CITYMAILERS MAGAZINE

February 2022

CITYMAILERS MAIL

PARCELS

DELIVERY E-COMM

LOGISTICS

m

a g a

e n i z

THE FUTURE OF THE LAST MILE the autonomous mileage

Disruption Culture Delivery Going Digital

PLUS Automated robotic deliveries explained

Welcome To Citymailers Magazine.

In 2018, the first order placed during the 11 November annual global shopping festival - or -Singles`Day - was delivered in less than 15 minutes. A year latter, November 11, set new records, generating over US$53bn in total sales. At its peak with over 200.000 transactions per second, the Singles`Day puts an enormous challenge for fast and efficient delivery. Postal, Couriers and Express Delivery companies are using retail stores as delivery centers, they are building smart logistics solutions and they are often using big data in order to provide efficient delivery.

The postal landscape is going through rapid and rather dramatic change.

Traditional letter mail delivery is declining but more and more e-commerce packets and parcels are delivered year by year. Many postal operators are facing stiff competition in the parcel markets, since smaller more agile delivery companies have entered this vibrant market segment. National markets have been liberalized in most of the countries around the globe while the industry shifts its focus on ecommerce delivery and logistics, facing intensive impulse to diversify and become technologically advanced.

We’ve assembled a team of postal experts, journalists, business experts, former postal regulators and consultants but also data analysts, sociologists, eco-experts and many more contributors to create CITYMAILERS MAGAZINE, as new kind of business news offering that is designed not just for the people from postal industry but also for the wider community of e-commerce companies, social explorers and wider public audience interested in vibrant, vivid postal, e-commerce logistics and delivery industries. Postal industry plays a vital role in connecting businesses and government across the globe, but also plays a more complicated, historical role of binding the societies as whole. CITYMAILERS MAGAZINE is emerging in times when industry is grappling with its greatest challenge: digital disruption. In today’s global postal industry, the most significant developments are found far from the traditional understanding of posts, and traditional ways of understanding the postal business no longer apply. Aware of this, we intend to do some things differently than you might expect. Our coverage is rooted in many defining obsessions: core topics and questions of importance to postal, courier and logistics professionals from the rise of digital solutions and autonomous vehicle, drone and robot deliveries, to the growth and habits of the consumer class. These are the issues that amaze our newsroom and we invite you to obsess about them along with us.

We view the creation of CITYMAILERS MAGAZINE as just the beginning of an ongoing process, and we hope it will be a collaborative one. Readers, business executive, mailers, postmen, collectively, know more about this new global economy than we do, so we hope you will be in touch with tips, suggestions, and submissions. You can always reach our newsroom! As you will notice flipping pages of POSTAL MAGAZINE we do care about social role of posts and we do appreciate history, culture and mail art, so we do have a interesting dedication to postal tourism, mail art, philately, postcards, mail history and we to write a lot about postal themes in music and movies!

Thank you for visiting us. And keep coming back for CITYMAILERS MAGAZINE. Best,

4

36

48

4 THE FUTURE OF THE LAST MILE 36 DRIVERLESS, EFORTLESS 48 SOCIAL POSTAL The views expressed in the articles and technical papers are those of the authors and are not necessarily endorsed by the publisher. The publisher does not accept any liability for errors that may have occurred. | this publication is protected by copyright 2019

VLATKO ATANASOSKI Founder

CITYMAILERS MAGAZINE | 1

FLASH NEWS

PostNL is to acquire all outstanding shares of its rival Sandd for €130 million PostNL currently controls approximately 70% of the Dutch postal market and Sandd holds the remainder – primarily business deliveries.

US$ 2.8 bn Posten Norge generated US$2.8bn in revenue in 2020.

Three weeks after striking postal workers were forced back to work, Canada Post says it’s caught up on most parcel delivery backlogs that had been created by rotating walkouts.

‘Aramex Fleet’, is new, crowd-sourced delivery platform that connects Saudi nationals to last-mile employment opportunities.

US$ 392 bn CEP MARKET SIZE IN 2020

37%

of consumers want carbonneutral delivery

Camozzi Automation has opened its new US$10m distribution hub in Italy.

JD.com transaction volume reached US$41.4bn in 2020

CITYMAILERS MAGAZINE | 2

WORLD WIDE POST

THE FUTURE OF THE LAST MILE multi-drop CROWD SOURCED DELIVERY solutions should be the future of LAST MILE delivery.

Llast-mile delivery, as the entire delivery ecosystem is directly affected by the ongoing postal market disruption. The parcel delivery segment is the part of the delivery business that not just the industry stakeholders, but also a lot of investors focus on.

The postal industry has proved to be the bloodstream through which data flows. Yet the postal business is now struggling the challenges that digitalization brings on the table. The digital disruption is affecting the core of the postal industry while the traditional business of mail delivery is in sharp decline and substituted with online communications. On the other hand growing e-commerce parcel delivery market reveals a market segment where traditional postal operators are looking for the future source of business. Parcels and logistics driven by the rapid growth of ecommerce, were the two stimulating segments of postal industry growth in last years, reaching up to €9.0bn and €1.5bn respectively in 2017.

The parcel delivery market is large, but it is also very active and potent market, with growth rates ranging between 7 and 14 percent in mature markets, and almost 300 percent growth in some developing markets such as India. In those advanced markets parcel volumes could double over the next ten years. But e-commerce is not the only market growth driver. E-commerce stimulated shift market share from the B2B to the B2C segment. B2C once made up around 40 percent of the market, but has since exceeded 50 percent in a number of countries, including some strong economies. Last-mile share in total parcel delivery cost – often is reaching or even exceeding 50 percent – and that puts the last-mile problem in the focus of interest of delivery companies which seek to gain a competitive advantage. Many of the designated postal operators are facing the last-mile as one of the main problems, alongside with significant sunk costs handicaps, and shrinking of the traditional core market. Difficulties that incumbent postal operators face, the rapidly changing social environment, e-substitution and changing communication environment, incentivise the further studying of the future of the last mile. The ongoing disruption that last-mile is facing from new business models promoted by so many startups in the market is just one more reason why we should take more deeper look at the future of the last mile. Those new business models are focusing on meeting customers needs about faster deliveries while using new technologies including autonomous air and ground vehicles.

Modern consumers are willing to pay extras for the same-day or instant delivery, while younger consumers are more inclined to choose sameday and instant delivery over regular delivery. Cheapest option for home delivery soon will not be the main reason to choose a delivery method.

The ongoing debate is which delivery method would dominate the future last mile. Driven by changing customer needs and ever increasing urban deliveries it is likely that X2C delivery of the future would be provided by more autonomous air and ground vehicles, autonomous vehicles with parcel lockers, and bike couriers. If high degree of automation for the two methods is reasonably inexpensive we are looking of the fully automated and autonomous last mile of the future where autonomous vehicles including will deliver close to 100 percent of X2C deliveries.

CITYMAILERS MAGAZINE | 3

WORLD WIDE POST Traditional delivery would be prefered delivery method for around 20 percent of all items: big B2B customers with high volume parcels (i.e., the number of parcels dropped per stop/recipient) and often special delivery requirements will favor mostly human delivery as we know it today. The same could be true for e-grocery delivery, as people will still want crates to be carried up to their apartments and returns to be handled directly.

The new technologies that are market ready or already used for parcel delivery include not just autonomous vehicles or drones but they incorporate new business models too.

Some of the companies from other industries expressed interest in parcel delivery too.German automotive industry giant Continental, at CES 2019, released autonomous lastmile delivery concept, to deliver goods almost directly into consumers` hands. This concept uses Continental`s electric driverless vehicle, named CubE (Continental Urban Mobility Experience) packed with "cascading robots", as how Continental refers to future looking robots, which carry goods to the recipient!

This last-mile delivery solution is still in the conceptual phase, but Continental received, enormous positive response at CES 2019. "We received a lot of attention after our demonstration" said McClain. He also added that all recipients are kept informed of their delivery at all times through an app, letting them know when the package is expected to arrive and confirming when it has been dropped off. "That interest of course included stakeholders from all parts of the goods delivery ecosystem, who are eager to learn more about how such concepts will shape our future. People`s interest is certainly piqued, and we are hearing more and more conversations about the idea of automated goods delivery in general and what that looks like." added McClain.

Continental future plans are to take this positive response further and build on the concept. "The main purpose of this first step is to demonstrate the possibilities that can be reached" said McClain.

RECIPIENTS ARE KEPT INFORMED OF THEIR DELIVERY AT ALL TIMES THROUGH AN APP

"With this concept, we are looking to find more effective and efficient ways of tackling future mobility scenarios, such as automated goods delivery. We are exploring new ways of combining our expertise in safe, reliable and scalable automotive technologies, like those we deploy in highly assisted and automated vehicles, with robotics, where very similar technological challenges faced." -said Jeremy McClain, director of systems and technology at Continental North America. This one of a kind, futuristic, last-mile delivery concept would be utilized to deliver goods to homes and businesses. The deployment of "delivery robodogs" as some of the press named the futuristic looking parcel-carrying robots, happens when the vehicle reaches its destination, and robots could be leaving the parcel on the doorstep, in a parcel box, or deliver it directly to the customer.

CITYMAILERS MAGAZINE | 4

WORLD WIDE POST "The focus here is on the development of the sensors, software and system architectures. Being able to deal with these scenarios at an early stage gives us the opportunity to offer the leading and custom-fit solutions on the market at the right time. The delivery robot concept still has many open questions, which we have set out to answer."

He also said,"That`s exactly what placing the concept at CES was all about-starting the conversation and bringing additional stakeholders to the table."

The focus of Continental is making use of the existing transportation on the roads, building multi-use fleets and meeting the challenging last-mile delivery needs of users and companies. "With the growth of e-commerce and urbanization continuing to skyrocket, automated goods delivery is forecast to provide answer for up to 80% of all business-to-customer deliveries," further noticed McClain.

"That provides a perfect opportunity for multi-use fleets.

This means electric autonomous solutions will be used to transport people at high volume, peak times, such as morning and evening rush hours, and then

Continental plans further exploration of the autonomous delivery concept and will develop different use cases for different types of goods the robots will deliver. "The possibilities are virtually endless," concludes McClain. "For example, refrigerated or climate-controlled driverless shuttles offer the possibility to deliver groceries, plants or sensitive electronics. There is also the opportunity for the delivery of sensitive goods and documents, dropping the parcel in a secure locker box with anti-theft measures being incorporated into both shuttle and the robot."

DEUTSCHE POST DHL GROUP SEES ROBOTICS TECHNOLOGY ON THE VERGE OF LARGE SCALE RELEVANCE FOR LOGISTICS

transition to goods transportation during off-peak times.

