Australia Post is expecting Monday will prove to have been the biggest parcel delivery day in the country’s history, with its team of posties, drivers and mail and parcel sorters delivering close to three million parcels on the day.
Since October, Australia Post has experienced an unprecedented number of deliveries, with more than 10 million parcels delivered in one week alone. The surge in volumes follows popular online shopping festivals such as Black Friday and Cyber Monday, with parcel deliveries growing more than 30 per cent during the sales.
Australia Post group chief operating officer Bob Black said more and more customers are turning to online shopping ahead of a busy Christmas because it offered more convenience.
“[Monday] will the biggest delivery day in Australia Post’s history, with close to three million parcels moving through our network, as Australia’s love for online shopping continues to grow,” Mr Black said.
“The most popular Christmas gifts among Australian online shoppers include toys and games, fashion and jewellery, and homewares and appliances along with health and beauty products.
“As well as record parcel numbers, Christmas cards are popular too, with posties delivering millions of Christmas letters and greeting cards during December.”
Mr Black said Australians were shopping mainly from local retailers, with the falling Australian dollar helping increase the proportion of domestic online purchases to more than 70 per cent of delivered parcels.
Overall, Australia Post is expecting to deliver over 40 million parcels this December, exceeding the 37 million parcels delivered in December last year.
To help customers get their Christmas gifts in time Australia Post
Is keeping over 170 retail outlets open longer.
Installed a further 13 parcel lockers taking the total to 343.
Has 13 air freighters operating every night for Express services and 16,000 vehicles operating daily.
Has hired close to 3000 extra people to deal with record volumes.
Australia Post is gearing up for its biggest Christmas ever, aiming to recruit a record number of additional workers – expected to be close to 3,000 – for peak season operations and launching weekend deliveries in metropolitan areas from this Saturday.
With total online purchases topping over $21 billion for the first time ever this year, Australia Post says the online shopping boom is continuing with unprecedented peak period and Christmas parcel volumes – with on average one million parcels to be delivered every day.
Australia Post Group chief operating officer Bob Black said it will be all hands on deck to make this Christmas a success.
“This recruitment drive is the biggest of its kind in our history and we’re on track to hire 2,000 Christmas casuals before December. This will put us in a good position for a record-breaking Christmas ahead,” Mr Black said.
“We are also recruiting 800 new fixed-term roles including truck and van drivers, and additional people to serve customers in our Post Offices and contact centres.”
Last year Australia Post delivered 37 million parcels in December and Mr Black said parcel processing facilities have been upgraded across the country in preparation for the Christmas rush.
“We are investing $300 million into new parcel processing technology and machinery across Melbourne, Sydney and Brisbane, enabling us to process an additional 35,000 parcels and Express Post items an hour.
“We want to give our customers more delivery choices, on all their online purchases ahead of Christmas. From this Saturday we will start delivering on weekends in metro areas, right up to Christmas, and Post Offices will soon begin extended trading.
“Improvements in parcel tracking and our suite of delivery choices, including parcel redirections and our free 24/7 parcel lockers provide customers convenience around the clock.
“Our people work really hard all year round, and take special pride in being able to offer our customers flexibility and peace of mind knowing all their Christmas purchases will arrive safely and on-time.”
The jobs are being advertised here.
Australia Post signed historic agreements with Westpac and NAB that will help guarantee the future of essential banking services, via post offices, in communities across Australia.
Westpac and NAB have both given multi-year commitments to partner with Australia Post, enabling their customers to continue to conduct banking transactions in 3,500 post offices across Australia using the Bank@Post service.
Importantly, these agreements include a new Community Representation Fee of $22 million per annum, as well as revised transaction fees that will enable critical investment in the post office network.
The announcement follows Commonwealth Bank’s decision last week to also sign a landmark new Bank@Post agreement that includes a $22 million annual Community Representation Fee.
Together, the decision of these three banks means Australia Post has secured hundreds of millions of dollars of additional funding required for post offices in the years to come.
Australia Post group chief executive officer and managing director Christine Holgate said: “This additional funding will enable us to invest in the post office network so that we can provide safe, reliable banking services, boost funding to our licensed post office partners and, importantly, continue to support communities across Australia,”
“I would like to sincerely thank Brian Hartzer, Westpac CEO, and his team, plus Andrew Thorburn, group CEO & MD, and the broader team at NAB for demonstrating their leadership and giving their support to the Bank@Post service. In signing these agreements, they have both shown their commitment to securing the future of vital banking services which is critical to the long-term social and economic prosperity for communities across our nation.
