Ways to Enhance Customer Experience

Ways to enhance customer experience

Read the latest edition of our Postal Express & Logistics Newsletter covering

• ways to increase customer experience,

• new technologies,

• Augmented Reality use cases,

• open innovation & venturing strategies and

• green mobility solutions

Conten t

EDITORIAL 3 Bernhard Bukovc

THE FUTURE OF CUSTOMER EXPERIENCE 4 Henry Cartwright | Elmar Toime

THE THREE PILLARS OF OPEN INNOVATION AND VENTURING AT SWISS 7 POST Thierry Golliard

REIMAGINING CUSTOMER ENGAGEMENT 10 Wayne Haubner

INFOGRAPHIC - CUSTOMER EXPERIENCE 12 by Escher Group

AUGMENTED REALITY SOLUTIONS AT LA POSTE 15 Denis Cadarion

GREEN MOBILITY DRIVEN BY POSTEUROP 17 Saso Turk

SAFE THE DATE 20 World Mail & Express Americas, 16 - 18 February 2020, Miami

NAVIGATING THE FUTURE 21 Foresight training & workshop

Postal Express & Logistics Newsletter | This newsletter provides original analysis, information and opinions on current issues. Opinions are the sole responsibility of the author(s). the Postal Innovation Platform (PIP) is an open platform and forum which focuses on innovative postal services and studies the future of the postal industry with a solution oriented approach. It provides a conference, think tank and research platform that is unique in the postal world and shall ease the implementation of new and innovative postal business solutions. Letters | We do publish letters from readers. Please include a full postal address and a reference to the article under discussion. The letter will be published along with the name of the author and country of residence. Send your letter (maximum 450 words) to the editor-in-chief. Letters may be edited. Publication director | Matthias Finger Editor in chief | Bernhard Bukovc Publisher | Chair MIR, Matthias Finger, director, EPFL-CDM, Building Odyssea, Sta- tion 5, CH-1015 Lausanne, Switzerland (phone: +33 6 21796824) email: Website: Published in Switzerland Cover image: Jeremy Bishop on Unsplash

Editorial

Editorial by Bernhard Bukovc

It’s all about the customer. But is the customer really in control today, does the customer have full visibility and get the service that he wants? Postal and logistics companies are competing for the best customer experience, knowing that their eCommerce customers demand for it and that whoever will create the best customer experience will get the business.

We have discussed how postal and logistics companies can increase their customer focus during the PIP Innovation & Startup Days at Parcel+Post Expo in Amsterdam in early October. In our discussion partici- pated Henry Cartwright of Accenture and Elmar Toime of Postea Group and I asked them what they think will be the main challenges and opportunities for providing the market and customers with what they demand. You can follow part of their discussion in this edition of our Postal Industry Newsletter.

You always wondered why Swiss Post has been repeatedly selected as the most innovative postal opera- tor? It seems that they are doing many things right. Thierry Golliard of Swiss Post shares with us some insights and explains why the open innovation and venturing approach is a key success factor and is the foundation of Swiss Post's future.

As posts embark on digital transformation projects, they will have a lot of choices to make. This includes decisions about financial expenditures, technology selection, and introducing new service lines and channels. Wayne Haubner of Escher Group explains how digital transformation projects present exciting possibilities for postal operators and how postal operators can keep these transformation efforts focused by zeroing in on what their customers want and need and by meeting those expectations consistently.

If you attended our Innovation & Startup Days at Parcel+Post Expo you have seen the exciting Augmented Reality solutions of La Poste. Denis Cadario of La Poste highlights the unique opportunities of new AR technologies in marketing and explains how posts can increase customer focus and turnover with AR.

Green mobility is another topic which becomes increasingly important for postal, express and logistics companies, which is also highlighted by the fact that this year's winner of the PIP Startup Award at Par- cel+Post Expo is Nüwiel, a German startup providing impressive solutions in the area of Green Mobility. Saso Turk explains the PostEurop green mobility initiatives and talks about a joint green mobility event which we organized in June.

Enjoy reading our Postal, Express & Logistics Industry Newsletter !

Get in touch: https://www.postal-innovation.com/ [email protected]

Dossier

The Future of Customer Experience

Interview with

Henry Cartwright * Elmar Toime *

It’s all about the customer. But is the customer while pain points do remain the same the custom- really in control today, does the customer have full er’s expectation has got more stringent. For exam- visibility and get the service that he wants? Postal ple, a significant cause of inconvenience are parcels and logistics companies are competing for the best not being delivered on time. 5 years ago “on time” customer experience, knowing that their eCom- typically meant 1-3 days. Now it can be as specific merce customers demand for it and that whoever as a 1 hour delivery window tomorrow morning. will create the best customer experience will get The consumer expectation remains meeting your the business. promise even when that promise is much harder to achieve. I have discussed with Henry Cartwright of Accen- ture, Olaf Klargaard of Geopost/DPD and Elmar Toime of Postea Group what they think will be the Today, what do customers really want? main challenges and opportunities for providing the market and customers with what they de- Henry: That’s the million dollar question but we mand. think you can sum it up by saying its cheaper, faster and greater control.

