Profitable Post

The Profitable Post

The Profitable Post Preparing your post for 2020? There are a few things to keep

The Profitable Post

Preparing your post for 2020? There are a few things to keep in mind while you complete your strategic plans for the new year.

One: The market is ripe with opportunity. With your unmatched distribution network, your post has the infrastructure already in place to jump on the most lucrative trends and play a central role in the future of deliveries.

Two: While the objective of delivery will remain the same – getting something from point A to point B – the actual materials moving from senders to recipients have dramatically changed.

Finally, simply offering a delivery service is no longer enough. If your post wants to conquer the competition, specifically private delivery services and logistics start-ups, you’ll need to embrace a digital-first and customer-centric strategy.

Where to discover the most opportunities in 2020 and beyond

Reports of the postal industry’s death are greatly exaggerated. Huge opportunities are available for proactive posts – many of which have already begun to make adjustments.

By 2020, the world will hit 100 billion parcel deliveries, with 16 billion of those deliveries taking place in the United States alone3. In fact, 90 percent of posts believe their next opportunity lies in the parcels industry1 while 82 percent of posts expect parcel volumes to increase over the next three years2.

Think about the movie rental industry in the early 2000s. If it had flipped the script on its threats and viewed them as opportunities instead, it could have reinvented itself as a streaming giant before smaller upstarts gained a foothold.

The postal industry is faced with a similar scenario, but it can make the smarter choice. Instead of giving nimble logistics start-ups an opening, they can quickly re-invent themselves to hop on this new opportunity the growing parcels market is offering.

Does your post have what it takes to successfully deliver parcels?

Deciding to deliver parcels is one thing. Successfully delivering them is another.

At present, most posts have their operations set up to efficiently manage letter mail, not parcels. Unlike letter mail, postal workers can’t hop off with a bag of deliveries and tackle an entire neighbourhood on foot. Moreover, sortation systems needed to manage parcels are different than the ones postal operators currently use to manage letters.

Parcel delivery is a high stakes business, and customers are demanding. Today’s online shoppers expect two-day shipping, with three- and four-day shipping options deemed merely acceptable14. Plus, 12 percent of deliveries in the U.K. fail15, prompting multiple re-delivery attempts which cost the postal industry about US$1.2 billion16.

Finally, it’s not enough to just get these parcels to your customers. You need to provide a convenient service that fits within the consumer’s lifestyle. Almost two-thirds of today’s posts offer doorstep services, with another 32 percent planning to offer them in the near future23.

The great news is that what’s good for your customers is good for your company. With PUDO technology, there’s a potential 4 percent decrease in delivery costs and possible 8 percent increase in profit margins21.

Today’s consumers have countless options, giving brands little room for error. Your post will need to become customer centric and digital first in order to win in an increasingly competitive deliveries and logistics market.

The Profitable Post

Check out the infographic below for many more helpful stats and figures to help you plan for a profitable 2020 and beyond!



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