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  • 1. June 2012Online at All change How should postal services manage the move to digital alternatives? Leak proofing Postal revenue loss can be highly damaging. Heres how to plug the leak PhysicaleducationWill perceived weaknesses incyber security drive a return to more traditional post?

2. 40 PARCEL DROP BOXESBoxing clever ARE PARCEL DROP BOXES ABOUT TO BE SEEN IN FORCE IN CITIES THROUGHOUT EUROPE AND BEYOND? ANDREW PICKERING FINDS OUTIn 2008 Polish postal operator InPost wasmore cities and more locations and now, just growing rapidly in its mail business but wasthree years later, we have over 420 machines in well aware that future success would involve130 cities. But to be successful with this e-commerce and parcels. Knowing that it would service you not only need locations but also a be very difficult to compete against the majorlarge number of senders, and that is something global express carriers, the company began to we have concentrated on developing. Over the look at other ways of getting into that sectorpast year we have spent a lot of time working and came across automated parcel terminals. with e-retailers on joint promotions to boostWe were immediately attracted by thesedeliveries to EasyPack machines. We carried locker boxes and thought that they might be a out 97 joint promotions with stores and in good solution, says Marcin Bosacki, InPosts some cases saw an increase in deliveries of 200 head of international business. We did someto 300 percent. At the end of 2011 we had research and discovered that all the solutionsabout 1,000 e-retailers working with us and available at that time were very expensive andover 3,000 regular senders from internet auction that the return on investment would be aboutsites. Right now we have over 300,000 users 10 years. So we decided to invest some moneywho regularly receive parcels using EasyPack on research and development and ended upand the number of parcels sent is also growing developing our own hardware and softwaremonth by month. In fact the total number from scratch.grew by 400 percent between 2010 and 2011.Looking at implementations of automatedIn November and December 2011 InPost terminals in other countries, InPost discovered conducted its first television advertising that many were running pilots with just five or campaign, targeted at end users of the service, 10 machines, with the only country with anaffluent people in larger cities who do a lot of extensive network being Germany. InPost was online shopping. The aim was to promote the convinced that its solution would be very solution as an easy way of collecting parcels, successful and was determined to commence not sending, and was seen by 5.4 million operations with a major nationwide networkpeople out of a population of 38 million. from day one. It is also apparent, however, that there isWe decided that we would start with 100 demand from end users who wish to use EasyPack machines in 30 cities and did so onEasyPack to send parcels. Initially we thought 1 June 2009, says Bosacki proudly. We that people would use the service only for developed the solution in Poland and addedcollecting parcels but we started to get June 2012 3. PARCEL DROP BOXES 41June 4. PARCEL DROP BOXES 43Pinebridge partnershipIn April it was announced that InPosts owner,, and global multi-asset investmentmanager PineBridge Investments was to make a E108 million joint investment to developthe EasyPack system across Europe and CIS countries. will make a cash andcapital investment of E58 million over two years, while PineBridge Investments willprovide E50 million. Rafal Brzoska, CEO of the Group commented, We are very pleased with thisproject and look forward to working closely with PineBridge Investments as we roll-outour ambitious international growth strategy. 2011 was an important year of growth for theEasyPack system as we won contracts to implement the units in a number of globalmarkets, and we have continued to expand the range this year into countries such asLatvia and Ireland. The agreement with PineBridge will allow us to further strengthen ourposition and capture the major growth opportunities we are seeing in this sector. We have been impressed with the success of to date and, particularly withthe results achieved by EasyPack in Poland and look forward to supporting the company inits international expansion, said Rossen Hadjiev, managing director of PineBridge Marcin Bosacki Investments (Central Europe).feedback that people were also interested insending, so we introduced that capability soEasyPack broke have been incredibly successful and only lastyear signed about a dozen contracts includingthat people could send parcels as well, but itwasnt a big percentage of our volume. One ofeven after only one with Estonian Post, which will deploy oursolution in the whole of the Baltic