‘Cheaper’ is largely driven by the battle for custom- Henry, based on your research the overall delivery er differentiation in eCommerce. The last mile has experience is improving. However, you also say become the epicentre of that battle and retailers that the pain points broadly remain the same. are offering ‘free’ shipping almost as standard. This What does that mean? Is the industry not doing has set the expectation for the price of deliveries in enough? Or is the speed of change so fast that it is general. However, we do see a willingness from nearly impossible to keep up? customers to pay for same day delivery or to accel- Henry: Unfortunately there’s no simple answer to erate speed of shipping when desired. this. Our 2019 Postal Consumer Survey found that ‘Faster’ isn’t simply offering instant delivery for only 28% of respondents globally said they thought everything but rather providing the range of speeds that the overall delivery experience was “very to suit the customer needs. There are certain prod- easy” (an increase from 23% in 2013). That’s clear- ucts that customers tend to want instantly (hot ly not high enough but its certainly not for lack of food, replacement phones, prescription medicine trying by the industry. There have been great ad- etc.) and others that are less urgent. Providing op- vancements in capabilities like forecasting ETAs, tions around the speed of delivery is key to ensur- providing delivery windows, improving customer ing customer satisfaction. Meeting those commit- contact etc. which mean that what was considered ments is absolutely vital. industry leading 5 years ago can be seen as BAU now. ‘Control’ is where the real delivery differentiation occurs but ultimately for the customer this all However, the problem is more that what ‘good’ about allowing them to stipulate when, where & looks like has shifted as consumers have become how they receive a parcel. Its about providing the more discerning and are experiencing more and customer with choice, relevant and accurate infor- more slick digital interactions elsewhere in their mation and potentially even some ability to make daily lives. Customers are demanding more of the decisions and change the parcel journey. delivery experience even as it improves steadily. So

Henry Cartwright, Accenture, Senior Manager, Global Post & Parcel Industry Elmar Toime, Chairman Postea Group

The difficulty for delivery companies will be in find- email. And it has to be accurate, that is your parcel

D o s s i e r ing how they can meet these expectations in a cost is arriving in 20 minutes, not it's arriving in next few

effective and sustainable manner. days. Henry: We think that the key tools & technologies needed for meeting customer expectations and How can postal operators make sure that they are creating a positive customer experience are those designing new solutions or products with their cus- that improve customer control and communication. tomers in mind rather than just pushing the latest shiny toy or technology at the customer? If you want to offer customers ETAs or delivery windows then you will need to have end to end visibil- Henry: Ultimately, we believe that this boils down ity of a parcel through your network and control to becoming a customer centric business from the over it at all stages. ground up. When it comes to creating new products or solutions this can be best achieved through If you want to make sure you meet delivery win- applying service design methodologies from the dows then you need to have really strong route very beginning of the design process. optimisation capabilities that consider the windows as constraints and also consider other variables like There also needs to be an awareness that, while traffic, weather etc. following the market for innovation, can provide directional confidence for new innovations or Finally, you need to be able to open up and present products, postal operators will need to design with your data to the customer in the right way. Often their specific customers in mind as well. There are the presentation of information gives the illusion of many cautionary tales of things that seemed great control, and being able to present scan events in silicon valley and then flopped outside. A great through your digital channels to the customer will example would be smart-locks. They became the go a long way to them understanding the journey great new innovation for a while on how to im- of their parcel and having confidence that it is pro- prove first time hit rate and give customers control. gressing as expected. However, they have not lived up to the hype and

ultimately it looks as though consumers on the whole are unwilling to let a stranger, even their Henry, you also mentioned in your speech that cus- postal worker, into their house to deliver a parcel. tomer innovations are often siloed and/or marketing. What's the problem here and how should Elmar: Look and listen to customers and competi- this be solved? tors. Where exactly does a product manager get his or her insight from? How do they show us that they Henry: It really comes to the earlier question on are in contact with how customers think and act? how can you ensure that you design new solutions It isn’t market research – it's engagement with the & products with the customer in mind. There are front line. What does the postie tell you about the an extraordinary number of innovations in the last front door experience? This is practical engage- mile because it has become such a battleground for ment. However, sometimes you have to show off a retailer differentiation. This is driven right from the ‘shiny toy’ (e.g. driverless robot) for public relations top of the retail food-chain with the battle between reasons, to show you are engaged. But don't con- Walmart & Amazon and its also driven by new tech- fuse that with practical customer experience as a nologies and futuristic promises that catch atten- learning point. tion (robots, drones etc.). Our view is that any innovation should be at the intersection of desirability,

viability & feasibility. When thinking about new What do you think will be key when it comes to innovations or product development you should be customer experience? What are the technologies constantly assessing it through these lenses. and solutions that are getting indispensable? Desirability is all around assessing whether the Elmar: I was promised by an e-commerce vendor product will be valued by customers and the busi- recently that I would get text messages alerting me ness - is there a market, do people want or need it to a tracked postal parcel delivery. I did not get any and does it link directly to your corporate strategy? messages and it was by accident that I was able to Throughout the design and build you will need to get the parcel at first attempt. First rate unobtru- undertake detailed research, user testing, market sive communications and options are essential. And sizing and finding the most sceptical person in your I should have to be proactive about it – people organisation to tell you why it couldn’t possibly don't want apps for every carrier. They want to be work and then seeing if you can prove them wrong. contacted by their preferred way – text message or 5