“I have been really encouraged by the discussions with the three banks’ executive teams. We are together considering additional services for small businesses including coin floats and opening/closing accounts, as well as much more.”
Previously, Australia Post has lost money on providing these banking transaction services on behalf of its banking partners. Australia Post does not have the funds to subsidise this service further or make the critical investment needed. Many of Australia Post’s local post offices are operated by licensed post office partners, who as small businesses, do not have the capital investment needed either.
The support of these three Australian large banks is essential to maintaining post offices, saving jobs, and sustaining this essential community service, particularly in rural and regional Australia.
There are 1,550 communities across Australia, largely in rural and regional areas, which have a post office but no bank branch. These communities rely on Australia Post to provide access to banking services, such as withdrawals, deposits, balance inquiries via Bank@Post, as well as other essential government services like passports.
Australia Post will use the community representation fees paid by the banks to invest in post office network infrastructure, including in technology, security upgrades and local marketing support.
These new agreements also enable Australia Post to increase Bank@Post base transaction payments to its licensed post office partners by approximately 50 per cent and increase the annual minimum payment to them by 25 per cent. This will be an important revenue boost for these partners and in return help ensure their viability.
Ms Holgate said she was disappointed that ANZ Bank has chosen not to commit to this request for support to our community Post Offices at this time.
“We have today given ANZ notice that their current agreement for Bank@Post services with Australia Post will end in three months,” Ms Holgate said.
“We will offer ANZ a new contract to ensure their customers are still able to access the benefit of our services and they are not disadvantaged whilst ANZ continues to develop its own strategic options. The new contract will have a different Community Representation Fee to be paid annually, coupled with revised transaction costs. The fee is essential as Australia Post needs to make the investments in the service to ensure both our people and service are safe. With no long-term commitment from ANZ it is critical they contribute to the investment required.
“We have had a long and successful relationship with ANZ for many years, with 6,000 ANZ customers, many of whom are small businesses, using this growing service every day across 99 per cent of our post office network. I remain hopeful that we will find a positive way forward together soon.”
Australia Post and the Commonwealth Bank of Australia (CBA) have signed an agreement to support critical investment in Australia Post’s Bank@Post service. This is a landmark agreement in the history of Australia Post and will help ensure all Australians can continue to use Post Offices across the nation to access important financial services.
The five-year commitment includes CBA contributing a new annual Community Representation Fee of $22 million and revised transaction fees. This partnership enables Australia Post to invest in the Post Office network in order to help provide safe, reliable banking services, ensure our Licensed Post Office partners will be paid appropriately and support the future prosperity of many communities.
Australia Post’s group chief executive officer and managing director Christine Holgate said: “I am extremely appreciative that the nation’s largest bank has taken a lead position in supporting Australia Post. This investment will not only help save a critical service in Post Offices serving the communities of Australia, it saves jobs and supports the financial viability of our local Post Office partners.
“The agreement ensures customers will be able to access withdrawal, deposit, balance enquiries and passbook services at more than 3500 Post Offices across the country. Approximately 30,000 CBA customers use Bank@Post every day.”
There are 1,550 communities across Australia, predominantly in rural and regional Australia, who today have no bank branch. The citizens and small businesses of these communities depend on Australia Post to provide access to financial services through the Bank@Post service in their local Post Office. These outlets are also essential for the ‘last-mile’ delivery of the booming online retail sector.
Without this service these communities face significant economic and social challenges. Recent research by Deloitte Access Economics highlighted the important role Post Offices play in local communities. In fact, with every role Australia Post employs in rural and regional Australia, two more jobs are created in the economy.
Today Australia Post loses money operating the service and does not have the funds to subsidise this service further or make the critical investment needed. Many of Australia Post’s local Post Offices are operated by Licensed Post Office partners, who as small businesses, do not have the capital investment needed.
Without support, Australia Post risked either suspending the service or closing some community Post Offices, which would have hurt communities and cost jobs.
Australia Post has announced a full-year profit after tax of $134 million, up 41 per cent on FY17. This result was largely driven by substantial growth in parcel revenues and a continued focus on efficiency gains, the company said.
This result was underpinned by strong parcel volume growth, both domestically (B2C up 10 per cent) and internationally (up 19 per cent), and a range of efficiency measures across operational and support functions. Together this helped offset the impact of an 11 per cent volume decline in the important domestic letter business.
Once again, this year Australia Post said it has either met or exceeded all of the prescribed performance standards that underpin the community service obligations. Importantly, the organisation maintained broad community access to the network via 4,356 post offices (in excess of target of 4,000), and delivered 98.5 per cent of letters on time or early (ahead of target of 94 per cent).
