Achieving High Performance in the Post and Parcel Industry Accenture Research and Insights 2015 Contents

Foreword 3 Executive summary 4 State of the industry 5 High performer highlights 8

Defend the core business 8 Invest in the parcels opportunity 10 Diversify selectively 12 Being digital 14 Strategic priorities 18 On the horizon 20 Research methodology 22

2 Foreword

The last mile is under attack. In a Traditional players be warned: strategies seismic market shift, we have moved are being upended. Historically, density from integrators and postal companies has been king as post and parcel players competing for market share, to extensive worked to fill their vast networks and experimentation and significant venture grow volumes. Now, flexibility matters— capital for last-mile delivery start-ups. perhaps far more than network size. Non- Ironically, these start-ups are powered traditional players can scale their networks by the same technology that is fueling up and down rapidly to suit market the parcels eCommerce boom—better conditions, shedding excess capacity when smartphones connected by faster they no longer need it and drawing on networks and driven by lower cost cloud extra capacity to meet high demand. Such platforms. Digital is at their core, which agile competitors can cherry pick where means these players can respond in a and when they serve, riding the waves of way that is inherently nimble, consumer- volatility that business-to-consumer parcel centric and flexible—aspects that volumes dictate. Brody Buhler traditional players struggle to maintain. Global Managing Director Digital is the powerhouse. Our analysis While these resultant new business Accenture Post and Parcel models are experimental, they can have shows high performers in the post and a dramatic impact in a world of big bang parcel industry are taking advantage of disruption. “Wait and see” is simply not digital technologies, such as mobility an option. and analytics, to accelerate the pace of change, enable new competition, inspire This situation is fed by fast-changing new consumer expectations and, perhaps retail models focused on speed. Retailers most importantly, drive growth in parcel such as Google and Amazon1 are building volumes. Now, more than ever, it is nearby fulfillment centers. Traditional important to not only embrace digital brick-and-mortar businesses have entered but to be digital. Yet as our new digital the fray, recognizing that their stores performance index and 2015 research are effective local fulfillment centers. In shows, being digital is no easy task for this way, a network is far less important post and parcel organizations. than effective last mile delivery and retailers are readily embracing the I am excited by the opportunities of these speed and features provided by these changing times. With the right digital new models. Large retailer Macy’s, for investments and bold moves, our research example, has partnered with Deliv to offer shows post and parcel organizations can fast, local deliveries from their stores.2 compete effectively in the marketplace. This demand for speed is also creating These early successes offer evidence shorter, bigger peak periods, where the that it is possible for post and parcel capacity of existing networks is simply organizations to not only navigate the overwhelmed for short, but important digital transformation necessary for time frames. With retailers adapting long-term survival, but also to thrive in their shipping models and eCommerce the new eCommerce-driven marketplace. creating significant changes to customer I look forward to discussing these findings expectations and demands, it is small with you in the coming months. wonder parcel delivery is under threat.

Brody Buhler

3 Executive summary

In last year’s postal report we identified Being digital On the horizon that high performers maintain three strategic priorities: defending the core Digital is clearly a game changer, Internet of Things (IoT) business, growing the parcels opportunity, whatever the industry. Successful digital The IoT has the potential to create and diversifying selectively across their investments so far are primarily focused new sources of revenue―not only by retail, logistics and delivery networks. on managing costs and improving embedding digital technologies within the They execute these priorities within the productivity. Now, the focus needs to organization, but also by extending into a context of being a digital organization.3 In turn toward investments that generate broader digital ecosystem of customers, 2015, our top five performers—Singapore revenue. We created the Accenture partners and connected products. Post Post, bpost, Posten Norge, UPS and Poste post and parcel digital performance and parcel organizations could use the Italiane—are employing these successful index to evaluate companies according IoT to create new data-driven businesses strategies to place them ahead of the rest. to their current digital capabilities and identify the gaps required to make digital and unprecedented improvements in the customer experience. High performer highlights “business as usual.” Drones Defending the core business Strategic priorities As we have seen in the media, Despite its steady decline, mail is still Our research shows there are three over the past 18 months there has the largest revenue generator for most critical areas on which post and parcel been a significant increase in drone post and parcel operators and a critical organizations should focus to deliver experimentation, with rapid progress source of cash for future investment. high performance. First, they need to in applications for autonomous drones High performers continue to defend seek out monetization of the digital (unmanned aerial vehicles) in logistic their core business to deliver strong opportunity, going beyond productivity operations. Irrespective of autonomous mail profitability. They invest in product and cost cutting to profitable digital drone delivery becoming a reality, innovation to add value and slow mail solutions that drive topline growth. drone applications are becoming more volume declines. Second, they need to implement mainstream—and could play a key strategies that address new retailer role in other solutions post and parcel Investing in the parcels opportunity and consumer demands while achieving companies will need, such as monitoring High performers show they can grow some of the same nimble scalability delivery conditions. parcel revenues through capturing market as the new market entrants to win the share and smart pricing. They continue battle for the last mile. Finally, they to exploit parcel revenues by rigorously must recognize that eCommerce-driven, focusing on improving the profitability cross-border transactions present both of B2C deliveries, while at the same time an opportunity and a challenge, reducing stimulating the growth of higher margin transaction complexities and investing B2B deliveries. to deliver an international strategy that addresses market entry, product LOGISTICS Diversifying selectively features and competitive position. High performers are growing their DELIVERY logistics business; eight out of the top DIVERSIFY SELECTIVELY 10 post and parcel organizations choose RETAIL logistics as a core diversification strategy. They also adopt a commercial mind-set GROW THE PARCELS OPPORTUNITY and business-oriented culture which tends to be catalyzed by privitization; 60 percent of high performers are DEFEND THE CORE BUSINESS privatized, versus only 10 percent of the bottom 10 performers. BE A DIGITAL ORGANIZATION

The four dimensions of a post and parcel high performer 4 State of the industry

Now in its ninth year, the Accenture in-depth analysis of the post and parcel industry explores the market’s latest trends and opportunities.

