Dap webinar   automation for emerging economies
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Dap webinar automation for emerging economies

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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 ...

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.

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Dap webinar automation for emerging economies Presentation Transcript

  • 1. Evaluating Postal Automationfor Middle Income CountriesJune 20, 2013
  • 2. Benefits of Postal Automation3Transforming the postal servicefrom necessity to opportunity
  • 3. Webinar OutlineIntroductionBenefits of Automation for Postal OperatorsAutomation for Mail and ParcelsTrendsStrategies for AutomationAutomation Maturity Model (AMM)Revenue Leakage ProtectionRetail Automation4
  • 4. Benefits of Postal AutomationIncreased operational productivity and efficiency – Reduced costsReduced labor (levels vary according to automation strategy)Improved operations forecastingBetter labor planning & assignmentBetter vehicle and machine utilisationIncreased flexibility and adaptabilityRevenue protectionIncreased service qualityFewer delivery errorsMore consistent serviceGateway to new servicesTime-dependent servicesMailers and Advertising (Contracts – discount – billing)Intelligent barcodes (Personalised services)5
  • 5. Automation forMail and Parcels6
  • 6. Automation TechnologyLetter SortingBuffer SystemsRobotic and Manual BinSortersShingle Letter Sequencers(SLS)Flat and Registered MailCompact SortersFlat and Parcel All-in-oneSorters (Plurisorter)Parcel SortersOCR,Video CodingSorting Address ManagementTrack & TracePostal CounterInternational Mail SystemHybrid MailPostal Hand Held TerminalsParcel Terminals7
  • 7. Trends in Postal Automation (1/2)Improved address recognitionBetter, cheaperModularLeveraging the informationSmaller is betterLettermail sorting machines moreaccessible to operators, mailersMachines handle letters andflats.Mailers invest in automation ifthey receive incentives8Solystic MARS sorting machine
  • 8. Trends in Postal Automation (2/2)Tracking and tracingCheaperSmarter (Intelligent mail barcode)Integrated across value chainKiosksNo longer an experimentParcel terminalsIntegrated into the distributionsystemService diversificationReturns managementCross-borderLogistics integration9
  • 9. Operational Components ofPostal Automation10AddressSystemTracking &MonitoringSorting &DistributionOperationsPlanningEnterpriseIntegrationDeliveryManagementPlatformAccess
  • 10. Operational Components ofPostal AutomationFoundation of automation programVarious address approaches – Ongoing improvementsUPU – EURADIN – World BankAddress recognition (Multiple language – script)Involve business communitySorting and network strategyIncremental automation initiativeModular network approachCentralized or not?Incremental approachRevenue protectionQuality management: operations and customer sidesScoreboard11AddressSystemTracking &MonitoringSorting &Distribution
  • 11. Operational Components ofPostal AutomationVisibilityVolume counts - Origin/Destination DataCapacity managementLabor and equipment right-sizingIncreased flexibility – adaptabilityERPBack-office integrationLabor managementVolume counts help route managementService-driven delivery (right-day)12DeliveryManagementEnterpriseIntegrationOperationsPlanning
  • 12. Operational Components ofPostal AutomationInduction of postal items into the network(Mailers, Government)Address correction – movesTracking integration across the supply chain13PlatformAccessApplicationsInfrastructure• Physical• Information• Financial
  • 13. Network Automation Strategies (1/2)Parcel? Mail? Both?Parcels: Growing marketParcel may be easier/simpler but mail may provide more savings in the long runParcel processing network may be split from mail processing networkKeeping the delivery network for both?Introducing new services: Logistics / Ad mail / Hybrid mailFuture-proofing the StrategyImplementing an automation strategy takes commitment, time, effort & resourcesDevelop a roadmapIncremental ApproachIdentify easy wins – high density areas and flowsStart simple (low depth of sort – a few separations – dense O/Ds)Increase automated network over timeStrong address management program14
  • 14. Network Automation Strategies (2/2)Network TopologyMore centralized networksTrading labor for distanceHighway-accessible plantsMailer inductionIncreasing network flexibility &adaptabilityTo reduce costTo improve service qualityLeveraging the private sectorGenerate mail volumesProviding incentives for automatedmail and plant induction15
  • 15. Network Automation Strategies (2/2)Network TopologyMore centralized networksTrading labor for distanceHighway-accessible plantsMailer inductionIncreasing network flexibility &adaptabilityTo reduce costTo improve service qualityLeveraging the private sectorGenerate mail volumesProviding incentives for automatedmail and plant induction16
  • 16. Automation Maturity Model (AMM)Assessment of current postal automation readinessChart a technical, organizational, and operational transformation pathADR ORGMKT NETAddressInfrastructureMail & ParcelMarketPostalNetworkOrganizationalReadiness• Country AddressSystem• Address Data• Postal Code• Readability Issues• Address Change Mgt• Mail/Parcel Volumesand O/D Pairs• Mail/ParcelCharacteristics• Advertising Market• Mail Service Providers• Regulatory Envrmt• Service Requirements• Operational Tempo• Network Topology• Cost Factors(transport, labor)• Performancemeasurement• Planning• OrganizationCommitment• Financial Posture• Skills• Change Management