Australia Post’s Group chief executive officer and managing director Christine Holgate said: “While this result was pleasing, it demonstrates the business has a significant challenge ahead as it continues to transform. Although we continue to optimise our delivery network, we require $2 of parcel revenue to mitigate the impact of every $1 decline in letters.
“In parallel with letter volume decline, many of us are paying our bills online and large organisations are withdrawing from regional towns. This puts further pressure on our local post offices to serve these communities with important services, including financial transactions. These growing services require investment and increased funding to ensure we can meet communities’ needs.
“As Australia’s most trusted delivery partner, facilitating 82 per cent of the nation’s e-commerce, we are uniquely placed to take advantage of a number of growth opportunities. This includes serving our business & government customers better, rejuvenating the role of the post office in the community, focussing on the significant international opportunities, and creating and simplifying our products that people value and trust.
“To build world-class service we are investing in capacity and efficiency in major parcel processing facilities and across our delivery network, with over $300 million of investment in FY18 and $500 million forecast in FY19.
“We are proud that Australia Post plays such an important role in our country, contributing over $6 billion to the economy. For every role we employ, we secure another in Australia including two in regional and rural areas. Our trusted brand and posties are loved by Australians. Around 91 per cent of Australians have visited a post office in the last six months, on an average of 10 times, with 85 per cent of Australians saying it was very important their local post office remains.
“To help keep all our people safe, including our posties, we will invest an additional $30 million in skills, tools and capabilities. We will reduce the number of motorcycles on delivery routes where other transport is safer, such as three-wheeled electric delivery vehicles and electric bicycles.”
Australia Post also made a significant contribution to the community by paying $593 million to the federal and state governments, through dividends ($79 million) and taxes ($514 million), while remaining entirely self-funding. Furthermore, the fully funded cost incurred by Australia Post in meeting its community service obligations during the year was $404 million.
Australia Post has forecast there will be greater pressure on profitability in the 2018/19 financial year due to the continued decline in letters and caution around domestic and cross-border retail conditions.
The 2018 Remuneration Report for key management personnel has also been released today. This report is available at www.auspost.com.au/2018remunerationreport. This year the report also includes forecast remuneration payments for FY19. At a glance
FY18 profit after tax of $134m, up 41% on previous year.
Excluding property, pre-tax profit up 280% from $19 million to $72m.
Parcel revenue $3.5bn – volumes up 11%. Letter revenue $2.4bn – volumes down 10%.
Other businesses contributed $1bn – consistent year-on-year with significant mix changes.
Significant contribution to government. Tax payments up 22% to $514m and tax collected up 6% to $1.2bn. Dividends up 57% to $79m.
18th consecutive year all community obligations exceeded.
Australia Post contributed $6 billion to the national economy last financial year and created tens of thousands of additional jobs across the nation, a new report from Deloitte Access Economics has found.
The report says Australia Post facilitates 82 per cent of Australia’s $14 billion e-commerce market and that 80 per cent of Australians see no convenient alternative for receiving parcels other than through the post office.
It also found that for every worker Australia Post employed, another job was secured in the community. With Australia Post directly employing the equivalent of 26,500 full time staff, this meant a total of more than 51,000 full time jobs were supported by Australia Post’s operations last year.
In local communities, the employment ratio was higher, with every post office job supporting a further two jobs elsewhere through flow-on economic activity, such as motor mechanics, property managers and information technology jobs.
The report found that 92 per cent of Australians visited a post office in the previous six months and highlights the tremendous social value they place on the postal service, with 79 per cent saying Australia Post ensured equity of access to core services for all communities. Seventy-three per cent rated Australia Post a trusted and valued part of the community.
Australia Post’s group chief executive officer and managing director Christine Holgate said post offices are well placed to help provide a range of vital community services on behalf of organisations, such as the government and banks, and to help local businesses grow.
“For example, there are now about 1,500 communities in Australia without a bank branch, and many more without access to government agencies, where Australia Post provides access to Bank@Post and other essential services including drivers licence renewal and passport applications,” Ms Holgate said.
Australia Post currently provides community-wide access to services on behalf of more than 750 businesses and government agencies.
“This report underlines the fundamental role Australia Post plays in communities across Australia. If these communities are to prosper, we need to continue to connect them to the rest of the country and the world, and ensure they have access to essential services that in many cases only Australia Post delivers,” she said.
“Almost 60 per cent of our network of more than 4,300 post offices are located in regional and remote communities. This is double other critical service industries such as electricity, gas, water and waste and almost treble others including health, finance, education and training.
