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As the number of letters being posted continues to fall, Zimpost has to evolve. By Ian Armitage
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Zimpost focus supply chain
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t is a fact of life that things change. I think it was Harold Wilson who said that he who rejects change is the architect of decay; the only human institution that rejects progress is the cemetery. The cemetery is pretty much where the postal letter is heading. 20 years ago it was king. But things change: people and business wanted to send messages across faster. Along came mobile telephones and the Internet. It was just a matter of time before Zimbabwe’s postal company Zimpost got into trouble. The letter has never been less popular and the number being posted continues to fall. Zimpost has reacted. “Since 2003 we have experienced a 40 percent decline in mail volumes. The reduction in postal output and the advent of quicker online methods of communication have forced us to move into areas like real estate, renting out our office space and internet cafes to get revenue to sustain our operations,” Zimpost managing director Douglas Zimbango says. “The postal service has suffered from electronic substitution. Today mobile devices provide SMS and social media services so people have shifted away from letters. Fewer people
The reduction in postal output and the advent of quicker online methods of communication have forced us to move into areas like real estate, renting out our office space and internet cafes to get revenue to sustain our operations
are writing them, send bills or even pay bills via postal mail.” According to Zimbango the decline started in 2003. Back then it handled 100 million pieces of mail. In 2004 it was half that. In 2010 it dropped down to just 15 million pieces of mail. “Everything in this generation happens in cyber space,” Zimbango says. “We have however found solace in opening Internet cafes as part our strategic move.” Cutting costs and surviving has become priority number one for Zimpost. After all it still has a mandate to provide a universal service. “Our postal service plays a pivotal role in the country in terms of poverty alleviation and regional integration – it is very important. It is not just a case of saying the letter is dead and us shutting up shop. That is not an option. And besides there will also be a demand for postal services. Always. For that reason we want to become better. It is imperative that we build and implement strategies centred on quality service delivery and a greater focus on the customer to survive. That is what we are doing.” Cutting costs is important too.Zimpost has streamlined its operations. It is now automating its counter network. “It will save an additional $1 million per month,” Zimbango says. www.southafricamag.com
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Zimpost focus supply chain
The computerisation project started last year and Zimpost has set aside $3 million to cover the cost as it moves to catch up with international standards. “Successful completion of this will increase our revenue base. No doubt,” Zimbango says. “We will counter automate 28 outlets and it will earn us in the region of $500,000 per month. We will eventually roll it out further, saving even more and increasing revenue.” Software development for the pilot project has been completed. Zimpost will pilot the scheme in Harare to monitor it closely before rolling it out to the 28 outlets countrywide. “We will be putting it out strategically. Targeted outlets will be regional centres, border towns and high volume offices.” Irish-American software developer Escher has been contracted to do the work with Zimbabwe. Escher has experience of similar projects having worked with other postal administrations in Botswana, Mauritius and South Africa, Zimbango says. “The automation drive will improve our efficiency in our operations. Speed at our counters will be increased and movement of information from one outlet to another will be 4
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increased making our service more reliable. We want to regain all the lost customers. New product line and services will also be introduced. Certainly we want to bring more customers into the system. And since Zimpost is situated close to the people, we want to transform post offices into modern centres where a number of transactions can happen under one roof.” That isn’t the only measure. “We are also introducing a new mailing system called Hybrid Mail where clients’ mail or statements will be sent electronically to different strategic points across the country,” Zimbango adds. “The move is a further attempt to diversify services. With the new system, what happens is that if any one of our customers, for example, that is based in Mutare and wants to send their statements or mail to Plumtree, all they have to do is simply bring in the mail in an electronic form, like a disc or memory stick, and we plug it in at our machines and send it. The printing will happen at the point of delivery. The Zimpost officers in that particular place will just take out the printed mail or statement and deliver it to the customer. It will cut time when delivering the physical mail.”
Funding for that scheme is also in place, Zimbango says. “We are currently going through the normal process of going to tender. The big hybrid mail machines will be at various regional centres with smaller ones located in the outlying areas.” Over and above all that Zimpost has diversified into post bus passenger transport too. The buses carry both passengers and mail. To date the company has acquired two post buses, one servicing Harare-Beitbridge and the other servicing Bulawayo-Victoria Falls. “We are actually in the process of acquiring 10 more,” Zimbango says. “We have already issued a tender. It would add to the two we already have. “The buses carry both passengers and mail and is part of our attempts to revamp the company. Our plans are that the post buses will service all low mail volumes in areas that are in rural areas so that we limit our costs. The buses will be able to cover areas that are not covered by other buses.
“New technologies have forced clients to abandon traditional methods of communication and to remain relevant we have to do things like this. We have to stay competitive and diversify. “We are sure letters will not completely die but we do need to remain relevant and that’s why we are going into new areas like the post bus service. “We decided to do this so that economically we remain viable.” Missing market shifts is what causes most business failures. They fall into trouble either because they fail to notice the shift or for some reason react late to the changes in market needs. The last 10 years have been revolutionary in the manner in which businesses have evolved. Wish we Zimpost luck. To learn more about Zimpost visit www.zimpost.co.zw. END
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