Singapore Post will launch residential ‘parcel boxes’ and expand its network of self-serviceparcel terminals to step up investment in innovative e-commerce logistics services as part of its
award-winning transformation strategy.The company announced yesterday that it will expand its network of automated smart parcel lockerstations, known as POP Stations, from more than 60 locations across the island at present to some100 by the end of this year. The self-service machines, supplied by Australian technology companyTZ Ltd, offer parcel collection and returns for online shoppers.
Then early next year SingPost will go one step closer to the customer by starting to installsmaller ‘parcel boxes’ in front of individual homes, at SME businesses and other locations on atrial basis. These ‘P-POPs’ (Personal POP Station) will have four compartments, including arefrigerated ‘cooler box’ for groceries, and will offer all the functionalities of the full-sizePOP Station.
CEO Wolfgang Baier explained: “POP Stations have been immensely popular with Singaporeans whoshop online as they provide 24/7 convenience. Our customers also tell us they fully appreciate thesecurity measures while using POP Stations. Major online businesses who have leveraged our POPStations as a key parcel delivery option are also getting very positive feedback from theircustomers.
“We will continue to build a scalable technology solution that can deliver state-of-art serviceofferings to meet the lifestyle changes and demands of our customers. For instance, we are adding anew feature to P-POPS – a cooler box – to serve the growing trend in online grocery shopping. Thecooler box is the perfect solution to the busy individuals who are not home to receive theirgrocery deliveries.”
Speaking at this week’s World Postal Business Forum at Post-Expo, the SingPost CEO toldinternational delegates that the company had grown from revenues of S$500 million to some S$800million through its expansion in recent years and believed it could reach the S$1 billion mark infuture. At the same time, the company, founded more than 150 years ago, had maintained stableprofits.
“We are investing a lot for the future, to be around for the next 150 years,” Baier declared.Even though these investments meant that profits had only been stable, the privatised postaloperator’s share price had risen, showing shareholder confidence in the strategy, he pointed out. “It’s about transparency and telling people where you are going.”
On the conference topic of innovation, the Austrian-born CEO told delegates: “A postal companythat wants to become a digital company cannot stop innovating.” He said he encouraged staff to “think big, act small and fail fast”, actively encouraged risk-taking and assured staff that failurewould not impact negatively on their careers.
SingPost is currently investing S$100 million to enhance its postal and delivery infrastructure,customer touch points and operational processes, including S$45 million in new integrated sortingmachines. Other investments include in self-service parcel terminals, post office modernisation andthe delivery fleet.
In the e-commerce field, SingPost had developed a portfolio of services across the entire valuechain, from webshops to logistics and delivery, using a network of 15 fulfilment centres in variousAsian countries, Baier said. The group had won new business as a result of its increasedcapabilities. “The more we build up, the more customers come to us,” hecommented.
Asked about the implications of the recent Alibaba Group acquisition of a 10% stake in thecompany, Baier stressed: “We are only one of the (delivery) platforms of Alibaba. There’s noexclusivity.” He added: “We are learning from one of the leading e-commerce companies.”
In parallel to the financial investment, Alibaba and SingPost are discussing plans to create ajoint venture that would provide e-commerce logistics services in south-east Asia.
Meanwhile, SingPost’s e-commerce growth strategy and introduction of innovative technologies andservices were recognised at Post-Expo as the company won the 2014 Service Provider of the Yearaward from Postal Technology International magazine. Accepting the award, the Austrian-born CEOsaid: “This award will certainly spur us on. We firmly believe that despite all our challenges, thepostal industry has a bright future and we are honoured to be able to contribute to this industrytransformation.”
