Digital disruption and parcel delivery: Pt 2

logistics, delivery, e-commerce, online, truckThis is part two of a two-part feature on digital disruption and parcel delivery. Part one of this feature can be found here.

The report also states that the Internet of Things (IoT) has the potential to create new sources of revenue for post and parcel organisations, not only by embedding digital technologies within the organisations, but by extending into a broader digital system of customers, partners and connected products. Post and parcel organisations could use the IoT to create new data-driven businesses and improvements in the customer experience. Some organisations have started to experiment with capturing pollution or cellular signal data from sensors mounted to their delivery vehicles.

“With the right digital investments and bold moves, post and parcel organisations will be able to compete more effectively in the marketplace,” Buhler said. “The early successes we are seeing prove that it is possible for post and parcel organisations to not only navigate the digital transformation necessary for long-term survival, but to thrive in the new e-commerce-driven marketplace.”

Successfully leveraging digital
The report highlights several post and parcel organisations that are successfully leveraging digital capabilities. These include:

  • Australia Post – whose MyPost platform and mobile app creates a digital mailbox for consumers while allowing them to manage their deliveries.
  • Fed Ex and UPS – whose Delivery Manager (FedEx) and MyChoice (UPS) offerings are meeting consumers’ m-commerce expectations by enabling them to manage delivery service with the same device used to purchase the product.
  • Deutsche Post DHL – whose Resilience 360 offering uses data analytics to identify potential supply chain disruptions to better understand business performance and customer satisfaction.
  • US Postal Service – whose Real Mail Notification provides consumers with images of the mail they will receive that day and can include links to offers or targeted advertising.
  • Canada Post – which, having invested heavily in digital and IT initiatives, owns MyDashboard, a proprietary social media portal designed to improve customer service.

Other key findings
The decline in mail volume is plateauing. Mail volume declined by a mere 1.6 per cent between 2013 and 2014, indicating the slowing of a trend that had seen volumes decline by 21 per cent in the previous six years. While all countries continue to experience a decline in transaction mail, the volume of direct marketing mail is more stable and growing in some regions.

The parcel business is recalibrating. Parcels continue to present a path to sustained revenue growth, with volume increasing five per cent from 2013 to 2014, driven by e-commerce and m-commerce. Revenue growth, however, is at four per cent, roughly half the growth from the previous year, due in part to pricing pressures.

Diversification is no longer optional. While the decline in mail volume seems to have leveled off, mail continues to decrease as a percentage of organisations’ revenues, slipping to just 44 per cent of overall revenue in the past year, down from 55 per cent in 2007. As a result, these organisations’ investments in retail, logistics, banking and insurance continue to grow as a proportion of revenue.

The “last mile” is under attack. Integrators and postal companies face the greatest digital assault in the last mile delivery, the literal home stretch in home delivery service. Armed with social networks, greater choices and rapid reviews of companies and services, digitally connected consumers are looking for lower prices, greater convenience and a seamless experience in buying, receiving and returning products.

Methodology
Accenture conducted an in-depth analysis of 30 post and parcel organisations around the world for this year’s study, using publicly available information, content published by postal organisations and its own industry knowledge.

This is part two of a two-part feature on digital disruption and parcel delivery. Part one of this feature can be found here.

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