INTERCONNECTING POSTAL NETWORKS FOR A BETTER CROSS-BORDER SERVICE 15th Königswinter Seminar on Postal Economics Presented by Herbert Götz Director, Markets - IPC © 2015 – ipc.be 16 pages 10-02-2015 www.ipc.be IPC FACTS & FIGURES Service provider for the global postal industry Founded in 1989 Cooperative association of 24 member postal operators IPC members: ̶ 80% world’s mail volume ̶ €208bn revenue ̶ Over 2m people employed Over 180 postal operators have bar-coded products tracked through IPC’s technical infrastructure services Mission is to defend existing business (Mail, Direct Marketing) and to expand new business (e-Commerce) CAPE monitoring and planning tool Tracking system used by 174 posts UNEX Monitors 751 priority mail delivery flows Easy Return Solution 26 posts Customer Service System Connects 183 postal customer centres Process harmonisation Fosters post-air carrier integration EMMS Sustainability programme 25 participants 19.2% CO2 reductions REIMS Intercompany Pricing Main terminal dues agreement in Europe Market Intelligence Monitors 45 operators © 2015 – ipc.be E Parcel Group 31 participants IPC Bag pool 19 participants 700k bags/ year IPC Tray pool 22 participants 6m trays/ year Regulatory service Monitors 49 countries 15th Königswinter Seminar on Postal Economics - 10 February 2 THE CONTEXT An industry in transition Increasing revenue Growing parcel volumes Increased diversification E-Commerce growth driver Source GPIR 2014 © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 3 GLOBAL E-COMMERCE Booming e-Commerce markets Evolution of global online retail sales Source GPIR 2014 © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 4 GLOBAL E-COMMERCE Regional growth Evolution of online retail sales by region Source GPIR 2014 © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 5 GLOBAL E-COMMERCE E-Commerce penetration Source GPIR 2014 © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 6 GLOBAL E-COMMERCE E-Commerce growth potential Source GPIR 2014 © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 7 GLOBAL E-COMMERCE Asia is driving e-Commerce growth ~25% ~40% ~20% Source: BCG Inter-regional cross-border ecommerce Intra-regional cross-border ecommerce % © 2015 – ipc.be Share of revenue in global cross-border ecommerce market 15th Königswinter Seminar on Postal Economics - 10 February 8 GLOBAL E-COMMERCE 70% of e-Commerce has an international component © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 9 THE E-COMMERCE CHALLENGE Posts operate reliable domestic networks “Postal operators are very good at domestic parcel delivery and eBay has built it’s business on the back of these.” John Donahoe, CEO eBAY © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 10 THE E-COMMERCE CHALLENGE Cross-border delivery is the missing link “Customers don’t like the cross-border experience, they don’t know where their parcels are.” John Donahoe, CEO eBAY © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 11 INTERCONNECTING NETWORKS Consumers expect real-time information © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 12 INTERCONNECTING NETWORKS Real-time info requires seamless data management Full visibility through track and trace © 2015 – ipc.be Reliable endto-end transit times Harmonised label Delivery choice Connected customer service 15th Königswinter Seminar on Postal Economics - 10 February Easy return solution 13 INTERCONNECTING NETWORKS IPC INTERCONNECT provides real-time data management Sorting Centre (Origin) Post (Origin) Office of Exchange (Origin) Sorting Centre & Delivery Office Office of Exchange (Destination) Event Exit EMA Inbound & Outbound EMSEVTv3 Item ID based Messages/Data RFID Tag (Active/Passive) ITMATT ITMATT Inbound & Outbound IATA Cargo Messages EMB/C PREDES RESDES EMD/F EXA/C EDD/E CARDIT RESDIT RESCON EDB/C EMG EME EDG/H ITMATT PRECON Content Piece Data Personal Data Label & Barcode Data Last Mile Delivery Inbound & Outbound MRD Online Services POST EMH/I Receptacle based Customers & e-tailers Members & Partners Messages/Data Transport Data Capture @Source Delivery Data Visibility (1) © 2015 – ipc.be Label RFID tag EMSEVT ITMATT Online BUSINESS INTELLIGENCE REPORTING - DYNAMIC DATA SERVICES Sender Data Simple Returns (2) Barcode Service Reliability (3) Item Data Delivery Choice (4) Content Piece Data Consistent Services (5) Post & Product Data Predictable Transit Times (6) Identifier Data Simple Shipping Options (7) Transport (Receptacle) Data Transit Time Options (8) Time, Location & Status Pre-Paid Returns (9) 15th Königswinter Seminar on Postal Economics - 10 February Solution Specific Data Customer Service (10) Final Cost Offer (11) 14 IPC E-COMMERCE INTERCONNECT A truly global e-Commerce network INTERCONNECT 2015 Reaching out to ASIA © 2015 – ipc.be 15th Königswinter Seminar on Postal Economics - 10 February 15 INTERCONNECTING POSTAL NETWORKS FOR A BETTER CROSS-BORDER SERVICE 15th Königswinter Seminar on Postal Economics Presented by Herbert Götz Director, Markets - IPC © 2015 – ipc.be 16 pages 10-02-2015 www.ipc.be