Post CEOs look to partner with e-commerce players

Posts attending the Universal Post Union’s World CEO Forum in Paris last week stressed the importance of partnership in capitalising on e-commerce opportunities.

According to a UPU statement, participants debated whether “e-retailers and e-marketers should be treated as friends or foes”, and some of the CEOs also shared their models for collaborating and competing with private companies.

Correo Argentino CEO Jorge A. Irigoin explained that, while online marketplaces are partners of the Post now, they are likely to expand into logistics in the future.

“There is a threat, but, at the same time, an opportunity for us to be more competitive, have a better cost position and deliver higher quality,” he said.

Indian Postal Services Board Chair Boyapati Venkat Sudhakar said the India Post’s reach in semi-urban and rural areas, where demand for e-commerce goods is high, made them an attractive partner to e-retailers.

As previously reported, India Post has been building up its relationship with Amazon, which has identified India as a key growth market.

CEOs attending the meeting said that the Posts’ expansion delivery networks gave them an important vantage point in the logistics industry, but some added that “facilitating cross-border exchanges in the postal community remains a challenge”.

Some Posts still partner with private companies for international delivery and others lack direct connections with each other, said the UPU.

While it may be easy for countries such as France and Germany to exchange parcels quickly, La Poste de Djibouti CEO Bahnan Ali Maidal said the same quality network doesn’t exist for developing posts. For instance, an item from Morocco will likely travel through four countries before it arrives in Djibouti, he said.

“When we talk about a postal family, it must be a real family, otherwise certain members will be left out. We have to work together… Some African Posts need help from their big brothers,” said Maidal.