The world’s postal operators need to ‘move out of their comfort zone’, critically review their
activities and jointly shape their future, according to Bishar Hussein, director general of the
Universal Postal Union (UPU).
Addressing some 750 delegates from 135 UPU member countries at the start of the organisation’s
two-day ‘World Strategy Conference’ in Geneva yesterday, Hussein issued a ‘wake-up call’ against
the background of a deep transformation in the postal sector driven by digital technology and the
rise of e-commerce.
“Let’s step out of our comfort zone and test new ideas upon which we can build the future of
the Post,” he said. “Together we must take stock of our organisations and the postal sector today,
and shape our future tomorrow.”
Postal activities increasingly focused on logistics and financial services instead of
traditional mail, the growth of e-commerce and the rise of parcel volumes, and changing consumer
behaviour are among various phenomena forcing public postal services to redefine themselves for the
21st century. Changing consumer habits brought on by new technological applications is perhaps one
of the greater challenges facing the postal sector, according to the UPU.
“The modern consumer is digital, concerned with sustainable development, and has a totally
different gauge for the value of a product or service,” Hussein added. “Clients today want to
access services anywhere, anytime. They want products tailored to their preferred method of
consumption, and they want those products to be delivered at home or right next door.” Posts must
see this new reality as an exciting opportunity, not a constraint, he emphasised.
The innovation challenge facing postal operators worldwide dominated discussions on the first
day of the conference as postal executives, government representatives and private companies
debated how to best respond and adapt to the rapid changes thrust upon the sector by technological
change.
The rapidly expanding e-commerce sector was of particular interest. While it promises great
growth for postal operators, it brings many challenges as well. Consumer demands when it comes to
delivery of e-commerce goods, for example, are changing quickly. As well, it is still unclear
whether e-commerce giants, such as Amazon, are interested in handling last-mile delivery
themselves.
“The future of commerce is a blurred landscape, where the consumer dictates how, where and
when he will consume,” said Stefan Krawczyk, associate general counsel and head of government
relations at eBay. “That means the delivery operators will have to adapt to what the consumer
dictates.”
Postal operators are already changing the way they deliver packages, including introducing
package lockers and sending delivery notifications to customers via text messages.
Krawczyk, however, stressed that consumers are looking for transparency and predictability
when it comes to package delivery. A seller in Europe needs to feel certain that when they send an
item to a buyer in South America, it will arrive on time. They also want the service and pricing to
be transparent and logical, Krawczyk added.
Dimitry Strashnov, director general of Russian Post, seconded that viewpoint. Postal
operators, for example, should analyze what kind of delivery their customers need and expect. “Do
we need to deliver all the parcels in one day or two days?” Strashnov asked. “Would a customer be
satisfied having three-to-five day delivery but with a high predictability level. Can we deliver on
the promise? This is getting more and more important today because the cost of five-day delivery is
lower than one day.”
Postal operators must also be efficient to maintain their profitability, Strashnov said.
This, in turn, allows them to invest in their infrastructure to create new products.
The development of new products is an important focus for postal operators worldwide. Saudi
Post, for example, is leveraging its established assets such as its transportation infrastructure,
last-mile delivery network, postal offices and technology to expand its range of products,
according to Mohamed Saleh Ben Taher Benten, chairman and CEO. Saudi Post has transformed its
transportation network into a logistics network. Its NAQEL logistics joint venture, in which it
holds a majority stake, provides services for many different industries in Saudi Arabia, including
fashion retailers and food processors.
Another attractive area for expansion is postal financial services. In Indonesia, the
government has asked the Post to conduct a pilot project called the “post savings account” in six
provinces as many people in that country still store their cash at home, according to Kalamullah
Ramli, Indonesia’s director general of the ministry of communication and information technology.
The development of such value-added services is what makes Moulay Hafid Elalamy, Morocco’s
minister of industry, trade, investment and digital economy, optimistic about the future for his
country’s postal operator. “From my point of view, posts will continue to be profitable in coming
years if they modernise,” Elalamy told the conference.
However, it’s not just the postal operators that have to adapt, but the rules as well,
according to speakers at the conference. Philippe Wahl, president of France’s La Poste, said work
on the development of the UPU’s global integrated postal network, known as ECOMPRO, is necessary
for the further development of the e-commerce market. “We need to communicate and exchange
information with all members from the UPU,” Wahl said. “It’s the next big step we are taking
together.”
Earlier in the day, in a personal message, United Nations Secretary-General Ban Ki-moon said
postal services have a clear role to play in the UN’s post-development agenda being finalised for
adoption in September. “As the world shapes a new sustainable development agenda and strives to
address the threat posed by climate change, postal services can and must be part of the solution,”
he stated.
Daniel Kablan Duncan, Prime Minister of Côte d’Ivoire, which is chairing the World Strategy
Conference, highlighted the potential of technology to create a forward-looking postal sector as
well as the need for Posts to keep improving to make their services accessible to all citizens.
His country is opting to embrace rather than ignore the sweeping changes that technology has
thrust upon the world. “Côte d’Ivoire wants to be one of the players for change,” Prime Minister
Duncan said.
The revitalization of Côte d’Ivoire’s national postal operator is a key government objective
after years of economic and political turmoil. In 2013, the country introduced a new postal code,
replacing one from 1976 to ensure the provision of a universal postal service for all members of
its population regardless of where they live. In 2014, the postal operator introduced a new
international express service, POST’EXPRESS, for letters and parcels.
The Post will also benefit from an extensive fibre optic network that is currently being
installed across the West African country, significantly boosting the population’s access to the
Internet. Indeed, the government aims to carve out a role for the national postal operator in
e-commerce logistics, according to Bruno Koné, Côte d’Ivoire’s Minister of Post, Information and
Communication Technologies. He pointed out that while consumers can place orders via their
computer, it’s not the computer who will actually deliver the item.
The two-day UPU conference covers a wide range of topics and features about 40 high-profile
speakers from governments, national authorities, postal operators and diverse stakeholders. Themes
at the conference sessions include the changing economic environment, innovation, e-commerce, trade
facilitation, postal regulation, the universal services and financial services.
The conference enables UPU member countries and stakeholders to take stock of the progress
made on achieving the Doha Postal Strategy, the postal sector’s current four-year roadmap. The
trends and issues under discussion will also help to shape the next world postal strategy to be
delivered at the Universal Postal Congress in Istanbul, Turkey, in 2016.