This will make more efficient use of the vehicles themselves."

This concept of urban delivery, according to McClain could be deployed virtually anywhere, but basically it looks like its biggest potential is seen in densely populated urban areas."The electrification of the driverless shuttle contributes to healthier air quality and reduced noise pollution, while multi passenger use has the potential to improve traffic flow and reduces crashes," he added.

The specifics about the delivery volume capacity or the delivery speed are yet to be revealed, but still McClain is sure that robots have one clear advantage over existing solutions on the market: "We`ve seen manu concepts using wheeled robots, but what about obstacles on the sidewalk?

Or stairs? What about transfering the package to a secure locker box or mailbox? That`s what led us to the quadruped concept-a more versatile solution," he said.

Last mile delivery is receiving considerable attention, also, spurring high start-up activity and attracting significant injections of funds from venture capital firms. According to McKinsey&Company report, among the new business models emerging, new ventures dealing with the integration of local commerce and delivery of prepared food are receiving the greatest support in the form of seed investment. In addition, the companies active in this field are among the youngest in the industry, signaling an acceleration of activity. Over the past five years, these companies have attracted funding just short of USD 10 billion. Yet the automated, autonomous vehicles used for delivery are not delivering without issues.

CITYMAILERS MAGAZINE | 5

WORLD WIDE POST Think of autonomous delivery robots like self-driving cars, only they have way more nonsense to worry about.

Roboticists consider roads to be relatively “structured” environments—they’ve usually got stoplights and neat lanes and signage. But sidewalks are pure chaos. A delivery robot has to dodge humans streaming out of storefronts and obstacles like buskers. (Depending on the maker, the robot might use sensors like machine vision or lidar.) On top of that, they have to then briefly navigate roads when they cross streets. It’s an incredible challenge in these early days of advanced robots that have begun escaping factories and labs to roam the real world.Pull it off, though, and the rewards could be big. Delivering packages is still a very inefficient process, especially the last-mile segment: put package on truck, drive truck to neighborhood, make poor delivery man schlep each package one by one. The promise of delivery robots is to automate that last bit, which will theoretically save companies like Amazon money, on top of keeping emissions from idling trucks out of the air.

Still, though, this is such a new space that the economics of it haven’t been fully worked out. “It's a market that has yet to be validated,” says Brian Gerkey, CEO of Open Robotics.

“You've seen a lot of startups working on this, but I think there's always been this question of whether it's going to make economic sense. It's tough to beat the capabilities of a person who goes around doing that last-mile delivery.”

A robot never tires, but humans are still far more capable at virtually everything. A delivery robot can’t open gates without hands, and it can’t climb steps to get right to your door. And if the robot requires the customer to enter a PIN to get the package out, how can the robot leave the package if you’re not home? “Also, to be able to react to unexpected situations,” Gerkey says. “People are just going to be fantastic at that.”

With Amazon Scout, you can see above that it moves at about a walking pace. “That's smart of them, because it doesn't go any faster than a human walking. That may make it a little more accepted,” says Bob Doyle, vice president of the Robotic Industries Association. “It's not doing wheelies or anything.”

Then there’s the perception issue. In this new era of humanrobot interaction, delivery robots come with some fascinating design decisions. It needs to look friendly enough that people won't kick it over, but not so friendly that kids run up and hug it and keep it from doing its job.

Even with all that design work, though, delivery robot companies may find that customers just prefer to interact with human drivers.

Cities, too, have been struggling with how to regulate this new kind of vehicle jamming around sidewalks. San Francisco severely restricted the machines at the end of 2017, requiring permits and mandating that startups test their delivery robots in quieter, more industrial neighborhoods. While Amazon’s Scout is sequestered for the moment in one neighborhood in Washington, it’s not hard to see a future where delivery robots of all kinds roam among humans on city streets.

It’s telling that Amazon’s first delivery robot in the wild is on wheels, not propellers. “There's a lot of potential concerns and issues with drone delivery,” Doyle says. Like, for instance, keeping all those machines from colliding, and getting drones from different companies to talk to one another. “So it's interesting to see that they're going to a more sidewalk mobile delivery platform, at least as far as what we're seeing now.”

For Amazon, Scout's first deliveries in Washington will help to inform how the company augments its human delivery fleet with robots. But for Prime customers, the difference could be imperceptible—just another package, delivered to the doorstep.

THE FEDEX SAMEDAY BOT IS AN INNOVATION DESIGNED TO CHANGE THE FACE OF LOCAL DELIVERY AND HELP RETAILERS EFFICIENTLY ADDRESS THEIR CUSTOMERS’ RISING EXPECTATIONS Brie Carere, executive vice president and chief marketing and communications officer for FedEx

CITYMAILERS MAGAZINE | 6

WORLD WIDE POST

All the facts gathered -The future last mile offers tremendous opportunity for existing and new service providers in the field, given the fast expected growth, as well as the significant changes customer needs. However, before companies can move ahead and bring to life the new last mile, they should take one step back, as it is crucial to develop a strategy that suits the market environment and the company’s strength. It is also important to bear in mind the competitive landscape with at least three groups of companies battling for predominance in the future last mile: incumbents, e-commerce players, and highly dynamic startups disrupting the marketplace.

Globally, players from each of these peer groups have already started pushing ahead: small droids are currently being tested for delivery by incumbents, drones are already flying every day operated by incumbents and e-commerce players (if only with major exceptions to current law), and start-ups are aggressively pushing into the market to gain access to new profit pools. Looking at these three archetypes – which of them is generally best positioned to win the race? Incumbents clearly have the advantage of already having a solid and suitable network in place, enabling them to win in at least the markets served with drones or AGVs with lockers. But will they be quick enough to adapt their IT and HR strategies to keep pace with ecommerce players who are heavily investing in this space?

Start-ups have mostly focused on the point-to point market.

But will their agility in adapting new business models be sufficient to fend off the e-commerce players or the incumbents? Most of the insights can only serve as a starting point and input to a full last-mile strategy, but overall, the outlined developments seem very likely that those intending to compete in this space need to act now.

SEGWAY LOOMO DELIVERY [Image: Segway Robotics]

BEST DELIVERY ROBOTS At CES 2019, three new automated robot vehicles to an already hotly contested race to get your deliveries, were revealed.The aim of all these futuristic looking bots is to deliver the “last mile,” or the distance from a local warehouse to recipient of the parcel. At the moment standard delivery methods deliver the last mile using human couriers in cars, vans or on bikes. This traditional delivery method is not eco-friendly and increased traffic congestion.

It is also timely and expensive solution.

Because all of this delivery robots entered the delivery scene. Small delivery bots are solving, “last mile” problems providing not just express ways to deliver parcels but they are also connected through apps providing real time communication with both senders and receivers and by doing so, they provide also a much cheaper way to deliver goods at customer's doorstep, parcel lockers or strict dropoff location. Yet, there are many doubts about how this bots operate in urban areas.. While doing there job bots should care about pedestrians, traffic lights, environment and most of all they should provide security for themselves and the cargo they carry. There is sharp competition to built best delivery bot and start to use them efficiently in real world.

This are some of the most interesting delivery front-runners: SEGWAY LOOMO DELIVERY ANYBOTICS AND CONTINENTAL POSTMATES SERVE MARBLE BOXBOT NURO KIWIBOT STARSHIP ROBOTS

KIWIBOT [Photo: Kiwi]

CITYMAILERS MAGAZINE | 7

WORLD WIDE POST

LAST MILE BOTS IN THE NEWS Recently the media all around the world has been flooded with news regarding ground and air last-mile autonomous solutions.These are some of the most interesting stories in 2018.

China's second-largest e-commerce company, JD.com, introduced in November an artificial intelligenceequipped rolling robot that can deliver goods up to 5 km from its base.

The autonomous home-delivery vehicle, which can be unlocked using face authentication, is helping JD cope with rising labor shortages and skyrocketing wages in the China's logistics industry.

[Image: JD.com]

This follows what the company claims was the first drone transport of Shanghai hairy crabs in September. The initial fleet of 20 robots was released

by JD's logistics base in Changsha, Hunan Province, at the end of November. In addition to AI, the fourwheeled robot, about the size of a small golf cart is equipped with cameras and sensors, and travels at up to 20 kph while avoiding obstacles, skirting traffic jams, and obeying road signals.

Each robot has 22 compartments, which customers unlock using a password or face authentication. If a customer fails to remove their item within a specified time, delivery is rescheduled and the robot moves on to its next destination.

Serve, first-of-its-kind autonomous delivery rover unveiled in December 2018, by Postmates, an US the on-demand "anything" delivery company, can carry up to 50 pounds over a 30-mile radius According to [Image: Postmates] Postmates–the delivery company looking to replace its costly gig-economy workers with a piece of machinery that never complains–the bot is designed to make people around it feel at ease.

For starters, the LIDAR-powered bot has big humanoid eyes, like Pixar’s cute robot Wall-E. Postmates co-founder & CEO, Bastian Lehmann said in a press note that these eyes are not just decoration: “We have developed a specific rover-human interface so that people understand what rovers are doing at any moment.” Postmates clearly hopes that Serve’s humancentered design will help it avoid running into people or clogging up sidewalks–common issues with delivery bots. "We realized we are in a unique position to create an autonomous delivery vehicle with socially aware navigation that understands how to navigate cities while meeting specific customer needs," said Lehmann. "We took a design-first approach with Serve that walks alongside people and fits into our communities. We were able to use data to model how food and goods could move around cities even more efficiently when rovers join our existing fleet of more than 350,000 Postmates. Ultimately, we believe that goods should move through cities at nearly zero cost to consumers."

Serve is being deployed in Los Angeles now, but Postmates is planning to extend the service to other U.S. cities in 2019.

CITYMAILERS MAGAZINE | 8

REGIONAL TRENDS

BALKANS MAIL BOND Lot of opportunities are open for growing cross-border e-commerce trade in Balkan states. How can postal operators and governments work to capitalize on those opportunities? In six stories Postal Magazine is following six different Balkan postal operators and analyzes the current state of play in the Balkans Postal Environment.

CITYMAILERS MAGAZINE | 9

REGIONAL TRENDS - SLOVENIA

RELIABLY WITH YOU We opened one of the largest 3D print shops in Southeast and Central Europe

Pošta Slovenije was founded on 9 December 1994 and started operating on 1 January 1995, splitting up the former joint PTT company of Slovenia (Post and Telekom). Since July 2002, it has been operating as a 100% owned by the Republic of Slovenia. Posta Slovenije is successful company, designated postal operator, providing universal postal service in Slovenia, with nearly 5,500 employees.

