Postal Hub podcast

Pierre Morin, International Relations at Canada Post, is back to fill us in on what has been happening at the UPU:

• Net importers vs net exporters
• A detailed discussion of the three options that have been proposed:
  • Accelerating minor increases previously agreed (including modelling of how this would affect Canada Post)
  • Self-declared rates (the only option that currently seems acceptable to the USA), including protections against price gouging
  • The compromise option with a transition period before introducing self-declared rates, including price caps
• The postal ballot process, including the involvement of "sanctioned countries"
• Likely process for the Congress to be held in September - if indeed it goes ahead
• The chance for compromise at the Congress
• Public statements made by other nations
• Funding changes if the USA withdraws from the UPU

First up this week, a quick update on the status of the UPU's terminal dues discussions. Check out episode 146 for a full discussion on this topic from Canada Post's Pierre Morin. It's a topic that I'll revisit in full in a future episode.

Then Dean Maciuba from Logistics Trends & Insights joins me to talk about a new development in e-commerce returns:

• Walgreens and Nordstrom (a department store, not just a clothing store as I say in the podcast!) to offer pick-ups and returns on behalf of other retailers
• A retailer-agnostic returns channel for retailers
• The driver for Walgreens to take returns
• Implications for the postal sector - in particular those posts offering e-commerce returns solutions
• FedEx's deal with Walgreens to be a retail location for FedEx - and its implementation at the coalface
• The day-to-day practicalities of dealing with parcels in a retail outlet, including secure storage
• Is this another opportunity missed by the US Postal Service?

Nick Manolis, CEO of the Escher Group, is my guest. In a wide-ranging discussion, we cover:

• Escher's transformation and engagement with postal operators
• Technology that spans operating systems and platforms
• Product development and innovation
• Posts seeking to modernise the post office network
• Diversification and transforming the post - including improving the customer experience
• Protecting the core business while funding new growth areas
• The key challenges facing postal operators
• Consumer expectations being driven by the Amazon effect
• Posts taking advantage of opportunities and becoming disruptors
• Putting the customer first
• Increasing revenues at small posts, and scaling profitability at large posts
• Simplifying training for counter operators
• Setting up mobile PUDO points
• Technology enabling postal strategy

The USPS Office of Inspector General recently released a report called What's Driving Postal Transportation Costs? One of the report's authors, USPS OIG senior economist Jennifer Bradley, explains some of the report's findings:

• Background to the report, including the decline in letters and the growth in input costs
• The period covered by the report and the potential impact of events such as the GFC and elections
• The areas that warrant further study
• Separating transport costs from last mile delivery costs
• Fixed costs in transporting mail and parcels
• Air transport costs, service standards, and shifting volume from air to surface
• Growth in parcels and the impact on transportation costs
• Route optimisation and reducing transport costs

Mario Mayerthaler, Head of A1 Innovation at Austrian telecom operator A1, joins me to talk about the A1 Paket Station project converting phone booths into parcel lockers. We cover:

• How A1 developed the concept
• The size and potential spread of the network
• Other sites that can host parcel lockers
• Obligations to maintain a phone booth network
• Co-operating with local stores for parcel locker access
• Working with online marketplace Shpock
• How a member of the public can directly lodge items in the lockers
• Early feedback on the A1 Paket Stationen
• Infrastructure demands of parcel lockers
• Partnership with Austrian Post and the possibility of being a carrier-neutral parcel locker network

Then I discuss UPS's latest attempt to make drone delivery work:

• Comparisons with Swiss Post's lab sample drone delivery service
• UPS's continuing push into healthcare and pharmaceutical logistics
• Competition from FedEx and others - and the need to innovate

Dean Maciuba from Logistics Trends & Insights, analyses FedEx's recent earnings call. We cover:

• FedEx's December results
• Comparison of UPS's and FedEx's peak season performance
• FedEx's international performance
• Are there global economic headwinds, or is this being used as an excuse?
• Integration of TNT and the 2017 cyber attack
• Impact of employee buy-outs on the company
• Changes to the executive management team
• Integrating FedEx Express and Ground networks
• Dean's take on the new FedEx SameDay Bot and the need to invest in new technology

Mark Harrison, Head of Markets at International Post Corporation, goes behind the data of the IPC's recent Global Postal Industry Report. We cover:

• How the postal industry is evolving
• Key postal industry trends
• Analysis of decline in letter volumes, in particular e-substitution, and comparison between sectors
• Pricing of letters, fixed costs, and volume decline
• Changing the universal service obligation
• Parcel volume growth vs e-commerce growth
• Posts partnering with delivery start-ups
• Competition in parcel delivery and the impact on margins
• Posts diversifying outside the letters business
• International operations
• Acquisitions
• Major trends that will shape the postal sector

Pierre Morin, International Relations at Canada Post, gives us an insider's perspective on how the USA vs UPU battle has been progressing. We cover:

• The impact on inbound international parcels on Canada Post's bottom line
• Shortcomings in the current international pricing arrangements
• Comparing domestic parcel rates to inbound international parcels
• Response to the USA's announcement it intends to leave the UPU
• The Universal Postal Coalition group of countries
• Mail exporters, extra-territorial offices of exchange, and the single postal territory
• The countries and postal operators benefiting from the current system
• The remaining options being discussed at the UPU, and whether or not they will address the USA's concerns and keep the USA in the UPU
• How self-declared rates work and the implications for the sector
• What's next for the UPU to resolve the issue

Angela Hultberg Head of Sustainable Mobility at the IKEA Group is my special guest. We cover:

• How IKEA is partnering with delivery companies
• IKEA's vision for 100% zero emission delivery by 2025
• Where IKEA is already using zero emission vehicles
• The kind of vehicles IKEA is using to achieve its target
• Why collaboration is central to meeting emissions targets
• Charging infrastructure
• Choosing vehicles that are appropriate for each market
• The customer experience in delivery, including day-specific and time-slot delivery, and value added services via TaskRabbit.
• How customer expectations are changing, and how that drives competition
• Staying true to a company's values in the face of competition - and how going for zero emissions impacts on fast delivery
• Packaging - including minimising, eliminating, and recycling packaging

Marek Różycki, Managing Partner Last Mile Experts, joins me to discuss residential delivery. We cover:

• Porch piracy
• Unattended home delivery
• The problems with leaving parcels unattended at the delivery address
• Evaluating leave safe options for residential parcel delivery
• How Amazon Key works
• In-home delivery, and in-garage delivery
• Personal at-home parcel lockers (pros and cons)
• Smart locks and apartment blocks
• Delivery to the refrigerator