The following factors are influencing the Figure 2. Mail revenue versus mail volume growth: 2012 to 2014 post and parcel industry: Mail revenue CAGR 2012-2014 Bubble size indicates 2014 revenues in US$

Mail volume decline is reaching 12 Growing revenue Growing revenue a plateau India Post 10 declining volume and volume From 2013 to 2014 mail volumes declined 8 by a mere 1.6 percent and have declined SingPost globally at a compound annual growth rate 6 Austrian Post of negative 2.6 percent since 2010 (Figure 1). 4 All countries are experiencing a decline in 2 transaction mail while direct marketing mail CTT CPC USPS is more stable and growing in some regions. 0 Posten Norge Indeed, postal organizations have effectively Posti RMG -2 DPDHL maintained or grown mail revenues, Poste Italiane Australia Post primarily through price increases (Figure 2). -4 NZ Post There are interesting regional differences; SwissPost -6 PostNL some operators such as DPDHL or Swiss Post La Poste Declining revenue -8 Post Nord saw minimal to no declines, while other Declining revenue and volume growing volume countries, such as Italy and the Netherlands -10 with Poste Italiane and PostNL respectively, -12-11 -10-9-8-7-6-5-4-3-2-10 12345 lost mail volumes at troubling rates. Some postal operators have launched regional Mail volume CAGR 2012-2014 cross-border mailing products, adding Note: CAGR: Compound Annual Growth Rate volume from other countries to help create Source: Annual reports; Accenture analysis successful, sustainable mail businesses. New entrants are only threatening the traditional players’ market share in countries that have historically lower mail service quality. As a result, competitive erosion appears to largely be within each organization’s control.

Figure 1. Evolution of mail volume (in aggregate)

Annual mail volume, in millions, and year-on-year mail volume growth/decline, in percentage

Compound Annual Growth Rate (2005-2010) Compound Annual Growth Rate (2010-2014) -4% -2.6% 400,000 -2.5% 1.6% -3.8% -9.6% -5.5% 350,000 362,243 353,235 359,040 -2.2% -4.7% 345,520 -1.8% -1.6% 300,000 312,519 295,270 288,734 275,142 250,000 270,101 265,707 200,000 150,000 100,000 50,000 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0

Note: 1. Sample size 19 postal organizations included; 2. Retroactive adjustments based on new volume data were made to the model. Source: Annual reports, Accenture analysis. 5 The parcel business is recalibrating Figure 4. Parcel revenue versus volume growth: 2012 to 2014

After the drop in revenues and volumes Parcel revenue CAGR 2012-2014 Bubble size indicates 2014 revenues in US$ due to the economic downturn in 2009, 22 parcels continue to present a path to Growing revenue Posten Norge Growing revenue sustained revenue growth (Figure 3). From 20 declining volume and volume India Post 2013 to 2014, we saw healthy parcel 18 volume growth of 5 percent—slightly 16 slower than the compound annual growth 14 rate since 2009. Meanwhile parcel revenue FedEx 12 growth has slowed significantly over the same time period to 4 percent, roughly 10 La Poste half the growth seen over the previous few 8 PostNL DPDHL Post Nord years, as pricing pressures increase. Overall, 6 USPS Poste revenue and volume growth was relatively Italiane 4 RMG UPS balanced across organizations, as Figure Yamato 4 illustrates, with only two organizations 2 CPC SwissPost CTT experiencing declining parcel volumes. 0 Austrian Post -2 Declining revenue Declining revenue The growth story in parcels is clearly and volume growing volume -4 driven by eCommerce. A recent worldwide TNT study found that eCommerce sales have -6 experienced double-digit growth in -5 0510 15 20 4 virtually every country. This industry Parcel volume CAGR 2012-2014 trend is creating substantial change within the parcel delivery market. Overall, Note: 1. CAGR: Compound Annual Growth Rate, Revenue parcel CAGR was calculated in local currency parcel yields are declining as parcels are Source: Annual reports; Accenture analysis becoming smaller, lighter and travel shorter distances—creating a move from air to ground transportation that appears set to continue. We also see an average lower number of deliveries per stop (as the mix of parcels shifts to B2C) and higher variability in parcel volumes over the course of the year, with more peaks and troughs.

Figure 3. Accelerated growth of parcel revenues

Global parcel market volume (millions) and growth rate 2009-2014 Global parcel market revenue (US$ millions) and growth rate 2009-20141

6.2% 5.8% 4% 5% 8% 4% 9% 6% 18,547 7% 178,424 8% 17,606 2% 171,925 7% 16,881 158,709 15,959 146,141 14,729 136,653 13,741 134,363

2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

Note: 1. Sample size 16 post and parcel organizations included for the parcel analysis Source: Annual reports; Accenture analysis. Revenues are in constant 2009 euros to avoid any currency bias

6 Diversification strategies are no longer optional According to the 2015 analysis, mail continues to decrease as a percentage of postal revenues. In 2007, mail comprised the majority (55 percent) of total revenues; today, it has slipped below half at 44 percent. As post and parcel organizations evaluate their overall business strategies, they are successfully finding growth and profitability in areas both near and far from their historical, core business. Consistent with previous years, investments (primarily in retail, logistics, banking and insurance) continue to grow as a proportion of total revenues (Figure 5).

Figure 5. Revenue diversification by type of services: 2007 to 2014

%

100

90

80

70

60

50

40

30

20

10

0 Year 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 07 14 CTT CPC UPS Posti USPS SAPO bpost FedEx DPDHL PostNL AnPost Correos Yamato NZ Post AusPost La Poste SingPost PostNord India Post Swiss Post Czech Post Poste Norge Magyar Post Austrian Post Poste Italiane Royal Mail Group Mail Parcels Logistics Financial Services Retail Others

Note: 1. Sample size includes 26 post and parcel organizations. 2. The number of categories may dier from one year to the next due to demergers, reorganizations and/or availability of information. 3. If 2014 data was not available, 2013 data was used.

Source: Annual reports; Accenture analysis.

7 High performer highlights

The 2015 analysis illustrates how three strategic priorities are critical to high performance.

