2009-10 Annual Report - Australia Post

CORE BUSINESSES
PARCELS &
LOGISTICS
Australia Post’s parcels & logistics portfolio continues to perform strongly despite the
highly competitive nature of the international parcels and logistics market, particularly
during these challenging economic times. With Australia’s largest delivery network,
a signifi cant Asia–Pacifi c presence and unrivalled global delivery capabilities through
our partnership with the world’s postal services, our trusted services are positioned
for growth in a future that promises rapid expansion of e-commerce.
HIGHLIGHTS 2009–10
We delivered 96.5 per cent of parcels and 99.3 per cent
of Express Post items on time.
Domestic parcel revenue rose by 4.2 per cent and
Express Post services revenue increased by 11.3 per cent.
We extended the Click and Send online processing
service to domestic parcels and integrated the
platform into the eBay website.
Post Logistics successfully launched a new IT system,
Accellos, with major new customer BIG W Online.
Our place in the market
Parcels and logistics combine to form a fi ercely competitive, multi–billion
dollar international market characterised by rapid changes in customer
behaviour. Increasing our share of this lucrative market, both
domestically and internationally, is vital to Australia Post’s future profi t
growth; in 2009–10, for the fourth consecutive year, the parcels &
logistics portfolio was the corporation’s primary profi t generator.
Now, and into the future, our goal is to be a key partner for domestic
parcels and logistics services and a leading facilitator for Australian
businesses that manufacture and trade in the Asia–Pacifi c region.
We are achieving this by:
• offering a suite of accessible, highly recognisable, reliable
and competitively priced products
• enhancing partnerships with our customers and suppliers
• containing network costs while maintaining our high
service standards.
Overall portfolio revenue increased by 1.0 per cent during the year,
mainly as a result of 4.2 per cent revenue growth for domestic parcels
and 11.3 per cent for Express Post services.
22 AUSTRALIA POST ANNUAL REPORT 2009–10 | REPORT OF OPERATIONS
Click and Send
After the successful launch of Click and Send for international parcels in
March 2009, this service expanded into domestic parcels in May 2010.
Domestic Express Post, Express Post Platinum and Parcel Post can
now be processed online, including documentation, payment and
management of shipment details, with the option of courier pickup.
Click and Send is a proven channel for consumers and businesses
seeking effi ciencies and convenience.
During the year, we also entered into a formal arrangement with leading
e-commerce facilitator eBay to integrate the Click and Send platform
into its website. We are further enhancing our relationship with online
traders by developing technology that will enable the platform to be
easily integrated into any organisation’s online trading experience.
Helping businesses to grow, including internationally, is part of
Australia Post’s engagement with the rapidly expanding online
marketplace.
Domestic parcels
Parcel Post
Parcel Post is Australia’s market leader for parcel deliveries from business
to consumer (B2C) and consumer to consumer (C2C). Our reliable
service, nationwide reach and competitive pricing for single parcels
are integral to this success. We maintained our excellent delivery
performance in 2009–10, with 95.9 per cent of small parcels and
96.8 per cent of large parcels arriving on time or early. Volumes were
down marginally (by 0.7 per cent) due to ongoing economic challenges,
although business generated by online purchases remained buoyant.
eParcel
eParcel provides electronic consignment management and tracking
via a barcode and delivery verifi cation system. Online trading and the
business-to-business (B2B) market are contributing momentum to
the service, which delivered 16.8 per cent volume growth in 2009–10.
During the year, we launched eParcel Post Returns, a reverse-logistics
service facilitating the easy return of goods, particularly small consumer
electronic products, for repair under warranty. Consumers visit
Australia Post outlets with an electronic label supplied by the relevant
repair centre. Once scanned, this label provides information and if
applicable enables our people to package the item correctly and deliver
it to the repair centre – all at no cost to the consumer, who is also able
to track its progress. We provide this service to several businesses,
including Acer Computers and Nokia.
Express and courier services
Express Post
Our Express Post service delivered strong revenue and volume growth
during the year, driven by online commerce and increasing demand
for Express Post eParcel’s tracking and proof-of-delivery capabilities.
Speed and reliability account for much of Express Post’s success,
and in 2009–10 the service’s performance was again exemplary,
with 99.3 per cent of items delivered on time or early.