Post and Parcel Organizations Have Opportunities to Turn Digital Investments into Financial Benefits, Accenture Research Finds
April 17 2017 - 7:07AM
Business Wire
Improving digital performance at post and parcel organizations
is critical to successfully capturing the revenue potential created
by the explosive growth of eCommerce and to compete effectively in
an increasingly crowded delivery landscape, according to a new
report from Accenture (NYSE:ACN).
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For the first time, Accenture measured post and parcel
organizations by the same criteria it used to assess more than 370
companies across eight other industries as part of Accenture’s high
performance digital research. The report, The Value Game-Changer:
Digital Performance in the Post and Parcel Industry, examined the
digital performance of 31 post and parcel organizations to
understand how digital technologies could help generate revenue on
pace with a booming eCommerce marketplace.
Using its Digital Performance Index, Accenture Research
quantitatively assessed the level of digital investment and
progress across four business functions — “plan” (digital
strategy); “make” (digital production and delivery); “sell”
(digital customer experience) and “manage” (digital corporate
culture and operations). The assessment entailed evaluating 42
business activities, including supply chain, customer service,
sales and operations, and more than 100 detailed metrics to
determine business performance against industry peers.
The post and parcel industry shows stronger digital performance
than consumer goods and services, energy and insurance industries,
but lags the five other industries studied: electronics and high
tech, communications, retail, banking and utilities.
While eCommerce is driving a very different digital experience
in retail, the shipping and delivery of goods purchased online is
not nearly as digitally enabled as in other industries and lacks
the investment required to keep up with changing consumer, the
report shows.
“As the pace of digital change is accelerating daily, last-mile
delivery companies will need to leverage digital solutions to
remain relevant and competitive in a fast-changing market.
eCommerce growth is enticing new entrants and investment. This
growth and competition will force post and parcel organizations to
become more digital to create the agility and flexibility they will
need. And those same digital capabilities will be essential to
creating the growth they’ll need to achieve high performance,” said
Brody Buhler, who leads Accenture’s global post and parcel
business.
The report reveals that the post and parcel industry, like many
of the world’s leading companies, is not translating digital
investments into better financial performance. For example, only 6
percent of all companies studied, as well as 6 percent of post and
parcel organizations, are considered “Digital High Performers” —
combining strong digital performance with strong financial
performance. And while the post and parcel industry has 44 percent
more “Business Leaders” — organizations with strong financial
performance but limited digital enablement than do any of the other
industries studied. Only 10 percent of post and parcel companies
are “Digital Leaders” — companies that made significant digital
progress but are still working to translate that into financial
results.
Post and parcel organizations score better at planning for
digital than executing those plans, according to the report, which
calls for additional action to assess and improve results of
digital investments and to create a culture that takes full
advantage of digital. While 90 percent of posts focus on digital
capabilities such as data analytics and predictive modeling in
their business strategies and more than 70 percent have a social
media presence for customer interaction, less than 30 percent have
a dedicated budget for digital programs.
The report shows that digital strategies are just beginning to
evolve in the post and parcel industry but will become increasingly
important over the next few years. Last-mile delivery organizations
currently focused on using digital to drive improved productivity
for increased financial performance will need to focus on growth to
drive financial performance.
There are delivery organizations that are using digital
technologies, processes and partnerships effectively to transform
the organization and drive growth, according to the report. For
instance:
- Deutsche Post DHL’s Innovation Center
in Germany uses start-ups and partnerships to test new solutions
and significantly accelerate innovation, creating a space to
experiment with potentially disruptive technology at a faster pace
and larger scale that is market leading.
- The U.S. Postal Service Informed
Delivery service emails images of the front of the mail the morning
the mail will arrive, combining the power of mail with mobile
advertising to create a first-of-its-kind omnichannel platform that
is market-leading.
- The Data Services division of the
United Kingdom’s Royal Mail is turning data into revenue by helping
companies improve direct marketing and prospecting, enabling robust
data cleansing that improves ROI on direct marketing while
protecting the customer’s data.
- UPS has made several investments to
optimize delivery in real-time to make last-mile delivery faster
and cheaper. The company also is active in the start-up network,
recently acquiring Coyote Logistics for flexibility and investing
in Deliv, a same-day delivery service.
Methodology
The Accenture Digital Performance Index tracks 42 business
activities and 117 detailed metrics across all areas of the
business, including strategy R&D, manufacturing, supply chain,
marketing, sales, customer service, internal culture and
operations. This information was then combined and compared the
results with Accenture's High Performance Business framework — a
method of evaluating business performance against industry peers.
Organizations analyzed are An Post (Ireland), Aramex (UAE),
Australia Post, Austrian Post Group, bpost (Belgium), Canada Post
Corp., Ceska Posta (Czech Republic), Correios Brasileiros (Brazil),
Correios de Portugal, Correos y Telégrafos (Spain), Deutsche Post
DHL (Germany), FedEx (United States), Groupe La Poste (France),
Gru;ppo Poste Italiane (Italy), India Post, Japan Post, Magyar
Posta (Hungary), New Zealand Post, Post Office Limited (United
Kingdom), Posten Norge (Norway),Posti Group (Finland), PostNL (The
Netherlands), PostNord (Sweden and Denmark), Royal Mail Group
(United Kingdom), Singapore Post, South African Post Office, Swiss
Post (Switzerland), TNT N.V. (the Netherlands), U.S. Postal
Service, UPS (U.S.) and Yamato (Japan). These organizations deliver
90 percent of the world’s mail and parcels across six
continents.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With approximately
401,000 people serving clients in more than 120 countries,
Accenture drives innovation to improve the way the world works and
lives. Visit us at www.accenture.com
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Contact:AccentureJoanne Veto, + 1 703 963 4212
(mobile)joanne.m.veto@accenture.com@JoanneVeto
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