Finding value in disruption
The new post and parcel industry.
With ever-decreasing returns in core mail business, the rapid take up of eCommerce and shifting customer expectations, post and parcel organisations need to be adaptable, relevant and creative to keep pace with changing demands.
While digital technology has led to a decline in post, it's caused explosive growth in parcels. Now, the major challenge is to meet rising consumer demands and compete with the retailers that are using the last mile as a competitive advantage.
The decline in mail advertising due to new, digital options, means traditional post must adapt. By becoming more tailored to senders and recipients, integrating digital technologies and using data-driven insights, advertising can remain a key revenue stream for postal organisations.
To succeed in a digital world, post and parcel organisations must improve the delivery experience while pivoting to new business models that reduce costs and realise growth.
In our world of never-ending choice, retailers are weaponising the last mile in a bid for customer loyalty, relevance and increased sales. By offering cheap or free same-day delivery, savvy retailers are able to capture a consumer base that holds continually evolving expectations driven by the pace and demands of modern life.
Fuelled by mobile advertising and supercharged by artificial intelligence, ecommerce fulfillment is now characterised by faster cycles, smaller shipments, atomisation of inventory and a move from a supply chain to a supply network.
To speed up delivery timeframes, retailers are quickly moving toward an omnichannel approach that allows them to use their offline capabilities as a strategic advantage online. As the supply chain grows in strategic importance, our research shows those networks are fundamentally changing, creating a new delivery reality.
New technologies and changing customer demands have seen a dramatic shift in the strategic priorities of all post and parcel players. Digital transformation is a driver, and the impact is being felt in delivery demand and supply, returns, cross-border eCommerce and the USO. Post and parcel organisations must improve customer experience while pivoting to new business models that reduce costs and realise growth.
Hear from industry leaders and consumers to understand how post and parcel organisations can be part of the solution to ensure a frictionless delivery experience.
David McRedmond, CEO, An Post
Stephen Agar, Director – Letters, Royal Mail