Finding value in disruption
The new post and parcel industry.
Traditional postal organizations 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 organizations.
The COVID-19 pandemic has created new shopping behaviors and delivery expectations that will have long-lasting implications. Some changes will be permanent as people buy more online and those who rarely bought online now make it a common channel.
According to our consumer research in April, consumers who used online channels for less than 25% of purchases prior to the pandemic went from 1 in 20 of their purchases being online to 1 in 6.
Post and parcel organizations must respond quickly to the changes that retail is experiencing and offer services that meet their needs, or risk losing out on market share.
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 organizations must improve the delivery experience while pivoting to new business models that reduce costs and realize growth.
Hear from industry leaders to understand how they are addressing these disruptions and gain their perspectives on where the industry is heading next.
David McRedmond, CEO, An Post
Mary Traversy, COO, Canada Post
Thomas Baldry, SVP, Deutsche Post
Stephen Agar, Director – Letters, Royal Mail