Australia Post Annual Report 2008–09

Core businesses Parcels & logistics
Express and courier services
Express Post
Revenue from our Express Post service rose
once again this financial year. However, as
some consumers switched to slower, cheaper
alternatives due to the difficult economic
conditions, growth was not as vigorous as in
recent years. Satchels and parcels performed
well again, driven by online commerce and
an increasing demand for the tracking and
proof-of-delivery capabilities of the Express
Post eParcel service. Speed and reliability
are central to the success of Express Post,
and in 2008–09 we delivered 99 per cent
of items on time or early.
Messenger Post Couriers
In 2008–09, Messenger Post Couriers
consolidated its position after years of
significant growth. Investment in technology
and information systems was a key focus
and fundamental to our continued status
as a leading provider for businesses needing
premium metropolitan distribution services.
The real-time nature of presenting signature
and proof of delivery to customers requires
a significant dependence on technology.
Business continuity processes and systems
upgrades were necessary during the year
to sustain our growth requirements with
high levels of service performance.
Our secure courier service, which has
been endorsed by the Commonwealth
Government’s Security Construction &
Equipment Committee (SCEC) for handling
sensitive and national security classified
material, was expanded between all state
capital cities and is now our flagship
premium service.
While Messenger Post Couriers continued to
expand its customer base, trading conditions
were difficult for many of our larger clients,
which muted overall growth for the business.
However, the service is well positioned to
pursue its strategy of growth. The pipeline of
prospective clients indicates that businesses
are keenly seeking options to improve supply
chain cost and performance. To address this,
Messenger Post Couriers has developed
a range of tailored distribution solutions.
These include electronic manifesting and
returns management that interface with
warehouse systems, smart deliveries,
such as 100-point identification check
capture, and desktop deliveries.
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Australia Post Annual Report 2008–09 | Report of operations
International parcels
Despite a general market downturn,
international parcel volumes remained stable.
As with domestic parcels, major growth
in online trading has offset decline in some
markets and is expected to contribute to
an upward trend in volumes as conditions
improve. Fluctuations in the exchange rate
have affected global purchasing patterns,
inward delivery revenue and outward delivery
costs. As Australia Post is a net importer of
international parcels, profitability benefited
from the weaker dollar during 2008–09.
The launch of the Click and Send service
in March 2009 means that our suite of
international parcels services can now be
processed online, including documentation,
payment, management of shipment details
and the option of courier pickup. The
introduction of Click and Send provides an
alternative channel for consumers and
businesses looking for efficiencies and
convenience. This, as well as the upgraded
eParcel service for larger contract customers,
adds value to the existing services and
bolsters our future growth prospects across
the international parcels portfolio.
Express Courier International
Express Courier International (ECI) is a
cost-effective courier service that provides
door-to-door delivery to more than 200
countries and territories, with deliveries
between most major cities taking between
two and four business days. The outward
service continued to grow during 2008–09.
The ECI service is underpinned by Australia
Post’s membership of the KPG alliance,
a partnership we have formed with nine
other postal enterprises. Our membership
has enabled us to have more control over
delivery in key destination countries,
dramatically improving the reliability and
performance standards of the ECI service.
Since the alliance began in 2003 with
six members, four additional postal
administrations have joined, including
Singapore Post in July 2008. All members
continue to improve their service performance
and integrated network capabilities. Despite
the economic downturn, which has had
a significant impact on the entire express
industry, the KPG alliance has sustained
growth in volumes – 9.3 per cent during
2008–09.
Express Post International parcels
The Express Post International (EPI) service
offers customers priority handling, basic
tracking and signature on delivery, with
delivery between metropolitan areas of major
cities within three to seven business days.
EPI is in its second full year of operation and
continues to deliver very strong revenue growth.
Air Mail
The Air Mail service is a reliable and affordable
way to transfer a broad range of business and
consumer items between Australia and almost
any address in the world. During the year, the
outward Air Mail service experienced a small
downturn in revenue. This decline was largely
in the consumer segment, driven in part by
reduced discretionary spending during difficult
economic times. Conversely, some customers,
particularly those selling goods online, migrated
to the Registered Post International product.
Registered Post International – parcels
Launched in June 2008 following the
success of the ECI and EPI services,
Registered Post International (RPI) gives
customers documented proof that they have
posted an item, as well as proof of delivery.
It can be used to send items weighing up
to two kilograms. A receipt at the lodgement
point and proof of delivery are service features
that are valued by people selling goods online.
There was significant growth in RPI volumes in
its first full year, with many customers migrating
from our Air Mail service to this product.