“With 45 per cent of Australia’s economic output generated in regional and rural areas, as well as an ageing population and infrastructure pressures in our cities, protecting and building our role is important to this country’s future.”
Partner at Deloitte Access Economics and an author of the report John O’Mahony said: “Contrary to perceptions of a declining value in the digital age, our report finds that Australia Post is supporting our transition to the economy of the future, by facilitating e-commerce, exports of small and medium-sized businesses, electronic payments, and digital identity solutions.”
Australia Post was found to be particularly important for the one million households that did not have internet access, and for Australians in regional and remote areas, which were very likely to rely on post office services.
“Post offices are used by Australians for a large range of delivery, financial and other services, and consumers place significant value on these services. Consumer value exceeded the price paid for services by more than $2 billion last year,” Mr O’Mahony said.
The Deloitte report found:
For every $1 that Australia Post contributed to national GDP last year, another 86 cents in economic activity was generated in other industries.
With a direct economic contribution of $3.2 billion, this means Australia Post created a further $2.8 billion through flow-on economic activity, generating a combined total of about $6 billion.
Australia Post’s national delivery network is particularly important so that small businesses can access new customers in the booming e-commerce market, forecast to grow to $22 billion by 2022.
Australia Post’s total economic contribution was more than other significant industries, such as broadcasting and electricity generation, which contributed $5.8 billion and $5.1 billion respectively.
Australia Post’s activities deliver social benefits worth $185 million per year.
Around 82 per cent of Australia’s $14 billion e-commerce economy is facilitated by Australia Post.
Australia Post today reaffirmed its commitment to rural and regional communities and maintaining its post office network. It will release its full year financial results next week.
Australia Post has launched a dedicated Tech Academy, a two-year development program available to anyone with a keen interest in a career within the evolving tech sector.
Aimed at training emerging talent from a diverse background – including return to work parents and people with non-technical skills – Australia Post has teamed up with educator Coder Academy to provide 20 successful applicants on the job training and industry placements within the organisation’s tech and digital spaces.
Commencing February 2019, trainees will receive a 12-week tech boot camp, a two-week placement across Australia Post’s retail and operations sectors, and four five-month tech rotations, with opportunities for ongoing employment within a tech or digital team at the conclusion of the two-year period.
Australia Post chief information officer John Cox said the innovative program will nurture new talent and enable people to build their skills across emerging technologies.
“We know the tech industry is continuously growing and demand for talent is increasing. Meeting employment shortages within the sector has become increasingly challenging,” Mr Cox said.
“This program is open to anyone, regardless of technical background, including return to work parents, veterans, mid-career professionals, and graduates.”
Mr Cox said Australia Post is looking to grow its tech and digital capabilities, by developing talent in emerging technologies such as machine learning, the Internet of Things (IoT), and blockchain.
“Companies abroad have received high acclaim for their ability to deliver a workforce in line with future organisational needs and diversity, and we want to bring that to Australia Post.
“We are hoping this program will set the standard across the country, and will attract people who want to learn and have a strong sense of community, to help us improve the way we deliver our products and services for our customers.”
Applications for the Australia Post Tech Academy are closing on 2 September, with the first intake beginning in February 2019.
For more information and to apply visit www.auspost.com.au/techacademy.
Australia Post has set up an e-commerce 3PL to handle e-commerce warehousing and deliveries. Fulfilio is the new business of Australia Post, providing e-commerce software, warehousing, ‘pick-and-pack’, and delivery services tailored for e-commerce merchants. Fulfilio will provide warehousing locations across four major capital cities (Sydney, Melbourne, Brisbane and Perth), enabling inventory to be located as close to buyers as possible, and therefore ensuring faster delivery times.
eBay.com.au has now announced a partnership with Fulfilio to offer a national 3PL network to its sellers. The new service, eBay Fulfilment Partner, will provide eBay sellers with the best price to pick, pack and deliver their eBay orders, with distribution by Australia Post’s delivery network. There have been more than 53.2 million eBay parcels shipped domestically in last 12 months alone.
With a network of 40,000 Australian sellers and more than 11 million Australians visiting eBay each month, eBay says it is able to offer its sellers the best rates, helping them reduce costs, save time and remain competitive. For example, on 500g parcels sellers will pay rates as low as $5.74 for pick, pack and delivery for a cross-town service, and $6.83 for interstate service – saving sellers up to 30% on picking and delivery costs (based on industry averages across picking, packing and last-mile costs).
eBay’s senior director of product and shipping Dave Ramadge said: “At eBay our number one priority is to support the 40,000 Australian businesses that operate via ebay.com.au. In this partnership with Fulfilio and Australia Post, we are giving our sellers Australia’s most comprehensive delivery network with over 57,000 square metres of storage and distribution space across the country.
