universal postal union “connecting today’s postal sector with tomorrow’s future” © upu 2007...

Universal Postal Union“Connecting today’s postal sector with tomorrow’s future”

© UPU 2007 – All rights reservedUniversal Postal Union

The Postal SectorThe Postal Sector--

A global supply chain A global supply chain facilitator for SMEsfacilitator for SMEs

WSIS Action Line Meeting #2C7: E-Business24 May 2007, Geneva

Paul DonohoeeBusiness Programme Manager

Titre de la diapositiveOVERVIEW

1.1. Postal network overviewPostal network overview

2.2. The potential of the postal network as global supply chainThe potential of the postal network as global supply chain

3.3. ConclusionConclusion

Titre de la diapositiveA global forum for postal affairs

The UPU is the only organization that The UPU is the only organization that

represents all postal sector playersrepresents all postal sector players

Established in 1874Established in 1874

UN Specialised AgencyUN Specialised Agency

191 member countries191 member countriesGovernmentsGovernments

RegulatorsRegulators

Postal operatorsPostal operators

Consultative CommitteeConsultative CommitteeExternal stakeholdersExternal stakeholders

Universal Postal Union © UPU 2007 – All rights reserved

Titre de la diapositiveIntegrating three networks

PhysicalPhysical

FinancialFinancial

ElectronicElectronic

The worldwide postal networkThe worldwide postal networkoffers a natural gatewayoffers a natural gatewayto the information societyto the information society


Titre de la diapositiveThe worldwide postal network in figures

258 billion USD revenue258 billion USD revenue

431 billion letters431 billion letters

6+ billion parcels6+ billion parcels

4+ billion USD in international money transfers4+ billion USD in international money transfers

5.5 million employees5.5 million employeesMillions more jobs in related industriesMillions more jobs in related industries

More than 665,000 post officesMore than 665,000 post offices


Titre de la diapositiveUPU ACTIVITIES RELATED TO INFORMATION SOCIETY AND MILLENNIUM DEVELOPMENT GOALS

The postal network was acknowledged by the WSIS to be an important The postal network was acknowledged by the WSIS to be an important infrastructure for the information economy. infrastructure for the information economy.

The Summit Outcome Document paragraphs …. The Summit Outcome Document paragraphs ….

10 d)10 d) “ “Governments and other stakeholders should establish sustainableGovernments and other stakeholders should establish sustainable multi-purpose community public access points … in post offices” multi-purpose community public access points … in post offices”

11 k)11 k) “ “Design specific Design specific training programmestraining programmes in the use of ICTs in order to in the use of ICTs in order to meet the educational needs of professionals such as … meet the educational needs of professionals such as … postal workers” postal workers”

90 h)90 h) Governments and other stakeholders “… affirmed their commitment to Governments and other stakeholders “… affirmed their commitment to build ICT capacities to improve access and use of postal build ICT capacities to improve access and use of postal networks and services.” networks and services.”

Additional references in paragraphsAdditional references in paragraphs 6 d)6 d),, 9 c)9 c)

In line with the WSIS outcomes, the UPU is committed to enhance the In line with the WSIS outcomes, the UPU is committed to enhance the availability and use of ICT for the benefit of society.availability and use of ICT for the benefit of society.



SMEs and Trade: an SMEs and Trade: an uneasy relationshipuneasy relationship

Titre de la diapositiveSMEs and trade: an uneasy relationship

SMEs still hesitate to trade abroad, for many reasons:SMEs still hesitate to trade abroad, for many reasons:

A) OECD-APEC, Athens, November 2006: Global Conference A) OECD-APEC, Athens, November 2006: Global Conference on Removing Barriers to SME Access to International Marketson Removing Barriers to SME Access to International Markets

Survey of 978 SMEs worldwide to determine what barriers to Survey of 978 SMEs worldwide to determine what barriers to international markets were faced by SMEs. international markets were faced by SMEs.

