postal technology international: to e- or not to e-

2
PRODUCTS AND SERVICES The parcel business has evolved greatly over the past couple of years. Historically it was more B2B business whereas nowadays, with the growing importance of e-commerce, it is shifting more into the B2C and C2C segments, the latter of which requires a more customer-driven approach. InPost is an alternative postal operator that started up five years ago in Poland. It is the largest part of Integer.pl Capital Group. Activities of the whole Group initially comprised postal services, unaddressed mail and parcel operations. A few years ago the decision was taken to enlarge the business and enter areas of e-commerce (easyPack parcel terminals and InFlavo – internet shops on Facebook), financial services (e-documents and mobile payments), hybrid mail and the MVNO sector. The customer is foremost in our mind in everything we do. All our services and products are designed to be simple, efficient and flexible. InPost is proud to have been recognised internationally by winning three World Mail Awards in the past two years, for Growth (2010) and Innovation and E-commerce (2011). Three years ago InPost decided to enter the e-commerce business, but we did not want to compete directly with national or express carriers. After undertaking market research and learning the preferences of senders and customers, we decided to commence an automated parcel terminal project. The system has now been on the market for more than two years. InPost’s easyPack is the answer for customers’ needs. Parcel terminals enable your organisation to offer: • Twenty-four hour accessibility – 37 percent of our customers collect parcels between 18:00 and 08:00. • Less time spent on parcel collection – it can take up to 40 minutes to collect a parcel from a post office whereas with easyPack it takes only 17 seconds. • Customers decide where they want to collect their parcels – SMS/email notification is sent to the customer when a parcel is placed in the machine. Fifty-one percent of our customers collect parcels within six hours of notification. Moreover 74 percent of customers prefer easyPack to courier delivery according to CATI research undertaken in Q1 of 2011 among Polish shoppers. There are a growing number of drop- point solutions available on the market. These include not only parcel terminals but also collection points for shop-in-shop concepts. The latter, however, have a disadvantage in that provision to agents/ third-party partners consumes a huge proportion of the profit margin. With easyPack there is no need to pay additional provisions, so higher margins can be obtained. What other benefits are there for postal and courier operators from using easyPack? • Up to 80 percent lower last mile costs as it takes only one courier to deliver 500 parcels a day instead of seven to 10 for postal and express operators. • Elimination of failed deliveries (0.036 percent instead of 12-20 percent for express carriers). • Increased range and market penetration. In offering a service that fits customer needs and brings benefits to postal and courier operators it is important to remember that we are a part of the whole process. It is the senders (mostly e-retailers) that provide the parcel stream to parcel terminals. Recognising this from the very beginning has helped us to shape the current service. A dedicated team of sales and business development, as well as marketing and IT specialists, are working to develop the best solution for all sides throughout the whole process. A few months ago InPost began cooperation with Groupon, a company that sold 440,000 GAP coupons in August 2011 worth US$11 million. Groupon in Poland sells not only services but also products and InPost is undertaking fulfilment. When purchasing, customers have two delivery options – easyPack and courier service. Depending on the product the choice of easyPack ranges from 37 to 97 percent. Postal operator, technology provider InPost has spent three years on research and development of the services. We have proved the concept in Poland and broke even after 18 months. Not only are we a technology provider, but more importantly InPost is a real user of the service. After the initial stage we decided to transfer our know-how and business solutions to partners who are interested in developing innovative e-commerce solutions in their markets. Knowledge we share: • How to site parcel terminals to reach the highest occupancy rate; To e- or noT To e- E-commerce is an increasingly important sector for postal operators. How can they best turn this massive growth to their advantage? 62 December 2011 www.PostalTechnologyInternational.com

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E-commerce is an increasingly important sector for postal operators. How can they best turn this massive growth to their advantage?

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Page 1: Postal Technology International: To e- or not to e-

PRODUCTS AND SERVICES

The parcel business has evolved greatly over the past couple of

years. Historically it was more B2B business whereas nowadays, with the growing importance of e-commerce, it is shifting more into the B2C and C2C segments, the latter of which requires a more customer-driven approach.

InPost is an alternative postal operator that started up five years ago in Poland. It is the largest part of Integer.pl Capital Group. Activities of the whole Group initially comprised postal services, unaddressed mail and parcel operations. A few years ago the decision was taken to enlarge the business and enter areas of e-commerce (easyPack parcel terminals and InFlavo – internet shops on Facebook), financial services (e-documents and mobile payments), hybrid mail and the MVNO sector.

The customer is foremost in our mind in everything we do. All our services and products are designed to be simple, efficient and flexible. InPost is proud to have been recognised internationally by winning three World Mail Awards in the past two years, for Growth (2010) and Innovation and E-commerce (2011).

