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Fully aware that the “last mile” accounts for two-thirds of our costs, and delivery alone for 60%, any technical improvements must help to reduce costs during this final phase. This is why in the long term, converging mail flow is a key objective - merging is the “Holy Grail”! As things currently stand, there is still plenty of room for improvement in the duration of the merging process, even though we have already managed to reduce it somewhat. Mixed mail is therefore an objective, but we are proceeding in stages, one of which is the creation of new sites with more high-performance equipment. However, we are still dependent on allocated space in sorting centres, on their own logistics and on deadlines, and we must not forget that production must be kept running 24/7, even when the facilities are being modified! We must study in detail the consequences of the slightest change, and never forget that any technical progress has a human impact – new sorting systems require new skills, postmen have to modify their working hours etc. Moreover, every year, the drop in letter mail volumes forces us to cut down staff numbers. We must deal with this issue in a rational and socially acceptable manner and help people to find new employment.
The fundamental issue is the value added to the sorting process during the “last mile” phase, given that some of the mail will still have to be processed manually. Mixed mail could be an option if it enables a higher volume of mail to be processed than with existing sorting processes, within the same lead times. Sweden Post’s doctrine can be summarised as follows: the sooner the postal round can be scheduled, the easier the postman's work and the lower the costs, thereby justifying investments in new technological solutions.
By Peter Brännström, Production Manager, Sweden Post/Posten AB - July 2011