“We will continue to deliver sellers the lowest cost to pick, pack and deliver their eBay orders, so they can put their inventory closer to their customers and spend less time packing and more time selling.”
Australia Post has launched its very first Environmental Action Plan as part a commitment to reduce carbon emissions by 25 per cent by 2020, and save $10 million every year through environmentally sustainable programs.
Running the country’s largest delivery network that spans 11.7 million addresses and more than 16,000 vehicles, Australia Post created the Environmental Action Plan to shape ongoing reporting and future activities that it hopes will lead to long-term sustainability.
Chief financial officer Janelle Hopkins said by driving sustainability, the company can release resources to better explore new areas and improve customer service.
“That saving of $10 million every year enables Australia Post to invest more in improving and creating services our customers want to use,” said Ms Hopkins.
“Since 2000 we have reduced our carbon emissions by 20 per cent, which is significant given domestic parcel volumes are continuing to grow, and more than two million parcels were delivered in a single day during Christmas last year.
“In the last eight years we have been working to aggressively reduce our carbon footprint, even going beyond our own sites to account for our third-party supply chain.
“Our first ever Environmental Action Plan is a step towards continuing to reduce carbon emissions and achieve our target of a 25 per cent reduction by 2020.”
Australia Post installed the country’s largest single-roof solar panel system late last year at the Sydney Parcels Facility, which Ms Hopkins said alone saves $800,000 every year within its extensive 48-site solar energy program.
“We are seeing immediate returns as we unlock renewable energy at some of our busiest sites, which helps insulate the business against rising energy prices,” Ms Hopkins said.
“But we’re also looking at how we can leverage our existing network to support communities. Our partnerships with groups like TerraCycle, Planet Ark and Mobile Muster have seen us remove 26,000 tonnes of material from landfill. We also helped develop the world-first Nespresso recycling satchel to send used coffee pods to a purpose-built recycling centre, and our own satchel packaging is now completely recyclable.
“We’re excited to see Australia Post make an even greater commitment towards delivering better commercial and environmental outcomes for the Australian community,” Ms Hopkins said.
The Environmental Action Plan is available here.
More Australians are shopping online than ever, with total purchases topping $21 billion for the first time, according to new research from Australia Post.
Australia Post has released its annual Inside Australian Online Shopping Report, an overview of Australia’s e-commerce market that identifies who is buying what and where online.
The report showed that Australians spent $21.3 billion in 2017, an 18.7 per cent increase compared with 2016. Local retailers accounted for more than 80 per cent of the total spending.
Australia Post general manager for parcels & express services Ben Franzi said Australians shopped online to access greater value, choice and convenience, and a clear example of this was the rise of online market places.
“Marketplaces such as Amazon, eBay and Etsy are booming, growing 74.8 per cent in the past year alone,” Mr Franzi said.
“Australians really appreciate the convenience of being able to access goods from a variety of sellers in the one location.
“In the past year we have seen new marketplace entrants, which is always great to see, in recognising the increased customer traffic that this type of format offers.”
Mr Franzi said marketplaces were also helping Australian retailers access the lucrative international market, the total online spending of which has increased 46.7 per cent to $US1.57 trillion ($A2.08 trillion) in the past two years.
“Marketplaces make it easier for consumers in our key export markets, such as China, United States and India, to find Australian products and offer a more convenient way for local businesses to start selling overseas.
“By 2019, total online goods purchases from across the globe are set to reach $US2.16 trillion ($A2.86 trillion), so this market represents a huge opportunity for Australian retailers.”
Fashion, health supplements and other wellbeing products, and cosmetics are among Australia’s most popular online exports. Domestically, fashion continues to be the top selling category, increasing 27.2 per cent in the past year. Health and beauty products are also popular, growing 13.2 per cent, while homewares and appliances recorded 10.9 per cent growth.
The May/June period posted the strongest growth during 2017, with online purchases increasing 32.2 per cent. Mr Franzi attributed the increase to retailers offering end of financial year sales for longer, in some cases more than six weeks.
The November/December period remained the busiest time of the year in terms of volume as people looked to buy Christmas presents online.
Point Cook in Victoria remained Australia’s number one online buying location in 2017, recording 22.6 per cent growth. Toowoomba was the second biggest buying location, growing at 19.5 per cent, while Liverpool was the third biggest, growing 21.1 per cent. Top 10 online shopping buying locations and % growth
Point Cook, +22.6%
Hoppers Crossing, +31.7%
2017 calendar year compared with 2016 calendar year.