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Everything you need to know about the Future of Posts 2020

The more immediate technology we’re seeing across the postal operator market is artificial intelligence (AI) and machine learning.

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Escher Group CEO Nick Manolis in an exclusive interview with Freightcomms  reveals his views on the future of Posts 2020 and the company’s participation in the digital era of Posts.

Q: Do you think after COVID-19 the engagement and interaction process with customers have changed and how?

Yes, our Future of Posts 2020 research revealed that 83% of those surveyed have adopted new solutions or new approaches to adjust to the pandemic.

Some Posts introduced self-service kiosks (SSKs), enabling customers to access postal services outside of standard post office hours and eliminating the need to go during peak hours. SSKs enable customers to carry out the same transactions as they would at the post office, including preparing parcels, printing labels and paying with cash or card. The current pandemic will spur the adoption of SSKs, particularly in the suburbs where more professionals will be as their employers embrace remote working.

Other Posts have implemented or increased their Pickup Drop Off (PUDO) offerings. PUDO locations provide consumers with additional access to parcel pick up and drop offs through third-party outlets, like convenience stores or shopping malls. According to our Future of Posts survey, 48% of Posts plan to add PUDO channels over the next five years.

Q: With the current Global pandemic situation how can Posts adapt to these challenges?

According to Escher’s Future of Posts report for 2020, we can summarize the following ways that postal operators have adapted to the pandemic situation.

Changes to postal operations

Like all organizations, Posts adapted to the challenges brought on by the global pandemic. An overwhelming 83% adopted new solutions or new approaches to adjust to the pandemic and its implications. While some postal operators introduced Self-Service Kiosks and improved the sorting and handling of increased parcel volumes, other Posts introduced staff-rotation schedules or made changes to delivery policies. One in four Posts introduced remote working (where possible) and just under 10% made changes to improve overall efficiency.

Effect on postal operations

Over 43% of Posts, across all regions, experienced a substantial increase in parcel volumes, particularly in the domestic market. This is explained through the increase in e-commerce activity. The challenges (and decreases) in cross-border shipments in the first half of 2020, is due to restrictions in place to combat COVID-19.

Q: With decreasing returns in core mail business, what is your take on eCommerce and changing customer expectations?

Parcel deliveries are continuing to grow with many consumers relying on ecommerce for both essential and nonessential goods. When we asked postal operators about their top investment priorities this year, they identified parcels and cross-border e-commerce as their top to areas of focus.

Posts across the globe are handling the increase in e-commerce postal volumes by adding automation, developing new sorting and delivery strategies, adjusting handling capacity and staff and implementing new services.

The technological shifts, whether it’s adding automated mobile solutions or using AI to identify the most efficient shift schedules, will all impact the overall customer experience for the better.

Q: Do you think with the digital options available in the existing market, traditional posts need to adopt technology rapidly?

Yes, Posts have a finger on the pulse of technology and are adjusting their automation strategies by rapidly adopting technologies that improve the customer experience, streamline the retail process, and simplify points of engagement.

Adding more consumer apps, improving track and trace capabilities, and incorporating more self-serve kiosks, to name a few, are ways that Posts are increasingly offering more digital options.

The benefit, of course, is that data can then be leveraged by a comprehensive data analytics program to help Posts better understand performance, customer behavior and engagement patterns.

Adoption becomes even more pressing when one considers the growth of the delivery sector. Global e-commerce sales are expected to reach $3.9 trillion this year. It’s imperative that Posts have the correct technology in place to meet this increased demand.

Q: What are your views on drone parcel delivery, do you think it is the future of parcels and cross border e-commerce?

Drones may be in the future at some point but with the government and regulatory approvals required, I think we’re still several years away from widespread use of drone deliveries. The more immediate technology we’re seeing across the postal operator market is artificial intelligence (AI) and machine learning.

AI provides insights into how postal networks can optimally operate. By collecting and analyzing data from all postal locations, mobile apps, retail partner systems and self-service kiosks, postal leaders receive tailored recommendations to efficiently manage their network and operations. For instance, Posts can use AI to identify peak traffic periods in order to allocate proper staffing and trucks. This reduces wait times within the branch and ensures deliveries are made within a timely fashion.

It can also help branches identify employee performance based on transaction volume, upsells or custom attributes defined by postal leaders. For lower-performing employees, managers receive recommendations for additional training or performance improvement plans.

From the customer experience side, AI can help Posts determine how to expand business operations based on traffic, peak times and services most used. By applying the data analytics to business operations, Posts can enhance overall customer satisfaction before issues even arise.

Q: How is Escher helping the postal sector with digital transformation?

