The Past And Future Of Postal Supply Chain |


Postal Supply Chain: Past and Future

2019-01-24 13:55:19

Did you know that over 65% of the world’s population gets their mail delivered at home, while, in some areas, over 10% of the population does not have any access to postal services?

It is clear to all of us that postal industry needs to return to its older glory. We have witnessed the postal volumes being degraded over the years while many people think that this industry is collapsing. Our goal with this article is to research on the global postal supply chain sector and identify regions and ways for you to increase your postal revenue and to grow your business.

We have to research deeply and understand a bit more about this industry if we want to find any signs of growth.

Facts about Global Postal Supply Chain
The postal sector currently employs over 5.3 million staff worldwide. It has been estimated that, in 2016, there were 677,347 post offices around the world, with half of them (338,348) being in the Asia-Pacific region while half of these (154,910) are located only in India.
Indeed, in the last 10-15 years, the revenue growth of 10.5% per year since 2005, that was spotted in the postal industry, was driven by Asia-Pacific raising its market share to 32.6%. The Arab region shows fluctuations over the years, sometimes being negative and sometimes positive. In all other regions (e.g. Eastern Europe, Africa, Latin America) the postal revenues tended to steadily underperform each year.

Moving forward, a comparison between domestic and international letter and parcel post will help us to identify any strong or weak points in the postal supply chain industry.

Letter Post
International letter post is estimated at 1.2% of global letter-post volumes. We can see an overall decrease in the volumes of international letter-post since 1991. In Asia Pacific region, there is an increase in letter post volumes since 2014 while all other regions except Eastern Europe, show a steady but rapid decrease over the years. This growth in Asia Pacific market has led to the international letter post being increased by 1.7% in 2015. That is because many small packets related to e-commerce merchandise are being shipped daily across the world.
In the domestic letter post volumes, we can observe a decline of 3.4% in 2016. As you can identify, in industrialised countries, there has been a decrease of 2.6%, while in the Arab area and Latin America, this decrease even reached two-digit rates. The only relative stability for letter post volumes can be seen in the Eastern Europe and CIS region.

All in all, in areas such as Africa, Arab countries, Asia Pacific, Eastern Europe and CIS and Latin America and Caribbean, there is a very small volume of letters shipped each year both internationally and domestically with approximately 1000 million and 50000 million respectively. However, there are some potential markets for investment to letter post and these are located in the Asia Pacific region, most likely due to high e-commerce growth in this area during the previous years.

Parcel Post
When it comes to parcel post, we can see an overall increase in volumes compared to those of letter post. International parcel post accounts for 1.3% of total parcel volumes. In both graphs, about international parcel post and domestic parcel post we can see an increase in global volumes, while we can identify a steady progress in volumes in specific areas. In more details, Eastern Europe and Asia Pacific are regions growing rapidly because of the e-commerce sector. E-commerce has enabled these countries to distribute products across the globe leading to more parcels being moved daily.

Volumes for domestic parcel post have shown a steady increase of 12.5% between 2015 and 2016 but only in certain regions. Parcel post volumes have been risen in industrialized countries and in Eastern Europe but the rest of the world has witnessed many volume fluctuations.