Uploaded byVishal Sharma
Retail & Australia Post
The document discusses trends in the retail and postal services industries in Australia. It provides an overview of Australia Post, including its operations, business segments, transformation efforts to adapt to digital disruption, and key buyers in its business. Australia Post is undergoing changes to transition from traditional mail services to growing areas like parcel delivery and digital services as consumer behavior shifts online.
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Retail & Australia Post
- 1. 1 Retail & AustraliaPost Point of View Prepared By: Vishal, April 9, 2015
- 2. 2 Match Mismatch Mismatch Match Source: HBR Whatis the Right Supply Chain For You Functional Products Innovative Products Responsive SupplyChain Efficient SupplyChain Functional Innovative Primary Purpose Supply Predictable Demand efficiently at the lowest possible cost Response quickly to unpredictable demand in order to minimise stockouts and obsolete inventory Inventory Strategy Generate high turns and minimise inventory through out the chain Deploy significant buffer stocks of parts or finished goods Lead Time Shorten Lead time as long as it doesnโt increase the cost Invest aggressively in ways to reduce lead time Choosing Suppliers Primarily for Cost and Quality Primarily for Speed, Flexibility and Quality Product Design Maximize performance & minimise cost Use Modular design in order to postpone product differentiation for as long as possible Retail Industry Evolution
- 3. 3 Retail Industry Trends Source: Gartner โขThrough 2017, digital commerce will account for less than 20% of overall revenue for multichannel retailers. โข M-commerce continues to account for a small percentage of retail revenue, but it is fast becoming the customer's main gateway into the retail shopping experience. โข E-commerce remains the largest digital channel in terms of revenue, but it's growth rate continues to slow. โข Customers are creating new business models and value in retail through having easy access to the converged power of the digital technologies supporting cloud, mobile, social and big data. โข Customer collaboration for innovation is a key competence that is required to operate a successful retail digital business. โข Even as the transition to digital business models occurs, survival will depend on how well retailers execute on the multichannel customer basics, particularly in-store. โข Disintermediation will heighten levels of competition for customer spend as the customer's perception of a retailer's pricing strategy will be increasingly influenced by individual items and transactions. โข The unified price, promotion and markdown optimization technology market will codify around three to five leaders that can execute optimization of personalized, multichannel pricing strategies. โข A future pricing process supporting digital business will depend on a combination of strategy, knowledge and speed to win the sale. โข Augmented reality in-store affords retailers an opportunity to provide a combination of contextual information, rewards and personalized offers to engage customers..
- 4. 4 Retail Technology Trends Source: Gartner โขUnderpinning Digitalisation With the Internet of Things and the Nexus of Forces โข Prioritising the Role of Multichannel Master Data and Multichannel Master Content Management in Digitalisation โข Deploying Distributed Order Management to Execute Retailer Multichannel Fulfilment Strategies โข Evaluating Smart Machines to Improve Productivity โข Investing in Data and Content Management Solutions to Improve the Mobile Experience โข Focusing on In-Store Technology to Execute the Basics in the Digital Store โข Prioritising Data Security to Protect the Brand โข Adopting Desktop 3D Printing Services Is Gaining in Popularity Cost Revenue Fulfillment Demand Side Generation IT Transformation (Traditional IT) Digital Transformation Economics
- 5. 5 Source: BCG,HBR, UCS Retail Business Architecture Partnering with Vendor Buying Marketing & Selling Managing Inventory Distributing Inventory Operating Stores Planning Supply Chain Management Merchandise Management Stores Management Execution Supplier Mgmt. Warehouse Mgmt. Sourcing Transport. Distribution Reverse Logistics Replenish. Visibility & Tracking Inventory Logistics Pur. Order Mgmt. Procur. Foreign Trade Advanced Plan Mgmt. CPFR. Demand Mgmt. Corporate Management Customer Management Planning Operations Price&Camp .Mgmt Val Chain Collab. Promotions Trade Mgmt.. Assortment Sales Audit Allocations. Invoice Matching Category Mgmt. Merchand. System Item Planning Space Optimis. Demand Mgmt. Performance Mgmt. Finance Real Estate Mgmt. HR Asset Mgmt. BI MDM IT Sales Mgmt. Analytical CRM Mktg Mgmt. Call Centre Customer Support Customer Loy.& Pref. Churn Analysis GDS Standards RFID POS & Mobile POS Workforce Mgmt. Advanced Store Tech. Gift Reg. Back Off Integ. Central office Labels & Rags. Store Invent. Mgmt. Returns Mgmt & Loss Prevention Channels Management Physical Online Store Mail & Catalog IVR Mobile