The postal industry is changing; Letter volumes are continuing to decline while parcel deliveries are on the rise. The challenge here is that the parcel market is very competitive. We’re helping forward-looking postal executives understand how data and technology can identify new revenue streams, streamline operational processes, and delight customers along the way.

To do this, Posts will need to expand their mandate. Delivering letters and packages well is no longer the primary objective. It’s part of a larger mission focused on exceeding customer expectations, anticipating their delivery needs, and offering the services they want before the competition can do so. This means actively incorporating advanced customer engagement technology, artificial intelligence, cross border solutions and more.

With our technology and experience, we’re showing postal operators how they can capitalize on new market opportunities whether it’s across different channels (e.g. mobile, PUDO), different services (e.g. parcel, retail, government, finance), modes of engagement (e.g. full-service, guided, self-service), or locations (doorstep, branch, office, PUDO, third-party retailer).

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Logistics & Supply Chain

DHL Group to acquire Turkish parcel delivery company MNG Kargo

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DHL Group to acquire Turkish parcel delivery company MNG Kargo. Image: DHL
DHL Group to acquire Turkish parcel delivery company MNG Kargo. Image: DHL
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DHL Group has signed an agreement to acquire 100% of Turkish parcel delivery company MNG Kargo Yurtiçi ve Yurtdışı Taşımacılık A.Ş. and its subsidiaries. MNG Kargo is one of the leading parcel delivery companies in Turkey, where the parcel and e-commerce market is growing rapidly. In addition to securing a leading position in this strongly developing domestic parcel market, this acquisition will create additional synergies for DHL Group, and its customers will benefit from unique logistics offerings within Turkey as well as cross border through the collaboration of the various DHL divisions already present in Turkey.

“Alongside sustainability, globalization, and digitalization we identified e-commerce as a megatrend in logistics and therefore made it an area of focus in our DHL Group Strategy 2025 over the last years,” says Tobias Meyer, CEO DHL Group. “E-commerce remains one of the biggest growth drivers for logistics services and especially for parcel volumes. We, therefore, continuously work to expand our footprint in the e-commerce sector – whether through organic or inorganic growth. MNG Kargo complements our business portfolio and will help further to strengthen our position in this sector.”

For DHL eCommerce, the newly acquired parcel network, with 27 mid-mile sorting centers and over 800 last-mile branches in all relevant cities of Turkey, is a perfect addition to the European parcel delivery network and thus becomes part of the business unit. Mainly driven by a young, dynamic population with a high affinity for digital communication, the e-commerce market in Turkey is expected to see double-digit growth in the coming years – significantly higher than in the EU markets. By combining DHL eCommerce’s network and digital expertise with MNG Cargo’s local footprint, DHL Group will be perfectly situated to benefit from the enormous growth potential of the Turkish market.

“Our aspiration at DHL eCommerce is to provide our customers with reliable, affordable, and sustainable e-commerce delivery services,” says Pablo Ciano, CEO DHL eCommerce. “The backbone of this is our extensive network operated by us or through partnerships and our digital expertise and capabilities. The acquisition of MNG Kargo will strengthen our network and help us connect our customers with the Turkish market, and vice versa.”

Amongst others, Turkey benefits from manufacturers’ strive for a more resilient supply chain setup and already has an established strong manufacturing base, such as the e-commerce-driven textile industry. DHL Express inaugurated a new, state-of-the-art hub at Istanbul Airport in 2021, and only recently, DHL Global Forwarding announced it would be intensifying its cooperation with Turkish Cargo. Despite MNG Kargo becoming part of DHL eCommerce, all DHL divisions and their customers will profit from the synergies of the newly acquired company. MNG Kargo, in turn, will benefit from DHL Group’s international logistics expertise and extensive global network.

The transaction is subject to merger control clearance by the Turkish Competition Authority as well as approval of the Turkish Information and Communications Technologies Authority.

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Logistics & Supply Chain

GEODIS announces integration of GEODIS eLogistics and Happy Returns

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GEODIS announces integration of GEODIS eLogistics and Happy Returns. Image: Geodis
GEODIS announces integration of GEODIS eLogistics and Happy Returns. Image: Geodis
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GEODIS, a world leader in transport and logistics, announced the integration between GEODIS eLogistics, the company’s digitally centered, truly scalable e-Commerce distribution and fulfillment solution, and Happy Returns, a PayPal company and leading returns software and reverse logistics company, is now live. With this integration, GEODIS eLogistics retailers will now have additional ways to recognize the entire e-Commerce lifecycle and enable a seamless post-purchase returns process to enhance the overall customer experience.