  • 17. Automation Maturity Model:Maturity LevelsMaturityLevelName Maturity Characteristics5 Pioneering Breaking new ground, industry-leading innovation4 Optimizing Optimizing postal automation to benefit entire organization; mayreach beyond organization; increased automation3 Integrating Integrating postal automation across the organization; realizingmeasurably improved performance2 Enabling Investing based on clear strategy; implementing projects to enableenterprise-wide automation (may be compartmentalized)1 Initiating Taking the first steps, exploring options, conducting experiments, anddeveloping a postal automation vision0 Default Default level (status quo)
  • 18. Revenue Leakage19
  • 19. Combating revenue leakageDefinition*Combating revenue leakage consists ofengaging in activities that help a Post:Collect all the postage revenue owed to it, andCurb the sources/reasons of leakage.Leakage stems from one of four main risksCounterfeit (e.g., illegal issues, fake imprints)Bypass mail (e.g., mail inductedwithout any form of payment)Shortpaid or underpaid (e.g., mailtendered with insufficient postage)Problems related to billing orpostage collection(e.g., bad cheques; accounting errors)20* Source: UPU Consultative Committee – Postal Revenue Protection Working Group
  • 20. Sources of leakage – three dimensions21Mail Preparation andPoint of InductionPaymentChannelRevenue leakage variesdepending on:The payment channelThe product type (shape/weigh)The preparation of the mail andits point of inductionThe multiplicity of optionsincreases the exposure torevenue leakage
  • 21. 22StampsOnlineStamps MetersMetersPermitMeters Permit PermitResidential mailers Small business mailers Large mailersSinglePieceBulkMailOnlineSolutions must be adapted based onthe highest payback.OtherOtherLabelsLabels35%65%80%15%5%Darker = intrinsically higher risk channel
  • 22. 23A broad choice of automationtechnology is availableEvidencing• Deploymentof digitalmeters in smaller emerging markets• Anti-fraud security measures (special inks,holograms…)forstampsAcceptance/verification• E-documentation• Sorters/countingmachinesforpiece count(forsampling,verificationor terminal dues purposes)• Modulardimensions/weight/data capturesolutionsforuse in postofficesProcessing• 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 senderBilling/reconciling software solutions(e.g.,USPS Permit RP project)
  • 23. Retail Automation24
  • 24. The retail branch provides a sourceof rich customer experience25Richness of ExperienceFrequencyofUse• Complex transaction handling• One-to-one marketing & sales• Local community branch svcs• Customer service & issuesresolution• Financial planning andadvising
  • 25. Technology in the retail branch26Digital SignageKiosksTechnology BarSmart Layouts
  • 26. Retail Automation - Kiosks27Purchase stamps and/or label (individual, sheets).Print on demand. No need to tie up large amount of cash for stamps onconsignment -- print on demand sheets of postageWeigh 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 recordkeeping 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 SaleSystemsAutomation of many branch functionsIncreased revenue opportunities byadding new servicesGovernment servicesPostal financial servicesThird-party servicesRevenue protectionAccountability helps combat leakageIntegration across channels to extend thereach of post office and retail environments:Supporting franchises and corporate customersthrough remote and self-service solutionsBrandingSecuring brand awareness in a franchisednetwork28
  • 28. Integration of Postal CounterServicesRetailSoftwareSuitePoint ofSaleSystemsKiosksBusinessIntelligenceReportingPO BoxesCustomerWeb PortalPostalFinancialServicesPhilately29Integration across customer channelsBranches, Web, KiosksUnified view of the customer acrossproducts/servicesCustomer intelligence via business intelligencereportingBusiness data for marketing and product analysisIntegrated management of cash, stamps, andsupplies inventoriesStreamlined processes across a dispersednetwork of branchesScalability from a micro post office to a largebusiness centersCustomization of services based on type ofbranch
  • 29. Last Mile Automation30
  • 30. Last mile automation – Parcelsterminals31The e-commerce boom is pushing the rise of parcelsterminal networks:DHL: 2,500 PackStations in 1,600 cities.Integer.pl: 16,000 easyPack terminals in Europe by the end of 2016Itella Group: 350 stations by 2015Post Denmark expanding from 131 to 200 “Døgnposten” unitsNightline plans : 400 “Parcel Motels”Consumers delivery/pickup expectations are on the riseUPS My ChoiceFedEx’s Delivery ManageDHL’ Control CockpitGLS Germany’s FlexDelivery ServiceThe convenience of anywhere/anytime e-commerce is metby the convenience of anywhere/anytime pickup at reduced costs
  • 31. Last mile automation – e-fulfillmentsupportMobile software solution to support last mile B2Cdeliveries. Generates customer alerts, initiating thenegotiated delivery process.Recipients negotiate delivery windows, ensuring timelyreceipt, minimized delivery costs and heightenedcustomer satisfaction.End-to-end visibility from mailer/shipper via carrier torecipient. Use of wireless technologies and ‘intelligentagents’ to provide a personalized delivery solution.32Accurate determination of recipients availabilityIncrease in productivityIncrease in number of successful first-time deliveriesSubstantial reduction in costs and laborUser preferred delivery times facilitates more efficient delivery routesPotential to negotiate reduced delivery charges with third-party localcouriers
  • 32. Benefits of Postal Automation33Transforming the postal servicefrom necessity to opportunity
  • 33. 34> insight > action > transformation