Report on worldwide Growth in packet volumes.

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The Universal Postal Union offered new insights into the impact of the crisis on the global postal sector during the opening session of its World Postal Business Forum, which opened today at POST-EXPO 2009, in Hannover, Germany.

The UPU collected its data from 15 of the world’s largest Posts, including the United States Postal Service, the biggest Post in the world, and private courier companies.

Parcel growth

Posts, on the other hand, are experiencing growth in the parcel business and postal financial services during the crisis.

The growth in parcel volumes is being attributed to the impressive development of e-commerce during the crisis period. In France, for example, La Poste reported having delivered 22% more parcels linked to online sales in the first half of 2009 compared to the same period in 2008.

According to the federation of distance-selling businesses (Fédération des entreprises de vente à distance), French e-commerce sales have increased 28% over the past year, and a similar percentage of e-commerce websites have sprouted on the Internet during the same period.

The phenomenon seems to be a trend in all industrialized countries, where broadband Internet is widely available, according to Anson. Express volumes have also declined in a year-over-year comparison of the first three quarters of 2009 against the same periods in 2008. Revenues were down significantly – by 20% in the second quarter – due to fuel surcharges adjustments. But there are signs that things are looking up, again because of e-commerce growth and signs of international trade recovery.
Confirms what we always maintain to be true.
Full piece here.
http://www.postinsight.pb.com/showDetail.cfm?id=12526

[F0zziebear]

This is good news if the network was setup for it. Unfortunately most if not all of the incumbant postal companies are not setup to handle to change from 2D to 3D setups.

Royalmail has suffered because the buildings esp. the callers offices cannot handle the storage of 3D items hat are returned. Also the delivery round does not work well when combining 2D and 3D items. A prime example was the low energy light-bulbs.

So it's all well and good e-commerce taking off, but the back-end delivery systems do not comply well.

Now the upgrade of other networks such as the national grid, water, gas and sewage are paid for by increased prices. Unfortunately with an RPI -1% imposed on RM they are not being able to change the network successfully, amongst other issues.

This is a somewhat simplistic explanation and does not seek to explain the current industrial relations.

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I understand totally what you saying .
its difficult to mix letters and parcels & large amounts of packets are making postal rounds unachievable.
They spoil the prep and tying up process,as sorting frames are designed for letters only.
They fill your pouch with a just a couple of items leaving no room for letters.
and because no extra time is allowed ( despite one parcel often taking as long to deliver as 10 ltrs)
postman struggle to complete there rounds in the time.

I posted the article to show there is huge growth in parcels and rm need to invest in pkt delivery infrastructure
by which i mean vans! and they should stop complaining about the decline of letters.
the obligations of the uso mean the big profit has never been in the letters anyhow.

[F0zziebear]

I can confirm that RM's strategy is in e-fulfillment and they would ideally like to change the infrastructure to meet this. Unfortunately the cost and time to meet this demand means they are way behind the actual changes that are going on

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I can confirm that RM's strategy is in e-fulfillment and they would ideally like to change the infrastructure to meet this. Unfortunately the cost and time to meet this demand means they are way behind the actual changes that are going on

E -fulfillment !
Is that corporate buzz word for ebuyers?
I'm not mocking you but often where you find corporate speak you find corporate ideals .
RM have been in error in expecting postman on bicycles to bear the brunt of the "3d" (as you call it)
parcel growth..
it has contributed to this dispute! as postman laden like donkeys cant see the same vision of progress as rm execs.

[F0zziebear]

I think you will find it is the official term in their strategy, if it were to be leaked.

By e-fulfillment they mean anything that is purhcased in the virtual world and turned into a physical item that is delivered. Online purchases have grown in the last decade, yet RM has struggled to deliver this change in terms of changing the company's infrastructure.

As stated before the mixing of 2D and 3D items in the postal round does not work well. The frames do not allow for 3D items (if they do then the fillets tnd to break quickly). The postal bags aren't designed for them, the drop off points are not really sufficient.

So should all 3D items be delivered by van? What about collection bins (something RM looked at int he days when they had an innovation centre to look at future trends and how they would work in the RM world).

I think if RM had managed to invest in these bins (collection points) along the lines of implementing a new cable infrastructure or mobile phone masts they might have been able to transform the company and take advantage of the things that people are buying online. I could be wrong, but that is the point of strategy. You take available information turn it into insight and attempt to predict future trends and ensure your company is able to compete in the future.

Having been in operations and seeing this at first hand I feel I've got at least some idea, this does not prevent me from being incorrect at times in the same way it doesn't prevent anyone else from being wrong as you would not have seen the company from my perspective. It say this as a number of posters in the last 24hrs have said things, and made claims that are not ture and simply bandwagon conspiracy theories.