Defend the core business Emphasizing efficiency and automation High performers invest in mail High performers strive to reduce per innovation High performers are driving strong piece costs, from processing operations High performers are successfully slowing mail profitability to delivery. They pursue automation the decline of mail volumes and actually opportunities and use analytics to identify Declining mail volumes mean that postal growing marketing mail volume in some inefficiencies. For example, SingPost is organizations have long focused on locations through innovative practices. achieving world-class automation rates reducing fixed and operational costs, They combine digital with physical to while reducing processing times.7 bPost, increasing automation and exploiting create new marketing solutions that have through its Vision 2020 plan, is also assets. As the largest revenue source for a measurable return on investment. A driving further operational efficiencies many of the organizations we studied, good example is the Postgeo solution at in its sorting plants through investments mail performance remains critical. Our Austrian Post Group, designed to help in automation. bPost is in the process of research shows that high performers are businesses develop targeted advertising consolidating 400 local mail offices into far more successful at driving profitability mail campaigns online. Postgeo’s digital 60 mail centers.8 in their mail business with an average interface complements a physical product 11 earnings before interest and tax (EBIT) Experimenting in the delivery mode to help drive higher returns. Another of nearly 11.1 percent—more than five example is Australia Post’s MyPost. The High performers increase the type and times higher than the average profitability MyPost solution is a platform and mobile number of items that are delivered of the bottom 5 performers (Figure 6). app that creates a digital mailbox for to curbside boxes, as well as shifting In part, these results are due to smart consumers while also allowing them to deliveries to more centralized community pricing, with several high performers manage their deliveries. The digital mail boxes. For example, Austrian Post Group implementing significant price increases, features in MyPost provide consumers has successfully achieved significant finding success as they test the elasticity with an electronic version of their mail and synergies by delivering small packets of mail. For example, Portugal’s CTT has offers basic mail management functions using its mail network. This shift increases increased the price of a domestic 20g such as mail hold, redirection, or archive the number of deliveries per stop without letter from US$0.35 (€0.32) in 2012 to at discounted prices. MyPost also offers affecting delivery time or efficiency.9 US$0.50 (€0.45)5 in 2015, an increase of parcel functions—such as preferences, 40 percent.6 Redefining the universal service notifications or delivery options—as a single, integrated solution to consumers.12 More importantly, high performers obligation (USO) rigorously focus on cost reduction by: High performers are aggressively and successfully negotiating with their Defining labor strategies that control regulators for a USO that meets the new wages while creating flexibility reality of consistent mail declines and High performers are effectively working establishes a sustainable foundation for with their labor unions to redefine universal service. For example, CTT in the work day and workforce, creating Portugal recently obtained amendments much-needed flexibility. They are also to certain parameters, such as the quality aggressively experimenting with new and objectives of its universal service, for labor models that create a lower-cost, the period 2015 to 2018, in addition to more easily adjusted labor structure. approval to increase prices above those granted by their regulator.10

8 Figure 6. Mail volume growth, revenue growth and earnings before interest and tax (EBIT) by performer group: 2012 to 2014

20 Mail volume growth 2012 to 2014 Mail revenue growth 2012 to 2014 Mail EBIT percentage in 2014

15

11.1 10 7.8

5 4.5 3.3 1.9

0 -0.5 -0.9 -1.8 -1.3 -3.3 -3.4 -3.2 -5 -4.0 -5.0

-10 -10.0

Top 5 Next 5 Middle 10 Lagging 5 Low 5

Note: CAGR: Compound Annual Growth Rate Source: Accenture analysis

9 landed cost, and delivery duties paid Premium B2C Invest in the parcels 18 solutions. Top five high performer, High performers successfully experiment opportunity bpost, has established offices in Hong with models that drive more revenue Kong, Beijing and the United States as from B2C deliveries. Some of these High performers win the race 19 well as purchasing Landmark Global experiments, like bpost’s Combo23 to revenue by exploiting as part of its strategy to become the solution, seek to create a new delivery eCommerce trends portal into the European Union. experience that is far more in the consumer’s control and combines new, As shown in Figure 7, the top ten New delivery options performers have achieved significantly value-added deliveries (such as local Retailers and e-tailers invest heavily in better parcel volume and revenue products and laundry services) with solutions that enable customers to start growth than all other groupings. More standard deliveries. Other solutions, like and complete a transaction across all 24 importantly, a clear correlation emerges UPS My Choice, offer to accelerate and channels. Research shows that 56 percent between parcel volume and revenue enhance the delivery experience for a of retailers invest in omnichannel solutions growth—through capturing market share small fee. that enable ship-to-store. Forty-one and smart pricing—and high performance. percent of consumers consider alternate One-to-many B2C High performers take full advantage of delivery options important or very High performers invest in solutions 20 market changes driven by eCommerce— important to their buying decision. High that convert a single-parcel B2C specifically the following trends: performers implement their own delivery delivery into a multi-parcel delivery, alternatives. For example, SingPost has creating economics that are more like a mCommerce-driven consumer undertaken new locker experiments, traditional B2B delivery. These solutions expectations investing in the eCommerce value chain create consolidation points, such as Today, purchases made on smartphones to enable a more end-to-end eCommerce lockers, pickup locations and alternate 21 and tablets represent more than 25 solution. Posten Norge has 42 secure access points. percent of all eCommerce transactions. electronic parcel lockers (KePol models) 22 Shippable mCommerce (online located in seven of its largest cities. No-frills B2B smartphone and tablet purchases, High performers offer low-cost, less excluding travel and digital goods like High performers drive better specialized services to businesses. For apps) is estimated to grow by 46 percent B2C margins while stimulating example, FedEx announced in June that in 2015, reaching more than half of B2B growth all of the increases in capital expenditure all eCommerce purchases by 2018.13 would go to FedEx Ground, which has Industry players understand the mCommerce is changing consumers’ grown its revenues by nearly 36 percent fundamental challenges created by the expectations of the eCommerce from 2012 to 2015, largely as a result of surge in B2C eCommerce volumes. While experience. In particular, consumers eCommerce and the shift from overnight offering significant growth today and want the delivery of their mCommerce to ground in B2B.25 Austrian Post offers for the foreseeable future, B2C packages purchases to be just as digital as premium and standard parcel products are much harder to deliver and, as a the purchase itself, with the ability specifically targeted to B2B customers; result, contribute significantly less to the to manage delivery with the same these products offer tracking and delivery bottom line. Our research shows that device. High performers, such as UPS in one or two days but without the this realignment of volume mix away (MyChoice),14 FedEx (Delivery Manager)15 money-back guarantee and noon delivery from B2B toward B2C is likely to reach a and Australia Post (MyPost),16 offer of the Express Mail Service (EMS).26 tipping point in 2020 when B2C volumes solutions that enable their customers may exceed B2B volumes for the first to easily manage the last mile of their Vertical specialization time. Yet the majority of revenue is likely deliveries. While these solutions create High performers stimulate growth by to be generated by B2B parcels over the an opportunity to capture revenue from developing services to differentiate in same time frame (Figure 8). consumers, a critical motivation is to vertical markets. These new solutions drive market share from the growing For parcel companies to manage the craft distinct value propositions for number of mCommerce purchases. margin challenges created by one-to-one different industry segments to attain consumer deliveries, and postal companies differentiation in a highly competitive Cross-border growth to tackle the specialized requirements of market that attracts market share while Cross-border eCommerce is growing business deliveries, they must both blur also creating expanded margins. For at nearly twice the rate of domestic the lines of traditional services. High example, UPS Supply Chain Solutions 17 eCommerce in most markets. High performers are successfully creating new offers special shipping facilities performers see the opportunity and have models that deliver better B2C profits for healthcare and Posten Norge invested in cross-border solutions. FedEx, while focusing on offerings that stimulate offers frozen storage with the latest 27 for example, recently purchased Bongo B2B growth: technology through its Bring service. to improve its cross-border capabilities and provide parcel consolidation, total

