Delivery optimization and retail transformation also rank high with e-commerce seen as most important in Escher's seventh annual survey of postal operators
BOSTON, Aug. 28, 2023 /PRNewswire-PRWeb/ -- Escher, the global leader transforming postal operators and couriers, today announced the results of its annual Future of Posts survey. The Future of Posts 2023 Report highlights insights from 271 respondents from 90 national post offices worldwide. The seventh edition of the Future of Posts report offers a unique glimpse into the global postal community's operating methods, range of services, key investment areas, automation strategies, point-of-sales channel selections, future network plans, and more.
Network Strategies Rapidly Shifting
In this year's report, more than half of Posts indicated they are rethinking their strategies for their retail network (56%) and delivery network (51%) strategies, up substantially from last year. The noticeable increase in Posts reconsidering their retail and delivery network strategies indicates the numerous challenges they face today. The report outlines several factors accounting for the results, with high costs significantly contributing.
Last Mile Transformation & Delivery Optimization
Last-mile delivery remains Posts' top investment priority over the next three years. Stalled revenue growth and a deterioration in profitability across the delivery network have caused Posts to look more to technology to solve last-mile cost issues. As such, delivery optimization strategies designed to help Posts reach the right cost profile are a major focus this year. Notably, far fewer Posts this year are investing to increase parcel capacity compared to last year. Instead, Posts are making the most of existing delivery network investments.
Retail Transformation Critical
Operating costs for a traditional retail network comprised primarily of post-owned post offices is a significant factor, with more Posts shrinking their network (14% this year vs 11% last year), and far fewer postal operators accelerating their retail network expansion strategies. Yet retail is a key component that will improve customer experience and help drive new service opportunities for Posts.
"Despite the challenging environment over the past year, including the massive fluctuations in parcel volumes, Posts are cautiously 'getting back to business', rebooting growth strategies while prudently managing costs," said Brody Buhler, CEO of Escher Group. "Postal operators expect e-commerce to exert the greatest influence over their business over the next five years. Posts that can improve the cost structure of their retail network while concurrently expanding it, in addition to optimizing their delivery network, will be in a far better position to compete, enhance customer experience through digital transformation, capture market share, as well as capitalize on several opportunities identified in this report such as cross-border, reverse-logistics, and financial services. "
Other Highlights from the 2023 Report:
- Over the past twelve months, the most significant impact on Posts was a drop in parcel and letter mail volumes.
- As noted above, stagnating growth and declining profitability are causing Posts to rethink their retail and delivery network strategies.
- Reorganization, new strategies, and automation are the top ways Posts are dealing with parcel volume fluctuations.
- Posts have increased investment focus this year on last-mile delivery, track and trace, cross-border e-commerce, domestic e-commerce, and government services.
- Once again, Posts expect that improving the customer experience will create the most value across the retail channel. Digital transformation will make this a reality.
- Posts that provide in-store mobile, self-service, and consumer mobile across the retail network can dramatically enhance the customer experience and improve their cost profile.
Get the Report
To download a complimentary copy of Escher's Future of Posts 2023 report, please visit: http://www.eschergroup.com/resources/the-future-of-posts-2023/.
About Escher
Escher powers the world's first and last mile deliveries, helping Posts connect nearly 1 billion consumers with global ecommerce networks. Postal operators rely on Escher to deliver an enhanced retail and digital customer experience, to activate new revenue streams, and to realize new delivery economics.
The company's award-winning customer engagement platform, Riposte, and Escher's full-service support help Posts become next generation enablers of ecommerce. First and last mile delivery becomes streamlined, efficient, and profitable and is powered by the most customer-centric, low-cost, retail network imaginable. Posts can also rapidly expand and deepen all points of engagement with ease and in a highly cost-effective way.
Learn more at http://www.eschergroup.com.
Media Contact
Kim Peterson, Escher Group, (720) 316-4517, [email protected], https://eschergroup.com/
SOURCE Escher Group
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