Feasibility is about the solution itself - does it build able to recognise that it requires a different pro-

D o s s i e r on your current operational strengths, do you have cess, approach and tolerance than might tradition-

the right capabilities to create and scale it, do the ally be allowed. Being able to navigate this success- right preconditions exist in the market for this to fully requires strong executive sponsorship and work at scale (data, infrastructure etc.). acceptance that failures will occur. Taking a portfolio view to innovation ideas can also help offset and And viability is all around ensuring right from the spread the risk across a numerous assets rather beginning that you have a business case that holds than focussing all resources against a single idea. water through the different stages of scale, will it be profitable, how do you scale and sustain it, what is the business model, value leavers and scenarios Is it possible to predict and anticipate what the for it to be successful. customer of the future wants and how can we best Assessing new initiatives through these lenses will prepare to be ready? lead to greater rigour and confidence in the devel- Henry: We think that it is absolutely possible to opment of new innovations and hopefully lead to predict and anticipate customer expectations. To less innovation for the sake of innovation. do so you need to have a clear view of who your customer is and to constantly be talking, question- ing and assessing them. Often, an approach like What's the biggest challenge in innovation process- creating customer personas can be helpful in defin- es and the implementation of new customer fo- ing the different types of customers that you have cused solutions or technologies? and providing a framework to understand them. Elmar: Innovations have several ambitions. At a From there you can make use of some great digital basic level they have to help productivity and logis- marketing tools to survey and understand custom- tics operations and they have to help customers, ers. For example voxpop apps now allow you to both senders and receivers. If these solutions re- identify and target specific demographics and ask quire a cultural shift in how employees deal with questions directly to them. customer-facing operations, e.g. at the post office Elmar: How far away is the future? We can deal counter or in last mile, they have to be accompa- with tomorrow, because somewhere a leading nied by training programs that also explain why the competitor or start-up is doing it. That’s why PIP initiative is in place, not just how it works. has a start-up event – to bring people into focus Henry: Often the biggest challenge with innovation and assess their ideas. But for the longer term, we is balancing the traditional risk appetite of the busi- can't guess what technology will bring. There are ness with the breathing room required for an inno- lots of ideas out there. Investing in evaluating new vation to be successful. A lot of this comes down to ideas, the step before investment in those ideas, is mindset and attitude towards innovation and being an important starting point.

Dossier

The Three Pillars of Open Innovation and Venturing at Swiss Post

Thierry Golliard *

Change is the only constant. Our industry is no world. We are a Group function and, interestingly different from others in this respect and has been enough, our journey does not start externally but experiencing ever more turbulent but also exciting internally. We have to solve concrete business pro- times. Identifying, testing and introducing techno- blems encountered by our colleagues in the various logical innovation has been part of Swiss Post’s units, who are responsible for their respective busi- DNA from its beginnings in 1849. We have just nesses (bottom-up), and enable strategic long-term won the UPU award for the world’s best postal growth (top-down). We translate this input organization for the third time in a row.1 This is (business problems) into actionable insights and the latest sign of our resilience and our ability to look for suitable and innovative solutions all over adapt and transform. Of course we are proud of the world. Very often, our partners come from this achievement, but we are also fully aware of different backgrounds (culture, country, size, etc.) the challenges we will face in the future. For this and the collaboration is therefore more complex reason, one crucial question should be on top of than it first sounds. This complexity is increasing, our minds more than ever: how can we stay rele- because we are constantly exploring new ecosys- vant to the economy and the public in Switzerland tems and opportunities, such as China and Israel. and continue to grow in this fast-changing envi- Without some cultural background knowledge and ronment? emotional intelligence, collaborations like these will simply not happen, especially in the early phase of

