inflation. As part of the universal service, the ECO rate for standard mail items for example will be increased from EUR 0.70 to EUR 0.74 and the PRIO rate from EUR 0.80 to EUR 0.85. The postage rate for small packets (Packet S) will amount to EUR 2.55 compared to the previous cost of EUR 2.50.
A new independent offering of financial services is planned to be launched in the second quarter of 2020. Following the positive decision of the European Central Bank, the goal is to make all the required technical and operational arrangements in order to offer a focused and risk-averse service portfolio, both online and through physical outlets, in just a few months from now. It will be done via Austrian Post’s about 1,800 postal services points.
The service offering will focus on current accounts and payment transactions, complemented by financial services and insurance products provided by external cooperation partners.
For the full-year 2019, Austrian Post expects an increase in revenue as in previous periods. Based on the good trends in the core business, a stable operating earnings (EBIT) is broadly being targeted, including various start-up costs for setting up the financial services business. This does not include the administrative fine by the Austrian Data Protection Authority. For 2020, Austrian Post also forecasts a stable to slightly higher revenue and plans further broad stability in operating earnings (EBIT). In addition, start-up costs in the process of setting up the new financial services business are expected. “On the back of the high level of liquidity, Austrian Post is in a position to finance on its own targeted growth investments in the logistics infrastructure and new financial services. The generated operating cash flow will continue to be used for investments in the operating business and for maintaining the company’s attractive dividend policy”, adds CEO Georg Pölzl.
Source : https://www.post.at/en/footer_about_us_press.php/presse
On-demand storage with UPS and JD
November 13, 2019
In the space of a fortnight, UPS and JD.com launched on-demand storage services. Are there big bucks to be made in storage? Or are both companies experiencing an excess of warehouse space?
UPS storage on demand
UPS’s Storage on Demand service allows customers to request delivery of empty storage bins directly to their home or business. Customers fill the bins with their belongings then schedule a pickup for their items to be driven to a nearby UPS facility for storage. The “valet storage” concept also enables customers to use the website to retrieve their warehoused items and have them delivered to their front door with same-day service.
Self-storage is a US$38 billion industry that has experienced 7.7% annual growth since 2012, with one in 11 Americans spending an average of $91.14 per month on self-storage according to SpareFoot Inc., a company that tracks the self-storage industry. UPS Storage on Demand adds digital, on-demand functionality, meaning customers don’t need to leave home to store or retrieve their belongings.
“Storage on Demand solves a problem that is becoming nearly universal as our population and demographics evolve. Millennials are moving into small homes in crowded urban areas. Baby boomers are downsizing for retirement. And small businesses need space for excess inventory.” - Darren Kamensek, strategy and innovation manager for UPS and one of the co-founders of Storage on Demand.
The idea was conceived and pitched at an internal UPS innovation competition, going from concept to reality in nine months.
Storage on Demand currently serves a limited number of communities. Prices start at $5 per month per bin.
JD’s new storage service
JD’s storage service is an extension of its programme to open up its logistics capabilities to people and companies outside the JD network.
Using the service, customers can track every stage of the storage process from start to finish on their phones, via the JD Express Delivery mini-program on WeChat.
JD says it has seen demand for storage solutions rise exponentially, particularly as rents in China’s first and second tier cites continue to increase every year.
Good value for UPS and JD?
It’s a smart move by UPS and JD to leverage their existing logistics and warehousing expertise to provide a new storage service for businesses and individual consumers. Self-storage is often focused less on storing individual cartons and more on leasing storage units.
What’s also smart is UPS adding pick-ups to existing delivery rounds. It’s a similar concept to collecting parcels or e-commerce returns on delivery rounds.
Switched-on companies operating in the self-storage sector could add a similar service, perhaps partnering with UPS or another delivery/technology company.
Let’s see if more logistics operators follow in their footsteps… or if the self-storage sector is forced to innovate to avoid disruption.
Source : http://www.thepostalhub.com/blog
Competition appeal tribunal upholds £50 million fine on Royal Mail
November 12, 2019
In a hearing today, The Competition Appeal Tribunal upheld the £50 million fine imposed by Ofcom on Royal Mail on 14 August 2018.
The penalty, the largest ever imposed by Ofcom, is the result of an investigation into a complaint, made to Ofcom by Whistl. The complaint was about changes Royal Mail made to its wholesale customers’ contracts in early 2014, including wholesale price increases it was introducing.
At the time, Whistl was expanding its business to compete directly with Royal Mail by delivering business letters (known as ‘bulk mail’) to addresses in certain parts of the UK – becoming the first company to challenge Royal Mail’s monopoly in the large-scale delivery of bulk mail.