Boris Novak, General Manager Posta Slovenije

Pošta Slovenije Group generated EUR 243.8 million in operating revenues in 2017, an increase of 3% relative to 2016, with revenues generated by Pošta Slovenije accounting for 86.7% of that amount. Growth in the Group’s operations was accompanied by an increase in operating expenses, which totalled EUR 235.4 million in the context of nearly 5% growth. The profit generated by the Group in the amount of EUR 8.9 million was down slightly relative to 2016. Investment cycle, which envisaged EUR 14.9 million in investments. The Pošta Slovenije Group earmarked funds for the implementation of strategic projects and investments in crucial infrastructure facilities: modernisation of the letter-sorting machine in the Ljubljana Mail Sorting and Logistics Centre, set-up two parcel-logistics centres in Ljubljana and Maribor, and opened the first stand-alone self-service postal unit. The majority of investment funds at Pošta Slovenije are earmarked for current operations and development projects in the areas of information technology and logistics processes, through which the Company ensured growth in revenues, and improved and optimised processes. Other Pošta Slovenije Group companies invested in hardware and software, and transportation equipment.

In 2017 Posta Slovenie invested 3,4m in 17 new electric Renault Cangoo vehicles

By purchasing electric vehicles, Posta Slovenije pursued the Group’s binding strategy aimed at energy-efficient transportation equipment, and the reduction of greenhouse emission and car fleet costs. By increasing capacities, machine-based work and automation, which was facilitated by the aforementioned investment cycle, Posta Slovenije contributed to improvements in working conditions, particularly in the handling and delivery segments. In 2017 and continued to implement the programme to optimise the postal network and established 21 contracted post offices, which totalled 153 at the end of the year. In 2017 Posta Slovenije reduced the number of contact points by seven, bringing the total since 2013 to 27. The optimisation of contact points is in line with the network strategy until 2022.

CITYMAILERS MAGAZINE | 10

REGIONAL TRENDS - SLOVENIA Posta Slovenije have five business units, namely Celje, Koper, Ljubljana, Maribor, the Postal Logistics Center and the professional services of the company. The postal network, which is spread throughout the country, consists of 554 post offices. The company's professional services include the following areas: sales and development, human and legal affairs, accounting and finance, international relations, ​investment and purchasing, information technology, corporate security and control, technology and global logistics and sales and development of information services.

POSTA SLOVENIJE creates innovative custom-tailored products and custom solutions in three key pillars: transmission of messages and packages, logistics services and information services.

Boris Novak, General Manager Posta Slovenije

Today, the Pošta Slovenije Group enters the market with a new design image, which represents a new important step in its business. It is about the regulation and unification of the policy of the brands of the parent company Pošta Slovenije, its subsidiaries, products and services. The design of the Pošta Slovenije has not changed since its inception and the beginning of its independent operation in 1995. The environment in which the Pošta Slovenije Group operates is changing to ever more digital, while classical postal services are complemented by increasingly comprehensive information and logistics services. The digital component of business is becoming an integral part of the Pošta Slovenije Group's business, which adapts itself to changes in the environment through a modern and unified design. In line with the principle of social and environmental responsibility, the trend in the environment is also adapted to the introduction of new ecological vehicles into their fleet. Pošta Slovenije is no longer the only provider of classic postal services, but it is a developmentoriented postal-logistics operator and information services provider. Today, Pošta Slovenije with its seven subsidiaries is a strong business group (EPPS, doo, PS Logistika doo, PS Moj paket doo, PS Zavarovanja doo, Feniksšped, doo, APS PLUS doo, IPPS doo), which spreads its activities in Slovenia, in region and international markets.

Posta Slovenije - Ljubljana Sorting Center

According to General Manager of Pošta Slovenije mag. Boris Novak, there are many challenges before the Pošta Slovenije Group. The new "Strategic Development Program of Pošta Slovenije Group 2017-2022" answers those challenges.

"In our future operations, we will focus on several key goals: we will create innovative products and custom-tailored solutions for each client, in three key pillars: message and packet transmission, logistics services and information services. We will also achieve growth through expansion to foreign markets in the wider region, as well as the acquisition of companies with a compatible or complementary activity. Within the PS Group we will enter the international market in the field of logistics services, information services, online sales and t. i. hybrid mail and 3D printing services. "-Mr.Novak said.

CITYMAILERS MAGAZINE | 11

REGIONAL TRENDS - SLOVENIA The Pošta Slovenije Group continued to maintain a recognizable, traditional color system with yellow and black color and an updated horn symbol. The corporate slogan from "Reliable Everywhere" has been changed to "Reliable with you".

"With this we wish to emphasize that the satisfied user of our services is the essence of our efforts in the development of modern and competitive services, and the reliability is a promise that we will continue to fulfill on the basis of the corporate values ​of the Pošta Slovenije Group in the future, under the changed design image of the Pošta Slovenije" Group general manager mag. Boris Novak, said.

Changes in the visual image will be introduced in practice gradually, in accordance with the principle of rationality.

As a socially responsible company, Pošta Slovenije is also adapting to trends in the environment by introducing new ecological vehicles into their fleet. Thus, in accordance with the guidelines of the strategy on environmental responsibility, which in the implementation of energy efficiency of transport foresees a reduction in fuel consumption and emissions, already at the beginning of this year purchased two delivery vehicles powered by Renault Kangoo Express Z.E.The use of these two electrically powered vans has been positively accepted by users.

Post Office of Slovenia introduces an additional 17 electrically powered electric vehicles, as well as the Renault Kangoo Express Z.E. This electric vehicle is a version of the Kangoo Express vehicle with diesel or diesel. petrol engine, with the difference that these 17 electric vehicles drive a 44-kilowatt synchronous electric motor.

The vehicle has a load capacity of 3 m3, a load capacity of 534 kg and can carry up to 270 km with one charging battery. In more difficult conditions, such as, for example, low temperatures (-5 ° C or even lower), hill terrain, higher vehicle load, more intense driving, the maximum distance that can be transported with one charge of the battery is reduced.

Pošta Slovenije expects that with these vehicles in different weather conditions and with various other factors affecting the range, it will be possible to transport at least 100 to 200 km, thus ensuring that vehicles will deliver uninterrupted deliveries to different locations across Slovenia.

24 HOURS OF

2.9 million

postal sevices provided 120.000 km

494

driven

postal offices open their doors 800 TB

2263

postmen out on delivery

of data passing through servers CITYMAILERS MAGAZINE | 12

REGIONAL TRENDS - SLOVENIA

X5GON As part of its R&D projects, Posta Slovenije introduced X5GON. X5GON implements innovative technologies and connects scattered freely available open educational resources (OERs), available in different countries in Europe and around the world.

According to Posta Slovenije, The X5GON project combines understanding the content methods for assuring the quality of modeling of user models homogeneous website enhancement tools (OERs) It provides users with access to quality OERs and learning in various professional and scientific fields, educational levels. The X5gon project combines understanding the content methods for assuring the quality of modeling of user models homogeneous website enhancement tools (OERs) It provides users with access to quality OERs and learning in various professional and scientific fields, educational levels.

X5gon develops open technologies that will be accessible in the form of an API for: recommendations (recommendation) learning analysis (learning analytics) Learning personalization services that work in different OER locations are independent of languages, modalities, scientific fields and social and cultural contexts.

17000 daily interactions on posta.si website

R&D

COG-LO The COG-LO project was created on the basis of the initiative and design of the anticipated cooperation of 14 consortium partners from different fields (postal operators and organizations, transport or logistics companies, research institutes, universities, computer companies, etc.) and 8 countries (Slovenia, Croatia, Belgium , Greece, Italy, Great Britain, Luxembourg, Turkey). Slovenia is involved in the project Pošta Slovenije and the Institute Jožef Štefan, while the Croatian post office from neighboring Croatia cooperates. The project refers to the implementation of smart logistics through secure, dynamic and ad-hoc collaborative networks, thus enabling complex logistics concepts to be developed in the future. solutions that will allow a more flexible response to short-term changes in production, business, needs, etc. and thus improve processes and other important factors on the side of logistics supply and demand.

CITYMAILERS MAGAZINE | 13

CUSTOMER CORNER

r e m o t Cus ALL MIGHTY CITYMAILERS MAGAZINE | 14

CUSTOMER CORNER

Since 2008, urban populations ballooned from 3.4 billion to 4.2 billion—over half of today’s global community. Ten years ago, 1 in 100 individuals owned a smartphone. Today, 1 in 5 have one. Internet retail sales quintupled between 2008 and 2018, from $290.4 billion to $1.6 trillion. Today`s urban consumer is seeking faster and more flexible delivery options and being willing to pay for them. Approximately three quarters of adults who shop online would pay a premium for an expedited shipping option. In response, delivery networks today are becoming more localized, shifting their supply chain to focus more on regional fulfillment strategies with the aim of shortening the last mile. Rather than a country-level localization, fulfillment hubs are getting closer—and even embedded within— urban centers and major cities. According to Roy Hughes, EVP Network Operations Europe at DHL Express, several of these “power cities” are “facilitating and driving this localization trend with numerous implications for transport operators.

Today, urban consumers around the world live in a more diverse and fast-paced environment than ever before. They spend more time on social networks, so their choices are better informed, and their preferences are widely voiced. They are willing to spend more on convenience and positive experiences. These combined factors have provided a favorable environment for the expansion of e-commerce. These three facts are all emblematic of a fundamental shift, to which the logistics and transport industry is currently striving to adapt regarding consumer expectations of the last mile. Consumers are more urbanized, more connected, wealthier, and shop more than ever before. They now prioritize products and services that lighten the day’s tasks, fulfill errands quicker, and generally make their lives more convenient to enjoy. At the same time, they expect that the products offered to them are environmentally friendly and sustainable, even if this means having to pay a little more for these features— syndicated global surveys from Euromonitor International indicate that over one quarter of 2017’s respondents find value in purchasing.eco- or ethicallyfriendly products. Furthermore, shopping online has become more popular in the urban environment—one that continues to push for more convenience in favor of higher productivity.

More online shopping means more orders that need to be fulfilled, but only if the arrangements around the last mile, i.e. delivery window and drop-off options, suit the contemporary urban consumer’s expectations. In this context, the logistics industry is faced with the task of balancing a seamless experience within the last mile, while also bearing in mind their more nuanced requirements in being environmentally responsible. By targeting a more adaptive approach towards fulfillment and the last mile—through localization efforts, flexible delivery options, improved seasonal logistics and the gradual integration of innovative technology—the logistics industry will be well placed to absorb these new customer requirements.