the project, because the two worlds involved – in- The answer is complex, and I am convinced that ternal managers and entrepreneurs – are far too open innovation plays a central role. As a leading different in their approaches to agility, risk aver- company, we need to understand the outside dyna- sion, compliance, governance and data protection. mics and their implications for our business. Net- That is why I also see my team as effective transla- working, partnering and collaborating are beco- tors. ming key skills and factors for success. This task is not easy, as our budget and regulatory framework Those passionate and committed people who “live” are both very limited: we cannot simply invest hun- the vision are the second pillar. Aspects such as dreds of millions in research or M&A activities in creativity, lobbying and stakeholder management 2 3 the same way as GAFAM and BATX . We need to make all the difference and cannot be replaced or think smarter in leveraging brainpower from out- outsourced. It is therefore essential to ensure that side. Based on this belief, we have found a lean you have the best people in key positions within path that fits our assets and speeds up the develop- your group’s innovation community. ment of new services. I would like to share with you the three core pillars that form the basis for our I can see some potential challenges here too, star- open innovation and venturing approach: vision ting with talent recruitment, because postal organi- and values, people and a user-centric range of ser- zations are not seen as attractive employers. vices. Thanks to activities like open innovation and ventu- The first pillar, vision and values, makes it clear ring, we can prove to young talent that we are an what your team desires to achieve, believes in and interesting place to work. fights for. Personally, I see my team as the ultimate connectors and matchmakers between internal stakeholders and entrepreneurs in the outside * Director Open Innovation & Venturing, Swiss Post 1 http://news.upu.int/no_cache/nd/switzerland-tops- postal-operating-rankings-third-year-running/ 2 Google, Apple, Facebook, Amazon, Microsoft 3 Baidu, Alibaba, Tencent, Xaomi 7

D o s s i e r

However, we still need to do our homework on two ence is not enough, and for this reason, we have an weaknesses I have regularly observed in the indus- appealing “value proposition” to persuade startups try: to work with us. This helps to kick-start the process - the vision I mentioned previously needs to appeal of joint strategic collaboration. We not only run to young talent, because these individuals want to workshops with our sales people and internal ex- make an impact in their roles and on future pro- perts responsible for different sectors, but also ap- spects for the company and society. proach our customers based on existing corporate relations. We have also invested in startups to sup- - the courage to foster diversity within the organi- port the early development phase. zation. Switzerland is a very diverse country with four national languages, which attracts many tal- In the case of Matternet, we interacted with cus- ented immigrants. We need to leverage this multi- tomers from different industries and, as a result, culturalism within the company. First, because it identified one real pain point – traffic congestion, adds a fresh, stimulating spirit which improves or empty vans being driven back and forth between team performance, and secondly, because it re- hospitals. Very quickly, we launched a concrete flects the complexity and the beauty of our custom- project with all the partners and decided to invest. er base. Multicultural teams might be more tricky Portfolio startups like Matternet and Beekeeper are to manage, but the challenge is worth taking. in vogue and have no problem obtaining financing. They chose to work with Swiss Post because of our

ability to (1) act as a committed strategic investor Once you have brilliant people in place, pay great and (2) open doors for new growth opportunities. attention to your corporate DNA and map your key This is one major trump card that Swiss Post can stakeholders. Our organizations are complex, so it play to attract startups. takes some time to be able to understand the inter- The third pillar is a structured and user-centric nal politics, dynamics and “daily jobs” performed (open innovation and venturing) range of internal by colleagues in the field. Do your homework and services. We carefully and cautiously align this val- get your hands dirty. Once you have achieved this, ue proposition with other services and capabilities you will enjoy a high standing and respect internal- in the Group to make use of synergies and improve ly, both from your colleagues, who will be more efficiency, but also to validate the benefits we cre- willing to work and share insights with you, and ate for the business units. from top management, who will see the positive impact you create. With this in mind, we always try Furthermore, we often combine open innovation to maximize the impact of our activities on the core services with other formats in the overall innova- organization and to acquire a growing number of tion architecture. Typically, a business idea with a supporters in the internal innovation community. startup will be founded by our Group’s stage-gate innovation process and then validated at a six-day Two recent examples of concrete actions are: Boost Camp by building a prototype, collecting cus- - we visited PostExpo in Amsterdam and shared this tomer feedback and incorporating internal and experience in a blog and at an internal event in external expert opinions. Berne, which 100+ colleagues attended last week. In the end, we decided to base our portfolio around - we organized a pitching session at our sorting eight clear services that allow the business units to center in Haerkingen in October, inviting four connect the dots with the outside world and initi- startups that manufacture exoskeletons and were ate joint projects efficiently and quickly (see figure carefully preselected by our business experts. The 1 below). live tests and discussions were amazing and al- Let me illustrate this with some examples: lowed us to identify several collaboration opportunities we had never considered before. - For startup sourcing, we have been working with the best startup screeners, like Plug and Play Tech Thanks to such actions, you will systematically and Center. Once you have taken the time to get to gradually be able to transform your corporate cul- know each other, build up trust, clarify expecta- ture. And this is vital, because as we say: “culture tions and select the priority topics, partnerships of eats strategy for breakfast!”. this kind cut down the search cost and immediately narrow the field to a handful of startups that are Of course, it is also necessary to look attractive to already competent enough to meet Swiss Post’s external partners. Having a strong and wide pres- customer demands.

