Australia Post Annual Report 2008–09

Core businesses
Parcels
& logistics
Highlights of 2008–09
We delivered 96.4 per cent
of large parcels and 99 per cent
of Express Post items on time.
Despite the difficult economic
climate, parcel revenue
continued to grow, particularly
from domestic parcels (up by
4.5 per cent), Express Post parcels
(8.5 per cent) and international
parcels (10.5 per cent).
The Click and Send service was
launched, enabling our suite of
international parcels services
to be processed online.
Our joint venture in China,
Sai Cheng Logistics International,
defied global logistics trends, with
revenue increasing by 56.4 per cent.
Over its 200-year history, Australia Post has expanded dramatically across
Australia and into the Asia–Pacific region. Furthermore, what was originally
a letters-focused service is now deriving most of its profit from the parcels
& logistics portfolio. We have been successful in the highly competitive
international parcels and logistics market because of our extensive network
capabilities and our customers’ ongoing trust in Australia Post’s ability to deliver.
Our place in the market
Parcels and logistics is a fiercely competitive multi-billion dollar international market,
characterised by rapid changes in customer behaviour. Increasing our share of this
lucrative market, both in Australia and overseas, is vital to Australia Post’s future profit
growth. In 2008–09, for the third consecutive year, parcels & logistics was the primary
profit generator of our three core businesses.
Now and into the future, our aim 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–Pacific region. We are achieving this by:
• offering a suite of accessible, highly recognised, reliable and competitively priced products
• enhancing partnerships with our customers and suppliers
• containing network costs while maintaining our high service standards.
Overall revenue for the portfolio increased by 2.5 per cent in 2008–09, mainly as a result of
growth in revenue from domestic parcels (up 4.5 per cent), Express Post parcels (up 8.5 per cent)
and international parcels (up 10.5 per cent).
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 2008–09, with 95.8 per cent of small parcels and 96.4 per cent of large parcels arriving on
time or early. Volumes were down marginally (by 0.7 per cent) due to the challenging economic
environment, although business generated by online purchasing remained buoyant. We are
actively supporting ecommerce through our relationships with businesses such as eBay and
GraysOnline (see page 28).
Post eParcel
Post eParcel provides electronic consignment management and tracking via a barcode and
delivery verification system. Online trading is also generating momentum for this service, but the
strongest growth has been in the B2B market. At the start of this financial year, we introduced
an enhanced barcoded parcel service that improved the cost and price structure of multi-parcel
consignments, extending our share in what has been a non-traditional market for Australia Post.
Post eParcel experienced the highest growth in our parcels portfolio, delivering a 13 per cent
increase in volumes.
Australia Post Annual Report 2008–09 | Report of operations 29