The 2014 wholesale price increases meant that any of Royal Mail’s wholesale customers seeking to compete with it by delivering letters in some parts of the country, as Whistl was, would have to pay higher prices in the remaining areas – where it used Royal Mail for delivery.
Royal Mail have released a statement saying they were “disappointed” by today’s judgement: “We are considering all legal options, including whether to seek permission to appeal and to request that payment of the penalty, which would otherwise become payable, be stayed pending any appeal. We will provide an update once we have completed our legal review.”
Source : https://postandparcel.info/117419/news/post
New PostNL parcel sorting centre in Tilburg
November 11, 2019
The Hague, 11 November 2019 – Today, PostNL puts its 25th parcel sorting centre in the Netherlands into operation. An average of 32,000 parcels are to be delivered each day from this new sustainable 7,600m2 building on Ledeboerstraat in Tilburg. In 2018, PostNL delivered 251 million parcels. In order to optimise the delivery process for the Netherlands and Belgium in the growing parcel market, PostNL has opened three new parcel sorting centres in the Netherlands this year, in Dordrecht, Almere and Tilburg. With 25 parcel sorting centres, PostNL is well prepared for the busy Christmas period, which will begin at the end of November.
Sustainable building
The new sorting centre in Tilburg has been awarded the BREEAM certificate ‘Outstanding’, a certification for the most sustainable buildings with minimal environmental impact. Gas is no longer used, and there have been investments in sustainable materials and installations including heat recovery ventilation and LED lighting. The solar panels on the roof generate approximately half of the electricity needed to sort all of the parcels at this location. In the future, some of the parcels from this sustainable sorting centre will be delivered completely emission-free using electric delivery vans. The premises have been specially equipped with smart charging infrastructure for charging these delivery vans. PostNL is aiming for completely CO₂-free mail and parcel delivery in 25 city centres by 2025 and an emission-free last mile throughout the Benelux by 2030.
Employment in Tilburg
This new PostNL location in Tilburg is part of a network of in total 25 parcel sorting centres in the Netherlands and six locations in Belgium. From these locations, the parcel deliverers will deliver parcels seven days a week across the Netherlands and Belgium. The location in Tilburg employs approximately 350 people in the region. From the new parcel sorting centre, parcels will be delivered in and around Tilburg, for example in Waalwijk, Boxtel, Rijen, Hilvarenbeek and Reusel.
Liesbeth Kaashoek, Director of Parcels and Logistics at PostNL: “With this parcel sorting centre in Tilburg, we are responding to the growth in e-commerce and investing in the optimisation of our parcel and logistics infrastructure. It is the third sustainable location that we are adding to our network this year, and with 25 sorting centres we are entering the busy Christmas period well prepared.
We employ around 350 people in Tilburg and in doing so, we are contributing to the Municipality of Tilburg’s ambition to create sustainable employment opportunities.”
Berend de Vries, alderman for Economic Affairs in Tilburg: “We are delighted about the opening of the new PostNL location in Tilburg. Not only has it created new jobs - it also appeals to our organisation’s objectives. The emission-free aspect of parcel delivery plays a significant role in the development of a lively, economically sustainable city.”
Source : https://www.postnl.nl/en/about-postnl/press-news/news/2019
UNI supports striking Finnish postal workers
November 11, 2019
After Finnish postal union PAU kicked off a strike today, UNI Post & Logistics is joining the call for the country’s postal service, Posti, to respect workers’ right to dignity and fair pay.
Roughly 9,000 Finnish mail delivery, handling and transportation workers will be on strike for two weeks in November unless a fair contract is negotiated before then. The work stoppage is currently scheduled between Monday, 11 November at 6 am and midnight on Sunday, 24 November.
Posti claims that the current collective labor agreement should be torn up and replaced by terms forcing workers—who are already underpaid, overworked and undervalued—to toil for even longer hours for less money. The proposed agreement would also make it hard to balance work and personal life.
“In practice, this means wrecking the salaries and other working conditions of low-paid workers”, said Heidi Nieminen, Chairperson of PAU.
PAU is leading the fight against the deterioration of working conditions in the sector and has called on other unions for support. In the sector, the unions are demanding that the current terms of employment and the current pay schedule stay in place.
“We stand with postal workers in Finland and support their decision to take strike action,” said Cornelia Broos, Head of UNI Post & Logistics. “Postal workers deserve better – we join the call to protect Finnish workers from lower wages, longer working hours and unreasonably physically demanding working conditions.”
Source : https://uniglobalunion.org/news