Stream B: A strategic opportunity - capitalising on the growth of e-commerce
Price vs. speed? – balancing two conflicting priorities
Getting it right for the end-user: prearranging time of delivery
Reverse logistics: assessing the challenges and opportunities
Tailoring the offering to serve a diverse range of customers
Providing fast and low cost parcel delivery
Rafał Brzoska, Chief Executive Officer, InPost
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
InPost in the last 12 months …
Changes since our last presentation in Amsterdam in March 2009 at the
European Postal Services conference
Mail volume grew from 4.4 mln items to 10 mln items per month
New sorting hub and 3 automated sorting machines
Launching Paczkomaty 24/7 project – 250 automated parcel terminals
are now present in 59 cities and growing
Rebranding of the company (new logo, new claim, 3 new websites,
presence in social media) – InPost. Modern Post
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Agenda
Very briefly about InPost
E-commerce in Poland
InPost solution towards e-commerce
New e-solutions
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Briefly about InPost
Integer.pl Group - introduction
Distribution of unaddressed mailmarket leader in distribution for
supermarket chains
Postal serviceslargest independent postal operator
Financial servicesBasic financial and insurance services
offered in 100 Point of Sales
Distribution of UDM in UkraineOperations started in January 2009.
Currently present in almost 100 citiesAutomated parcel terminals
250 machines in 59 cities
Logistics serviceslogistics support to Group’s
subsidiaries
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Standard, express and registered
express letters, parcels as well as
manufacturing and installation of
commercial mailboxes
Main focus on business customers
(95% of income).
Integer.pl – UDM InPost InPost Finance
Integer.UaUDM in Ukraine
InPost Paczkomaty e-commerce
Hybrid mail transactional
Market liberalisation
in Poland from 2013
1999 2006 2007 2009 2009 2010 2013
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Growing mail volume of InPost
Growth from 0,3 million letter per month in Q4 2006 to9 million letters per month in Q4 2009
Goal for Q4 2010 is to deliver 19 mln letters a month
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
E-commerce in Poland
Postal market: 1990 vs. 2010
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
E-commerce – World Stats
Source: IMRWorld, 16.03.10
1.82 billion Internet users
Almost 500 billioneuro spent on e-retail
Constant growth of e-commerce
Further prospects for growth
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Reasons to launch Paczkomaty 24/7 in Poland
Very dynamic e-retail growth in the last years
13 bln PLN –Polish e-
commerce market size for
2009 according to Sklepy24.pl
36.4% growth compared to 2007
Almost 7.500 e-stores active inPolish internet
6.9 mln Polespurchased sthover internet
Source: Polish e-commerce, Polish DMA & E-commerce Poland, Sklepy 24.pl
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
InPost solution towardse-commerce
Paczkomaty 24/7
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Size Number of boxes Max dimensions (in cm)
Size A 32 8 x 38 x 64 cm
Size B 32 19 x 38 x 64 cm
Size C 12 41 x 38 x 64 cm
Automated delivery terminalssystem for a shipment collection
The answer for a fast growing e-commerce market in Poland thatmeet customers needs (fastdeliveries, longer opening hours –24/7 and attractive prices)
Locations: 250 locations in 59 cities
450 locations in H1 of 2010
Paczkomaty 24/7
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Process overviewDelivery option
Onlinepurchase
Parcel collection from Paczkomat
SMS / email notification
Delivery time
1. Email / SMS notification about parcel being delivered to the machine
2. The customer has 3 days for parcel collection1. After 2 days email / SMS notification is sent to customer reminding about the parcel in the machines
3. After 3 days parcel is then transferred to InPost’ regional branch
4. Customer has 11 days for parcel collection
5. After 14 days the parcel is then returned to sender
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
No need to queue at post offices or await for courier – youdecide when and where you want to collect the parcel
Accessibility - open 24 hours a day, 7 days in a week
Deliveries within 2 working days
Competitive prices
Email / SMS notification when the parcel is put into themachine
Benefits
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Postal dilemnas …
Price vs. speed? – balancing two conflicting priorities
Getting it right for the end-user: prearranging time of delivery
Reverse logistics: assessing the challenges and opportunities
How does InPost solves those problems …
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Price vs. speed? – balancing two conflicting priorities
… why not to do both?
Price the lowest price on the market
reducing the problem of the last
mile
Speed open quality policy - stats
available on the web every day
96.7% delivered next day
standard service is D+2
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Getting it right for the end-user: prearranging time of delivery
… why not to give the customer to decide?
35% of parcels collected during first 6 hours
53% collected during first 24h
Almost 40% of parcels collected during night hours (18:00 – 8:00)
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Reverse logistics: challenges and opportunities Reverse logistics:
Imagine cable / telecom companies selling internet modems
Customers have return labels that they can only scan and put it
back to the automated parcel terminals
Other improvements:
Option to reserve boxes for senders for 12 hours
Targeted advertising on the screens of the machines
Prolonging the time to keep the parcel inside the box with 1 SMS
(premium paid text message)
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
New e-solutions
Mail volumes are declining … In most countries mail volume is declining, parcel business is growing
InPost volume is growing, parcels are also growing but …
… InPost’s strategy is to have 30% of income from non-mail business
E-projects for 2010:
E-invocing
Mobile payments
Hybrid mail
More to come on that at IEA Marketforce 2011 ;-)
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
e-services – that is sexy …
Hybrid mail
E-invoicingMobile payments
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Multi-operational e-invoice is an electronic
invoice confirmed by a qualified electronic
signature
Customer acquired by InPost Finance agrees to
receive invoices electronically from all the
Senders who transmit documents via InPost
The customer chooses the form of provision of e-
invoices by e-mail via web or by mobile phone
Archiving documents for 6 years
Sharing documents at the request of tax
authorities
Multi-operational e-invoicing
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Innovative (costless for Sender) service which consists of regulating the payment by the payer using a mobile phone
Additional ways to accelerate the rotation of receivables from
customers
Ability to manage your payments via website
Method of payment safer and more convenient than traditional
services
SMS payment
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
The project is organised by Fibra-Hallo.pl in a cooperation with InPost
Hybrid mail
Central management center of
hybrid mail in Warsaw
15 local priting centeres in
Poland
Backup services in emergency
situations
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10
Thank you!Contact details:
Rafał BrzoskaChief Executive Officer
European Postal Services, Providing fast and low cost parcel delivery, Brussels, 23.03.10