Postal systems worldwide striving hard to stay relevant

Postal systems worldwide striving hard to stay relevant

Bruhaspati Samal

General Secretary

Confederation of Central Govt. Employees and Workers

Odisha State Coordination Committee

As the Universal Postal Union (UPU) celebrates 150 years of its establishment on 9th October (World Post Day) 2024, postal networks across the world find themselves at a crucial juncture. The rapid rise of digital communication and e-commerce has forced traditional postal services to redefine their roles to stay relevant. In his World Post Day message, UPU Director General Masahiko Metoki highlighted the importance of adaptation in maintaining the relevance of postal services in today's fast-changing world. He remarked that even as postal services celebrate their long-standing legacy, they must now evolve to address the needs of a digitally driven society. "The need for reliable and accessible postal services is ever-growing, but the way we deliver these services must evolve with the times. Innovation, digitalization, and sustainability will be key to ensuring the longevity of the postal system," said Metoki, emphasizing the critical role technology and modernization will play in the survival of postal networks worldwide.

The digital age has fundamentally transformed how people communicate. Over the past two decades, the rise of email, instant messaging, and social media platforms has led to a sharp decline in the volume of physical mail. According to the UPU, global letter post volumes dropped by 30% between 2005 and 2020. At the same time, the explosive growth of e-commerce has driven a surge in parcel deliveries, which saw a staggering 150% increase in global parcel volumes between 2014 and 2020. Recognizing this shift, postal networks have been compelled to reorient their services toward parcel deliveries, focusing on enhancing efficiency, improving logistics, and meeting the increasing demand for e-commerce deliveries.

India Post, the world’s largest postal network with more than 1.65 lakh post offices, has been proactive in responding to the challenges posed by the digital era. The Digital India initiative has been instrumental in this transformation. One of the major achievements of India Post in recent years has been the establishment of the India Post Payments Bank (IPPB), which has greatly expanded banking services to millions of unbanked citizens across the country. In response to the rise of e-commerce, India Post has introduced the Parcel Management System (PMS), which aims to enhance the efficiency and transparency of parcel deliveries. Collaborations with major e-commerce companies like Amazon and Flipkart have enabled India Post to play a pivotal role in delivering goods, especially in remote and rural regions. Digital services, such as e-Post and online tracking systems, have also allowed India Post to modernize its operations, offering citizens the convenience of accessing postal services online. The introduction of the DARPAN Project (Digital Advancement of Rural Post Office for a New India) has further helped India Post extend its reach, particularly in rural areas.

Globally, postal networks have similarly embraced digitalization to adapt to the changing landscape. The United States Postal Service (USPS), despite facing financial difficulties, has taken steps to remain competitive. USPS’s Informed Delivery service, introduced in 2017, has become immensely popular, offering more than 50 million users the ability to preview their mail and manage parcel deliveries online. Additionally, USPS has focused heavily on parcel deliveries, which now constitute more than 70% of its revenue. In its efforts to promote sustainability, USPS has announced plans to electrify 75% of its fleet by 2028, contributing to the reduction of carbon emissions and aligning with global environmental goals.

The Royal Mail in the United Kingdom, too, has experienced a significant shift from letter deliveries to parcel services, largely driven by the growth of e-commerce. In 2022, Royal Mail handled over 1.5 billion parcels, up from 1 billion in 2015. To cater to the increasing demand, the company has introduced services like Tracked 24 and Tracked 48, offering faster and more reliable parcel delivery options for e-commerce businesses. Royal Mail’s Click & Drop platform allows customers to purchase postage, track parcels, and manage deliveries online, streamlining the entire process. Moreover, data analytics has been adopted to optimize delivery routes, improving overall efficiency.

Germany’s Deutsche Post, through its DHL division, has become a leader in the global logistics space, handling more than 1.8 billion parcels in 2023. With a focus on automation, Deutsche Post has invested heavily in self-service kiosks and parcel lockers, offering greater convenience to customers. The company has also taken notable steps toward environmental sustainability, reducing its carbon footprint by 30% by 2022. With ambitious goals of achieving carbon-neutral deliveries by 2050, Deutsche Post is at the forefront of green logistics, deploying electric vehicles and exploring alternative fuel options to reduce emissions.

In China, the rise of e-commerce platforms like Alibaba and JD.com has fuelled rapid growth in the country’s postal sector. China Post, which now handles more than 75 billion parcels annually, has invested heavily in logistics infrastructure, including automated sorting centers and drone deliveries to rural areas. Additionally, China Post’s Postal Savings Bank has expanded financial services, contributing to the company's growth and diversification.

As postal networks evolve to remain relevant in the digital age, they are increasingly focusing on diversification, offering services that go beyond traditional mail delivery. Many are expanding into financial services, e-commerce logistics, and digital identity verification to broaden their revenue streams. E-commerce will continue to be a major driver of growth for the postal sector, but the adoption of sustainable practices is equally important for their long-term success. Postal networks are also taking steps to address environmental concerns. As global awareness of climate change intensifies, postal services are under increasing pressure to reduce their carbon footprint. Many operators, like Deutsche Post and USPS, have already begun investing in electric vehicles and renewable energy sources. By embracing sustainable practices, postal networks can contribute to global environmental goals while improving their operational efficiency.

The 150th anniversary of the UPU is an opportunity to reflect on the legacy of postal services and their crucial role in connecting people and businesses worldwide. As postal services confront the challenges of the digital age, they are reimagining their role in society. By embracing innovation, fostering financial inclusion, and committing to sustainability, postal networks are ensuring that they remain relevant for the future. As Director General Metoki noted, "The postal sector has always been a pillar of communication and commerce. By adapting to the times and staying true to our mission, we can continue to serve as a bridge that connects people, businesses, and nations."

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