D o s s i e r

Thanks to such collaborations, we can take ad- take managers and customers to meet professors vantage of the latest technologies and business and spin-offs on the university campus. We on- models at a very early stage and hold on to our board all parties and mediate discussions with the position at the top of our business areas. We man- goal of discovering concrete collaboration opportu- age such strategic partnerships in the most im- nities. For instance, we are now leveraging ETHZ’s portant innovation centers all over the world – like skills and networks for a deep dive into the topic of Berlin, where back in 2017 we discovered the data collection over the last mile. This is based on startup Offerista, with whom we launched our ser- interviews with almost 100 cantons, cities and mu- vice Profital in 2018. Profital has now become Swit- nicipalities. We see the same value in the PIP com- zerland’s leading shopping guide, reaching more munity and are therefore very pleased to support than 300,000 active users each month. Last month, an open exchange platform of this kind and all its it won the PostEurop Innovation Award 2019 in various activities, including the Startup Days, which Jersey.4 have already launched concrete projects such as unmanned life, the winner of Startup Day 2017. - Our corporate venture capital is a distinctly different philosophy compared to traditional venture To conclude, there is no single ideal version of open capitalists, who by definition invest to exit, either innovation, but several. The model below works through an initial public offering (IPO) or by selling well for Swiss Post, but it is obviously not perfect, startups to big companies. Unlike venture capital and for this reason, we continuously work to im- firms, we invest in startups to bring in future capa- prove it. Furthermore, every corporation is differ- bilities, in the hope of rejuvenating an ongoing ent, and what works for Swiss Post in Switzerland business ahead of the competition. For instance, might not work in different ecosystems. Neverthe- drone delivery could represent a new service adja- less, I hope you enjoyed this brief insight into our cent to traditional high-value package delivery by open innovation and venturing activities. You can mail carriers. For these reasons, close interaction find additional details at www.swisspost.ch/ with and commitment from the business unit is venture, and please do not hesitate to reach out paramount from day one, in order to ensure direct directly. I would be very happy to exchange insights translation into demonstrable business benefits. in more depth – after all, there is no innovation We are also different from most established com- without collaboration! panies, which often prefer to acquire a startup completely in the name of integration, as we routinely take a minori- ty stake in startups. In other words, we prefer to take a small slice of a growing pie than the largest slice of an existing pie. If Swiss Post were to acquire 100% of the startup, there would no longer be any strong motivation to explore markets outside Switzerland. This means we would end up limiting the acquired startup’s growth prospects, E-mail: [email protected] technological potential and team passion. LinkedIn: www.linkedin.com/in/thierrygolliard

- For other topics that are more engineering- and 4 https://www.posteurop.org/showNews? science-driven, collaboration with our academic selectedEventId=36549 partners – including ETHZ and EPFL, both in the top 5 5 https://www.topuniversities.com/university-rankings/ 20 university rankings worldwide – is ideal. We world-university-rankings/2020

Dossier

Reimagining Customer Engagement

Wayne Haubner *

As posts embark on digital transformation pro- Postal operators can do the same. Posts already jects, they will have a lot of choices to make. This generate vast amounts of data from across their includes decisions about financial expenditures, expansive retail networks. And the use of advanced technology selection, and introducing new service technology for creating and distributing customer lines and channels. satisfaction surveys leads to higher response rates which in turn leads to more data. At Escher, we embarked on an exciting transformation of our own and recently released our com- Posts can derive ample value from this information. pletely reimagined award-winning customer en- They can feed this information into optimization gagement platform and introduced new capabili- engines to help them discover service improvement ties - all of which help posts delight their custom- opportunities, revenue generating ideas, or cost- ers and thrive in the market. saving measures they hadn’t considered previously. Over the next year, Escher will be introducing a suite of data analytics and related solutions includ- Technology to proactively gather customer feed- ing Riposte Insight, Riposte AI, and Riposte Digital back Onboarding to bolster its customer satisfaction Customer surveys collect valuable customer data, offering for posts. but distributing these surveys - and ensuring high At the center of this suite of tools will be an optimi- response rates - is challenging work. zation engine that analyzes posts’ data to produce Traditional pollsters, whose bread and butter is insights and actionable recommendations. These conducting surveys, have experienced a significant insights can even include specific dollar amounts decline in telephone survey response rates. that indicate how much cost savings specific actions (e.g. introducing a self-serve kiosk to every Meanwhile, others interested in gathering data branch in a specific geographic area) can have on have changed tactics, turning to online surveys and the overall business. mobile surveys. In fact, mobile surveys have become one of the most successful strategies for higher response rates. PUDO services to address known delivery short- To get the data they need, posts must create sur- comings veys that are well designed, user friendly, and de- With global parcel deliveries expected to hit the 1 livered to the devices consumers use most. billion mark in 2020, parcels will be an integral part We recently integrated QuestionPro, the leading of posts’ future revenue mix. provider of online survey software, into Escher’s That said, one of the big threats to customer satis- Riposte platform. Escher customers can now easily faction is the staggering first-time delivery failure create customizable, online surveys with over 30 rate. In the U.K., 12 percent of first-time deliveries question types that can be distributed through mul- fail. This is often because delivery workers can’t tiple channels, and much more. find the right address or the recipient isn’t home. This causes frustration on the part of the customer as well as expensive redeliveries on the part of Analytics solutions to make the most of customer posts. engagement surveys and other data Leading companies are leveraging the vast amounts of customer and operational data at their fingertips to generate powerful insights. * Chief Technical Officer, Escher Group

