17-04-2013, 02:58 PM
(17-04-2013, 01:49 PM)Ben Wrote: [ -> ](17-04-2013, 12:15 PM)CityFarmer Wrote: [ -> ]Well, parcel delivery is quite diff from mail delivery. Mail delivery is one stop at mail boxes for one block, while parcel is house base. Delivery to POPStation is quite similar to mail, one stop for an area.
SMS and email can be automated easily.
Labor cost is the largest expense of SingPost, more than 30% of revenue. Mail delivery is probably the least productive among them.
I believe it will take some time to see the results, they are only piloting at 5 locations for now. End of the day, customers must be able to benefit from it for this to work. Choosing between having the parcel delivered to your doorsteps or having to go out and self collect yourselves, if the price is the same, which would you choose? For those who are seldom at home and always have to go to a post office to collect the parcel, this new option might works.
As for labor cost, is 30% of revenue referring to just postman costs or total labor costs? I believe postman does not earns a high salary, so the net saving may not be significant if we were to less off the investment needed such as IT, extra delivery vans and its maintenance, rental etc.
Having said all these, I agree this is a push towards productivity, and I do hope it will be successful.
30% is overall labor expense, including CEO pay
Agree the effect is yet to be observed with a starting point of only 5 locations. It has to be win-win to success.
IIRC, in AGM, the new CEO does highlight the labor expense, especially the postman expense which is the key focus on the productivity drive.