4.2 bn urban population 2018

1.6 tn Internet retail sales 2018

Urban consumers today live in an increasingly populated, connected, and fast-paced environment.

This provides a platform for innovation and development of services that help ease the pressure from time-consuming and mundane tasks, and help consumers to better experience the environment around them, all while bringing to light increasingly salient issues such as sustainability. According to Euromonitor International, there will be an additional 1 billion people on the planet by 2030, with 60% living in an urban environment and the significant majority of them coming from today’s emerging markets.There will also be a 47% growth in the number of consumers aged 65+ who are healthier and wealthier than any of their predecessors in this cohort. Urban centers are ultimately projected to host more working residents with different cultural and socioeconomic backgrounds, a significant portion of which will be older and have higher purchasing power. All of this translates into a shift in preferences for daily purchases by 2030— space will be limited, so consumers will seek to centralize their tasks for the sake of convenience. This will primarily be achieved through an already growing digitization wave in society CITYMAILERS MAGAZINE | 15

CUSTOMER CORNER All these trends, regardless of their location, have been driven by an increasing use of social networks to promote the user’s consumption experience. Daily internet usage statistics from Euromonitor International have been on the rise globally, particularly driven by developed markets, and this expansion has been fueled by social media becoming a key marketing tool for consumer-facing brands. Virtually all mobile devices—approximately 99% —will be connected to the internet by 2022, fueling an expected $2.4 billion spend on internet retailing.The challenge to innovate an online presence lies in forming a connection with urban consumers, who are now making closer connections with endorsements and stronger associations with brands, and who show unique loyalty to products that find a way to resonate with them via social media. The rise in digital connectivity and internet usage has also generated a new business model for several services and products. Ride hailing, online food delivery, accommodation booking, and centralizing daily life management on a smartphone have spread rapidly, as companies seek to capitalize on operating from the palms of their customers’ hands while balancing the values these customers identify with. In the future, however, these companies will have to go even further to make their customers’ lives easier. Augmented reality shopping, autonomous cars, and food delivery by robots are now being rolled out. Interestingly, the same trends that drove the first set of changes are also fueling this shift to the next generation. Time-savings, flexibility in managing daily life, seeking out special-label products (ethical production, high wholegrain, organic variants, etc.) and preference for environmentally friendly alternatives such as green transportation have all been identified as new rules of engagement for e-commerce players.

Despite the global nature of these developments, market reactions vary from region to region. Much of the innovation and growth in Asia is driven by the expansion of the middle class; per capita disposable income of Asian consumers will expand by 34.3% between 2018 and 2023.5 In Asia Pacific, primarily China, social commerce is taking center stage with a shopping model similar to Groupon—a platform where bulk purchases from groups generate discounts—but with the added influence of a P2P (peer-to-peer) element. Similarly, the growth of P2P mobile payments is affecting shopping trends in Africa, with a rise in both the bankable urban population as well as smartphone ownership having laid the foundation for African e-commerce. In the Middle East and North Africa, a shift towards infusing Western lifestyles into local tastes and habits has driven the rise of modernized local brands.

When shopping online, rather than adapting their daily schedule to receive their purchase delivery, consumers are seeking a seamless experience where deliveries adapt to their schedule.

50.8% Percentage of global population online 2019

CITYMAILERS MAGAZINE | 16

CUSTOMER CORNER

I want it all and I want it now!

Urban consumers now have a wider array of products from which to choose, making impulse purchases with fast deliveries in mind—not only do they want products a certain way, they also want them at a certain time.

Across the world, key industry players have heard the call and are mobilizing. In France, giant retailer Carrefour is planning to invest €2.8 billion (US$3.2 billion) in e-commerce by 2022 to challenge Amazon, making the development of home delivery likely. Even emerging markets are playing a role—in India, for example, Alibaba Group has expressed interest in growing its portfolio of companies that are experienced in deliveries for online retail players, such as local delivery companies. With these investments, e-tailers have also acknowledged that urban consumers are also seeking more transparency. With a few taps on a smartphone or tablet, they can see that their order has left the warehouse at a specific time and is currently out for delivery, at a time they have likely selected as most convenient to them. As Lee Spratt, CEO DHL eCommerce Americas, stated, the “industry is already quite dynamic,” but these changes illustrate how intertwined e-commerce strategies and the role of transport operators truly are, as well as the challenges they both face from a digitally connected, commercially opinionated and more informed urban consumer. The transport industry has had to consistently reinvent itself to tackle the impact from these changes in urban consumer behavior and environment. By using today’s world to envision the future, the following section will describe the latest innovations and pivots that the logistics industry has undergone in realigning itself with today’s last mile. Today, urban consumers around the world live in a more diverse and fast-paced environment than ever before. They spend more time on social networks, so their choices are better informed, and their preferences are widely voiced. They are willing to spend more on convenience and positive experiences. These combined factors have provided a favorable environment for the expansion of e-commerce. But it has also posed a great challenge for facilitating the last mile and placed pressure on the logistics players servicing this everexpanding segment. Hence, innovation in the final mile has been focused on three core areas: localizing delivery networks enabled by enhanced capabilities in predicting consumption, providing flexible delivery solutions to guarantee convenience, and addressing cyclical cost concerns by reimagining seasonal demand.

CITYMAILERS MAGAZINE | 20

AIR FORCE DELIVERY

YOUR PARCEL HAS LANDED! A drone-delivered vaccine—especially one gently dropped into a place that’s otherwise hard to get to—feels like a great one. And while it might take a while for these things to show up at your specific door, hops forward in the budding drone delivery industry in the past few months make tech that once seemed like sci-fi fantasy feel more like an instruction manual.

Take this: In April, Google spinoff Wing scored the Federal Aviation Administration’s first certification for drone deliveries. It will start in Blacksburg, Virginia, delivering commercial packages weighing up to 1.4 kilograms using its 5-kgm vertical-lift aircraft. On Wednesday, California-based Zipline launched the world’s largest vaccine drone delivery network, a service in Ghana capable of conducting up to 600 daily, ondemand medical drone flights to 2,000 health care facilities across the country.

And less than a month ago, UPS and drone technology company Matternet initiated a medical-sample delivery system for hospitals in Raleigh, North Carolina.

Together, these announcements - a mix of regulatory, logistical, and technological successes - suggest that a future of personal airborne deliveries might not be too far away. “There have been some very exciting announcements recently,” says Ben Marcus, cofounder of an air mobility conference called Bentonville UP. His company, AirMap, develops systems for integrating drones into public airspace. But he cautions that tech developers, drone companies, and especially governments and regulators still have serious work to do.

“Regulatory timing is still naturally trailing the availability of technology,” he says.

It’s only natural for regulators to want to move more slowly than the technologists: The air can be a crowded place, and a drone-airplane collision would leave few winners. The ground is crowded, too—no one wants drones falling from the sky. So the FAA’s operational waiver for Wing is a big deal. Its permission gives the company the ability to launch deliveries, even out of the line of sight of professional operators, something that is required under current regulations.

CITYMAILERS MAGAZINE | 22

AIR FORCE DELIVERY

But they don’t have free rein over the skies: The government will require the company to monitor airspace, either with ground-based radar or human observers stationed on the ground. Eventually, the FAA would like that monitoring to be automated. It’s currently developing a drone-traffic management system, which Marcus says should reduce the measures that individual companies like Wing have to deploy and, eventually, allow the entire industry to expand more rapidly. But the government will need drone operators to share data with one another and the administration and finalize the development of new technologies to make the system run. More specific challenges are being addressed piecemeal through individual initiatives. Swiss technology firm Auterion is working with GE Aviation and the Defense Innovation Unit of the US Department of Defense to launch its open source autonomous-control program for drones. That platform can be used by consumer, commercial, and government drone manufacturers and can help boost transparency outside the industry, which might help build confidence among the public and regulators. And, critically, the system should help small drone players chip away at the market dominance of Chinese drone manufacturers, including DJI, by minimizing a complicated development road block: the operating system. Due to security concerns, the US government is prohibited from using drone technology provided by Chinese manufacturers. Even with a sophisticated flight-management and tracking systems, drones can sometimes break or encounter unexpected obstacles. Companies are working on fixes here, too. Zipline uses ballistic parachutes to prevent its fixed-wing electric drones from going splat. Google’s Wing uses machinelearning-based algorithms to locate safe delivery points away from trees, buildings, and power lines. Swiss company Verity Studios has developed an algorithm that helps autonomous drones retain control if one or two rotors become disabled.

When that happens, drones start to spin uncontrollably—so Verity’s system, called Failsafe, capitalizes on that spinning, working with it to stabilize the craft and regain control.

According to company founder Raffaello D’Andrea, this can be done almost instantly. “When Failsafe is triggered, the drone will recover in a space of 2 meters or less and remains fully controllable in this novel spinning mode,” he says. “The operator can then manually navigate the drone to an appropriate landing location, or in the case of autonomous flight, you can ask the drone to ‘return home’ and it will navigate to its original take-off location and land using GPS.”

And flight enthusiasts are already looking forward to the next big thing: air taxis. Marcus says everything being done now in support of drone integration and automation will also be critical when it comes time for “flying cars," which are essentially human-carrying drones. So the same tech that could soon drop a pizza pie on your lawn will one day pick your kid up from there, too.

According to a survey from 2015, 30 percent of U.S. consumers believe they will order their first drone-delivered packagewithin the next five years

The Federal Aviation Administration on Tuesday authorized Alphabet’s Wing Aviation to start delivering goods via drones later this year. Wing will start delivering commercial packages in unmanned aircraft in Blacksburg, Virginia. It partnered with the Mid-Atlantic Aviation Partnership and Virginia Tech as a participant in the Transportation Department’s Unmanned Aircraft Systems Integration Pilot Program, an initiative to accelerate drone integration and help the department and the FAA devise rules surrounding drones.

The approval is an important one, given that this marks the first time the FAA has granted a so-called air-carrier certification for drone delivery of items such as food, medicine, and small consumer products. Wing plans to reach out to the local community before getting started in order to get a sense of its needs.

Amazon has for some time been working on drone package delivery via its Amazon Prime Air Division, for which it has development centers in the US, UK, Austria, France, and Israel. And George Mason University this year said it would let students have some food and drinks be delivered via drones on the ground.

CITYMAILERS MAGAZINE | 23

AIR FORCE DELIVERY

Still, there is a long way to go before consumer delivery via drone is a widespread reality in the United States.

As the Wall Street Journal notes, it probably won’t be until 2020 or 2021 that the FAA implements broader rules for drones that would set out the lay of the land for delivering packages. There are a number of potential issues that still need to be addressed, including noise restrictions, safety, and air traffic control. There are privacy concerns surrounding drone deliveries as well.