10 Figure 7. Parcel volume growth, revenue growth and yield by performer group: 2012 to 2014

25 Parcel volume CAGR 2012 to 2014 Parcel revenue CAGR 2012 to 2014 Average revenue per piece 2014 in US$

20.7 21.2 20

15 12.1 11.0 10 9.6 8.7 8.0 7.6 7.5 6.4 5.3 5 4.2 3.5

0.3 0

-1.7 -5

Top 5 Next 5 Middle 10 Lagging 5 Low 5

Note: CAGR: Compound Annual Growth Rate Source: Accenture analysis

Figure 8. The shift from B2B to B2C: 2013 to 2020 (Forecast)

North America Western Europe Asia Pacific CAGR CAGR CAGR 100% 30% 26% 31% 30% 6.5% 36% 5.5% 14% 44% B2B versus B2C versus Others 1 65% 59% 70% 64% 65% other 2.5% 1.5% 4% 50% B2C revenue2 B2B breakdown 2013 2020 2013 2020 2013 2020

CAGR CAGR CAGR

100% B2B versus 43% 6.5% 39% 5.5% 45% 43% 14% B2C versus 50% 58% other volume 3 Others 51% 57% 50% 51% 4% breakdown 2.5% 45% 1.5% 36% B2C B2B 2013 2020 2013 2020 2013 2020

Note: 1. Others represents Consumer to Consumer and Consumer to Business and Government to Consumer and Government to Business. 2. Revenue breakdown based on US$ value of the market 3. Volume breakdown based on B2C and B2B average yields 4. CAGR: Compound Annual Growth Rate

Source: Accenture analysis and Accenture global parcel modeling tool

11 Diversify selectively High performers adopt restricts operations and the response a commercial mind-set and to structural market changes, postal High performers expand their business-oriented culture organizations tend to operate at higher logistics businesses costs or sustain business models Ten years ago, post and parcel that would have otherwise changed Logistics is the clear winner in organizations operated in a less naturally through market forces. In diversification strategies, with eight out competitive landscape using very different short, regulation is less about control, of the top 10 organizations in our study models. The growth of parcel volumes and more about a lack of control for the focusing primarily on logistics. While and declining opportunities in their postal player. significant investment and revenue still historic business areas has created a new flow from other diversification areas, market dynamic that requires a different 3. Acquisition authority for the first time it appears that the mind-set, culture and speed. Nothing High performers acquire companies as chosen diversification strategy matters. has served as a better catalyst for that and when they are needed, based on a High performers take advantage of their transformation than changes in ownership clear business case. For example, Australia existing asset base and expand into models. Our research shows a strong Post has purchased StarTrack, noted as upstream and downstream services that correlation in the last two years between “part of an A$2 billion investment in complement the core transportation and privatization and high performance. This Australia Post’s national logistics and logistics business. This “new normal” in year, 60 percent of the high performers retail network which will accelerate the the post and parcel industry creates a are privatized, versus only 10 percent of creation of a world class parcels network more complicated industry value chain the bottom 10 performers. For example, to help drive the digital economy.”31 than the historic induct, process and the most dramatic change in the research These acquisitions bring needed skills and deliver approach (Figure 9). ranking status is CTT in Portugal, up 15 capabilities as well as access to growth places in the ranking largely due to the markets that enable the high performers High performers tend to offer solutions improved profitability it has achieved to grow faster and more profitably. further up the supply chain, providing since privatization. marketplace, payment, fulfillment and 4. Business unit accountability warehousing solutions to help meet Our analysis shows that privatization High performers manage their businesses customer needs and capture a greater itself is not essential; rather, it is the share of wallet. For instance, SingPost’s as a series of separate companies. mind-set that comes with being a For example, FedEx’s operating vision is to become a regional leader in commercially-focused operation which eCommerce logistics.28 These logistics mantra is based on three principles: makes a difference. High performers use operate independently, meaning each solutions include air and sea freight, customer needs and shareholder value as warehouse and inventory management business is accountable for its own business drivers. Four core characteristics success and profit and loss; compete as well as downstream logistics, such as define this culture and approach: returns management.29 FedEx recently effectively, by targeting customers with the same brand and customer bought GENCO, a company specializing 1. Broader decision making experience; and manage collaboratively in warehouse and distribution center High performers tend to expand into any operations and returns management. through loyal relationships with its business that drives profitable growth and workforce, customers and investors.32 is margin accretive. In the case of Poste High performers play to their strengths, High performers have found there is Italiane, an aggressive diversification understanding that their skills and culture substantial value in creating results strategy into banking, insurance and align well with a logistics business. To transparency and forcing each business mobile virtual network operator (MVNO) scale quickly and acquire unique skills, unit to deliver profitability without businesses has resulted in growth and high performers are acquiring capabilities cross-subsidization. strong performance. in the market and then strategically integrating them into their existing 2. A regulator that is focused networks. For example, bpost has made on sustainability several acquisitions, such as CityDepot,30 to obtain deep logistics knowledge for A regulator does not necessarily make cross-border (customs brokerage, freight) a high performer, but it can be a driver and in-city parcel deliveries. of poor performance. When a regulator

12 Figure 9. Evolution of parcel delivery value chain

Marketing Website and/or marketplace Delivery demand generation on demand

Web Support/ eCommerce Delivery platform provider

Increased delivery Integration with alternatives and platforms for competition sales conversion

Transportation Paymen$t Payment

Flexible to meet volatile demand Payment validation and collection

Pick up Faster, shorter Warehousing distance fulfillment and fulfillment

Source: Accenture analysis

13 Being digital

While defending the core, investing in the parcels opportunity, and diversifying selectively matters, taking full advantage of digital is essential to delivering these strategic priorities.

