Dap webinar automation for emerging economies
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Transcript of Dap webinar automation for emerging economies
Evaluating Postal Automation for Middle Income Countries
June 20, 2013
Benefits of Postal Automation
3
Transforming the postal service
from necessity to opportunity
Webinar Outline
� Introduction
� Benefits of Automation for Postal Operators
� Automation for Mail and Parcels
� Trends
� Strategies for Automation
� Automation Maturity Model (AMM)
� Revenue Leakage Protection
� Retail Automation
4
Benefits of Postal Automation
� Increased operational productivity and efficiency – Reduced costs
� Reduced labor (levels vary according to automation strategy)
� Improved operations forecasting
� Better labor planning & assignment
� Better vehicle and machine utilisation
� Increased flexibility and adaptability
� Revenue protection
� Increased service quality
� Fewer delivery errors
� More consistent service
� Gateway to new services
� Time-dependent services
� Mailers and Advertising (Contracts – discount – billing)
� Intelligent barcodes (Personalised services)
5
Automation for Mail and Parcels
6
Automation Technology
� Letter Sorting
� Buffer Systems
� Robotic and Manual Bin Sorters
� Shingle Letter Sequencers (SLS)
� Flat and Registered Mail Compact Sorters
� Flat and Parcel All-in-one Sorters (Plurisorter)
� Parcel Sorters
� OCR,
� Video Coding
� Sorting Address Management
� Track & Trace
� Postal Counter
� International Mail System
� Hybrid Mail
� Postal Hand Held Terminals
� Parcel Terminals
7
Trends in Postal Automation (1/2)
� Improved address recognition
� Better, cheaper
� Modular
� Leveraging the information
� Smaller is better
� Lettermail sorting machines more
accessible to operators, mailers
� Machines handle letters and
flats.
� Mailers invest in automation if
they receive incentives
8
Solystic MARS sorting machine
Trends in Postal Automation (2/2)
� Tracking and tracing
� Cheaper
� Smarter (Intelligent mail barcode)
� Integrated across value chain
� Kiosks
� No longer an experiment
� Parcel terminals
� Integrated into the distribution
system
� Service diversification
� Returns management
� Cross-border
� Logistics integration
9
Operational Components of
Postal Automation
10
Address
System
Tracking &
Monitoring
Sorting &
Distribution
Operations
Planning
Enterprise
Integration
Delivery
Management
Platform
Access
Operational Components of
Postal Automation
� Foundation of automation program
� Various address approaches – Ongoing improvements
� UPU – EURADIN – World Bank
� Address recognition (Multiple language – script)
� Involve business community
� Sorting and network strategy
� Incremental automation initiative
� Modular network approach
� Centralized or not?
� Incremental approach
� Revenue protection
� Quality management: operations and customer sides
� Scoreboard
11
Address
System
Tracking &
Monitoring
Sorting &
Distribution
Operational Components of
Postal Automation
� Visibility
� Volume counts - Origin/Destination Data
� Capacity management
� Labor and equipment right-sizing
� Increased flexibility – adaptability
� ERP
� Back-office integration
� Labor management
� Volume counts help route management
� Service-driven delivery (right-day)
�
12
Delivery
Management
Enterprise
Integration
Operations
Planning
Operational Components of
Postal Automation
� Induction of postal items into the network (Mailers, Government)
� Address correction – moves
� Tracking integration across the supply chain
13
Platform
Access
Applications
Infrastructure
• Physical
• Information
• Financial
Network Automation Strategies (1/2)
� Parcel? Mail? Both?� Parcels: Growing market
� Parcel may be easier/simpler but mail may provide more savings in the long run
� Parcel processing network may be split from mail processing network
� Keeping the delivery network for both?
� Introducing new services: Logistics / Ad mail / Hybrid mail
� Future-proofing the Strategy� Implementing an automation strategy takes commitment, time, effort & resources
� Develop a roadmap
� Incremental Approach
� Identify easy wins – high density areas and flows
� Start simple (low depth of sort – a few separations – dense O/Ds)
� Increase automated network over time
� Strong address management program
14
Network Automation Strategies (2/2)
Network Topology
� More centralized networks � Trading labor for distance
� Highway-accessible plants
� Mailer induction
� Increasing network flexibility &
adaptability� To reduce cost
� To improve service quality
� Leveraging the private sector� Generate mail volumes
� Providing incentives for automated mail and plant induction
15
Network Automation Strategies (2/2)
Network Topology
� More centralized networks � Trading labor for distance
� Highway-accessible plants
� Mailer induction
� Increasing network flexibility &
adaptability� To reduce cost
� To improve service quality
� Leveraging the private sector� Generate mail volumes
� Providing incentives for automated mail and plant induction
16
Automation Maturity Model (AMM)
� Assessment of current postal automation readiness
� Chart a technical, organizational, and operational transformation path
ADR ORGMKT NET
AddressInfrastructure
Mail & ParcelMarket
Postal Network
OrganizationalReadiness
• Country Address
System
• Address Data
• Postal Code
• Readability Issues
• Address Change Mgt
• Mail/Parcel Volumes
and O/D Pairs
• Mail/Parcel
Characteristics
• Advertising Market
• Mail Service Providers
• Regulatory Envrmt
• Service Requirements
• Operational Tempo
• Network Topology
• Cost Factors
(transport, labor)
• Performance
measurement
• Planning
• Organization
Commitment
• Financial Posture
• Skills
• Change Management
Automation Maturity Model:
Maturity Levels
Maturity Level
Name Maturity Characteristics
5 Pioneering Breaking new ground, industry-leading innovation
4 Optimizing Optimizing postal automation to benefit entire organization; may reach beyond organization; increased automation
3 Integrating Integrating postal automation across the organization; realizing measurably improved performance
2 Enabling Investing based on clear strategy; implementing projects to enable enterprise-wide automation (may be compartmentalized)
1 Initiating Taking the first steps, exploring options, conducting experiments, and developing a postal automation vision
0 Default Default level (status quo)
Revenue Leakage
19
Combating revenue leakage
Definition*
� Combating revenue leakage consists of
engaging in activities that help a Post:
� Collect all the postage revenue owed to it, and
� Curb the sources/reasons of leakage.
