Middle income country postal operators have the opportunity to leverage their rising middle class to increase mail and parcel volumes. Advertising mail can become a successful new source of mail, and increased B2C commerce can be a source of new parcels. Additional revenue from these activities would enable postal operators to transform their enterprise while reducing average costs and improving service quality through automation. This webinar will look at a postal operator’ main automation areas, including address management, automated sorting and computerized retail systems.
Address management is the foundation of any automation program, enabling automated sorting to direct each piece of mail accurately to its destination.
Automated sorting improves service, reducing error and increasing speed, while potentially reducing costs.
Computerized retail systems improves customer service and reduces revenue leakage.
We will provide examples of systems and innovations in each of the three areas above, and discuss issues, benefits and how automation projects should be evaluated.
2. Benefits of Postal Automation
3
Transforming the postal service
from necessity to opportunity
3. Webinar Outline
Introduction
Benefits of Automation for Postal Operators
Automation for Mail and Parcels
Trends
Strategies for Automation
Automation Maturity Model (AMM)
Revenue Leakage Protection
Retail Automation
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4. Benefits of Postal Automation
Increased operational productivity and efficiency – Reduced costs
Reduced labor (levels vary according to automation strategy)
Improved operations forecasting
Better labor planning & assignment
Better vehicle and machine utilisation
Increased flexibility and adaptability
Revenue protection
Increased service quality
Fewer delivery errors
More consistent service
Gateway to new services
Time-dependent services
Mailers and Advertising (Contracts – discount – billing)
Intelligent barcodes (Personalised services)
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6. Automation Technology
Letter Sorting
Buffer Systems
Robotic and Manual Bin
Sorters
Shingle Letter Sequencers
(SLS)
Flat and Registered Mail
Compact Sorters
Flat and Parcel All-in-one
Sorters (Plurisorter)
Parcel Sorters
OCR,
Video Coding
Sorting Address Management
Track & Trace
Postal Counter
International Mail System
Hybrid Mail
Postal Hand Held Terminals
Parcel Terminals
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7. Trends in Postal Automation (1/2)
Improved address recognition
Better, cheaper
Modular
Leveraging the information
Smaller is better
Lettermail sorting machines more
accessible to operators, mailers
Machines handle letters and
flats.
Mailers invest in automation if
they receive incentives
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Solystic MARS sorting machine
8. Trends in Postal Automation (2/2)
Tracking and tracing
Cheaper
Smarter (Intelligent mail barcode)
Integrated across value chain
Kiosks
No longer an experiment
Parcel terminals
Integrated into the distribution
system
Service diversification
Returns management
Cross-border
Logistics integration
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9. Operational Components of
Postal Automation
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Address
System
Tracking &
Monitoring
Sorting &
Distribution
Operations
Planning
Enterprise
Integration
Delivery
Management
Platform
Access
10. Operational Components of
Postal Automation
Foundation of automation program
Various address approaches – Ongoing improvements
UPU – EURADIN – World Bank
Address recognition (Multiple language – script)
Involve business community
Sorting and network strategy
Incremental automation initiative
Modular network approach
Centralized or not?
Incremental approach
Revenue protection
Quality management: operations and customer sides
Scoreboard
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Address
System
Tracking &
Monitoring
Sorting &
Distribution
11. Operational Components of
Postal Automation
Visibility
Volume counts - Origin/Destination Data
Capacity management
Labor and equipment right-sizing
Increased flexibility – adaptability
ERP
Back-office integration
Labor management
Volume counts help route management
Service-driven delivery (right-day)
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Delivery
Management
Enterprise
Integration
Operations
Planning
12. Operational Components of
Postal Automation
Induction of postal items into the network
(Mailers, Government)
Address correction – moves
Tracking integration across the supply chain
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Platform
Access
Applications
Infrastructure
• Physical
• Information
• Financial
13. Network Automation Strategies (1/2)
Parcel? Mail? Both?