This year, our report quantifies digital part of the day-to-day operations and Being digital prepares an organization readiness and capability using the business model (Figure 10). for future positioning and growth. Accenture post and parcel digital As expected, our research could not performance index, which demonstrates While all three elements are important, establish a correlation today between how digital investments are positioning our research revealed that the industry high performance and digital excellence the companies we study for growth. has made the most progress in digital (Figure 12). This is partly due to the strategy—with a score of 2.44 on a scale industry’s immaturity in digital servicing The index consists of three major of zero to four. While that score is not and enablement areas, the elements of elements—digital strategy, digital groundbreaking—more investment and our index that would turn strategy into servicing and digital enablement. Digital progress are clearly needed—it does results. In part this missing link is also a strategy focuses on how well companies show that digital is becoming a key part lack of clarity in digital strategies around are planning for digital, as well as using of board-level conversations (Figure the role digital will play in transforming trends and opportunities created by 11). Where post and parcel players are the rest of the business. digital to inform their overall corporate struggling—and where the real work strategy. Digital servicing assesses the begins—is when those strategies are Digital is clearly a game changer, whatever ability of organizations to be digital in the converted into actions (digital services) the industry. Over time we expect to see core aspects of their value proposition and then embedded into the heart of the a much stronger correlation between and to launch new digital services in business (digital enablement). Indeed, the full range of digital scores and high the market. Finally, digital enablement to date, most of the successes in these performance—so while digital investment measures how effectively companies digital categories are attributable to is currently no forecast of success, it is an are using digital as part of their core “one-off” cost and efficiency measures. essential strategic priority. processes and operations—making it

Figure 10. Accenture post and parcel digital performance index

Digital strategy Digital servicing Digital enablement

1. Trend 1. Product and solution 1. Operations and processes Extent to which the company’s strategy Extent to which the company oers Extent to which “digital” is referred to in context reflects “digital” as a relevant industry trend intelligent/smart/digitalized products/solutions of the company’s internal processes, programs, and initiatives 2. Objective 2. Service Extent to which the company’s strategic Extent to which the company oers client-facing 2. Resources and organization objectives reflect “digital” Internet-based services Extent to which the company leverages digitally powered resources (for example, big data/analytics 3. Interaction department, software engineering centers) Extent to which the company oers digital interaction functionalities 3. Workflow Extent to which the company applies “digital” 4. Sales functionality to organize and perform its daily operations Extent to which the company oers client-facing sales/order specific digital functionalities 5. Service functionality Extent to which the company oers client-facing, service specific digital/online functionalities (for example, delivery tracking, after-delivery services)

14 Figure 11. Digital performance index rating for the postal and parcel industry

4

3 Digital strategy Digital servicing Digital enablement

2.44 2 2.07 1.97 1.81

1

0

Source: Accenture analysis

Figure 12. Digital performance index by performer group

Digital performance index (five performer groups)

4.0

3.5

3.0 2.6 2.7 2.5 2.5 2.3 2.2 2.1 2.0 2.0 1.9 2.0 2.0 2.0 1.8 1.7 1.6 1.5 1.4

1.0

0.5

0.0

-0.5 Digital strategy index (average) Digital service index (average) Digital enablement index (average) -1.0

Top 5 Next 5 Middle 10 Lagging 5 Low 5

Source: Accenture analysis

15 To be a digital organization, post and parcel players could consider:

Delivering for consumers solutions to create more impressions and Recruiting and retaining digitally a better return on investment. USPS, savvy teams Consumer expectations are evolving for example, has launched Real Mail rapidly, and they are playing a far more Notification which provides consumers Turning digital strategies into actions important role in delivery. In the past, with images of the mail they will receive that generate strong business outcomes post and parcel organizations could that day. It can also include links to requires a digitally enabled workforce. focus exclusively on the shipper. Today, offers or targeted advertising. The early As the battle for digital skills grows, post consumers consider delivery to be part tests of this digital/physical product have and parcel organizations must not only of the overall eCommerce experience, produced a 10-fold increase in response understand how to attract and retain the meaning retailers and their shippers are rate, showing the power of these new right skills, but also establish effective inextricably bound—a challenge when products.35 Continued investment in governance structures that enable digital Accenture research shows 35 percent digital/physical products will be the key to innovation to thrive within large, legacy of consumers are dissatisfied with the turning the threat that these new mobile organizations dominated by operations. delivery experience. Adding solutions advertising products present into an that satisfy consumers’ demands for opportunity to engage in new ways and Creating a holistic, high-performing more control over and convenience for through new channels. road map their deliveries can address more than 33 70 percent of the issues. But that is only The opportunity from data analytics With such a broad business span and the beginning. mCommerce accelerates lack of tried-and-tested models, it can be this power shift toward the consumer. Digital post and parcel organizations difficult to know where to begin to create Retailers are starting to demand that realize that data is their most important a digital road map. The three strategic shipping partners have a clear strategy asset, and they are investing to capture priorities within our high performance on engaging and enabling consumers and use that data. While there are some framework are a good starting point. with innovative solutions. The volume of highly effective analytics-driven solutions Associated with those strategic priorities, consumer-focused products has grown in the market, they are few and far Accenture has also identified three significantly over the past two years. The between. Digitally savvy organizations broad digital investment areas: driving next generation of these solutions will in the industry are learning to use the efficiencies, digitizing delivery, and need to deliver more. mountains of data they have on the origin generating revenue. Now is the time for and destination of communications and post and parcel organizations to fully Digital disruption in advertising mail goods to identify patterns or predict embrace digital and gain value at scale. behaviors, reinvent customer relationships, To do so, they will need to prioritize their Digital presents both a threat to and an better understand business performance, digital investments (Figure 13). opportunity for advertising mail. Mobile and generate new sources of revenue. advertising now accounts for 73 percent 34 DPDHL’s new “Resilience 360” product, of Facebook’s advertising revenue. which uses big data to identify potential Location-based advertisements are supply chain disruptions, is an example of growing and becoming more targeted, the powerful data these organizations can linking content and/or the message to a harness.36 While critical to the bottom line physical location using NFC, Bluetooth by maintaining the pace of productivity Low Energy (BLE) and a broad range of improvements required for success, data beacons. Post and parcel organizations and its associated analytics can provide have an opportunity to combine their significant new sources of topline growth. physical products with their digital

16 Figure 13. The action/outcome digital matrix

Be a digital organization

Diversify

Grow parcels Drive e cency Digitize delivery Create new revenue How can digital improve How can digital make How can you use digital your cost structure and your existing products to create material new make your organization and services better and revenue streams that more e cient? more relevant to digital transform your topline Defend the corere native customers? growth potential?

17 Strategic priorities

Our analysis indicates there are some critical areas on which post and parcel organizations should focus to deliver high performance.