Top 3 barriers identified:Top 3 barriers identified:

1. Shortage of working capital to finance exports1. Shortage of working capital to finance exports

2. Identifying foreign business opportunities2. Identifying foreign business opportunities

3. Limited information to locate/analyse markets3. Limited information to locate/analyse markets

According to this survey, SMEs that consider shortage of working According to this survey, SMEs that consider shortage of working capital to be a serious barrier also have difficulties with:capital to be a serious barrier also have difficulties with:

Granting credit facilities to foreign customersGranting credit facilities to foreign customers

Slow collection of payments from abroadSlow collection of payments from abroad

Enforcing contracts and resolving disputesEnforcing contracts and resolving disputes


B) European Commission, December 2006: “Business B) European Commission, December 2006: “Business attitudes towards cross-border sales and consumer attitudes towards cross-border sales and consumer protection”protection”

Flash Eurobarometer based on 6,606 interviews of managers (97 Flash Eurobarometer based on 6,606 interviews of managers (97

of whom working for SMEs) in the 25 countries of the European Unionof whom working for SMEs) in the 25 countries of the European Union

Paradox: 48% of the firms are prepared to trade cross-border, but Paradox: 48% of the firms are prepared to trade cross-border, but

only 29% do at allonly 29% do at all

Key reasons:Key reasons:

1.1.Perceived insecurity of transactionsPerceived insecurity of transactions

2.2.National fiscal regulationsNational fiscal regulations

3.3.Difficulty to resolve complaints and conflicts cross-borderDifficulty to resolve complaints and conflicts cross-border


C) UNCTAD, 11th Session of the Commission on Enterprise, C) UNCTAD, 11th Session of the Commission on Enterprise, Business Facilitation and Development “Improving the Business Facilitation and Development “Improving the competitiveness of SMEs through enhancing productive competitiveness of SMEs through enhancing productive capacity”capacity”

Benin's statement (on behalf of the LDCs):Benin's statement (on behalf of the LDCs):

LDCs [require] investments in transport and communication LDCs [require] investments in transport and communication infrastructure in order to bring about greater participation by infrastructure in order to bring about greater participation by developing countries in global trade. […] developing countries in global trade. […]

The promotion of multimodal transport, incorporating the services of The promotion of multimodal transport, incorporating the services of local transport service providers, is crucial to enhancing the local transport service providers, is crucial to enhancing the competitiveness of LDCs (and their SMEs).competitiveness of LDCs (and their SMEs).



Postal role of facilitation Postal role of facilitation in global supply chainin global supply chain

The potential of the postal networks of the for SME trade

Titre de la diapositivePostal network as Global Supply Chain

1. PHYSICAL POSTAL NETWORKS1. PHYSICAL POSTAL NETWORKS

Most Most populated populated

citycity

Second most Second most populated populated

citycity

ThirdThird most most

populated populated citycity

Rest of the Rest of the country country (smaller (smaller

cities and cities and rural)rural)

Median share of Median share of the population the population living in living in

(50 % over (50 % over

50 % below)50 % below)

9.3 %9.3 % 2.5 %2.5 % 1.2 %1.2 % 82.5 %82.5 %

Median share of Median share of total post offices total post offices placed inplaced in

10.1 %10.1 % 2.9 %2.9 % 1.9 %1.9 % 80.8 %80.8 %

*Source: UPU Sub Saharan Africa study Feb 2007*Source: UPU Sub Saharan Africa study Feb 2007

Post offices are distributed proportionally to the population in DCs

Titre de la diapositivePostal network as Global Supply Chain

2. ELECTRONIC POSTAL NETWORKS2. ELECTRONIC POSTAL NETWORKS

The electronic nature of the postal network allows people to The electronic nature of the postal network allows people to access postal services on the internet.access postal services on the internet.

Posts are offering their increasing ICT capability and brand Posts are offering their increasing ICT capability and brand recognition to host SME market portalsrecognition to host SME market portals

Information network of flows and movements Information network of flows and movements

3.3. INTEROPERABILITY/INTERCONNECTIONINTEROPERABILITY/INTERCONNECTION

4.4. PARTNERSHIP FOR TOTAL SOLUTIONSPARTNERSHIP FOR TOTAL SOLUTIONS

5.5. SECURITYSECURITY

6.6. INNOVATIONINNOVATION

Knowledge is becoming integrated into postal servicesKnowledge is becoming integrated into postal services

The Brazilian Post Export Service

Titre de la diapositiveCase Study: Brazil’s Exporta Fácil

The situation of SMEs in Brazil in 2000The situation of SMEs in Brazil in 2000Less than 15,000 companies exported, of which 29% were Less than 15,000 companies exported, of which 29% were micro and small companiesmicro and small companies

In Brazil, these companies accounted for 11% of the In Brazil, these companies accounted for 11% of the exports, compared to 50% in Mexico and 53 % in Italyexports, compared to 50% in Mexico and 53 % in Italy

Reasons for such a situation:Reasons for such a situation:1.1. BureaucracyBureaucracy

2.2. High cost of exportingHigh cost of exporting

3.3. High logistics and product delivery costsHigh logistics and product delivery costs4. Logistics specialized in large volumes.5. Complex Formal Processes.6. Absence of exportation culture.

