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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Andre Pharand

Managing Director – Consulting, Post and Parcel Lead

Leads thought leadership for Accenture's post and parcel industry strategy to bring insight and change to clients.

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