Monetization of the entirely different model—an asset-light 4. Experimentation digital opportunity approach. These new players compete Perhaps most importantly, traditional based on scalability, with an ability to organizations must conduct their own Our post and parcel digital performance add or eliminate capacity seamlessly. last-mile experiments in the market where index revealed that no organization has Because they are sourcing spare capacity they can learn from changing demands monetized digital effectively to date. and crowdsourced labor—soliciting and behaviors. While nascent digital solutions show contributions via an online channel—their promise, more time and investment is investment is negligible while their cost Increasing importance required to fully exploit the revenue structure is almost 100 percent variable. of cross-border eCommerce potential. Solutions that take out cost to Companies such as LaserShip37 and improve productivity often are easy to OnTrac,38 which use a contractor-based eCommerce-driven, cross-border identify and benefit from more concrete model to deliver the last mile, or Instacart39 transactions present both an opportunity business cases—making it simpler to and Deliv,40 use the shared economy to pair and a challenge. In research Accenture justify and secure the investment. But supply with demand and are asset-light. conducted with AliResearch,45 we found that these measures can only go so far—it There are other examples around the world, cross-border B2C eCommerce is expected is not possible to cost cut the way such as GogoVan in Hong Kong,41 Delhivery to grow more than 27 percent annually. to sustainability. For future success, in India42 and InPost in Europe.43 More than 75 percent of that growth investments should be prioritized toward will be driven by new consumers trying focused experimentation on digital As market volatility increases the cross-border eCommerce for the first time. revenue generation. These efforts require difference between the average daily Those new consumers expect a seamless new skills and governance models volume and peak volumes, new models will experience that is very different from what that overcome an “operations first” become increasingly relevant. This is one of is on offer today. Issues and complications approach—one that produces digital the reasons why UPS acquired asset-light with the cross-border order and delivery products designed by what operations Coyote Logistics, as a means to boost its process pose the most significant risk to this can do, not what customers want. capacity to address peak periods and to new growth area. Creating a simple, easy- As mail volumes continue to decline avoid the service shortfall in capacity it to-use cross-border product is key to taking and last-mile delivery becomes more suffered during the 2013 holiday season.44 advantage of a new stream of consumers. competitive, having profitable digital Post and parcel organizations must seize solutions that drive topline growth will the opportunity to adapt. Four elements Cross-border activities require new skills, become even more important—and are vital to win the last-mile battle: technologies and products that most ultimately, could be the key to becoming, post and parcel organizations are still or remaining, a high performer. 1. Cost variability developing. New expectations will favor Traditional post and parcel organizations companies that provide a date-certain, Last mile is the must rework their cost structures, expedited process across borders. Gone are next battleground converting fixed costs to variable costs. the days when deliveries can “stop-the- clock” for time spent in customs. Digitally Our research shows that new market 2. Capacity variability savvy consumers demand time and cost entrants are bold and nimble. Despite As eCommerce demands change, it will be certainty, making delivery duties paid (DDP) owning the original assets, such as the important to develop the ability to add or solutions that provide a guaranteed total last mile vehicles and the local delivery eliminate capacity quickly. landed cost and the associated certainty units or depots, postal players are being through customs a necessary product in challenged by these new organizations, 3. Technology-driven services the cross-border portfolio. In contrast with which pair supply and demand effectively. A connected delivery workforce with traditional postal cross-border solutions, it Historically, the barrier to entry into the tools to support capabilities, such as is clear why this area needs attention and last-mile delivery has been the significant dynamic routes or real-time instructions, investment over the next few years. cost of developing a network. Now, new is no longer optional but essential to entrants are experimenting by using an compete effectively.

18 Some post and parcel companies Figure 14. Cross-border B2C market by 2020 have already started and are gaining significant market share, busily investing Global B2C consumers by region (million people) in enabling differentiated solutions in East to West trading and flows. Our Overall B2C Cross-border B2C research shows the reverse—building Asia Pacific 625 112 capabilities to deliver from West to 1,131 477 East—will become far more important in the future, with most of the new Latin America 101 16 cross-border consumers emerging 216 106 from Asia (see Figure 14). To enable those transactions, new solutions Western Europe 274 79 are necessary that focus on reducing 313 152 complexities—such as local currency payments or tax duties—to make it easy Middle-East and Africa 52 21 to meet consumer expectations for 116 91 speed, data security and value. North America 186 47 Our research shows investment in solutions 229 84 that make cross-border eCommerce look and feel like today’s traditional eCommerce Mid-eastern Europe 77 34 and Central Asia are accelerating. For example, the 109 68 free-shipping phenomenon in domestic shipping is starting to infiltrate cross- 2014 2020 border transactions, with several online retailers offering or experimenting with Source: Accenture Global Cross-border B2C E-Commerce Market - Rise of digital consumers and business globalization free international shipping. We have also seen investment in technologies that tailor language, currency, price and product Region 2014 to 2020 new cross- New consumer regional availability, by country, with minimal border B2C consumer (millions) contribution incremental effort. As post and parcel Asia Pacific 365 54.6% organizations expand the value chain, they are well positioned to create seamless Latin America 90 13.4% cross-border solutions. Western Europe 73 10.9%

Cross-border packages are usually higher Middle-East and Africa 70 10.5% margin products that can significantly North America 37 5.5% boost financial performance. To benefit, post and parcel organizations need an Mid-eastern Europe and Central Asia 34 5.1% international strategy that addresses market entry, product features and Source: Economist Intelligence Unit, Industry Research Report, World Bank and Accenture analysis competitive position. They also require technology investments that make integration with eCommerce sites seamless, and enable flexible solutions that address consumers’ changing demands. Our research shows that high performers today are already positioning themselves to take full advantage.

