2004-05 Annual Report - Australia Post

Australia Post Annual Report 2004/05 Report of Operations
Parcels and logistics
| 34 |
Post Fulfilment Online
Post’s subsidiary company Post
Fulfilment Online provides facilities
for inventory management,
fulfilment, pick-and-pack, and
delivery of groceries (including
frozen, chilled and produce
items). The installation of
inventory management systems
at facilities in Melbourne and
Sydney has improved warehouse
efficiency and the facilities’
ability to manage increasing
volumes of customer orders.
The new systems, combined
with significant process
improvements, have enhanced
order accuracy and inventory
management.
Logistics acquisition
We acquired a leading thirdparty
logistics company, State
Warehouse and Distribution
Services (SWADS), in March 2005.
The SWADS acquisition adds
another 12 warehouses to our
logistics capacity and increases
our presence in the business-tobusiness
logistics market.
OTHER SERVICES
iPrint
iPrint Corporate, our joint-venture
print management company
(co-owned with wellcom),
increased its revenue by 13 per
cent this year. iPrint manages
the vast majority of our internal
printing requirements, including
stamps, philatelic-related
products, retail catalogues and
publications. iPrint also provides
print management services to a
wide range of clients.
corProcure
In June 2005, we stopped
offering e-procurement services
to external clients via our
subsidiary company corProcure.
While corProcure has been
withdrawn from the external
marketplace, its technology
platform will continue to be
used internally to support
our e-procurement and
e-commerce activities.
THE FUTURE
The completion of the parcels
network restructure has added
significantly to the processing
capacity of our parcels network
while enabling greater processing
efficiency and improved delivery
performance. In effect, the new
network positions us to handle
increased volumes efficiently.
A major focus of the coming
year will be strengthening our
competitiveness in the parcels
market by launching technologyenabled
services, such as multiparcel
consignment services
and enhanced parcel tracking
and proof of delivery. With these
improved network capabilities,
we will pursue more contracts
in the high-volume segment of
the parcels market by targeting
specific industry segments.
We are expecting healthy growth
in international parcels as a result
of improved tracking capability
for air parcels and growing
market awareness of the Express
Courier International service. We
have also introduced electronic
consignment note software
that will enhance our ability to
meet the needs of high-volume
international parcel customers.
A newly formed solutions
group will develop systems and
protocols to provide complete
supply chain support for our
business customers – from
point of manufacture to point
of consumption.
“Australia Post has become one of the
smartest players in the supply and logistics
business, moving beyond its traditional
role as a government owned postal
carrier to become a major third-party
logistics provider.”
– Australian Financial Review, 10 March 2005
(See p. 33 and above for more information on Post’s logistics services.)