Driving strategic cost reduction
September 30, 2019
A rising tide of costs
The revenue mix is shifting for post and parcel organizations. The ratio of mail to parcels has declined and labor, transportation and rental costs are increasing. Based on Accenture research, during the last two reported financial years the majority of post and parcel organizations have seen a steep rise in their core expenses.
100%
Companies saw increased transportation expenses
59%
Companies saw increased rental expenses
71%
Companies saw increased average employee wage
What can post and parcel players do to reduce costs?
Five actions for the future
To become more competitive and profitable in an era of constant disruption, post and parcel organizations must be prepared to take action. From focusing on value to taking advantage of new technologies, our research has identified five key steps for the future.
Become value focused
Pivot the organization towards a focus on creating and growing value.
Develop cost visibility
Create cost visibility that accurately captures granular cost data to incorporate into cost take out initiatives.
Learn from others
Successful implementations and strategies employed both within and outside the industry can provide a roadmap to unlock value.
Take advantage of new, proven technologies
Technologies such as artificial intelligence, robotics and cloud make it possible to unlock an entirely new set of cost savings.
Implement a rigorous cost take out program
Successful cost reduction programs include the right focus, structure and governance paired with the right data and reporting.
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