But Tuesday’s approval signals the FAA is willing to grant some carriers approval even before the final framework is in place. James Ryan Burgess, Wing’s CEO, spoke with Bloomberg about the approval and said it had been “pivotal” for both the company and the wider drone industry. “It shows these devices can be valueadded in our communities,” he said. “They can be a faster, cleaner, less expensive way to transport things while still adding to the safety of society.”

Wing will be able to send drones beyond the visual sight of the people operating them in order to deliver goods to consumers. The devices can only be operated during the day, and a pilot can operate as many as five drones at a time. The type of certification Wing received as an air carrier is the same one granted to charter airlines and small air-cargo haulers and means it can fly longer ranges and charge customers. Wing’s drones have a wingspan of about 1 meter and weigh approximately 5 kilograms, and they can carry packages that weigh up to a little more than 1.5 kgm. They fly up to 120 meters above the ground. Transportation Secretary Elaine Chao in a statement said the approval was an “important step forward for the safe testing and integration of drones into our economy.” She also emphasized that safety would be the department’s priority as drone technology is further deployed and developed.

Annual net revenue of Amazon in 2018 (in billion U.S. dollars)

0.14$

232.89

cost per shipment in US dollars by $500 price of drone

The department said that Wing demonstrated it met the FAA’s safety standards to qualify for an air carrier certificate because of extensive data and documentation and thousands of flights the company conducted in Australia in recent years. The way Wing’s delivery system works is that a user orders something - including meals, beverages, and over-the-counter drugs - from a merchant via the Wing mobile app. The merchant than packages the goods and requests a Wing drone pick-up.

Wing’s approval could speed up the process for other companies seeking the same go-ahead from the FAA. As The Verge notes, that could very well include Amazon’s Prime Air. Prime Air completed its first drone delivery demonstration in 2017 but still hasn’t gotten its consumer delivery service off the ground.

Different age groups, genders, important postal customer groups, geographic regions, and residents of urban, suburban, and rural areas all display differing levels of interest in drone delivery.

Public Perception of Drone Delivery in the United States RARC Report, USPS, OIG, 2016

CITYMAILERS MAGAZINE | 24

MAIL INDUSTRY

THE MAIL CORE

MAIL INDUSTRY

On 11 April, DPD opened Europe’s largest international parcel sorting and distribution centre, the Eindhoven hub.

The new site extends over 88,000 m2 and includes a sorting installation of over 2.1 kilometres in length.

According to DPD, during phase two the site will expand by a further 36,000 m2. The hypermodern LS-4000 CB sorter, also known as the “green sorter”, is the beating heart of the building. With a capacity of 50,000 parcels an hour it has all the flexibility required to deal with peaks in demand. The sorting process is fully automated, with many parcels spending only a couple of minutes in the building.

The sorting machine’s CO2 footprint is minimal and energy consumption is reduced by 75% thanks to the start/stop system, similar to the one used in modern cars.

In 2012, Deutsche Post DHL Group has officially launched Germany’s largest parcel sorting centre in the south Hessian town of Obertshausen. The new facility has a sorting capacity of 50,000 parcels an hour, and boasts more than 6 kilometres of sorting and conveyor lines. To give some reference point for the step-up in size, DPDHL said that its parcel centres “until now have had a sorting capacity of between 30,000 and 40,000 shipments per hour”. Commenting on the new centre, Jürgen Gerdes, Board Member for the Post – eCommerce – Parcel division at Deutsche Post DHL Group, said: “For this project, we took completely new paths and, for the first time, even assumed the role of producer for the installed sorting system. That gives us not only great innovation potential, but also allows us to constantly develop our own technical knowledge. With this, Obertshausen will set the standards for the future – not only for us, but also for the sector.”

The Obertshausen facility is DHL’s 34th parcel centre in Germany. A total of about 600 jobs are being created at the new location – both for the sorting of parcels and for deliveries as well.

In 2018, USPS Postmaster General, Megan J. Brennan headed to Oregon for an unusual dedication. What she formally opened one of the largest mail-processing plants the United States Postal Service has created in an era of declining letter volume. The new plant, near Portland International Airport, has the second largest workroom of any USPS plant — big enough, the engineers say, to hold two Nimitz-class aircraft carriers, 12 soccer fields or 48 Boeing 737-800s. Only the New Jersey International Mail Processing Facility has a larger work room, according to the engineer who oversaw the Portland facility.

It is unbelievably large, said Joseph Cogan, president of American Postal Workers Union Local 128. What will make this new facility noteworthy of national attention is a massive package-sorting machine that Cogan says will take eight months to install. It is called the Enhanced Package Processing System (EPPS). It should be able to process 30,000 packages an hour compared to compared to 5,000 packages an hour by other machines, according to a project engineer.

DPD HUB Eindhoven

The new Eindhoven hub offers plenty of opportunities to grow along with the rising market demand. It allows us to respond even better to the needs of parcel senders and recipients and to quickly process peak volumes.

42 m

13,000

m

2

Transshipment hall of DPD Erftstadt location measures DPD investment volume 2013 parcel handling center in Erftstadt

CITYMAILERS MAGAZINE | 26

MAIL INDUSTRY

Dutch postal service PostNL, parcel and sorting distribution network is worth more than 300 euro. In November 2018 PostNL’s 22nd parcel sorting centre in the Netherlands is now fully operational. Between 70,000 and 110,000 parcels are processed each day in this new, sustainable 6,600m2 building on Joan Muyskenweg in Amsterdam.

This year, PostNL opened three new parcel sorting centres in the Netherlands to optimise the delivery process for the Netherlands and Belgium in the growing parcel market.

Amsterdam is the third and last opening of the year and forms an important part of PostNL's preparations to process the big amount of parcels expected in December.

In addition to opening these new locations, PostNL will be hiring extra staff to work in Amsterdam or at one of the other sorting centres in the Netherlands.Dutch postal service PostNL has kicked off the construction of a new parcel sorting center at a business park in Dordrecht near Rotterdam. The new facility will join PostNL’s network of 22 parcel sorting centers in the Netherlands and six locations in Belgium. PostNL will open three new parcel sorting centers in the Netherlands in 2019, including the location in Dordrecht. Coen Schut, director strategy parcels at PostNL, said, “Consumers have totally embraced the ease of online shopping. Many online stores choose PostNL to sort and deliver their parcels, of which we’re very proud.

“In the coming year, PostNL will open three new parcel sorting centers in the Netherlands, to optimally arrange the delivery process in the growing market for parcel deliveries, including this sustainable building in Dordrecht.”

For the new building to receive Outstanding BREEAM certification, PostNL will invest in sustainable materials, solar panels and a heat recovery system. It will also offer employment for around 400 people, with completion scheduled for August 2019.

Germany is hub for activities of development and investment in new, modern mail and parcel sorting solutions. And regional, private companies, not just designated or big companies also invest and develop modern sorting solutions. Südwest Mail Brief + Service GmbH was founded in 2005 as a private postal service provider for the regions of Ulm and Crailsheim. Südwest Mail processes and delivers around 100,000 letters every day with peaks of up to 130,000, and over 1,000 customers rely on the capacity of this private service provider. In July 2018, Südwest Mail begin with Installation of a Simex Letter sorting system at Südwest Mail in Langenau/Germany. The project now underway in Langenau (Germany) can only be described as thoroughly ambitious, involving, the near simultaneous move into a new building, the bringing together of sorting activities from three different sites, the phasing out of a third-party supplier, and the investment in and commissioning of new equipment.

TOP TIPS WHEN DESIGNING A SORTING CENTER OF THE FUTURE 1. CLIENTS NEEDS List the client`s needs when looking for sorting solutions. A fast and efficient sorting system is an absolute necessity for a post and parcel operation.

But efficient sorting system is efficient only when it serves your clients needs 2. MULTIPLE FUNCTIONALITY shippers must find creative ways to deliver an exponentially growing number of packages to a much larger pool of domestic and global customers, in a way that is both fast and affordable. Automated parcel sorting solutions help to enable this growth.

3. ALL TYPES OF ITEMS HANDLED 4.SMART SOLUTIONS smarter understanding of peak processing times, you can better schedule manpower and resources to support faster sorting turnarounds. you have the historical dimensional data needed to verify package pricing. That eliminates costly inaccuracies.

Automation also delivers the process visibility and firm operational footing needed to enter into – and meet – aggressive service level agreements.

5. PROCESS OPTIMIZATION

CITYMAILERS MAGAZINE | 27

MAIL INDUSTRY

Up until the spring of 2017, the sorting work was split between sites in Ulm, Crailsheim and Aalen but with the move to a new building in Langenau and the investment in a new sorting system, the plan was to handle everything at one central site. “We’re talking here about around 40,000 to 50,000 letters a day that were still being sorted by hand in Crailsheim and that, following the investment, would also need to be processed by machine”, explains Uwe Groß, Managing Director of Südwest Mail Brief + Service GmbH. “The aim was to put everything on a professional footing.”

No compromises ran the slogan, just state-of-the-art equipment and software. After thoroughly investigating the market, Uwe Groß and Production Director Oliver Handke struck gold in Augsburg with the manufacturer BÖWE SYSTEC. Its Simex Letter was exactly the mail sorting solution that Südwest Mail was looking for. “We wanted a resilient and reliable solution”, explains Uwe Groß. “It was also vital to us that the machine was very easy to operate and could cope with the widest possible spectrum of products.” “One of the targets that we set ourselves was to be able to process at least 75 percent of the daily volume by machine”, adds Oliver Handke.

As a mixed mail sorter, Simex Letter can actually process letter formats from C6 to B5 and even C4, and items up to a maximum thickness of 8 mm. Automatic thickness measurement and calibrated scales that weigh products without having to slow down processing are integrated into the machine. And that speed impressed Südwest Mail.

The Simex Letter can handle up to 47,000 items per hour.

“If the letters are predominantly small ones, then we are done in two and a half hours” reports Oliver Handke. For a postal service provider whose mail delivery times are tied to those of the daily newspaper and that therefore has a correspondingly tight time window, this is a crucial aspect.

Over at Deutsche Post [the German Post Office], letters are not ready at the delivery centers until six in the morning but by this time daily newspaper deliverers have already completed their rounds. The post therefore needs to be sorted by around midnight at the latest.

A further criterion was the interface to the current ERP system, which models Südwest Mail’s processes and records as well as coordinates numerous workflows.

Has the choice of the Simex Letter turned out to be the right one? Uwe Groß and Oliver Handke nod almost as one.