Titre de la diapositiveAn answer to these problems: Exporta Fácil

Exporta Fácil is a complete solution to facilitate the Exporta Fácil is a complete solution to facilitate the export process developed by the Brazilian Post in close export process developed by the Brazilian Post in close cooperation with the Brazilian governmentcooperation with the Brazilian government

1. Availability and affordability1. Availability and affordability

Available at all Brazilian Post officesAvailable at all Brazilian Post offices

Affordable for SMEs, craftsmen or even small farmersAffordable for SMEs, craftsmen or even small farmers

2. Accessible information2. Accessible information

• Collects information on exportersCollects information on exporters

• A tool for exporters to consultA tool for exporters to consult

– RestrictionsRestrictions

– Additional Documentation Needed Additional Documentation Needed

– Estimated DeadlinesEstimated Deadlines

– Merchandize codesMerchandize codes

• Price SimulatorPrice Simulator

• Automatic fill out of the AWB Automatic fill out of the AWB

www.correios.com.br/exportafacilwww.correios.com.br/exportafacil

Titre de la diapositiveCase Study: Brazil’s Exporta Fácil

3. Integration/Interoperability:3. Integration/Interoperability:

Exporta Fácil simplifies the customs processes:Exporta Fácil simplifies the customs processes:

Does not require exporters and importers registrationDoes not require exporters and importers registration

Centralizes customs control: the Post is the only logistics Centralizes customs control: the Post is the only logistics

operator in Brazil with customs operations within its premisesoperator in Brazil with customs operations within its premises

Sends the export certificate to the customerSends the export certificate to the customer

• Simplification of the exporting process

History

Documents Usual Way Exporta Fácil Way

Shipping Clerk Yes -

Dispatch Tax Yes -

Costumer Dispatcher Sindicate Tax

Yes -

Origin Certificate Yes Yes

Transportation until the airport

Yes -

Airport Taxes Yes -

Exchange Duties Yes Yes

Through Exporta Fàcil, the Through Exporta Fàcil, the administrative costs of the export are administrative costs of the export are reduced to 1% of the value of the merchandise, down from 16%reduced to 1% of the value of the merchandise, down from 16%

Results

Amount exported (x1000 USD)

3,294.05

6,229.55

11,751.51

15,665.86

18,087.65

6.024,53*

2001 2002 2003 2004 2005 2006 * Until April

Results

Main Destinations (amount exported)

UNITED STATES57,1%

JAPAN5,1%

PORTUGAL3,1%

UNITED KINGDOM

3,0%

ARGENTINA2,8%

CHILE2,8%

OTHERS26,1%

22

Integration of Poste Italiane’s Assets

An integrated or modular platform to satisfy all customer needs Partnership strategy to cut development costs (technological partnerships) and increase

market penetration (commercial partnerships)

An integrated or modular platform to satisfy all customer needs Partnership strategy to cut development costs (technological partnerships) and increase

market penetration (commercial partnerships)

• Poste Italiane’s e-commerce



CONCLUSIONCONCLUSION

Titre de la diapositiveCONCLUSION

SMEs don’t have the logistics capacities of larger companiesSMEs don’t have the logistics capacities of larger companies

Producers and Consumers need to be connectedProducers and Consumers need to be connected

The tri-dimensional postal network is capable of movingThe tri-dimensional postal network is capable of moving

goods, goods,

communication,communication,

information and information and

moneymoney

from anywhere to everywherefrom anywhere to everywhere..

Easily-accessible global supply chain for SMEs.Easily-accessible global supply chain for SMEs.

AffordableAffordable

UniversalUniversal

Non-discriminatoryNon-discriminatory



THE POSTAL SECTOR ….THE POSTAL SECTOR ….

DELIVERING A TRUELY DELIVERING A TRUELY WORLDWIDE WORLDWIDE

INFORMATION INFORMATION SOCIETYSOCIETY

Paul DonohoePaul Donohoe

eBusiness Programme ManagereBusiness Programme Manager

+41 31 350 3450+41 31 350 3450

[email protected]@upu.int

universal postal union “connecting today’s postal sector with tomorrow’s future” © upu 2007...

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