Rather than focusing on what Postal organizations lack, why not look at the strengths of their existing assets and what opportunities they can enable?
A powerful opportunity space: proximity and intimacy.
Postal organizations were purpose-built from the start for proximity and intimacy with the areas they serve.
As a result, Postal organizations are already well-positioned to capitalize on diversified growth in e-commerce, financial services, last mile deliveries and other related segments where proximity and intimacy with consumers can offer great leverage.
What’s more, this aligns well with sky-high customer expectations. Customers now expect business and governments to function as modern digital business do, providing more personalized services, remotely delivered to their residence, workplace or trusted community. Why, consumers wonder, can’t government work as well as an of my favorite apps on my smartphone?
The e-commerce opportunity is obviously attractive. In late 2019, e-commerce retail trade sales amounted to almost 1.85 billion Canadian dollars, with approximately 28.1 million Canadians having made purchase online. Revenue generated within the retail e-commerce market is expected to surpass 43.3 billion CAD by 2024, up from 33.3 billion CAD in 2019. As of 2019, Canada Post was delivering 60% of all e-commerce parcels. With logistics amounting to roughly 10% of this, the opportunity for Postal companies is here and now. Getting this right opens further opportunities to become a vital supply chain hub for global e-commerce and B2B.
But that future revenue is far from assured: growth has already slowed due to entry of new players, and diversification by e-commerce giants.
This means the window to get this right — and do it better than Amazon.com can with their electric-powered delivery vans, drones, sidewalk robots and partnerships with third parties — is quite limited. There is no time to delay.
But e-commerce is just the beginning of the models this opportunity space can enable to grow topline revenue. For example, Postal organizations can maximize the use of large land banks and real estate that they hold. They can enable expanded coverage through Public Private partnerships and/ or franchise models, Improved internal operations for efficient business across traditional and new business models.
To make the most of these, and to find opportunities to shrink costs and improve capabilities, it’s best to re-envision the entire enterprise, from the Postal Front Office through Modern Storage to outbound delivery.
Re-envisioning the Postal Organization for 2025