region, asthe reasons for the low take-up could havebeen the need to label parcels at home prior to18 monthswell as with other companies in Russia, Spain,Chile, Saudi Arabia and a few other countries.sending, so in the autumn last year we Since then, however, InPost hasintroduced the new service wherebyreformulated its strategy somewhat. Initially itsindividuals can send a parcel without a label. If aim was to sell the whole concept to differentthey know only the mobile number and postal posts, but in many cases this took a long timecode of the receiver they can send a parcel and because the posts required formal tenderwe print the label on their behalf later on. processes because of the a size of theinvestment. Others were only interested inExpansion into Europe Far from beingconducting a trial of the system, which Bosackicontent with its achievements in the Polishmarket, InPost is planning a major expansionof EasyPack throughout Europe. The systemhas evolved a lot over the past year or so, saysBosacki. As well as developing all thehardware and software by ourselves, one of ouradvantages is that we are also real users whotalk to senders and end users, so we knowwhat we should be improving to make oursolution successful. Theres no doubt that this approach hasworked for InPost because EasyPack brokeeven after only 18 months. We proved inPoland that the concept worked and wewanted to gain additional benefit from ourinvestment. So in 2010 we showed themachine at Post-Expo with that aim ofexporting the whole business solution to otherpostal operators. We received very positivefeedback and started discussions with postsand express carriers all over the world. We Soon to be a familiar sight throughout Europe?June 5. 44 PARCEL DROP BOXES believes would be doomed to failure as there is little point in putting five or 10 machines in a big country.Creating profit from boxes Bosacki explains how this plan wasCleveron is currently the only parcel delivery solution provider to succeed in creating a implemented. With the help of the privateprofitable and adaptable business model. In 2010 this led the Finnish logistics company equity we announced in April, we intend toItella to acquire SmartPost, the brand created by Cleveron to market its self-service parcel place our machines all over Europe and charge delivery system in Estonia. Running on Cleverons initial business model, Itella SmartPost senders, postal operators and express carrierswent on to conquer 40 percent of the parcel delivery market in Estonia in just 2.5 years and on a pay-per-parcel model. No one except us with support from the growing e-commerce sector is now rapidly expanding in Finland. will have to make a decision about the huge What is behind this extremely rapid adoption? In Cleverons experience, it is the whole investment required as we take the whole risk package of business processes, operating principles and technology not simply involved in installing the machines and willtechnology alone. In designing its model, the company has emphasised a customer-centric build the whole European network ourselves. approach. While many novel technology providers focus their efforts on satisfying the We see ourselves as partners with otherneeds of the postal provider, Cleveron has found that it is far more effective to start by postal operators and express carriers. This yeardetermining and building around the needs of the customer. This ensures that the eventual we want to start our network in five or six operating model revolves around the people that actually make the business profitable and countries. Among these will definitely be is certainly one of the reasons behind reaching 20 percent market share in e-commerce Poland, Russia, Slovakia and the UK, plus two parcels in Estonia just 12 months after launching in 2009. or three more in western Europe. Cleverons existing partnerships in Estonia, Finland, Russia and Kazakhstan have InPosts implementation plan is indeedbenefited from the companys experience in fast-track implementation, which has been impressive, with the goal being to place 16,000 able to save providers from costly experimentation. Now that the business model has been machines in Europe by 2016. Almost 1,500 of proved, new projects in Denmark, the Czech Republic, Slovakia and Ukraine will be able to these will be in place by the end of this year, skip the pilot stage of implementation and head straight to the fully operational phase. 4,500 by the end of 2013, 6,800 by 2014, 11,000 by 2015 and 15,000 by the end of 2016. That is more or less the timeline for that project and in addition we are stillIf the market is Neopost also has a web-based application fore-commerce along with track-and-trace integrating systems in the countries we won contracts with last year, says Bosacki.big enough we services. When we add our EasyPack parcelterminals into that mix