The rise in
digital communications has dramatically changed the postal needs of Canadians.
Canada Post recognizes that this shift requires fundamental changes to the way
it serves customers. However, the postal network remains an essential enabler
of remote trade and commerce. 
Its
long-term viability is crucial for the small businesses and rural and northern
communities that still rely on mail and for an increasing number of retailers
across Canada who require an affordable delivery network for them to
participate in the fast-growing digital economy. Canada Post is launching a
Five-point Action Plan to better serve all its customers. It reflects what the
company heard from Canadians during a recent cross-country discussion with
residential and business customers. These discussions confirmed many of the new
patterns the company has seen unfolding at its post offices, in its processing
plants and in the makeup of the mail. The postal service of the future will
reflect and serve Canadians’ new postal needs. As more people began to
communicate and manage their household bills online, Lettermail™ volumes
declined sharply. Yet as more people shopped online, parcel volumes shot up.
This dramatic shift is creating a pressing need to manage a greater number of
parcels and less mail with more valuable items. (These items include credit and
loyalty cards and government-issued cards and licences.) This transition also
provides clear direction to Canada Post and to the many businesses looking to
redefine customer experience in an increasingly digital world.
The initiatives Canada Post is launching form an
integrated approach to support the shift. Internal operational changes to how
parcels are processed and delivered will support and enable related changes in
how the customer is served – changes that will emphasize convenience and secure
delivery. Together, the five initiatives not only form the basis of a
sustainable business model, but also help build the foundation of a new postal
system. The new system will allow Canada Post to compete in the fast-paced and
technology-driven global parcel market. More importantly, it will sharpen the company’s
focus on the customer, providing a level of service that will have benefits far
beyond Canada Post. It will level the playing field for small businesses and
other emerging industries looking to embrace e-commerce and to grow. People
living in underserviced rural and northern communities will have significantly
wider access to, and the ability to return, products from Canada and around the
world. While the volume of traditional Letter mail items, such as bills,
statements and letters, is rapidly decreasing, ordering items that can now be
securely bought or requested online but that cannot be sent online is gaining
popularity. Examples include driver’s licences, vehicle licence plate stickers,
health cards and other forms of identification mail. These kinds of
transactions between large institutions and Canadians facilitate Canada’s
digital economy. By providing secure delivery options, Canada Post can help
support that economy’s growth.
The
integrated plan’s five main initiatives are:
Community
mailboxes:
The one third of Canadian households that still
receive their mail at their door will be converted to community mailbox
delivery over the next five years. (The other two thirds already receive their
mail and parcels through community mailboxes, grouped or lobby mailboxes or
curbside rural mailboxes.) Community mailboxes offer individually locked mail
and small packet compartments as well as larger locked compartments for
securely receiving parcels.
A new
approach to pricing:
Canada Post will introduce a new tiered pricing
structure for Lettermail, which will better reflect the cost of serving various
customer segments. Those who buy stamps in booklets or coils will pay $0.85 per
stamp, with discounts for customers that use the mail most.
Expanding
convenience through postal franchises:
Canada Post will strengthen its retail network by
opening more franchise postal outlets in stores across Canada. The company will
partner with local retail businesses that are conveniently located in their
communities and which offer added benefits, such as better parking and longer
hours. This will allow busy Canadians to do more of their shopping in one
place. Canada Post will also streamline its corporate-run post offices.
Streamlining
operations:
Changes to internal operations will make for a more
efficient flow of parcels and mail through the network and to the customer.
These changes are driven by technology (such as faster computerized sorting
equipment), consolidation (such as processing mail and parcels in a central
location) and providing more delivery employees with fuel-efficient vehicles,
so the same employee can deliver both mail and parcels. Improved operations
will yield cost-effective and more reliable delivery to Canadians, along with
better parcel tracking capabilities.
Addressing
the cost of labour:
With its current labour costs, Canada Post has a
much higher cost structure than its competitors have. This is simply not
sustainable. The company will continue to bring the cost of labour in line with
its competitors through attrition and collective bargaining over time. Canada
Post will also take the necessary steps to permanently address the
sustainability of its pension plan. A leaner workforce will create a more
flexible and competitive Canada Post, able to respond quickly to the changing
marketplace.
These initiatives will help the Corporation to
better serve the emerging needs of Canadians, and fulfil its mandate to remain
financially self-sufficient and avoid becoming a burden on taxpayers. For
instance, delivering to community mailboxes provides convenience and security,
but costs significantly less than the cost to deliver to the door. Franchise
post offices provide added customer benefits and opportunities for small
businesses looking to grow their business, but cost far less to operate than
corporate-run stand-alone post offices.
Reducing costs will benefit
customers, too. Lower costs allow Canada Post to maintain a high level of
service at reasonable prices. Strengthening the post office network through
franchise post offices brings greater convenience to customers at a lower cost,
while providing opportunities for small businesses to attract new customers.
This is an exciting time for
Canada Post and the country it proudly serves. It is embracing the future by
launching a new postal system designed to serve Canadians. This will open new
opportunities for businesses and industries that are redefining how they
connect and serve customers. Customer-centricity, enabled by streamlined
operations and a more flexible workforce, will define the new era. Canada Post
is ready for the challenges ahead.
source:
Canadapost website
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