Post office sees a high-tech future; Will deliver for e-commerce sites

POSTAL SERVICES: Post office sees a high-tech future; Will deliver for
e-commerce sites
From The Bangkok Post January 31st, 2001
Your neighbourhood post office is going hi-tech, with plans by the Communications Authority of Thailand (CAT) to spend close to 2 billion baht to computerize its 1,200 post offices nationwide.

Under the plan you will be able to pay most of your bills over the counter, including for mobile phones, credit cards or insurance, while the post office may also be in charge of delivering goods ordered over the Internet.
With another 2.3 billion baht investment, it will set up 13 distribution centres that will co-ordinate deliveries from e-commerce sites.
The moves are intended to prepare the state-run postal business for privatisation and to compete with both international couriers and privately-run counter service operators, according to CAT senior executive vice president for Post and Telegraph Department, Somchai Reopanichkul.
Although the department announced a loss of one billion baht last year, it intends to continue investing in IT.
“It is a huge cost in the initial stage, but it will also improve work efficiency and enhance quality of service,” Mr Somchai said.
“To cover the loss, we need to adjust our letter service fee. We offer it at 2 baht a letter while the real cost is 3.9 baht. Another option is to generate more income from our one-stop services,” he noted.
The CAT began its computerization project last September when it implemented computers, tools and Counter Automation Point of Sales (CA PoS) software in 227 post offices nationwide. The project will revamp 1,200 offices within the next three years. Under the project, post offices can provide not only postal services but also payment transactions. The Pay at Post service, as it is called, can accept payment for water bills today and will extend to payment of mobile phones, credit cards and insurance fees. The Pay at Post service has now been implemented in 51 post offices in Bangkok and outlying areas since it was introduced on January 15. “Various needs of a customer can be addressed at one counter service. They can buy a stamp, send parcels or buy postal money. Furthermore, they can also pay for their water bill,” according to deputy project manager Pairat Sunsanga. The transaction fee for utility payment is 10 baht. Financial settlement will be cleared on the afternoon of the following day.
To offer the services, each post office is equipped with electronic equipment at the front-end, such as PCs, scanner readers, postage machines, weighing machines, bill printers and CA PoS software. At the back-end, there is a file server, UPS and a modem. At CAT’s headquarters on Changwattana Road, it has also set up a postage data centre, help centre and private network.
Information from each post office is automatically uploaded to headquarters each evening. Executives in each post office can check its performance, product stocks and accounts receivable system electronically. The CAT is now training its staff to use the CA PoS software. Around 7,000 postal staff will have been trained by the end of this year.
To facilitate its product delivery, the CAT will also set up 10 distribution centres upcountry and three in Bangkok. Mr Somchai said the centres would help speed product delivery service throughout the nation.
“With the trend of e-business, we realise that sending messages by paper will be reduced, but requirements in product delivery will increase. The investment today will help prepare us for the future,” he noted.
The CAT next week is expected to sign an MoU with Samart Easy Pay to form the SmartPost Company. The investment will be around 19 million baht, of which the state-run agency will contribute 4.9 million baht and hold a 26 percent stake.
“We expect to gain more revenue from the fees of Pay at Post and product shipment services through e-commerce sites to compensate other losses,” he noted.
Karnjana Karnjanatawe
Co