Postal corp examines franchise programme

The postal corporation of Jamaica is examining the implementation of a franchise programme to increase efficiency and extend its customer reach within the next six months.

The idea is to get businesses in communities to offer postal services, including mailbox rentals, Internet kiosks, money transfer, fax and photocopying services.

We are in the process of developing a franchise programme where a franchisee (in a particular community) would be paid a flat sum and in return, would be responsible for the delivery of the mail and the provision of other servicies, Dr. Blossom O`Meally Nelson, Postmaster General and Chief Executive Officer of the Postal Corporation revealed in a recent interview with JIS News.

The Postmaster General and CEO explained that the proposed franchise programme, that has already been drafted, is a reaction to the increased challenges being faced by the Corporation, including mounting debt.

The government-owned company`s most recent deficit stood in excess of $200 million. In addition to the mounting deficit, Dr. O`Meually Nelson bemoaned the high cost of maintaining the physical infrastructure of the Corporation`s 320 post offices and 311 postal agencies. The jostle by the Corporation to retain market share with alternative mailing systems was yet another hurdle which she highlighted.

She expressed the view that the establishment of franchisees, would help to control the expenditure of the Postal Corporation and give entrepreneurial opportunities to individuals.

Noting that 40 per cent of the office0s in the postal network generated less than $100,000 annually, she said that one of the strategies to be undertaken was to revitalise the image of the post office as a product.

Dr. O`Meally Nelson noted that the drive by the Postal Corporation to be more cost-effective would require the combined partnership of the government, the public, and the private sector. While acknowledging that her company was fighting an upstream battle, she said that it was not endemic to Jamaica, noting, all postal bus,inesses across the world are being challenged.

Commenting on the challenges that information technology posed, the Postmaster General and CEO acknowledged that the competition from e-mail was predominant and that advertising mail was heading that route as well.

Soon, you`ll be able to even get your bank statements on the computer, she opined. Dr. O`Meally Nelson said, the future of the post lies in the shipment of documents, packages and parcels.

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