Many of Europe’s post offices are struggling due to varying
degrees of privatization and declining mail volume. As such, many are reinventing
themselves particularly as online retailing continue to grow and demand for
parcel delivery solutions, efulfillment services and cross-border European
solutions increases.
The UK’s Royal Mail is a classic example. In the midst of
its privatization process, it saw letter volumes decline 9% in 2012. However, its
parcel subsidiary, Parcelforce, accounted for half of the group’s revenue. As a
result, the Royal Mail announced plans to invest £75m in Parcelforce’s network
including a new parcel processing centre in Chorley, new depots in Cornwall and
Hampshire, and the expansion or relocation of nine further depots over the next
four years. Parcelforce’s IT will also be upgraded, replacing existing legacy
systems.
France’s La Poste has been quite innovative and aggressive
in its ecommerce offerings. Its two parcel subsidiaries, GeoPost and Coliposte,
combined, represent the second largest parcel operator in Europe, with service
offerings spanning the continent. Besides parcel delivery, La Poste also provides
e-fulfilment services via a recent acquisition of Neolog and Orium. Orium has efulfillment
sites in France, Spain, Portugal, Italy, Germany, Switzerland and the UK.
Another innovative post office is the Netherland’s PostNL’s
subsidiary TNT Post. Like La Poste, it to offers efulfillment services. It also
provides cross-border return solutions as well as an interesting service,
eYouPack, an “all inclusive” e-shipping to Europe tool that via partnerships
with Deloitte and Ernst and Young manage cross-border rates and taxes such as
configuring VAT.
Other European post offices such as Belgium’s bpost and the
Scandinavian PostNord are also offering creative ecommerce solutions to meet
the needs of their customers and beyond.
Europe’s post offices present both a challenge to logistics
providers as well as one for opportunities. A challenge in that post offices
appear to be becoming a clear competitive threat within the ecommerce logistics
sector while at the same time partnering with post offices may bring
established networks and other solutions to those logistics providers in search
of expanding offerings in the European ecommerce market.
