Time for postal industry to ‘re-invent’ itself
A re-invention of the postal industry is inevitable and industry players should not fear global rivalry, but rather embrace it in the spirit of co-operation and competition among players, Deutsche Post AG divisional board member Dr Herbert-Michael Zapf said.
Zapf said a re-invention of the postal industry would entail innovation, quality and service. The industry, he said, must innovate to meet future challenges, adding that innovation was more than just having new products but an understanding of one’s own business.
“The postal industry needs to develop a broader understanding of postal services, which will ultimately lead to an extended value chain of postal services,” he told reporters in Kuala Lumpur last month. Zapf was a guest speaker at the recent 12th Asean Postal Business Meeting 2005. He said competition was good as it brought out the best in companies to provide efficient goods and services to consumers.
“Drawing from our own company’s experiences, we believe a free market is the best way for growth and expansion of the postal industry,” he said, adding that to ensure success, a dedicated sales and marketing team was needed.
He said in the early 90s, the company was a government-controlled, deficit-ridden national agency, which had monopolised the industry, but struggled to maintain profitability for years.
“When Deutsche Post went public in November 2000 and embraced the free market, the organisation quickly grew by leaps and bounds to become one of the most efficient and productive postal services providers in Europe,” he said.
Zapf said the German mail and logistics giant was now a global player in the industry with revenue of 43.17bil euros, and earnings before interest, tax and amortisation of 3.4bil euros posted in 2004.
Deutsche Post operates in 20 countries, including the United States, via acquisitions and 100% ownership of Belgium-based DHL Worldwide Express, the world’s leading express and logistics company under the brand name, Deutsche Post World Net.
Zapf also stressed on the importance of co-operation and competition among players in a free market, as it was healthy.
The transformation of the postal industry sector was due to globalisation and would result in greater competition. This should lead to massive changes in the postal industry, he said, citing others like the automotive sector, which had experienced friendly ‘co-operation and competition’ to become more resilient and efficient as car makers.
He said it was important to develop a new perception of customers, as they are not just mail users who have no options.
“Postal companies need to convince and win them over as they now have more choices,” Zapf added. – BY DANNY YAP
