2009-10 Annual Report - Australia Post

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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.
During the year, we introduced a larger satchel for items under fi ve kilograms. We also expanded the Express Post Platinum service, which provides premium features such as guaranteed overnight courier delivery and signature upon delivery. Messenger Post Couriers Messenger Post Couriers (MPC) is the courier division of Australia Post and provides a suite of courier services. We provide a secure online environment, with booking and tracking capabilities, proof of delivery and on-time delivery reporting. Trading conditions continued to be diffi cult for businesses that use premium metropolitan distribution services, resulting in intensifi ed price competition. Nevertheless, revenue grew by 0.5 per cent this fi nancial year as we continued to focus on ways to retain and gain customers through improved service. A number of technology innovations were implemented, including: • enhancements in SMS and email job notifi cations • improved GPS functionality, including real time view of jobs on maps, service level monitoring and historical information • further enhancements to our systems to enable ID verifi cation and capture at time of delivery. THINKING BIG One of Australia’s largest retailers recently launched its online shopping service, BIG W Online (www.bigw.com.au), making more than 4,000 of its most popular products available to consumers across the nation. Australia Post was selected as this virtual store’s lead logistics and delivery provider because we can fulfi l BIG W’s promise of next-day, Australia-wide delivery. Our trusted brand, extensive network and customer focus make Australia Post an ideal partner. Post Logistics provides warehousing and order fulfi lment, then parcels are processed and delivered by eParcel contractors, Messenger Post or Australian air Express, our joint-venture partnership with Qantas. Every BIG W delivery demonstrates the effective end-to-end service that Australia Post provides. “Since the May launch of the service, the delivery process has been seamless and customer feedback has been very positive,” says Terry Sinclair, head of Australia Post’s Distribution & Express Services strategic business unit. Our early success with BIG W is just the beginning, as we expect this aspect of Australia Post operations to expand signifi cantly in the years ahead. “Online retailing is predicted to grow rapidly in Australia in coming years,” says Terry. “It’s a key focus of our business renewal program and is a natural fi t for our business.” MPC also continued business rationalisation and consolidation activities to manage the fi nancial downturn, including the integration of transport infrastructure with Post Logistics, resulting in operational effi ciencies. International parcels Australia Post’s position at the economy end of the international parcel market means that we appeal to online traders and are also performing well during this period of subdued global economic activity. Nevertheless, our express services remain highly profi table. The Australian dollar’s strength during the year led to historically high inward volume growth of 24.5 per cent, but it also diminished the value of payments made by overseas postal services for the delivery of these inward parcels. Improving capabilities and effi ciencies continues to be a high priority for the international group, as demonstrated by a strengthened service delivery into and out of New Zealand during the year. Service improvements and cost reductions were delivered on the highly competitive Trans-Tasman trading lane by sourcing a new delivery agent for parcels and premium products and offering alternatives to the freight forwarding model for selected customers. As a member of the Universal Postal Union (UPU), Australia Post is part of the world’s largest physical distribution network. The 191 member countries share costs and revenue, making us resilient in tough times, and also benefi t from access to millions of postal outlets, post offi ce AUSTRALIA POST ANNUAL REPORT 2009–10 | REPORT OF OPERATIONS 23
Page 1: gETTing fuTuRE REAdY AuSTRAliA PoST
Page 4 and 5: AUSTRALIA POST HAS ALWAYS BEEN IN T
Page 6 and 7: OUR BUSINESS OUR CAPABILITIES AND B
Page 8 and 9: OUR BUSINESS THE YEAR IN REVIEW 6 A
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STAmP gAllERY 2009-10 Kokoda 20 Apr
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AuSTRAliA PoST AnnuAl REPoRT 2009-1
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2009-10 Annual Report - Australia Post

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