� Leakage stems from one of four main risks
� Counterfeit (e.g., illegal issues, fake imprints)
� Bypass mail (e.g., mail inducted
without any form of payment)
� Shortpaid or underpaid (e.g., mail
tendered with insufficient postage)
� Problems related to billing or
postage collection
(e.g., bad cheques; accounting errors)
20
* Source: UPU Consultative Committee – Postal Revenue Protection Working Group
Sources of leakage – three dimensions
21
Mail Preparation and Point of Induction
Paym
en
tC
hannel
� Revenue leakage varies
depending on:
� The payment channel
� The product type (shape/weigh)
� The preparation of the mail and
its point of induction
� The multiplicity of options
increases the exposure to
revenue leakage
22
Stamps
On
lin
e
Stamps Meters
Mete
rs
Permit
Meters Permit Permit
Residential mailers Small business mailers Large mailers
Single
Piece
Bulk
On
lin
e
Solutions must be adapted based on
the highest payback.
Oth
er
Oth
er
Lab
els
Lab
els
35%
65%
80%15%5%
Darker = intrinsically higher risk channel
23
A broad choice of automation technology is available
Evidencing
• Deployment of digital meters in smaller emerging markets• Anti-fraud security measures (special inks, holograms…) for stamps
Acceptance/verification
• E-documentation • Sorters/counting machines for piece count (for sampling, verification
or terminal dues purposes)• Modular dimensions/weight/data capture solutions for use in post
offices
Processing
• Lower-end sorters suitable for mid-tier posts• Large CFC with on the fly weighing of parcels or letters
• Capability to trace back an item to a specific sender
Billing/reconciling software solutions
(e.g., USPS Permit RP project)
Retail Automation
24
The retail branch provides a source
of rich customer experience
25
Richness of Experience
Fre
qu
en
cy o
f U
se
• Complex transaction handling
• One-to-one marketing & sales
• Local community branch svcs
• Customer service & issues
resolution
• Financial planning and
advising
Technology in the retail branch
26
Digital Signage
Kiosks
Technology BarSmart Layouts
Retail Automation - Kiosks
27
� Purchase stamps and/or label (individual, sheets).� Print on demand. No need to tie up large amount of cash for stamps on
consignment -- print on demand sheets of postage
� Weigh items and access all available tariffs by class of service.� Shop rates. Compare the cost of different services.
� Select advanced features such as delivery confirmation, signature confirmation,
etc..
� Print postage/labels.
� Mail domestically or internationally.
� Keep track of expenses. Print out a receipt for accurate record keeping for shipping transaction.
� Cost-effectiveness. A single kiosk can serve thousands.� Convenience. Self-service functionality and open 24/7.� Savings. No staff required.� Customer convenience. Intuitive and simple to use.
Retail Automation – Point of Sale
Systems
� Automation of many branch functions
� Increased revenue opportunities by
adding new services � Government services
� Postal financial services
� Third-party services
� Revenue protection � Accountability helps combat leakage
� Integration across channels to extend the
reach of post office and retail environments:� Supporting franchises and corporate customers
through remote and self-service solutions
� Branding� Securing brand awareness in a franchised
network
28
Integration of Postal Counter
Services
Retail Software
Suite
Point of Sale
Systems
Kiosks
Business Intelligence Reporting
PO BoxesCustomer Web Portal
Postal Financial Services
Philately
29
� Integration across customer channels
� Branches, Web, Kiosks
� Unified view of the customer across products/services
� Customer intelligence via business intelligence
reporting
� Business data for marketing and product analysis
� Integrated management of cash, stamps, and supplies inventories
� Streamlined processes across a dispersed network of branches
� Scalability from a micro post office to a large
business centers
� Customization of services based on type of branch
Last Mile Automation
30
Last mile automation – Parcels
terminals
31
� The e-commerce boom is pushing the rise of parcels
terminal networks:� DHL: 2,500 PackStations in 1,600 cities.
� Integer.pl: 16,000 easyPack terminals in Europe by the end of 2016
� Itella Group: 350 stations by 2015
� Post Denmark expanding from 131 to 200 “Døgnposten” units
� Nightline plans : 400 “Parcel Motels”
� Consumers delivery/pickup expectations are on the rise
� UPS My Choice� FedEx’s Delivery Manage� DHL’ Control Cockpit� GLS Germany’s FlexDelivery Service
� The convenience of anywhere/anytime e-commerce is met
by the convenience of anywhere/anytime pickup at reduced costs
Last mile automation – e-fulfillment
support
� Mobile software solution to support last mile B2C deliveries. Generates customer alerts, initiating the negotiated delivery process. � Recipients negotiate delivery windows, ensuring timely
receipt, minimized delivery costs and heightened
customer satisfaction.
� End-to-end visibility from mailer/shipper via carrier to recipient. Use of wireless technologies and ‘intelligent agents’ to provide a personalized delivery solution.
32
� Accurate determination of recipients availability
� Increase in productivity
� Increase in number of successful first-time deliveries
� Substantial reduction in costs and labor
� User preferred delivery times facilitates more efficient delivery routes
� Potential to negotiate reduced delivery charges with third-party local couriers
Benefits of Postal Automation
33
Transforming the postal service
from necessity to opportunity
34
> insight > action > transformation