Post and parcel

Reinventing the post and parcel industry to survive and thrive in a dynamic, fiercely competitive landscape.

What’s going on

For post and parcel organizations, the rules of the game have changed. National postal operators are grappling with existential threats from declining mail volumes and rising e-commerce demands for fast and free parcel deliveries. These challenges necessitate rapid adaptation of business models, operational strategies and technological infrastructure. New competitors, innovative technologies and evolving customer expectations are pushing postal organizations to accelerate their pace of change to stay relevant and competitive.

5 ways post and parcel is changing

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Inefficiencies in the last mile

Post and parcel organizations are actively addressing last-mile challenges. By seeking innovative solutions to overcome congestion, optimize routes and ensure timely delivery, they’re enhancing the efficiency and effectiveness of the final leg of package delivery.

Legacy systems ripe for innovation

Rising demand, last-mile congestion and outdated systems and processes are putting strain on the industry. Innovation is needed to leap-frog commercial carriers, enhance delivery speed and meet evolving customer expectations.

The need for digital transformation

The post and parcel industry lacks digital infrastructure, limiting efficiency and growth potential. Organizations should modernize operations with a focus on the digital core. A strong digital core can enable the intelligent use of data for deliveries, unlock new growth opportunities and power AI technologies to increase employee productivity and improve the customer experience.

Increased customer expectations

Customer expectations for fast and free, along with a changing package profile (smaller, lighter volumes), are adding to the complexity of the challenges faced by the postal industry.

Lagging skills

Employee efficiency is low, but costs are high. A gap in technology adoption and training is hindering the adoption of digital tools and the ability to deliver efficient services, making it difficult for the industry to respond to current emerging demands. Augmenting skills with automation is necessary to improve productivity.

Adopt a smart pricing strategy to boost revenue, gain market share and retain customers. Implement a next-gen pricing engine for real-time insights to stay competitive.

Improve the core offering with a superior customer experience and more options to up-sell. Build new services and diversify to generate new revenue streams and cross-sell. Offer out-of-home pick-up and delivery options to enhance volume and revenue.

Adopt new ways of working. Redesign hierarchies, set up new functional models and automate workflows to free up time for more value-driven tasks. Empower employees with new skills and invest in innovation to navigate the evolving technological landscape.

Leverage AI, automation and robotics. Integrate systems and processes while removing redundancies. Enable cross-functional synergies to increase efficiency.