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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 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.

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

  1. 1. Evaluating Postal Automation for Middle Income Countries June 20, 2013
  2. 2. Benefits of Postal Automation 3 Transforming the postal service from necessity to opportunity
  3. 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 4
  4. 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) 5
  5. 5. Automation for Mail and Parcels 6
  6. 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 7
  7. 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 8 Solystic MARS sorting machine
  8. 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 9
  9. 9. Operational Components of Postal Automation 10 Address System Tracking & Monitoring Sorting & Distribution Operations Planning Enterprise Integration Delivery Management Platform Access
  10. 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 11 Address System Tracking & Monitoring Sorting & Distribution
  11. 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) 12 Delivery Management Enterprise Integration Operations Planning
  12. 12. Operational Components of Postal Automation Induction of postal items into the network (Mailers, Government) Address correction – moves Tracking integration across the supply chain 13 Platform Access Applications Infrastructure • Physical • Information • Financial
  13. 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 14
  14. 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 15
  15. 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 16
  16. 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. 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)
  18. 18. Revenue Leakage 19
  19. 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) 20 * Source: UPU Consultative Committee – Postal Revenue Protection Working Group
  20. 20. Sources of leakage – three dimensions 21 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. 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
  22. 22. 23 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)
  23. 23. Retail Automation 24
  24. 24. The retail branch provides a source of rich customer experience 25 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. 25. Technology in the retail branch 26 Digital Signage Kiosks Technology BarSmart Layouts
  26. 26. Retail Automation - Kiosks 27 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. 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 28
  28. 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 29 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
  29. 29. Last Mile Automation 30
  30. 30. Last mile automation – Parcels terminals 31 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. 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. 32 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. 32. Benefits of Postal Automation 33 Transforming the postal service from necessity to opportunity
  33. 33. 34 > insight > action > transformation

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