“It is critically important for Posti to secure its competitiveness and profitability. We want to be the leading provider of logistics and postal services in Finland, and we are making excellent progress towards achieving this goal,” says Heikki Malinen, President and CEO of Posti. “We must develop our core operations, but simultaneously keep looking for growth in new areas.”
Posti has updated the strategy it released in 2015. Posti’s main strategic goal still is to be the first choice for its customers as the provider of postal and logistics services in Finland, the Baltic countries and Russia. Now, the focus is on how to achieve the goals set in the strategy.
The new Postal Act and the proposed changes to Government ownership steering mean that Posti must renew itself even faster. Digitization will change Posti’s business models and create new business opportunities. International e-commerce will grow and increase the volume of parcels and letters delivered in Finland. At the same time, competition will become tighter in postal and logistics services. Posti must continue to renew its procedures in order to remain profitable and competitive.
The Finnish Government drew its new ownership steering policies in May. The Government’s proposal to the Parliament is to lower its ownership of Posti from 100 to 50.1 per cent. Listing has also been discussed. However, no decisions on selling shares of Posti’s ownership have been made yet.
- From Posti’s point of view, this change would support our renewal amidst the transformation of the postal industry and give us new opportunities for growth. The extension of the ownership would be a continuation of the European privatization trend that started in the 2000s. The postal market is nowadays fully open to competition, both in Finland and in Europe, Malinen says.
Posti’s strategic focus areas for 2016–2018
The Board of Directors of Posti has specified the company’s strategic goals for 2016–2018. They are aimed at Posti’s renewal and profitable growth in new services.
- We will be one step ahead of the transformation of the postal industry. We will have a leading position in postal services, home services and digital marketing services. Our aim is to extend the lifecycles of our services.
- We will be the market leader in parcel and logistics services and the first choice for logistics and e-commerce services in Finland and the Baltic countries. Our focus will be on supply chain solutions, and we will manage international e-commerce parcel flows. We seek growth in areas such as food logistics and through new industry solutions, acquisitions and partnerships.
- In Russia, we are the market leader in contract logistics, and we have a strong position in road, air and sea freight and final delivery. We will strengthen our warehouse and transport business and grow as an e-commerce partner. We will seek growth in the pharmaceutical and food sectors and strengthen our expertise in the home delivery of parcels with the help of the MaxiPost company. E-commerce is also expanding in Russia and we want to be involved in its growth.
- Financial management service provider OpusCapita is an important part of our group. OpusCapita’s new strategy will take the company more towards the automation of procurement and invoicing processes.
- Posti has access to an efficient, digitalized nationwide production network that is managed skilfully and that will serve as the foundation of our growth. We will focus on constantly improving our cost structure and quality. We will develop our operations with skilful management and a strong sense of community.
- We are boldly seeking growth in new services delivered in homes and in meal deliveries. Posti’s home services comprise care, security and facility services. We will create new warehouse and transport services in areas such as food, drink and in-house logistics. We will develop digital marketing and information services by leveraging Posti’s data.
- Our competent personnel ensures customer satisfaction and continuous renewal. We will develop the competence of our personnel in new services and their ability to address the opportunities of digitalizing business. We will invest in well-being at work and occupational safety.
Posti renews itself in order to secure its profitability
Home services are an important growth area for Posti in Finland. They allow us to play an even more important role in the everyday life of our customers.
- We visit the door of every Finn five times a week and we have a nation-wide network on which to build our new services. Positive customer experience and smoother everyday life are close to our heart, says Sanna Ahonen, Senior Vice President, Strategy.
Thanks to the renewal of delivery times, mail is flexibly delivered on every weekday, from early-morning newspapers to online store purchases delivered in the evening. In addition to home services, postal services are seeking growth in marketing that is based on Posti’s unique data.
In parcel and logistics services, the goal is to offer cost-effective e-commerce and logistics solutions in Finland and in the Baltic countries, as well as efficient supply chain outsourcing solutions. Posti already is the industry leader in comprehensive, service-driven supply chain solutions.
Posti wants to help Finnish e-commerce operators to become international. Posti has an e-commerce cooperation agreement with DHL and Bring, covering 16 countries and 43,000 service points. In Transport Services, Posti is growing strongly in, for example, food logistics services. In the Baltic countries, we will continue to focus on our strong warehousing service and growing e-commerce parcel business.
E-commerce is also expanding in Russia and Itella Russia wants to be involved in its growth. Itella Russia’s goal is to be the market leader in contract logistics and to grow its market share in transport services. Another goal is to expand to new services, such as food deliveries, and to develop e-commerce solutions, offering an extensive terminal network.
OpusCapita is seeking international growth in both Europe and the US.
- OpusCapita’s goal is to be the global market leader in buyer-supplier ecosystem solutions, based on its strong position as a provider of automation services for document and financial management in the Nordic countries, Ahonen says.
Competent personnel enables our renewal
The changing needs of our customers require developing the competence of our personnel continuously. For all of us at Posti, this means learning new things and common practices.
- Competent personnel will enable this renewal. In order to meet the changing needs of our customers, we will invest in personnel development, in line with our strategy, Malinen says.