Three years ago InPost decided to enter the e-commerce business, but we did not want to compete directly with national or express carriers. After undertaking market research and learning the preferences of senders and customers, we decided to commence an automated parcel terminal project. The system has now been on the market for more than two years.

InPost’s easyPack is the answer for customers’ needs. Parcel terminals enable your organisation to offer:• Twenty-four hour accessibility – 37 percent of our customers collect parcels between 18:00 and 08:00.• Less time spent on parcel collection – it can take up to 40 minutes to collect a parcel from a post office whereas with

easyPack it takes only 17 seconds.• Customers decide where they want to collect their parcels – SMS/email notification is sent to the customer when a parcel is placed in the machine. Fifty-one percent of our customers collect parcels within six hours of notification.

Moreover 74 percent of customers prefer easyPack to courier delivery according to CATI research undertaken in Q1 of 2011 among Polish shoppers.

There are a growing number of drop-point solutions available on the market. These include not only parcel terminals but also collection points for shop-in-shop concepts. The latter, however, have a disadvantage in that provision to agents/third-party partners consumes a huge proportion of the profit margin. With easyPack there is no need to pay additional provisions, so higher margins can be obtained.

What other benefits are there for postal and courier operators from using easyPack?• Up to 80 percent lower last mile costs as it takes only one courier to deliver 500 parcels a day instead of seven to 10 for postal and express operators.• Elimination of failed deliveries (0.036 percent instead of 12-20 percent for express carriers).

• Increased range and market penetration.

In offering a service that fits customer needs and brings benefits to postal and courier operators it is important to remember that we are a part of the whole process. It is the senders (mostly e-retailers) that provide the parcel stream to parcel terminals. Recognising this from the very beginning has helped us to shape the

current service. A dedicated team of sales and business development, as well as marketing and IT specialists, are working to develop the best solution for all sides throughout the whole process.

A few months ago InPost began cooperation with Groupon, a company that sold 440,000 GAP coupons in August 2011 worth US$11 million. Groupon in Poland sells not only services but also products and InPost is undertaking fulfilment. When purchasing, customers have two delivery options – easyPack and courier service. Depending on the product the choice of easyPack ranges from 37 to 97 percent.

Postal operator, technology provider InPost has spent three years on research and development of the services. We have proved the concept in Poland and broke even after 18 months. Not only are we a technology provider, but more importantly InPost is a real user of the service. After the initial stage we decided to transfer our know-how and business solutions to partners who are interested in developing innovative e-commerce solutions in their markets.

Knowledge we share:• How to site parcel terminals to reach the highest occupancy rate;

To e- or noT To e-E-commerce is an increasingly important sector for postal operators. How can they best turn this massive growth to their advantage?

62

December 2011www.PostalTechnologyInternational.com

Page 2: Postal Technology International: To e- or not to e-

• How to speed up pick-up time from an average 15 hours down to 11.7 hours (the result reached in Poland after eight months);• How to convince partners to offer the service;• How to attract customers;• How to track customer behaviour.

Over 1,000 mail order, e-commerce and multilevel marketing companies cooperate with InPost. Some of them are international clients who are willing to cooperate with us on other foreign markets where easyPack will be present.

Close cooperation with customers and senders allows us to improve the service. Our presence on social media helps us to listen to their needs. Customer experience plays an important role in our activities. For instance the latest implementations contains new screens and email/SMS notifications. Such small improvements are essential if customers are to continue to enjoy using our services.

A flexible approach has always been one of our strengths. The latest developments include the ability to send a parcel from the machine to a physical address and vice versa. The machine is also ready for the addition of a new module that makes it an automated self-service postal outlet. It can now be used for parcel collecting and sending, collecting letters and also for paying bills for utilities thanks to integration with our financial services business.

easyPack world Cross border e-commerce will play an important role in our industry in a few years’ time. With InPost, self-service sending and receiving of parcels across borders will be possible. That dream has already been shared in a number of countries in Europe and beyond. So far we have found partners in Chile, the Czech Republic, Estonia, Finland, Lithuania, Russia, Saudi Arabia, Slovakia, Spain and Ukraine. Our goal is to have 16,000 easyPack machines across Europe by 2016.

find out moreInPost, Krzysztof WarzeszkiewiczTel. +48 668 384 048Email: [email protected]: www.easypack24.com

112quote reference number

TOGETHER,WE DELIVERYou deliver highly ef cient global postal services.

We deliver intelligent, innovative mailing and shipping solutions.

Our leading edge technology gives you the advantage.

Customers enjoy an ef cient and seamless service.

Together, we pro t from the growth that follows and invest in the future.

IT’S A REWARDING PARTNERSHIP

www.neopost.com

PRODUCTS AND SERVICES