Happy Returns, a PayPal company, provides end-to-end returns solutions for online merchants through a unique combination of returns software and reverse logistics. With Happy Returns, shoppers can easily initiate returns and exchanges and drop off box-free, label-free returns using its network of nearly 9,000 Return Bar locations nationwide. Merchants using Happy Returns can provide seamless, intelligent returns experiences that encourage shoppers to make exchanges and complete new orders during the returns process, which has helped enable brands to retain up to 50% of revenue1.

As part of its commitment to delivering exceptional reverse logistics solutions, GEODIS eLogistics has joined Happy Returns’ Preferred Partner Program as its inaugural Elite member. The custom integration provides GEODIS eLogistics retailers with visibility into the journey of each return, including status updates on Return Bar returns as they are dropped off, consolidated at a Happy Returns Hub and then shipped back to the merchant. Because return shipments are aggregated with Happy Returns, GEODIS eLogistics customers can efficiently track return shipments and streamline processing once the shipments are received.

“Joining forces with Happy Returns reflects a shared commitment to providing a more seamless reverse logistics process for retailers and shoppers alike,” said Michael Lamia, Senior Vice President of GEODIS MyParcel and GEODIS eLogistics. “We see the integration with Happy Returns as a major competitive advantage for our GEODIS eLogistics customers as it allows brands to balance cost and speed while saving money and retaining revenue. This collaboration is truly a win-win solution for both parties.”

“We are always thrilled to power easy returns for shoppers and remove a traditional friction point of the e-Commerce journey,” said Andrew Pease, Senior Director of Growth for Happy Returns. “Our integration with GEODIS eLogistics helps deliver an intuitive returns and reverse logistics solution to merchants that can help boost shopper satisfaction and optimize operations for merchant teams.”

The benefits of this strategic relationship provide GEODIS eLogistics customers with a simple, intelligent returns experience and greater visibility throughout the return journey. Additionally, Happy Returns aligns with GEODIS customer service goals by initiating immediate refunds to shoppers and the company’s sustainability goals by offering box-free, label-free returns that are then aggregated and shipped from the Return Bar in reusable totes to reduce cardboard waste compared to traditional mail returns.

In an e-Commerce landscape where a difficult returns process can negatively impact customer loyalty and repeat purchases, the convenience and security that this integration offers GEODIS eLogistics retailers is a major competitive advantage in strengthening brand loyalty in today’s marketplace.

Introduced in late 2021, GEODIS eLogistics is a digitally centered, truly scalable e-Commerce distribution and fulfillment solution for e-Commerce businesses. GEODIS eLogistics offers innovative, tailored-made and simple fulfillment solutions for brands. Leveraging its 80-year history with large, enterprise brands, GEODIS introduced this innovative e-Commerce solution to cater to small and medium-sized businesses as well as enterprise brands that may require a faster, more nimble e-Commerce fulfillment solution to support their unique needs in today’s dynamic environment. With four strategic nodes in Nashville, Indiana, California and New Jersey, GEODIS eLogistics provides two-day shipping to 91% of the U.S. mainland population using standard shipping services. GEODIS eLogistics facilities complement the company’s more than 230 sites across the U.S. alone.

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Logistics & Supply Chain

Hongkong Post and Geek+ to deploy first robotic package sortation system

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Hongkong Post and Geek+ to deploy first robotic package sortation system. Image: Geek+
Hongkong Post and Geek+ to deploy first robotic package sortation system. Image: Geek+
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Hongkong Post and Geek+ have teamed up to implement its first robotic package sorting system. Combining Geek+’s advanced sorting and moving solutions with the development blueprint of the Hongkong Post project team, the new technology promises to transform and streamline the package sorting process in order to improve the efficiency for mail handling.

Geek+’s proprietary sorting and moving robots enabled Hongkong Post to simplify the overall workflow and achieve a more efficient and accurate sorting process in comparison to the traditional manual sorting process which is more labour intensive. The sorting capacity of the robotic system can reach up to 1,000 packets per hour, enhancing efficiency and maximizing output.

“We’re thrilled to be working with Hongkong Post on this groundbreaking project,” said Billy Siu, Business Development Director of Hong Kong and Taiwan at Geek+. “Our smart robots are transforming the logistics industry, and we’re excited to see how they’re helping to streamline package sorting operations with adaption of robotics technology and improving overall efficiency.”

“The robotics system with smart technology assists in sorting mail packages to individual delivery points throughout the territory, enabling more efficient and flexible postal operation. We seek to leverage robotics technologies to meet the booming of eCommerce opportunities,” Clare CHIU, General Manager (Management Services) of Hongkong Post said.

Geek+ is a global leader in robotic solutions for logistics. The company develops Autonomous Mobile-Robot (AMR) solutions to realize flexible, reliable, and highly efficient automation for warehouses and supply chain management. Geek+ is trusted by over 700 global industry leaders and has been recognized as the world leader in autonomous mobile robots.

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