2004-05 Annual Report - Australia Post

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PARCELS The parcels market The parcels market is a highly competitive, global market. The market can be divided into two main segments: low-volume users (such as consumers and most small businesses) and high-volume users (such as large businesses that send to consumers and other businesses). During the year, we retained our position as the market leader for the low-volume domestic parcels segment by offering a truly national network, high levels of delivery reliability and competitive prices. At the same time, we continued to build our share of the high-volume domestic parcels market. In recent years, we have focussed on developing more flexible and sophisticated parcels services that will enable us to win parcels contracts in specific industries within the high-volume segment of the market. DOMESTIC PARCELS Parcel Post We are committed to providing a reliable, low-cost, nationwide parcel delivery service for all Australian consumers and businesses. During the year, Parcel Post maintained a strong market position in its traditional segments – parcel despatches from business to consumer and from consumer to consumer. Our focus this year was on developing new management, reporting and tracking systems that will add flexibility and capability to the Parcel Post network. These new systems will position Parcel Post to capture a greater share of the high-volume segment of the market by improving our ability to handle (and track) multi-parcel consignments. Due to be implemented during 2005–06, the systems will give our customers access to timely and accurate information about the delivery status of their parcel consignments. A program to improve the job performance, presentation and national consistency of parcel delivery contractors continued during the year. In June 2005, we released a revised induction and training manual for parcel contractors as well as a portable reference guide, called The Contractor’s Glovebox Guide. Parcel volumes We achieved good growth in domestic parcel volumes for the third consecutive year, with volumes up 3.4 per cent this year (following a 5.2 per cent increase last year and 3.2 per cent growth in 2002–03). The growth in our parcel volumes is coming from several different sources. An increase in on-line selling by small to mediumsized businesses was the major factor contributing to record high sales of prepaid satchels. In the business-to-consumer parcels market, our share of the wine distribution market continued to grow strongly. In the high-volume segment, we increased the amount of business-to-business parcels we handle by 8.7 per cent, mainly by targeting our sales endeavours in several industryspecific segments. Our parcels network The final elements of the $129 million program to modernise our parcel handling Total delivery points (millions) network were completed in July 2004 with the relocation of small-parcel sorting machines to the expanded facility at Underwood (in Brisbane) and new facilities at Ardeer (in Melbourne) and Chullora (in Sydney). During the previous financial year, new parcel-processing equipment was installed at all three facilities to automate the handling and sorting of large parcels. The performance of these machines improved considerably during the year, with their throughput increasing by 20 per cent. In April 2005, the Mail & Networks Division launched a program to optimise the operations of the restructured parcels network. The program has improved workplace efficiency and productivity by refining processing steps, benchmarking performance and improving transport fleet utilisation. EXPRESS AND COURIER SERVICES Express Post Express Post volumes increased by 5.1 per cent during the year. The growth was fuelled by good economic conditions; recent expansions to the product range and the guaranteed delivery network; and a successful advertising campaign that promoted the potential of Express Post to consumers and businesses. Year Australia Post Annual Report 2004/05 Report of Operations Parcels and logistics | 31 |
| 32 | Growth was particularly strong in Express Post satchels (with volumes up 12.7 per cent) and Express Post parcels (up 14.5 per cent). An important focus in the coming year will be to expand the guaranteed next-day national delivery network to outer areas of metropolitan Melbourne and possibly to Cairns and Townsville. Delivering exceptional service performance is vital to maintaining customers’ confidence in Express Post. Our benchmark is to achieve better than 99 per cent on-time delivery. Independently conducted research showed that we consistently exceeded the 99 per cent on-time delivery target for Express Post this year. Messenger Post Couriers Our courier service, Messenger Post Couriers, expanded its customer base of large and medium-sized businesses this year, resulting in a 40.1 per cent increase in revenue. Messenger Post Couriers offers clients a nationally consistent service with consolidated billing, transparent reporting and proof of delivery. During the year, we implemented a new technology-based system that allows large-volume clients to electronically transfer multiple consignments directly into the Messenger Post Couriers despatching system. In March 2005, we acquired SnapX Couriers, a Sydney-based company specialising in timecritical deliveries. SnapX was merged with Messenger Post Couriers to increase the size of our nationwide courier fleet to more than 550 vehicles. Joint-venture partners We are a joint-venture partner with Qantas in two express freight delivery businesses – Star Track Express and Australian air Express (AaE). Star Track Express is one of Australia’s leading businessto-business express road freight companies, while AaE offers complementary express air and linehaul delivery services. Together, these two businesses generate the majority of profits derived from our joint-venture companies. INTERNATIONAL PARCELS International parcel volumes International parcel volumes grew this year after a disappointing decline last year. Total volume growth was 4.9 per cent, which includes 3.2 per cent growth in outward international parcels. Improvements in our international delivery efficiency and parcel tracking capability have played an important role in winning new international parcel customers and increasing volumes. New international gateway facilities Construction of two new gateway facilities, which began in June 2004 to handle the screening and processing of inward international mail items, continued during the year and is scheduled for completion by mid-2006. In Sydney, we are completely refurbishing the former Sydney Parcel Centre at Clyde. The Melbourne Gateway Facility, at Tullamarine, is a new purpose-built building that will also be used for processing Express Post items. The new facilities will enable 100 per cent mail screening using a combination of X-ray equipment, detection dogs and physical inspection. As part of a commitment to the Federal Government, we provide facilities and equipment to ensure 100 per cent screening of inward international mail by the Australian Customs Service and the Australian Quarantine & Inspection Service. Express Courier International Express Courier International (ECI) was launched in March 2005. ECI is an enhanced and rebranded version of EMS International Courier. The market response to ECI, especially among small to medium-sized businesses, exceeded expectations. Three months after launch, outward volumes for ECI were more than 30 per cent higher than the superseded EMS service. ECI offers reliable door-to-door delivery to over 190 countries and territories, with delivery between most major cities taking two to four business days. The extended product range includes prepaid envelopes, satchels and boxes and a new activation method has increased the number of outlets selling ECI. Items can be lodged at Post outlets, by courier pick-up or via the Express Post gold box network. The service includes on-line tracking and signed delivery for most destinations. A dedicated national call centre, with extended hours of operation, has also been established to support the ECI service. In the lead-up to the ECI launch, we achieved significant improvements in delivery performance for express international deliveries by analysing and refining international mail paths and working closely with overseas postal authorities. Regional co-operation Over the past three years a more reliable international delivery network has been developed in alliance with five leading Asia– Pacific postal administrations. This alliance was publicly announced at a press conference in Hong Kong after the end of the financial year (in July 2005). The CEOs of the participating postal administrations – Australia Post, China Post, Hongkong Post, Japan Post, Korea Post and the United States Postal Service – attended the announcement and committed to offering guaranteed international delivery services.
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Page 5 and 6: | 2 | PERFORMANCE AGAINST TARGETS
Page 7 and 8: | 4 | ABOUT OUR BUSINESS With our l
Page 9 and 10: REPORT | 6 | Australia Post Annual
Page 11 and 12: DIRECTOR’S REPORT | 8 | Australia
Page 13 and 14: | 10 | FINANCIAL RESULTS Five-year
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2004-05 Annual Report - Australia Post

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