Canada Post is one of Canada’s largest employers with over 50,000 employees. It delivers letters, advertisements and parcels as well as offering remittance services through MoneyGrams and postal money orders.
Canada Post is facing a number of financial pressures that could threaten its business model and the jobs it employs. These include the impact of digital media and emerging technologies like drones.
The Future of Logistics
Canada Post’s business model must adapt in order to meet the rapidly evolving needs of Canadians. This includes altering both the types of mail delivered and to which addresses it is sent.
Canada Post currently delivers 8.8 billion pieces of mail annually to 15.8 million addresses, mostly residential and business locations. Its service delivery network and infrastructure are tailored to meet the requirements of the Canadian Postal Service Charter, such as universal services, five-day service, uniform postage rates and maintaining the rural moratorium.
The corporation operates four primary business lines. These include transaction mail (domestic and international Lettermail(tm), which includes letters, bills, statements and invoices), direct marketing mail, parcels and other services.
The Future of Retail
Canada Post is one of Canada’s largest Crown corporations, employing an expansive workforce to deliver letters, advertising and parcels. Additionally, it provides remittance services as well as a network of corporate- and dealer-managed post offices.
Canada Post’s revenues and income have declined due to a combination of stamp price increases in 2014 and the shift in consumer shopping habits towards online purchases.
Its business lines of transaction mail, direct marketing and parcels face significant obstacles in the future. They cannot generate enough revenues and cash flows to cover rising costs as delivery networks serve more addresses annually.
To gain a better insight into Canada Post’s financial future, meetings were held with associations representing businesses from over 100,000 independent firms, 45,000 retail store fronts, advertising, newspapers and magazines as well as banking, transportation and other service sectors. Participants expressed concern about how technology is having an immense impact on postal services in Canada Post’s future and are encouraging them to make necessary adjustments.
The Future of Customer Service
Canada Post Corporation (CPC) is a Crown corporation that manages Canada’s postal service. Their mission is to be the world’s leader in providing innovative physical and electronic delivery solutions that add value for customers, employees and all Canadians.
Purolator Holdings Ltd., SCI Group Inc. and Innovapost Inc are its subsidiaries.
Canada Post Corporation suffered a substantial financial loss in 2011, ending 16 years of profitability. This decline was primarily attributed to decreased mail delivery and rising labour costs.
Canada Post, as a major player in the industry, must continually evaluate its strategies to remain competitive. To do this, Canada Post must take an innovative approach to customer service that incorporates technology into every aspect of operations.
The Future of Technology
Canada Post is at a critical juncture and facing daunting obstacles that will have grave repercussions for its business and future. These difficulties stem from an evolving postal service environment as well as digitization.
Traditional letter mail volumes have seen a marked decrease, leaving revenue growth hindered by volume erosion. This was especially evident in Canada Post’s domestic lettermail business line where revenue growth has been only 0.7% annually since 2014 even with price increases introduced that same year.
Canada Post has struggled to reduce costs despite declining mail volumes, with labour expenses making up over 70% of total expenses and 41% higher than comparable private-sector businesses. As a result, Canada Post has not been able to lower prices in response to declining revenues.
Canadians and business clients are concerned about the future of Canada Post’s operations. They want postal services maintained as a public utility with priority given to speed of delivery, dependability and customer service.