D o s s i e r

The solution to this problem: deliver to places cus- Escher offers a user-friendly Customer Engagement tomers will be, like train stations, third-party retail- Platform that empowers posts to offer mobile POS ers, or grocery stores. systems and self-serve kiosks at their physical locations. How can posts accomplish this? By setting up a network of pick-up/drop-off (PUDO) locations for their customers. To keep your post profitable, focus on the custom- Escher recently launched Riposte PUDO for posts er that enables them to expand their reach while min- (Infographic on the following pages) imizing hardware costs. Escher’s PUDO solution makes it easy for postal operators’ partners (e.g. Digital transformation projects present exciting third-party retailers) to carry out transactions on possibilities for postal operators, especially when it their behalf. comes to remaining profitable in 2020 and beyond. To keep these transformation efforts focused, posts

must zero in on what their customers want and Expanding Cross Border Services with Ease need and meet those expectations consistently. Expanding cross border services is now much easier If you're preparing your post for 2020, check out thanks to Escher’s new partnership with Hurricane. our infographic on the following pages for many This new capability allows Postal Operators to cor- helpful stats and figures to help you plan for a rectly calculate duties and tax, check product classi- profitable 2020 and beyond. fication and screen for restricted products and de-

nied parties at the point of engagement with their customer.

Platform for smooth customer experiences at posts’ physical locations Create a smooth customer experience at your physical locations. Intro- duce powerful yet intui- tive counter services and point-of-sale technology, so your frontline workers can carry out transactions quickly and efficiently for customers. It’s all possible. Plus, mobile POS systems can help reduce long line ups by giving postal workers the ability to navigate lines and provide services on the spot. As a result, your posts can process a higher vol- ume of transactions, increasing revenue.

Infographic

Dossier

Augmented Reality Solutions @ La Poste

Denis Cadario *

Augmented Reality (AR) refers to the technology The platform was designed to meet the expecta- that allows digital information (videos, pictures, tions of print editorial and marketing teams. It links 3D animations, etc.…) to overlap with real- brings a real comfort to the creation of digital expe- world objects perceived through the camera and riences, lets you manage augmented reality cam- screen of a smartphone or tablets. paigns and monitor you app audience. La Poste is convinced that the Direct Marketing The platform is a combination of two different mo- has a bright future ahead. AR can bring anything dules: to you bridging the digital and physical worlds. • One is a mobile device. It makes recognition and 3 D modeling and 3 D rendering. The mobile app is mainly composed of an augmented reality Consumers’ demand for digital content is grooving scanner. A click on the phone screen will launch stronger, due in particular to the tremendous role the scanner which will automatically detect of smartphones in our lives. Scanning a print physi- Print targets that have been previously indexed cal target (i.e. a stamp, book cover, page, maga- in our platform. The “Courrier Plus” app will zine, catalog, packaging, etc.…) to display additional overlay the digital interactions related to each content can significantly increase the user expe- target: a clickable button, a web page, 3D ob- rience. That enhances the perception of the Direct jects, etc.…This is the mobile part. Marketing and fits very well with the modern and innovative image that citizens and customers would • The other part of the technology is a web welcome. platform which is both front and back head. In this platform, we index and augment all the The “Courrier Plus” app is available in a SaaS mode. content of our Direct Marketing client campaigns. Also, we can generate some statistics about the usage with these scans. For example, we could segment the statistics based on what campaigns, what kind of user, the kind of interactions with association with the markers. All your existing and future printed works can be augmented without modifying or affecting their design. At any time, you can up-date digital assets related to a target without modifying it. So you no longer need to re-submit your mobile app in stores whenever you change content. Unlike QR codes, the “Courrier Plus” app offered by La Poste does not require you to add any visual element to the printed work. Plus, digital interactions that will show on your phone or tablet screen can be changed any time.

* International Business Development Manager at PHIL@POSTE / Le Groupe La Poste

D o s s i e r

Therefore you have a maximum flexibility when setting up interactions such as: - URL redirection - Social Networking - 3D objects (static or animated) - Video or audio - Pictures and text - HTML animation - PDF document - Call to action (phone, email, vcard,…) With ARGO, our IT partner, La Poste continues to innovate for these Direct Marketing clients and now we are recognized for our ability to have launched new digital and augmented reality innovations. We propose to transfer the know-how with the customization of this AR app to Postal Opera- tors. Phil@poste, the security printing document entity of La Poste proposes to transfer this know– how and the set-up of this AR app customized to postal operators. We already have done collaborations with postal operators in Middle East, North Africa and Europe. This customization will be with the logo and brand guidelines of the postal operators. Don’t hesitate to contact Denis Cadario for further information at: [email protected] or + 33 6 65 52 59 83.

