Finding value in disruption
The new post and parcel industry.
Traditional postal organisations are at a moment so pivotal that it will determine who remains profitable for decades to come, and who finds themselves obsolete within years.
It’s clear that commerce—the way consumers buy things—has fundamentally changed, but what few grasp is how that change has reshaped retail competition and is remaking supply chains. So much so that Accenture analysis predicts that by 2023, more than 50 percent of all eCommerce purchases will be delivered from local inventory—and that number could easily be 70 percent.
Why? Because today, last mile delivery has transformed from a cost of business to a strategic differentiator. Customers have made it clear that, when given a choice between standard shipping of three-to-five business days and same-day delivery, they want the faster option—and there’s no going back for retailers or for delivery organisations.
Cross-border growth is 2x the rate of domestic eCommerce, but the ability to control market share is declining. New technology-driven start-ups, pricing and innovative supply chains are stealing a march on postal players’ competitive edge.
Customers expect cross-border delivery to match domestic services: fast, free, trackable, and easy returns. To compete, new business models and capabilities are required. Taking action can help postal organisations win in the cross-border delivery race.
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