Business

Australia Post CEO: Two-speed mail service from 2015

FAST-PACED WORLD: Australia Post is changing its business model and wants to know what you think.
FAST-PACED WORLD: Australia Post is changing its business model and wants to know what you think. AUSTRALIA POST

AUSTRALIA Post has announced a two-speed mail system for regional Queensland.

The changes are outlined in a letter from managing director and chief executive Ahmed Fahour:

 

THE rise of the internet and digital economy is changing Australia Post.

Australia Post recently announced an overall loss for the second half of the 2014 financial year, marking the first time our business has made a half-year loss since being corporatised in 1989.

And while I am confident we will sustain Australia Post's role in the local community, we have now reached a turning point where we must address the growing financial losses in our heavily regulated letters services as the result of declining mail volumes.

Since the peak six years ago, the number of letters delivered per letterbox has fallen by a third, as Australians have embraced digital communications.

So if six years ago you received, on average, three letters a day, today you will receive two.

This decline in volume has resulted in about $1 billion of accumulated losses in our letters business.

So the challenge for us is to manage the decline of letters, while also capitalising on our opportunities to serve our customers in new ways.

At the forefront of our mind is maintaining our network of more than 4400 post offices that place us at the heart of Australian communities.

This includes more than 520 post offices in regional and rural areas of Queensland, where sometimes we are the only service provider in town.

Strengthening and modernising the post office network will help us continue to be a trusted and useful service provider.

And we've already started this process. We're expanding our footprint of superstores, a modern-day GPO, to have 50 in regional and rural centres by the end of the decade including Cairns and Toowoomba.

These stores will feature a range of new technologies and services designed to cater for our customers' changing needs.

From this November, we will also open our corporate post offices on Saturdays and extend the existing network of Express Post letter and parcel deliveries to six days a week.

And from next year we want to introduce a two-speed letters service, providing customers with a choice over how they send letters.

This includes a "priority" service delivered five days a week and a cheaper "regular" service delivered to a slower timetable at a lower price.

Doing this allows Australia Post to reduce the losses we make on our mail delivery, primarily used by government and business customers, who send more than 95% of all mail.

The alternative is the taxpayer subsidises senders - a notion we do not support.

Ensuring the sustainability of more than 470 independently owned small businesses operating as licensed post offices and community postal agencies in regional Queensland is a key focus.

These post offices are facing the same challenges of declining letter volumes and retail foot traffic as the rest of our network and we are reliant on them to ensure all Australians are able to access our services.

Over the past 12 months we have increased the payments we make to them, but more importantly we are ensuring they have the right technology to be able to offer the services their local communities need.

For 26 post offices in Queensland that are using manual processes, we're offering an electronic point of sale connection to Australia Post's systems, which will change both what they can offer to their customers and the efficiency of how they manage their businesses.

This modernisation process will take time but it's a change we must make. Simply continuing to do what we have done in the past will not ensure our future, so we are changing today.

Whatever changes are introduced, our posties will continue to deliver five days a week to your street, while there is still demand for this service from senders.

You will continue to see our post offices across the country serving the community on a range of important trusted services. This won't change.

I encourage you to jump online at www.auspost.com.au/conversation to tell us how Australia Post can remain relevant to you and your local community.

Topics:  australia post, editors picks, post




Latest deals and offers

Gladstone couple's spontaneous Gympie Muster wedding

Craig Oglesby and Brenda Strong celebrate their wedding at the Gympie Muster with punters in front of the Main Stage.

The Gympie Music Muster was the perfect place for a wedding.

Australian Survivor's Peter: I'm no quitter

Australian Survivor contestant Peter Fiegehen.

ILLNESS forces castaway's early exit from Samoa.

Diva's sister on soliciting charge

FILE - In this May 14, 2016 file photo, Mariah Carey attends the 27th Annual GLAAD Media Awards, in New York. Carey will appear on the Oct. 5 episode of the Fox series, \"Empire,\" the network confirmed Monday at a TV critics bi-annual press tour. (Photo by Charles Sykes/Invision/AP, File)

Mariah Carey's sister has been arrested on charges of prostitution.

Tom Cruise private jets his gym kit around the world

Tom Cruise

Tom Cruise charters private to take his gym kit around the world

Movie behind Depp and Heard split to be released

Soon you'll be able to see the movie that ended the marriage

Bindi's boyfriend helps release huge croc

Chandler (far right) helped the jump team.

Chandler Powell helps catch Duncan the croc

Warning for unit investors with price plummet prediction

The warning signs are flashing for one real estate sector in 2017 despite others performing the best they have in years and it's not going to be pretty.

One real estate sector looks set for a rocky 2017

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m

$100m plan for Curtis Island 'world class' luxury resort

$100 million resort: Top views at Turtle Street at Curtis Island.

"At the moment we think it meets all the town planning approvals.”