- 6. 6 Retail Shared Value Measurementin Business Strategy Redefining Productivity in the Value chain Reducing Cluster Development (How changing social conditions outside unleashes new growth) Reconceiving product and markets Level of Shared Value Business Outcome Social Outcome โข Shared Value measurement is to unlock value driven by linking social and business outcomes. This needs to be part of the business strategy measure. โข IBM from Computer and Technology to Smarter Planet, Pearson from Textbook Publishing to Improving Educational Outcomes. โข Increased Revenue โข Increased Market Share โข Increased Market Growth โข Improved Profitability โข Improved Patient Care โข Reduced Carbon footprint โข Improved Nutrition โข Improved Education โข Improved Productivity โข Reduce Logistical and Operating costs โข Secured Supply โข Improved Quality โข Reduced Energy use โข Reduce Water Use โข Improved Raw Materials โข Improved Job Skills โข Improved Employee Income โข Reduced Cost โข Reduce Logistical and Operating costs โข Improved Distribution Infrastructure โข Improved Workforce Assets โข Improved Profitability โข Improved Education โข Increased Job Creation โข Improved Health โข Improved Incomes Source: HBR
- 7. 7 Postal Services Industry Trends- AU Reserved mail services 38% Non regulated mail services 10% Retail 13% Bulk mail 13% Parcel Delivery 26% Product & Services Segmentation - 2014 Source: IBIS World Industry Report โPostal Services in Australia, Dec, 2014 โข Postal industry is going trough a state of transformation, where traditional Mobile Services and Internet Based Services are becoming the growth segments as convergence of service and digitisation of assets is underway. โข Industry in general is in Decline stage of it lifecycle. Technology change and impact across all business lines is high and currently impacting its top and bottom line. Consumers 2% Government and Service Providers 16% B2C 36% B2B 46% Market Segmentation - 2014 Australia Post, 97.50% Others, 2.50% Major Players Market Share - 2014
- 8. 8 Postal Services Transformation โAcross Globe Image Source - Australian and International Postal Services Overview by BCG - 2014
- 9. 9 Postal Services Lever Image Source- Australian and International Postal Services Overview by BCG - 2014
- 10. 10 Australia Post Context โข Australiapost opened its 1st outlet in 1809 in Sydney โข Australia - Prosperous Place in Beginning of 20th Century โข Industrialisation โ Steam Engine(shipping) and Telegraph โข Applying the methods of the tram and steam driven economy to the motor car economy failed โข Digital Disruption - Ubiquity of Internet and Internet of Things is driving Digital disruption across all industries including Postal and Telecom Services Source: NBN - Freeways of The Future Circular Quay in 1809
- 11. 11 Australia Post Ops View AttributesIndustry Auspost Revenue in Billions by FY 2014 (Size) 6.3 6.2 Profit in Billions (NPAT) 0.133 0.116 Growth (CAGR% 2010-2015) 2.4% Expected Growth (CAGR% 2015-2020) 0.4 % Share of Economy (%) 0.19 Source: IBIS World Industry ReportHigh LowRevenueVolatilityHigh Hazardous Rollercoaster Blue ChipStagnant Low 5 Year Annualised Growth Auspost โข Australia Post is a Federal Govt. owned monopoly in postal services with an independent board.. โข Postal industry is going through a state of transformation, where traditional business is on decline and new areas of growth like parcel business is on rise. To transform in a digital world, a customer-driven, sustainable, high-performing and financially viable business and ops model was rolled out in 2010. Hence, a large- scale transformation of industry services with digital communication is underway.
- 12. 12 Australia Post Future Readyโ 2010 and Beyond โข Australia Post initiated a major transformation journey in 2010 to redesign it business and operating model โข A customer-driven, sustainable, high-performing and financially viable Business and operating model was rolled out โข Four BUโs were created โข Postal Services โข Retail Services โข Distribution & Express Service โข e-Services โข In 2012, Australia Post launched a digital mail box (APDM) under e-Services โข In 2014 APDM was rebranded as My Post Digital Mail Box (MPDM) Image Source - Australian and International Postal Services Overview by BCG - 2014 โThis year (FY 2014) has marked a turning point for Australia Post. For the first time since corporatisation we have posted an overall company loss in the second half of the financial yearโ Ahmed Fahour
- 13. 13 Australia Post Business Buyers Ref:Gartner, BCG, IBIS MD, LOBCFOCOO,CAOCEOCDO ProcurementCMORole Buyer Role Focus Key Vendor Message/ Themes Impact on Decision Decision Maker Influencer Decision Maker Influencer Decision Maker Decision Maker Influencer Digital Strategy Strategy Business Cost and Capacity Business Marketing, Sales Ops Eff., Risk Focus on IT & Business Alignment. Advisor to CEO/COO IT as a force to enable strategy, product, gain different. and ops efficiency Functionality , speed of implementat ion, TCO, fit with existing landscape Demonstrate cost discipline, OPEX vs CAPEX Revenue vs Cost, Functionality , Ease of use, speed of implementat ion Focus on big data, analytics and technology that can improve customer centricity Vendor, risk, cost, contracts High Medium High Medium High Medium Low
- 14. 14 Australia Post Key Segments Australia Post Startrack Decipha โฆโฆ Parcel Services Postal Services IT & Digital โขAustralia Post has various Departments which required different approach.
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