A set of tools to reinvent Print Experience

CREATE EXPLORE Saas / API Mobile / SDK

B2C mobile application A SaaS web platform to manage your augmented reality campaigns

B2B White label Apps Easy deployment of complex scenarios using our fully documented API B2B Integration of our SDK in an existing App

Dossier

Green Mobilty - driven by PostEurop

Saso Turk *

PostEurop, the association of European public pos- is held once or twice per year by Post Europe and tal operators, began exploring greener solutions for GMF team. postal fleets back in 2003 when issues on climate change became increasingly important. The transport sector’s contribution to pollution is growing, and the transport sector is catching-up More than a decade down the line, this focus conti- with the industry sector. In the postal sector, the nues for postal operators and recent developments picture is a bit brighter. According to IPC research, in technology, such as the development of electric the IPC EMMS members (20 posts) reduced the and hydrogen vehicles, have enabled more ways carbon emissions from 8.830.000 tones in 2008 to for postal operators to explore alternative fuel so- 6.211.000 tons in 2017. The most important thing is lutions. This has sparked a trend in which more that technology is developing faster and we know posts are incorporating low-emission or even zero- that solutions to change the transport industry in emission vehicles in their fleets. Some recent deve- the future are within reach. New business models lopments include An Post’s eco plan - to eliminate follow, with cargo optimisations and new revenue carbon emissions from its letter and parcels busi- streams (data collection and data selling). This will ness within a decade; Royal Mail conducting a trial improve fleet optimization (fewer vehicles needed), of zero-emission e-trikes for letter and parcel deli- milage optimization (less energy needed) etc. Basi- veries and bpost investing in a green fleet including cally, we have witnessed an evolution in the trans- bikes, electric cars and CNG trucks. port industry similar to the car manufacturing industry, but there hasn’t been a revolution in the The “dieselgate” scandal – which started in 2015 last 100 years. We all understand, that this is co- when the US Environmental Protection Agency or- ming from two sides, one being technology and the dered Volkswagen to recall 482,000 cars that were other is business models. Both factors will influence found to be producing up to 40 times more emis- strongly other sectors including the energy sector sions than permitted, has increased the public’s and Information Technology sector. awareness and car makers are under immense The sector’s attitudes also depend heavily on the pressure to shift to electric vehicles. This has also regulations and restrictions in place. Tighter regula- led to various other initiatives including restriction tion will no doubt push the transport providers into zones on polluting vehicles, vehicle-free days and seeking new solutions, innovation and co- push for green solutions. Germany has at the mo- operation. ment 58 environmental zones, France 28 zones, The biggest improvement this sector has seen is in Austria 6, Belgium 3, Denmark and Spain 4. Climate re-discovering the electric motor for vehicle propul- change actions have placed green issues on the sion. We have many car producers offering electric front-page news again. While the main emphasis is passenger cars (Renault, Nissan, Tesla, VW group, on passenger cars, the delivery and transport in- Mercedes, Jaguar,…) and also more and more com- dustry is also under pressure. panies are offering electric delivery vans (Renault, The Green Mobility Forum was set up to foster dis- Nissan, StreetScooter, Saic,…) Big innovations are cussions in the area of sustainable postal logistics happening in battery improvement, battery mana- amongst members and suppliers. It focusses on the gement improvement, hydrogen systems for operational aspects and promotes regular ex- vehicles and optimisation platforms. For example, change of best practices, experience and new battery energy density is improving by 8% per year. ideas, particularly in areas where new technologies We are getting significantly smaller and lighter are being implemented. The Green Mobility Forum batteries every year.

* Chair of PostEurop’s Green Mobility Forum

D o s s i e r In the coming years we will have a large variety of during working hours and other partners in the

electric passenger cars and delivery vans. Tests on afternoons or weekends. From the environmental electric trucks from manufacturers such as MAN point of view, this should reduce the number of and Tesla are also increasing. vehicles on the streets. With the growth of demand for more electric vehi- Voltia presented E-LCV implementation experience. cles, we will run into limited natural resources Their vision is a cleaner, healthier and less oil de- problem (Hyundai for example decreased the pro- pended Europe with switching fleets to electric duction of electric KONA due to shortage of the mobility. They presented their vehicle range and batteries on the market). Therefore, new technolo- their usage study case. gies (solid state batteries) and different technolo- AT Kearney presented general trends in Digitaliza- gies (hydrogen, methanol,…) will be needed to tion and Mobility in Logistics underlining the urgen- switch from fossil fuels. cy of digital transformation in the logistics sector. Green mobility is an important and relevant topic Digital transformation will be driven by implemen- for the postal industry. Postal, express and trans- tation of main technologies: AI, Blockchain, Mathe- portation companies will be under big pressure to matical Optimization and e-mobility. This is needed change and as always, that will mean that some due to: underutilization of assets (40% of truck ca- companies win and some will lose. pacity in W. Europe estimated to be unused due to trucks returning from journeys empty or only par- A large part of green mobility is new solutions, so tially full, use of paper trail (paper trail used to co- we had joined up with the start-up conference at ordinate the transfer of goods and provide tracea- our last green mobility event to allow our members bility, with potential loss of information) and com- to experience new ways of what could be potential plicated and lengthy administrative procedures solutions for tomorrow. The event took place on (WEF reports that the cost of processing trade doc- 17th of June in Dublin and several new solutions uments are as much as 20% of those of shifting were presented: goods). An Post presented their Eco plan for Zero emission