Parcels: Growing market
Parcel may be easier/simpler but mail may provide more savings in the long run
Parcel processing network may be split from mail processing network
Keeping the delivery network for both?
Introducing new services: Logistics / Ad mail / Hybrid mail
Future-proofing the Strategy
Implementing an automation strategy takes commitment, time, effort & resources
Develop a roadmap
Incremental Approach
Identify easy wins – high density areas and flows
Start simple (low depth of sort – a few separations – dense O/Ds)
Increase automated network over time
Strong address management program
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14. Network Automation Strategies (2/2)
Network Topology
More centralized networks
Trading labor for distance
Highway-accessible plants
Mailer induction
Increasing network flexibility &
adaptability
To reduce cost
To improve service quality
Leveraging the private sector
Generate mail volumes
Providing incentives for automated
mail and plant induction
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15. Network Automation Strategies (2/2)
Network Topology
More centralized networks
Trading labor for distance
Highway-accessible plants
Mailer induction
Increasing network flexibility &
adaptability
To reduce cost
To improve service quality
Leveraging the private sector
Generate mail volumes
Providing incentives for automated
mail and plant induction
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16. Automation Maturity Model (AMM)
Assessment of current postal automation readiness
Chart a technical, organizational, and operational transformation path
ADR ORGMKT NET
Address
Infrastructure
Mail & Parcel
Market
Postal
Network
Organizational
Readiness
• Country Address
System
• Address Data
• Postal Code
• Readability Issues
• Address Change Mgt
• Mail/Parcel Volumes
and O/D Pairs
• Mail/Parcel
Characteristics
• Advertising Market
• Mail Service Providers
• Regulatory Envrmt
• Service Requirements
• Operational Tempo
• Network Topology
• Cost Factors
(transport, labor)
• Performance
measurement
• Planning
• Organization
Commitment
• Financial Posture
• Skills
• Change Management
17. Automation Maturity Model:
Maturity Levels
Maturity
Level
Name Maturity Characteristics
5 Pioneering Breaking new ground, industry-leading innovation
4 Optimizing Optimizing postal automation to benefit entire organization; may
reach beyond organization; increased automation
3 Integrating Integrating postal automation across the organization; realizing
measurably improved performance
2 Enabling Investing based on clear strategy; implementing projects to enable
enterprise-wide automation (may be compartmentalized)
1 Initiating Taking the first steps, exploring options, conducting experiments, and
developing a postal automation vision
0 Default Default level (status quo)
19. Combating revenue leakage
Definition*
Combating revenue leakage consists of
engaging in activities that help a Post:
Collect all the postage revenue owed to it, and
Curb the sources/reasons of leakage.
Leakage stems from one of four main risks
Counterfeit (e.g., illegal issues, fake imprints)
Bypass mail (e.g., mail inducted
without any form of payment)
Shortpaid or underpaid (e.g., mail
tendered with insufficient postage)
Problems related to billing or
postage collection
(e.g., bad cheques; accounting errors)
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* Source: UPU Consultative Committee – Postal Revenue Protection Working Group
20. Sources of leakage – three dimensions
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Mail Preparation and
Point of Induction
PaymentChannel
Revenue leakage varies
depending on:
The payment channel
The product type (shape/weigh)
The preparation of the mail and
its point of induction
The multiplicity of options
increases the exposure to
revenue leakage
21. 22
Stamps
Online
Stamps Meters
Meters
Permit
Meters Permit Permit
Residential mailers Small business mailers Large mailers
Single
Piece
Bulk
Mail
Online
Solutions must be adapted based on
the highest payback.