19 On the horizon

Our research identifies trends that have not yet influenced high performance but are likely to have a significant impact in the future. Two technologies to watch are:

Internet of Things (IoT) cellular signal strength. Data collected time and payload capacity have made by these sensors could then be sold marginal progress. As a result of the plummeting cost and to commercial enterprises as well as • The maturity of flight control and proliferation of sensors and readers, embedded in consumer-focused apps— aircraft hardware has progressed, increasingly powerful and ubiquitous including city air pollution levels captured enabling drones to be used in more networks, and rapidly evolving daily at street level throughout a city. interconnected, intelligent systems, industrial applications. the IoT is a growing opportunity. While Delivery enhancements • More progress will be needed in collision not yet a priority for post and parcel avoidance, autonomous delivery organizations, we believe that the IoT Low-energy sensors using new low- mechanisms and regulations before could become critical to the industry energy network protocols can enable drone delivery will be feasible at scale. in the next five years. IoT has the event-based communications, such as texting consumers to notify them of a potential to create significant cost saving While consumer applications are opportunities as well as new sources of letter or package as they walk or drive by their community mailbox. driving awareness and acceptance, revenue―not only by embedding digital the real advances being made in drone technologies within the organization, but Processing intelligence capabilities are in commercial uses. also by extending into a broader digital As these applications become more ecosystem of customers, partners and Sortation plants and depots can create mainstream and commonplace, the connected products. Post and parcel systems to better manage the entire acceptance of commercial drone usage organizations could use the IoT to enable network through machine-to-machine will increase—with the multirotor drone productivity improvements, monitor and communication and prompt the micro- market estimated to grow at a CAGR of optimize operations or fleets, create management of efficiencies at a daily or 22 percent and reach more than US$2.2 new data-driven businesses and deliver even hourly level. billion by 2020.50 And while autonomous unprecedented improvements in the drone delivery may not become a reality customer experience. Drones soon, commercial use outside the delivery industry makes clear that drones can Reader platform In the 2014 report, we referenced the play an important role within the post potential for drones to disrupt the industry. Few organizations have more vehicles and parcel space in other ways—such as Over the past 18 months we have seen a and coverage than post and parcel monitoring delivery efforts, proactively significant increase in experimentation, organizations, making them the perfect addressing traffic issues or automating as applications for autonomous drones platform for mobile readers. With these the identification of new delivery points. (unmanned aerial vehicles) in logistic readers, vehicles could become a traveling operations have progressed rapidly. For platform that captures valuable data example, in the last year in the United from a dispersed sensor network. These States more than 1,000 Federal Aviation readers, for example, could collect data Administration exemptions were granted from consumer applied sensors, such as to commercial organizations to conduct on stolen bikes or lost pets. They could drone experiments,46 while internationally also read commercial or government no fewer than nine delivery organizations— applied sensors, such as solutions that most notably DHL,47 SF Express48 and monitor usage levels of trash receptacles Amazon49—are already experimenting with in parks or streets. drones to deliver small parcels as part of Sensor platform their operations. Delivery vehicles could be equipped to Our research shows that: carry sensors to capture data. Simple solutions exist, for example, to monitor • Drone safety and planning capabilities have improved significantly, while flight

20 21 Research methodology

This report consists of analysis based on Having determined companies’ Second, the 2015 report introduces a new publicly available information, content positioning relative to these elements, framework for analysis—the Accenture published by postal organizations and we created a scorecard identifying post and parcel digital performance Accenture industry knowledge and which organizations performed index. Developed by the Accenture experience. The list of 30 post and parcel above average within the industry. Institute for High Performance, the post organizations analyzed is detailed below. Comparative analysis was adapted to and parcel digital performance index account for government ownership of provides a mechanism for companies to As in previous years, we have used a the majority of postal organizations. evaluate their digital readiness against quantitative model to assess financial a proven set of criteria. Our team has performance and a qualitative model to Once we established the basis for customized the index for post and parcel determine the drivers of high performance. high performance, Accenture used the companies to create an industry-focused Our methodology is based on the value of following terms to describe the rankings scorecard that not only helps to evaluate discounted cash flows to shareholders, or of the post and parcel players: top digital abilities, but also indicates where economic value added (EVA®) and the total five performers (also known as high investment should be focused. As with shareholder return (TSR). We measured performers), next five performers, middle the high-performing post and parcel high performers based on a comparison of 10 performers, lagging five performers model and scoring, the index used metrics across six different elements: and bottom five performers (also known publicly available data and input from as low performers). Accenture subject matter specialists. • Greater than expected returns from In this way, a score has been developed investments This year’s report has two variations from with minimal bias and subjectivity. our previous studies: first, we have shifted • Topline revenue growth the timing of the report to better align For a full overview of the Accenture high • High future value growth with the availability of audited financial performance postal industry process statements. Our analysis now focuses on • Continued value creation over industry model, please visit www.accenture.com/ the preceding year and takes into account eras and life cycles postal. more recent information. In making this • Reliable and predictable financial adjustment, and to avoid any data “lag,” performance the 2015 report includes data for most • Better positioning and performance organizations across the last two years relative to peer set (that is, from 2013 and 2014).

Organization Country Organization Country An Post Ireland Magyar Posta Hungary Australia Post Australia New Zealand Post (NZ Post) New Zealand Austrian Post Group Austria Post Office Limited United Kingdom bpost Belgium Posten Norge Norway Canada Post Corporation (CPC) Canada Posti Group Finland Ceska Posta Czech Republic PostNL The Netherlands Correios Brasileiros (ECT) Brazil PostNord Sweden and Denmark Correios de Portugal (CTT) Portugal Royal Mail Group (RMG) United Kingdom Correos y Telégrafos (Correos) Spain Singapore Post (SingPost) Singapore Deutsche Post DHL (DPDHL) Germany South African Post Office (SAPO) South Africa FedEx United States Swiss Post Switzerland Groupe La Poste (La Poste) France TNT N.V. The Netherlands Gruppo Poste Italiane (Poste Italiane) Italy United States Postal Service (USPS) United States India Post India UPS United States Japan Post Japan Yamato Japan