Besides the technical advantages, which the pair were able to validate in advance both at BÖWE SYSTEC and at other users, they are also full of praise for the way the manufacturer has overseen the project’s progress.

The machine was delivered at the end of 2016 and was assembled on site in the new building. “It was great to watch it take shape”, recalls Oliver Handke. ”Everything went smoothly.” The first trials took place at the end of January 2017, the machine was accepted, the operators trained and operations began.”

The machine, which, at less than 70 decibels, is astonishingly quiet, is now up and running and has been handling all the mail volumes from Ulm and Crailsheim as well as the work outsourced to Aalen for quite some time.

The staff particularly likes the ergonomic arrangement of the post boxes and the easy access to the machine, as well as other features. What’s more, after intensive training by BÖWE SYSTEC engineers they are now also able to sort out minor problems themselves.

A big advantage of the Simex Letter are the easily accessible output compartments. (Source: Südwest Mail)

Currently, it is possible to sort the bulk of the post by machine and in fact just 12 percent of the post is sorted by hand. The Simex Letter has therefore more than fulfilled the requirements of the Langenau facility. The machine automatically detects forwarded mail and reliably bypasses it. The connection to the ERP system is working well and the company has further projects in its sights. One of these is a planned partial automation of returns processing, and another is walk sorting – sorting the letters in the sequence in which they will be delivered, further improving the processes. Letters are, as Uwe Groß says, “nickel business”. Profit per letter is a matter of cents – and that is only if everything works. However, if for example, a letter ends up with the wrong deliverer, then you lose a euro.

What this means is that 99 percent reliability is not enough.

It needs to be 99.9 percent. The Simex Letter has a critical role to play in this.

CITYMAILERS MAGAZINE | 28

MAIL INDUSTRY

HOW ROBOTS DEAL WITH SORTING TASK The express market has grown at a rapid speed since 2016, however, the lack of efficient and low-cost mail processing scheme has become an important factor restricting the development of express industry. On the one hand, the difficulty of employment becomes increasingly prominent; there are problems e.g. disorderly employment, labor shortage and high labor cost in market during the peak period of big promotion events. On the other hand, it is difficult to achieve centralized and batch processing for diverse express goods and varied specifications. The sorting robot system came into being based on efficient and accurate sorting requirements of express logistics customers.

The combination of sorting robot system with fast code-reading and intelligent sorting system of industrial camera can realize fast sorting and information recording interaction after the package weighing / code-reading. The sorting robot system can greatly reduce the manual demands in sorting process, improve the efficiency and automation degree, and greatly improve the accuracy rate. With the improvement of big data algorithm, gradual standardization of express & mail information and integration of intelligent control system, the sorting robot system has become a highly fit-product of the logistics industry transformed from labor-intensive industry to batch intelligence.

The Shentong Express (STO) factory in Tianjin is China's largest fully automated sorting plant in the delivery industry. The robots can be seen carrying their parcels away to different areas across the sorting centre, then depositing them into underground chutes.

Once in the plant, all packages get distributed within just three-and-a-half hours. In the past, it took at least 100 experienced workers to do the same job in the same time. The robots work across a 2,000 square metre area (21,000 sq ft) and between them, they generate at least 300 billion route combinations — which requires a huge amount of calculations at its backend. "The total amount of calculations completed by our automated system in five minutes is equivalent to the daily takeoff and landing calculations done at Beijing Capital International Airport, said Ge Zhi Zhong, manager of STO express' logistic department in Tianjin in the video. And this isn't STO's first robot army either.

The company also has a warehouse in the Chinese city of Hangzhou, where little orange robots do exactly the same job. According to the South China Morning Post, the machines can sort up to 200,000 packages a day and are self-charging — so they can continue going 24/7. An STO spokesman also added that the robots had helped the company save half the costs it typically required to use human workers. In 2016 alone, 30 billion packages were delivered across China.

Shentong Express has developed an advanced system where robots can safely and autonomously sort packages by speeding around a warehouse (People`s Daily)

CITYMAILERS MAGAZINE | 29

3D PRINTING

3D DELIVERED From gaming companies to the medical field, 3D printing has spread its web of innovation, revolutionizing the way people design, prototype, and build products. Though just about any industry can use 3D printing.

Is 3D printing able to reshape the postal industry?

According to the International Data Corporation or the IDC, the 3D printing market is expected to bring in nearly $35 billion in revenue by 2020 compared to $16 billion just four years ago. 3D printing is a process of making three dimensional solid objects from a digital file. As the opposite of subtractive manufacturing, 3D printing allows you to produce complex and at times functional shapes using less material than traditional manufacturing methods,From plastics to metals, companies have used 3D printing to create replacement parts, reinforce products and even create new ones. Even though the rise to popularity happened rather recently, the concept of 3D printing is nothing new. One of the first methods of its kind, so-called stereolithography, was developed in the late 1970s and patented in 1984, roughly a decade before the first digital printers were sold. Back then, the goal was to make it easier and cheaper for engineers to create prototypes and models for new product ideas.

Within the next two decades, industrial manufacturing and especially the automotive industry, discovered 3D printing’s potential and developed more use cases for the technology.

Beyond prototype design, 3D printers made the final production of certain parts much easier, as well. Such parts were typically too complicated and, therefore, too expensive to produce with a different method. This type of production was called additive manufacturing (AM), which became somewhat of a synonym for 3D printing. Still, it was a purely industrial technology and the final customer would not be able to tell whether something contained printed parts or not. In recent years, however, 3D printing has caught the attention of consumers and the prospect of ‘downloading’ the products we shop for, enticed by popular sciencefiction, becomes more and more realistic. The concept of printing products at home, once it becomes available to the mass market, will affect almost every business.

The arguably biggest impact, though, will be felt by logistics - the industry that moves our stuff around in today’s world.

CITYMAILERS MAGAZINE | 31

3D PRINTING

It is highly likely that 3D printing will play a key role in the supply chain in the next three to five years, according to our poll that asked our readers, supply chain experts, “when do you think 3D printing will play a role in your supply chain?”

When asked whether 3D printing would be adopted in the next three years, 22 percent were confident. This could suggest that many companies are already looking into the possibility and are investing in the process for the future. 20 percent believe implementing 3D printing across the majority of supply chains would take a bit longer, becoming a reality in the next five years.

20 percent of respondents were unsure if or when they would be adopting 3D printing, but were interested to learn more about the process. Only 8 percent felt that it currently plays a role in their supply chain, which is inline with reports that just a handful of industries have confidently adopted the method so far. The aerospace, automotive and mobile telecoms industries use 3D printing to produce strong but light components and the healthcare industry are using it to print artificial joints and dental crowns. Limitations to 3D printing processes, such as restrictions on materials, speed, and a lack of working knowledge, could be the reasons why it might take longer for the process to be fully adopted.

However, with advantages such as greater personalization, fewer waste products and greater benefits for the environment, and localized manufacturing and delivery, research suggests supply chain managers are increasingly looking to invest in the method. As more and more research into the application of the 3D printing becomes available, SCM predicts that it will play a much more prominent role in future supply chains, and it will take less than 10 years for the method to be implemented much more widely.

The Future of Logistics Tech: Print or Ship?

The delivery industry depends upon shippers’ need to transport products and components from one geographical location to another. 3D-Printing technologies promise to eliminate much of that need.

At highest risk are high-yield, cross-border shipments originating in Asia and other cheap labor markets.

E-Commerce shipping volume will also suffer as sellers recognize the capability to transfer their product designs electronically for “printing” at a location near the consumer. To mitigate risk, industry leaders like UPS and FedEx need to incorporate the potential emergence of 3D-Printing into their strategic thinking.

What Are The Implications For The Logistics Industry?

The implications of this new manufacturing technology for the logistics industry could be massive: Potentially a proportion of goods which were previously produced in China or other Asia markets could be ‘near-sourced’ to North America and Europe. This would reduce shipping and air cargo volumes.

The ‘mass customisation’ of products would mean that inventory levels fall, as goods are made to order. This would have the effect of reducing warehousing requirements.

There would be fewer opportunities for logistics suppliers to be involved in companies’ upstream supply chains, as manufacturing processes are increasingly re-bundled within a single facility. Tiers of component suppliers are done away with, as is the need for supplier villages, line side supply etc.

Downstream logistics would also be affected. Buildto-order production strategies could fundamentally impact the manufacturer-wholesaler-retailer relationship. In the future the shopping experience could also be vastly different. In some sectors, retailers will either cease to exist or become ‘shop windows’ for manufacturers, keeping no stock of their own. Orders are fulfilled directly by the manufacturer, and delivered to the home of the consumer.

A major new sector of the logistics industry would emerge dealing with the storage and movement of the raw materials which ‘feed’ the 3D Printers. As 3D Printers become more affordable to the general public, the home delivery market of these materials would increase.

The Service Parts Logistics sector would be one of the first to be affected. At present billions are spent on holding stock to supply products as diverse as cars to x-ray machines. In some cases huge amount of redundancy is built into supply chains to enable parts to be dispatched in a very short timescale to get machines up and running again as fast as possible. It doesn’t take much imagination to understand the benefits for a service parts engineer of being able to download a part design from an online library, 3D Print it and then fit it within a very short time window. This would make global and national parts warehouses as well as forward stock locations unnecessary to fulfilling customer needs.

CITYMAILERS MAGAZINE | 32

DIGITALIZATION

DATA MAILING Outsourced digitisation services are particularly useful when manual data capture is costly, time-critical, and labour-intensive. In most cases, the required time and manpower block valuable resources that would be urgently needed for other activities in day-to-day business. Outsourcing internal processes to external service providers promises greater efficiency and lower costs. The effectiveness of data entry by third parties is illustrated by the example of video coding for postal service providers.

CITYMAILERS MAGAZINE | 33

DIGITALIZATION Delay of the sorting process due to manual data collection

Before a letter can be delivered to its final destination it passes through a sorting system, where it is automatically assigned to the container with the correct sorting destination. However, there are letters that cannot be assigned to their destination.

There are many reasons for this: Either the address is not in the database, or it is incomplete, or unreadable for the sorting machine. In such cases, the letter ends up in a container for non-assignable items. To ensure that it can still be delivered, an employee must manually call up on a computer the photo of the letter taken via video coding and compare it with information from the address database. This manual determination of the correct sorting destination places high demands on the personnel and time resources of postal operators, and often leads to delays the delivery process. The biggest challenge in the video coding process, however, is the almost incalculable demand for personnel. Since most sorting centers are not in fulltime operation, they have to encode a certain number of items within a certain time. The catch is that this number is not known beforehand and can vary greatly.