OtherOther
Labels
Labels
35%
65%
80%15%5%
Darker = intrinsically higher risk channel
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A broad choice of automation
technology is available
Evidencing
• Deploymentof digitalmeters in smaller emerging markets
• Anti-fraud security measures (special inks,holograms…)forstamps
Acceptance/verification
• E-documentation
• Sorters/countingmachinesforpiece count(forsampling,verification
or terminal dues purposes)
• Modulardimensions/weight/data capturesolutionsforuse in post
offices
Processing
• Lower-end sorters suitable formid-tierposts
• Large CFC with on the fly weighing of parcels or letters
• Capability to trace back an item to a specific sender
Billing/reconciling software solutions
(e.g.,USPS Permit RP project)
24. The retail branch provides a source
of rich customer experience
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Richness of Experience
FrequencyofUse
• Complex transaction handling
• One-to-one marketing & sales
• Local community branch svcs
• Customer service & issues
resolution
• Financial planning and
advising
25. Technology in the retail branch
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Digital Signage
Kiosks
Technology BarSmart Layouts
26. Retail Automation - Kiosks
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Purchase stamps and/or label (individual, sheets).
Print on demand. No need to tie up large amount of cash for stamps on
consignment -- print on demand sheets of postage
Weigh items and access all available tariffs by class of service.
Shop rates. Compare the cost of different services.
Select advanced features such as delivery confirmation, signature confirmation,
etc..
Print postage/labels.
Mail domestically or internationally.
Keep track of expenses. Print out a receipt for accurate record
keeping for shipping transaction.
Cost-effectiveness. A single kiosk can serve thousands.
Convenience. Self-service functionality and open 24/7.
Savings. No staff required.
Customer convenience. Intuitive and simple to use.
27. Retail Automation – Point of Sale
Systems
Automation of many branch functions
Increased revenue opportunities by
adding new services
Government services
Postal financial services
Third-party services
Revenue protection
Accountability helps combat leakage
Integration across channels to extend the
reach of post office and retail environments:
Supporting franchises and corporate customers
through remote and self-service solutions
Branding
Securing brand awareness in a franchised
network
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28. Integration of Postal Counter
Services
Retail
Software
Suite
Point of
Sale
Systems
Kiosks
Business
Intelligence
Reporting
PO Boxes
Customer
Web Portal
Postal
Financial
Services
Philately
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Integration across customer channels
Branches, Web, Kiosks
Unified view of the customer across
products/services
Customer intelligence via business intelligence
reporting
Business data for marketing and product analysis
Integrated management of cash, stamps, and
supplies inventories
Streamlined processes across a dispersed
network of branches
Scalability from a micro post office to a large
business centers
Customization of services based on type of
branch
30. Last mile automation – Parcels
terminals
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The e-commerce boom is pushing the rise of parcels
terminal networks:
DHL: 2,500 PackStations in 1,600 cities.
Integer.pl: 16,000 easyPack terminals in Europe by the end of 2016
Itella Group: 350 stations by 2015
Post Denmark expanding from 131 to 200 “Døgnposten” units
Nightline plans : 400 “Parcel Motels”
Consumers delivery/pickup expectations are on the rise
UPS My Choice
FedEx’s Delivery Manage
DHL’ Control Cockpit
GLS Germany’s FlexDelivery Service
The convenience of anywhere/anytime e-commerce is met
by the convenience of anywhere/anytime pickup at reduced costs
31. Last mile automation – e-fulfillment
support
Mobile software solution to support last mile B2C
deliveries. Generates customer alerts, initiating the
negotiated delivery process.
Recipients negotiate delivery windows, ensuring timely
receipt, minimized delivery costs and heightened
customer satisfaction.
End-to-end visibility from mailer/shipper via carrier to
recipient. Use of wireless technologies and ‘intelligent
agents’ to provide a personalized delivery solution.
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Accurate determination of recipients availability
Increase in productivity
Increase in number of successful first-time deliveries
Substantial reduction in costs and labor
User preferred delivery times facilitates more efficient delivery routes
Potential to negotiate reduced delivery charges with third-party local
couriers
32. Benefits of Postal Automation
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Transforming the postal service
from necessity to opportunity