22 References

1. “Google To Take On Amazon And Instacart With 20. “Customer Desires vs. Retailer Capabilities: 38. https://www.ontrac.com Expanded Grocery Delivery In SF Later This Year,” Minding The Omni-Channel Commerce Gap,” September 2015. http://sfist.com/2015/09/08/ a commissioned study conducted by Forrester 39. https://www.instacart.com google_to_take_on_amazon_and_instac.php Consulting on behalf of Accenture and Hybris, an SAP company, 2014 40. http://www.deliv.co 2. “Macy expands same-day delivery,” USA Today, August 2015. http://www.usatoday.com/story/ 21. https://www.mypopstation.com/faqs#faq-01-01 41. http://gogovan.com.hk/en money/2015/08/04/macys-expands-same-day- deliver y/31116365 22. International Post Corporation, November 2010. 42. http://www.delhivery.com http://www.ipc.be/~/media/documents/public/ 3. Achieving High Performance in the Postal markets/e-lockers.ashx 43. https://inpost24.com Industry: Accenture Research and Insights 2014 23. Postal Technology International. http:// 44. “UPS buys Coyote Logistics for $1.8 billion,“ 4. “Retail Sales Worldwide Will Top $22 Trillion postaltechnologyinternational.com/news. USA Today, July 2015. http://www.usatoday.com/ This Year,” eMarketer, December 2014. http://www. php?NewsID=63093 story/money/2015/07/31/ups-buys-coyote-logistics- emarketer.com/Article/Retail-Sales-Worldwide- 18-billion/30927733 Will-Top-22-Trillion-This-Year/1011765 24. http://www.ups.com/mychoice/welcome.html 45. “Report: Cross-border ECommerce to Reach $1 5. Conversion based on X-Rates website, 25. http://www.wsj.com/articles/give-fedex-credit- Trillion in 2020,” Alizila, June 2015. http://www. September 2015 for-its-ground-game-1442343219 alizila.com/report-cross-border-eCommerce-reach- 1-trillion-2020-charts 6. http://www.deco.proteste.pt/dinheiro/nc/noticia/ 26. https://www.post.at/en/business_send_parcels. ctt-sobe-precos-do-servico-universal php 46. Federal Aviation Administration, https://www. faa.gov/news/updates/?newsId=83395 7. http://infopub.sgx.com/FileOpen/News%20 27. https://www.ups-scs.com/logistics/industries/ Release.ashx?App=Announcement&FileID=313326 healthcare.html 47. “DHL launches first commercial drone ‘parcelcopter’ delivery service,” The Guardian, 8. bpost Annual Report 2014, p4 28. http://www.singpost.com/download/ September 2014. http://www.theguardian.com/ FinancialNews/Factsheet/2015/May%202015%20 technology/2014/sep/25/german-dhl-launches- 9. https://www.post.at/gb2011/Magazin_E/strategy. edited%20%2014May15.pdf first-commercial-drone-delivery-service htm 29. http://www.wsj.com/articles/fedex-pays-1-4- 48. Discover Magazine, March 2015. http://blogs. 10. http://www.ctt.pt/ctt-e-investidores/ billion-for-genco-1426799343 discovermagazine.com/drone360/2015/03/27/ informacao-financeira/contas-consolidadas. drone-delivery-china/ html?com.dotmarketing.htmlpage.language=3 30. Flanders Today, May 2015, http://www. flanderstoday.eu/business/week-business-15-may 49. http://www.bbc.co.uk/news/ 11. https://www.postgeo.at/#/start technology-25180906 31. http://auspost.com.au/about-us/australia-post- 12. http://auspost.com.au/mypost/how-to/my- finalises-startrack-acquisition.html 50. http://www.reuters.com/ account.html?about=mypost-concession article/2015/06/16/research-and-markets- 32. http://www.fedex.com/purplepromise/docs/en/ idUSnBw156563a+100+BSW20150616 13. Internet Retailer, March 2014. https://www. fedex_pp_booklet.pdf internetretailer.com/2014/03/10/mobile-commerce- will-be-nearly-half-e-commerce-2018 33. Accenture consumer control research, https:// www.accenture.com/us-en/~/media/Accenture/ 14. http://www.ups.com/content/us/en/bussol/ Conversion-Assets/DotCom/Documents/Global/ browse/android.html PDF/Industries_8/Accenture-Competing-Customer- Threat-Postal-Survival.pdf 15. http://mobilesolutions.fedex.com/for-ios 34. “Mobile ads now generate almost 75 percent of 16. http://auspost.com.au/about-us/mobile-site- Facebook’s revenue,” PC World, April 2015. http:// and-apps.html www.pcworld.com/article/2913712/mobile-ads- now-generate-almost-75-percent-of-facebooks- 17. Adding Value to Parcel Delivery,” revenue.html Accenture, 2015 35. USPS Goes Digital with Daily ‘Real Mail 18. “FedEx Acquires Bongo International,” Notification’Target Marketing, May 2015, http:// Wall Street Journal, December 2014. http:// www.targetmarketingmag.com/article/usps-goes- www.wsj.com/articles/fedex-acquires-bongo- digital-with-daily-real-mail-notification international-1418767024 36. http://www.dpdhl.com/en/media_relations/ 19. “bpost takes majority stake in US cross-border press_releases/2014/dhl_uses_big_data_for_risk_ ecommerce shipper,” Post and Parcel, January 2013. mitigation_in_logistics.html http://postandparcel.info/53045/news/companies/ bpost-takes-majority-stake-in-us-cross-border- 37. http://lasership.com ecommerce-shipper

23 Contacts Read earlier reports About Accenture To discover more about how postal in this series: Accenture is a leading global organizations can achieve high professional services company, performance, please contact the authors: Achieving High Performance in the providing a broad range of services and Postal Industry: An Accenture Research solutions in strategy, consulting, digital, Brody Buhler Project 2006 technology and operations. Combining unmatched experience and specialized Brody Buhler is the global managing Achieving High Performance in the skills across more than 40 industries and director of the Accenture post and Postal Industry: Accenture Research all business functions—underpinned by parcel industry group. He leads a team and Insights 2009 the world’s largest delivery network— of more than 1,600 postal consultants Accenture works at the intersection of working with more than 38 major postal Achieving High Performance in the business and technology to help clients clients around the globe, helping them Postal Industry: Accenture Research improve their performance and create to achieve high performance. Buhler has and Insights 2010 sustainable value for their stakeholders. worked with leading postal organizations Achieving High Performance in the With approximately 373,000 people on a variety of projects including digital Postal Industry: Accenture Research serving clients in more than 120 strategy, transformation, analytics, and Insights 2011 countries, Accenture drives innovation operations and large-scale program to improve the way the world works and management. Buhler has worked for Achieving High Performance in the lives. Visit us atwww.accenture.com. Accenture for more than 17 years across Postal Industry: Accenture Research a variety of roles and is based in the and Insights 2012 United States. The views and opinions expressed in this document are meant to stimulate thought and discussion. [email protected] Achieving High Performance in the As each business has unique requirements and Postal Industry: Accenture Research objectives, these ideas should not be viewed as professional advice with respect to your business. Andre Pharand and Insights 2013 This document makes descriptive reference to Andre Pharand is a senior principal Achieving High Performance in the trademarks that may be owned by others. The use and the management consulting lead Postal Industry: Accenture Research of such trademarks herein is not an assertion of for the Accenture post and parcel and Insights 2014 ownership of such trademarks by Accenture and is industry group. He has more than 18 not intended to represent or imply the existence of an association between Accenture and the lawful years of industry experience assisting owners of such trademarks. senior executives in addressing and solving a range of strategic issues. He is responsible for the postal industry’s thought leadership and bringing insight and change to clients. He has worked with more than 15 postal, parcel and logistics companies across six continents. Pharand is based in the United States. [email protected]

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