Building a European E-commerce Logistics Hub
The development of ‘An Post Money’ and ‘An Post Commerce’ is future proofing the business for the long term
How has the digital age impacted An Post’s development?
Digital communication has substituted physical letters, which translated into a fall in revenue for An Post in the letter delivery business. The bags of postal carriers were getting lighter for many years. Today, the e-commerce revolution is spearheading a dramatic rise in parcel deliveries, and the bags of postal carriers are growing heavier. Ultimately it signifies a bright future for An Post. We have utilized innovation to conquer the challenges of shifting client dynamics, and successfully adapted our business model to the new digital age.
What is the impact of broadband interconnectivity on An Post’s operations?
The recent broadband rollout has positioned Ireland as one of the best European countries in terms of connectivity. Domestic Irish companies offering online services are experiencing massive growth, and online consumer purchasing patterns increasingly ex- tend beyond traditional holiday seasons. These changes have catapulted an e-commerce explosion, causing online sales to grow exponentially. Consequently, An Post’s parcel delivery segment increased 39% in 2018, and we estimate the overall market in Ireland rose by 25%. This rise in online spending is a sign of the economy doing well, and consumer confidence being reasonably high.
How has An Post adapted its business model?
An Post is an Irish success story. Coming from a position of losses a couple of years ago, we moved into profit in 2017, and we doubled corporate profits in 2018 to reach 40 million euro. Solid growth is allowing us to redesign our business for the future digital world.
To better serve clients, An Post has established two new sub-brands, An Post Money and An Post Commerce. An Post Money represents the beloved traditional retail post office, which has evolved to over a full range of financial services that use the best fin-tech available. It combines brick and mortar with digital, and takes a broader approach to service customers.
Our second main business, An Post Commerce, is our business-to-business brand which is developing our delivery business by capitalizing on Ireland’s e-commerce boom. The growth is all about repurposing to become an e-commerce parcel business rather than a letter delivery business. The development of An Post Money and An Post Commerce is future proofing the business for the long term and our rebranding shows this dual strategy.
How is An Post improving services through tech based innovation?
Once the customer is tracing a parcel, we can provide an ecosystem of services, which is one of our biggest breakthroughs. An Post is continuously incorporating innovative solutions such as improving track and trace functionalities with delivery time and location options that have proven extremely useful.
An Post is also investing heavily in parcel automation through the renovation of our Dublin parcel hub, which incorporates innovative solutions that should keep us going on current projections until 2023.
In business, An Post has been the leading choice for global e-retailers coming into Ireland, and we are developing our capabilities to pave the way for Ireland to become a hub for global e-retailers coming into the EU.
An Post has vast experience facilitating cross border trade. The new customs system being introduced in 2021 between the EU and the US is quite complex, and global e-retailers value An Post’s efficiency. We are at the forefront, working in collaboration with EU customs and commercial operators facilitating these processes.
What measures have been implemented to ensure sustainable growth at An Post?
Sustainability is at the heart of our strategy, so it is very important for us to grow our fleet without increasing our carbon emissions or damaging the environment. We were the last postal network in Europe to rely on bicycles, and our future fleet will also be environmentally friendly. We expect to be the first European postal network to fully use electric vehicles for inner city deliveries. Starting in 2019, all deliveries in Dublin will be done via electric vehicles, and this will expand to all cities in Ireland in 2020.