Reasons are not only seasonal peaks – e.g. during the Christmas season – but above all strong fluctuation in letter volumes on very ordinary days. Times with exceptionally high mail volumes are often followed by phases with long idle times. Mail operators have to react flexibly to this volatility on a daily basis when it comes to personnel planning. Furthermore, the recruitment of suitable employees for the video coding process is also problematic. The working conditions are perceived as rather unattractive by many – night shifts and a lack of career opportunities – , which make it even more difficult for postal operators to find suitable employees.

Regular quality controls ensure a uniformly high level of quality in the processing of coding orders. The modified process which involves an external contractor is as simple as it is functional: If a letter cannot be automatically assigned to its sorting destination, external support staff connect to the mail service provider’s system, retrieve the file of the recorded image, decrypt it and manually assign the correct sorting destination. After successful decryption, the container with the corrected objects passes again through the sorting system and the letters are distributed correctly. The great added value that results from outsourcing the process is a high service quality by maintaining delivery times. Furthermore, mail service providers benefit from an increased flexibility and scalability of their own letter sorting processes.

Any mail service provider that owns a sorting facility can benefit from outsourcing its video coding services.

Digitization services such as video coding can significantly reduce the burden on postal operators.

However, as every company has different approaches to data collection and processing, such services must always be tailored to individual requirements.

Examples for digitization needs from the postal sector can be the capture of parcel labels, delivery receipts, delivery documents and registered mail, forwarding orders, redresses and all other manually filled information. For every concern involving the digitisation of manual data, there is a convenient solution. All that is required is precise planning, i.e. how and in what time frame can the data reach the outsourcing partner safely and reliably. Also, it must be determined in which form the digitised data is to be made available so that it can be further processed by the customer.

With the support of experienced experts, a tailor made digitisation solution can be easily integrated into existing processes

Scalability, cost savings, increased efficiency and delivery quality through outsourced digitisation processes

The aforementioned difficulties show very clearly that “in-house” video coding is a very difficult undertaking with an unfavorable cost-benefit ratio. This can be overcome by cooperating with external service providers, which can significantly reduce the workload of postal operators in data collection. The biggest advantage of an outsourced digitisation service is that unforeseeable fluctuations in mail volume won’t impact daily operations of the postal provider. As the external contractor has a large pool of service staff trained to meet order requirements, they can be called up flexibly at any time so that dynamic adjustments to changing conditions can be made at short notice.

CITYMAILERS MAGAZINE | 34

AUTOMATION

THE AGE OF MACHINES Automation has an extreme important role in helping post turn a profit, but will we ever see times when postal industry will be humanless?

Shoppers have embraced e-commerce, and, for retailers, it has been a boon. The volume of products that people are buying online is skyrocketing. Ecommerce is booming. Around 10% of retail sales worldwide are now made online, almost half of which are done via a mobile device. Global e-commerce sales reached €1.2tn in 2017, having grown by over 20% per year on average over the last decade. For shippers, the rapid rise in e-commerce has been a mixed blessing. While increased shipping volumes mean greater revenues, many shippers have been caught flat-footed by the dynamic changes in the marketplace, leading to more than a few missteps and missed opportunities. Not only are companies handling more parcels, they are also doing so with customers increasingly expecting faster shipments. To address these issues of speed and volume, many shippers have turned to a solution they've leaned on in the past: adding staff for parcel sorting. But that simply may not be enough anymore. It only increases the opportunity for error and is far from a long-term answer. In 2015, the better solution is automation.

Why automation?

Automation in parcel sorting can bring four distinct advantages that not only help shippers process an increasing load of parcels more quickly, but can also provide company executives data they need to improve efficiencies and lower costs. Several advantages from automation can be identified:

Accuracy. Hand sorting can introduce errors into the sorting process. That means packages may get misrouted, and those kinds of mistakes affect delivery times and customer satisfaction.

Better traceability. The benefit here is twofold. First, customers want to know where their packages are in the shipping process. Second, knowing when a package gets from Point A to Point B gives shippers data about operational efficiency.

Improved operations. Shippers can use the data collected from making packages traceable in conjunction with analytics software to smooth an operation's rough edges. With the ability to know where packages are and when, shippers can precisely plan equipment use and staffing.

Shift to a distributed sorting model. The traditional hub-and-spoke model can be inefficient. It can add both cost and delivery time to a process that needs to become faster if it's going to handle e-commerce requirements. By installing smaller and faster equipment at all regional sites, companies can shift to a distributed sorting model.

CITYMAILERS MAGAZINE | 35 POSTAL MAGAZINE | 24

AUTOMATION Why now?

If shippers are going to have a conversation about automation - and, clearly, they should - now is the time to do it. It's time for frank talk and real analysis of your holiday season performance. What do you handle well?

Where are the difficulties? What could you improve?

Having those conversations and embracing the need for automation can lead to fewer misrouted packages, disappointed customers, and frustrated clients.

Automation in parcel sorting can bring four distinct advantages that not only help shippers process an increasing load of parcels more quickly, but can also provide company executives data they need to improve efficiencies and lower costs.

What embracing automation looks like?

Transitioning to automation doesn't necessarily mean a rip and replace of all existing equipment. You can approach it strategically. As companies look to shift away from hub-and-spoke models, one good place to start can be to automate parcel sorting at local and regional distribution centers. In the past, the volumes at such centers may not have justified automation. But as e-commerce continues to surge, the case for automation is now too compelling to ignore.

"The new parcel sorter gives us the scalability to meet this demand for increased efficiency and to handle the increasing volume customers want us to process without compromising on our high levels of quality and customer service.”

Nick Wells, CEO at Whistl

Automation, which uses data-driven software to improve operational efficiency in machines, offers a variety of solutions for the logistics industry - from advancing package labeling to streamlining warehouse sorting systems. Holland’s Port of Rotterdam, often called “ the most advanced port in the world,” is a leader in the adoption of this technology. The port’s fully-automated container terminals use computerprogrammed stacking cranes to unload cargo in ways that increase production, improve handling performance and reduce labor costs. The Wall Street Journal estimates that automation allows the Dutch port to increase overall productivity by as much as 30 percent.

In June 2018, Geek Plus Robotics has launched the latest version of what it claims is “the world’s first interweaving sorting robot” for warehouses, which could be an alternative to conveyor systems.

CITYMAILERS MAGAZINE | 36 POSTAL MAGAZINE | 24

Upgrade to Business-Class Mail with cloud based hybrid mail

Web browser-based tools for creating, personalizing, and proofing mailpieces and for acquiring, building, and managing mailing lists. Our system virtually eliminates the need for sorting, labeling, applying postage, and transport to a post office and does it for not much more than the cost of postage alone. In short, mail made easy.

Intersted in becoming part of the Global evolution?

Our mission is to bring our customers the best of conventional mail through the invention and adaptation of unconventional technologies. To that end we are continually forming partnerships, researching, and investing in systems that bridge the worlds of digital and hardcopy communications.

We process. We print. We mail. You profit.

POSTAL MARKETING

DIRECT MAIL IN THE DIGITAL AGE Ever since the World Wide Web began to be commercialized in 1995, the center of gravity in the marketing universe seems to have shifted toward the Internet and, more recently, social media and mobile devices. The problem for marketers is how to effectively use these tools to develop brand relationships and sell products. Many marketers seem lost, and one of the reasons is that they have not learned how these new tools fit into the marketing strategy hierarchy. Those that have achieved considerable success have recognized that the Internet and its “offspring” are really forms of Direct Marketing. Why? Because Direct Marketing channels are where buyers and sellers can transact business and communicate on smaller budgets without ever meeting face-to-face or touching and feeling the merchandise. To make more effective use of these new tools, marketers need to become better educated in the concepts of Direct Marketing. The most commonly recognized Direct Marketing methods in historical order of discovery are: Direct Mail, Telemarketing, Direct Response Advertising, Internet, or online, marketing.

The roots of Direct Marketing can be traced to Benjamin Franklin who used Direct Mail to market Poor Richard’s Almanac throughout the American colonies starting in 1732. Direct Mail continued to flourish with the creation of the Montgomery Ward catalog in 1872 and the Sears catalog in 1888. These catalogs were popular since a large segment of the American population lived outside of cities and towns that had stores with sufficient product choices. As more people migrated to cities and suburbs, direct mail became popular for those that wanted to shop anonymously or could not easily travel to available stores. In its best form, Direct Mail provides a convenient way for prospects to receive information about products they want and order them without leaving the comfort of their home or office. In its worst form, organizations send unwanted mailings to people that are not interested in the products being promoted. Of course, unwanted mailings are also known as “junk” mail, and their electronic equivalent is called “spam.”

Direct mail vs email is arguably one of the longest standing debates in marketing, this could be down to the constantly evolving industry and it’s audiences.

Today 70% of consumers reportedly feel like they receive too many emails, something we can probably all empathise with. As our virtual inboxes reach the thousands we have less and less tolerance for email marketing. As the digital industry grows the direct mail vs email debate takes a turn and the death of email marketing as we know becomes apparent. The average lifespan of an email is now just 2 seconds and brand recall directly after seeing a digital ad is just 44%, compared to direct mail which has a brand recall of 75%. Whilst digital media is still a crucial part of marketing we compare the statistics of direct mail vs email. The evidence suggests we need to reevaluate the way we use email, rather than thinking of it as a cheap form of marketing how we can utilise it’s strengths? If we continue to bombard customers we may risk alienating them. As the effectiveness of email marketing declines the response to direct mail is on the rise, and printed media becomes a more trusted form of consumer engagement. Looking at the strengths and weaknesses of each media it seems the rising popularity of direct mail could work to reinforce email, if used in the right combination, and may we suggest in moderation.

74 tn 12.1 m

e-mails sent every year*

direct mail letters sent daily*

CITYMAILERS MAGAZINE | 38 POSTAL MAGAZINE | 24

POSTAL MARKETING

Digital media have had a major impact on both consumer behaviour and marketing communications.

As digital usage has grown, the core strengths of mail have not only endured but increased. Consumers are clear that mail and email have different qualities which make each suited to different things. Because consumers move seamlessly between the physical and online worlds, mail actually generates a great deal of online activity. Both mail and email are able to drive consumer action. Using mail and email together in a planned way builds on the strengths of each. This gives you the greatest chance of maximising the effectiveness of your direct communications.

Back in 2007 Royal Mail commissioned some research which showed that if you want to have 1 to 1 conversations with your customers, mail and email should be used together. What mail was good at email was less good at, and vice versa. However, a revolution was just around the corner. 2007 was also the year the iPhone was launched. Smart devices have transformed the way consumers access and manage information so completely it’s hard to believe they’re just seven years old. In fact, we now connect with brands so often when we’re on the move you might think we’ve become totally digital. But is that how consumers see themselves? Are digital media fundamentally changing the way people think about what they do in the physical world? Over the next few pages you’ll discover how consumers respond to digital media and how this is redefining their response to physical channels such as mail.