in major Irish cities by 2021. Strategy and major goals for climate action, sustainable cities and com- In the second part start-ups presented solutions for munities, decent work and responsible consump- future transformation, optimization and digitaliza- tion and production were presented. In addition, tion. achievements of energy reduction in properties of NÜWIEL presented innovative sensor technology, 23% in 10 years, 100% waste recycling and imple- that enables the trailer to automatically accelerate menting the vehicles with alternative fuel options and brake with the bike. A rider makes no addition- were presented. al effort when cycling with the trailer. The trailer bpost presented a green fleet strategy through works with any bicycle, electric bike and cargo bike. proximity – being close to society and its emerging When disconnected from the bike, it automatically needs, people - care about employees and engag- switches to a handcart mode and, thus, can be used ing them, planet - strive to reduce impact on the in pedestrian only zones. The trailer runs 70km on environment. As part of its Corporate Social Re- one charge with a payload of 100kg and has a EUR sponsibility (CSR) program bpost committed in 1 loading area. 2012 to a 45% CO2 reduction over the period 2007- Ship2MyID presented a revolutionary patented 2020. solution which accelerates Green Environment Bulgarian post presented their green mobility part- offerings. We eliminate all transactions with wrong nership with SEVIC Europe. Their focus was on re- addresses and delivery failures (4% to 8% savings). shaping a last mile delivery with usage of light com- GIS-enabled addresses can create the best routing mercial vehicles developed for customers needs. results (4 to 6% savings). Leveraging GIS - solar From the market research it was stated, that mar- powered drone deliveries will further contribute to ket size of light electric commercial vehicles in 2025 the reduction of CO2 emissions (20% savings for will be 785.000. small items). Direct Marketing or Direct Mailing averages at 3 % conversion rates. 97 out of 100 Toyota and Post of Slovenia presented a project of Trees get wasted in the current process. Ship2MyID shared mobility in distribution and first/last mile. offers 100% opt-in leads with higher conversion Aim of the project is to improve vehicle usage and and full privacy for consumers. lower the TCO through vehicle sharing with post

D o s s i e r .Slimbox was developed to solve an obvious prob-

lem – shipping goods in over-sized boxes is costly, inefficient and environmentally damaging. The negative effect of cardboard and plastic waste is clear; shipping excessive material and air increases CO2 emissions and costs. Now, Slimbox enables anyone to make right-sized boxes, when and where they need them. Affordable, easy-to-use, just needs a domestic electricity connection, so Slimbox can be used almost anywhere. In offices, factories, warehouses, ecommerce fulfillment, retail and self- service shipping kiosks, Slimbox enables those who ship goods to reduce the cost of boxes, handling and transportation while helping to improve the environment. BookIT helps logistics companies save time and money, while helping them to provide customers delivery options tailored to their needs. Involving customers in automated self-service setting and getting customers inputs into planning and delivery process improves both the efficiency and satisfaction of the first and last-mile process. BookIT helps its customers to become more customer-centered, provide a better experience, while also allowing them to optimize their operations using customer response data. This leads to more efficient sched- ules and a significant decrease in missed deliveries.

We believe that green mobility activities and fo- rums play an important role in sharing information and best practice between PostEurop members and other partners within the postal, express and transport ecosystem.

Save the date

The Postal Innovation Platform (PIP) partners with Triangle / World, Mail & Express and organizes for WMX Americas 2020 a startup session which will take place on Monday, 17 February.

 Learn about new technologies, customer focused solutions, last mile opportunities and other disruptive innovations.

 A postal & logistics expert panel will discuss with the startups and identify use cases, opportunities and practicability of the presented solutions and innovations.

 Come to WMX Americas and join our discussions!

Find out more at https://www.wmxamericas.com/

Customized Foresight Workshop

HIGHLIGHTS GLOBAL LANDSCAPE & 10 YEAR FORECAST OF THE INSTITUTE FOR THE FUTURE (IFTF) FORESIGHT TRAINING & SCENARIO PLAN- NING SCENARIO ANALYSIS

NAVIGATING THE FUTURE

foresight training & workshop postal | express | logistics

This thought-provoking workshop of half a day up to three days with up to 30 participants will explain how emerging technologies will impact our life and work in the next 5-10 years, with a concrete view on changes that will impact the postal and logistics industry, based on latest research from the Institute for the Future (IFTF). In addition, participants will learn about and experiment with techniques and tools that will help them to identify and analyze signals of change, leverage hindsight to discover patterns of innovation and disruption and build a “foresight mindset” for their own futures thinking.

Mattia Crespi Institute for the Future (IFTF)

Bernhard Bukovc Postal Innovation Platform (PIP)