Brands are sending out high volumes of email and why not? It’s a low cost medium, after all. But what brands may not realise is that this deluge can create negative perceptions and there may be a high cost to pay in the long run. Email has many benefits. It can be a costeffective medium and basic emails are easy to produce and to send out. They enable you to send links to interesting content and to your own websites which makes it easy for customers to purchase from you, perhaps incentivised by special offers and online vouchers and codes. Email is certainly a very efficient, direct medium. However, a study of email analytics by Litmus in 2013 revealed that over half of emails are deleted within two seconds of being opened. And the actual open rates were only 21% and 29% for acquisition and retention respectively. There’s a strong suggestion that, as more and more content is being consumed on the move (and as people feel they’re getting too many emails), the vast majority of emails are not even being opened, and those that are being opened get deleted with little more than a glance. This begs the question, who are you not reaching?

21%

29%

51%

open acquisition emails

open retention emails

of emails are deleted within two seconds

9. 76% of consumers trust direct mail when they want to make a purchase decision.

In fact, consumers trust traditional advertising channels more than digital channels when making a purchase.

(Source: MarketingSherpa)

CITYMAILERS MAGAZINE | 39 POSTAL MAGAZINE | 24

POSTAL MARKETING

DIRECT MAIL VS EMAIL Direct Mail: Pros

Direct Mail: Cons

Direct mail is more flexible than ever before From including printed QR codes which can take your future shopper direct to your website with a scan of a smartphone, through to printing on irresistible discounts on postcards, direct mail really is more flexible than ever before. Direct mail is seeing impressive modern interaction Research has found that direct mail is no longer the dull junk mail marketing medium of old and today clever marketers are successfully harnessing this method for encouraging social media activity, downloads, online purchases and audience/business rapport. Direct mail can provide all the space that you need In comparison to email direct marketing provides all the space that you need to tell your story, whatever it may be. Direct mail provides the platform to convey and encourage emotion Email users are in a rush. They may be checking their emails whilst commuting, or squeezing it in at lunch or before dinner. They don’t have time for emotions.

However direct mail can provide readers with both space and time to read the materials in their own time and so you’re far freer with what can be expressed.

This can all be seen in the infographic below from Quantum Postcards.

Direct mail costs money, and sometimes lots of it depending upon the materials that you use. What’s more postage charges have seemingly continued to increase year after year, and so you really need to ensure that everything is on point when opting for direct mail marketing.

TIPS FOR INTRODUCING AND IMPLEMENTING A DIRECT MAIL CAMPAIGN

USE DIRECT MAIL ALONGSIDE OTHER TECHNIQUES The effectiveness of direct mail can be significantly boosted when implemented alongside TV and email campaigns. When seeing mail after TV ad, customers become more stimulated.

SELECT THE RIGHT AUDIENCE Ensure you use a relevant mailing list that enables you to target by location, demographics, interests and buying behaviour, to get most impact from your campaign

Google will remain the largest digital ad seller in the world in 2019, accounting for 31.1% of worldwide ad spending, or $103.73 billion.

Facebook will be No. 2, with $67.37 billion in net ad revenues, followed by China-based Alibaba, at $29.20 billion

THINK CAREFULLY ABOUT THE DESIGN 39% of people have a dedicated display area in their home where mail is kept. So think carefully about the colors, layout and design to stick out in the crowd.

38% people value something they can see and touch 24% more highly than something they can only see

of people said that physical properties of mail influence how they feel about the sender

CITYMAILERS MAGAZINE | 40

RESEARCH

RIDING THE E-WAVE Brick-and-mortar and e-Commerce are constantly fighting for consumers’ attention and dollars. While 94% of all retail sales still take place in stores, eCommerce sales are expected to increase annually by 17%, reaching $414 billion by 2018. Consumers worldwide purchased $2.86 trillion on the web in 2018, up from $2.43 trillion the previous year. The world’s two largest economies—the United States and China—dominate global online retailing. Together, these two powerhouses accounted for more than half of worldwide ecommerce sales of physical goods in 2017, which is the last full year for which data has been reported. China, the world’s No. 1 ecommerce market, saw online sales soar 28.0% to $877.00 billion in 2017 from $685.16 billion the prior year, according to China’s Ministry of Commerce. Total retail sales reached $5.85 trillion, an increase of 4.6%, which was a modest uptick from nearly 4.5% growth in 2016, when purchases hit $5.44 trillion. Online’s share of total retail in the country reached 15.0% in 2017, up from 12.6% during the prior year. The growth of ecommerce is directly connected with the growth of parcel delivery. Consumer preferences and experiences in relation to the delivery of cross-border e-commerce items, are shaping the future of the most potent and vibrant market segment of the global postal industry.

According to latest public available research consumer preference for shopping on smartphones has risen sharply in the past two years. Of the parcels bought cross-border in 2018, 38% were purchased from China. Overall, the most popular e-retailers for cross-border purchases were Amazon (23%), Alibaba (16%), eBay (14%) and Wish (10%). The majority (84%) of cross-border parcels weighed up to 2kg (4.4lb), of which 9% weighed less than 100g (3.5oz), and 40% of goods purchased cross-border cost less than €25. Almost one third of the online shoppers worldwide are buying online at least once a month, while one fifth are frequent online consumers buying goods online at least once a week A research by IPC, based on the 41 countries in the survey in 2018, the most popular device used to shop online was a smartphone (33%), followed by laptop (31%) and desktop (27%). The preferred device in 2018 was the smartphone, which is due to its popularity in emerging markets..

Same research provided data that the preference for shopping on a smartphone has increased from 14% in 2016 to 29% in 2018, when comparing the 25 trend countries included in the survey in 2016, 2017 and 2018, Delivery at home was the most commonly used delivery location at 68%, and ranged from 86% in the Netherlands to 30% in Russia. Delivery to a post office was the next most commonly used (23%), and was highest in Russia (74%), Iceland (62%) and Latvia (61%). A postal service point (16%) was most popular in the Nordic countries – Sweden (67%), Norway (67%), Finland (56%) and Denmark (45%).

A courier’s parcel shop (13%) was most popular in France (46%), followed by Denmark (29%). A parcel locker station (10%) was most commonly used in Finland (40%), Denmark (36%), Latvia (35%) and China (32%). The survey found that 27% of respondents strongly agreed that they would like their e-commerce packaging to be sustainable. When asked if they would be willing to pay €0.10 for sustainable e-commerce packaging, 22% of consumers strongly agreed. Concerning the delivery, 19% strongly agreed that they would like the delivery of their parcels to be carbon-neutral. When asked if they would be willing to pay €0.10 for carbonneutral delivery, 18% of respondents strongly agreed.

Forty percent of the most recent cross-border purchases cost less than €25, 21% cost €25 to €49 and 14% cost €50 to €74.

Cross-border purchases costing €100 or more accounted for 16% of responses.

(IPC CROSS-BORDER E-COMMERCE SHOPPER SURVEY 2018)

CITYMAILERS MAGAZINE | 41

RESEARCH

Most frequently product categories traded online

31%

21%

17%

11%

10%

10%

Clothing, footwear & apparel

Consumer electronics

Health & beauty

Jewellery & watches

Books, music & media

Sport & leisure

The study showed that 62% of respondents received free shipping – broken down as 38% due to a retailer offer, 10% due to a promotion (e.g. Black Friday), 11% due to high product value and 4% due to a loyalty programme (e.g.Amazon Prime). The study showed that 18% of consumers received their last cross-border delivery within three days and 48% within a week.

Depending on the distance travelled, the delivery time varied, with 9% of consumers receiving their deliveries in 30 or more days, although this was most common with consumers in Brazil, Russia and Mexico. The most common delivery issue identified by cross-border consumers was that the delivery time was too long (25%).

Delivery services are a critical element of the ecommerce customer experience. Affordable and highquality delivery services, both domestically and internationally, are a prerequisite for successful ecommerce sales, according to a recent study by German consultancy firm - WIK. The study focuses on cross-border parcel delivery in European Union focusing on the expected effects of Regulation (EU) 2018/644 on cross-border parcel delivery services in EU, expected to be fully implemented in autumn of 2019. The study summarize B2C e-commerce has grown substantially and significantly contributed to the development of the Digital Single Market. These developments have encouraged domestic and crossborder B2C delivery services which have also greatly improved since the start of discussions about an integrated delivery market to boost e-commerce in Europe in late 2012. Overall, parcel delivery markets in the EU are developing well. Integrators, European parcel delivery networks, and more cooperation between national postal operators and new players in the delivery industry have been developing customised delivery services for e-commerce retailers and consumers.

Global e-commerce sales in the business-to-consumer segment (B2C) are estimated at around EUR 2 trillion (USD 2.3 trillion) in 2017. Cross-border e-commerce has gathered pace and growth rates for cross-border e-commerce are outperforming growth rates in domestic e-commerce

41% of the most recent cross-border purchases cost less than €25

32% chose faster cross-border delivery as one thing the post should do to improve

CITYMAILERS MAGAZINE | 42

GOING DIGITAL

DIGGING DIGITAL HOW TO MONETIZE THE BUSINESS THAT MAY BE HIDDEN IN YOUR DELIVERY DATA The amount of data created in the past two years surpass the overall data that mankind has created in its entire history. In 2015, businesses alone created 2.4 zetabytes – that’s 2.4 trillion gigabytes of data, and this number is set to quadruple by harvest this data have started aggressively collecting and storing it in a race to unlock its potential. Technology and talent have reached a tipping point: the infrastructure and skills required to host data have become accessible and economical.

Together, these forces are bringing significant changes to the information services industry. The explosion of data sources, tremendous advances in the cost, speed, and ease of wrangling the data, and advances in analytical capabilities such as machine learning mean that greater and greater value will be derived from data in more and more use cases. Along with this increase in value comes great monetization opportunity. We believe, postal sector and delivery companies have a strategic advantage in this opportunity, given their positioning on the value chain. What are the important topics when it comes to data analyses and what are the most important strategies to follow to monetize the data in delivery industry?

There are numerous pain points for today’s posts, not least declines in letter volumes, liberalization of the market and increased competition. The real problem, however, is that posts are used to operating in a predictable and slowly changing environment. This has led to fixed, routine work practices, equipment, products and capability. As a consequence, the ability to respond to a rapidly evolving market is hampered by inflexible processing environment. This also applies to large numbers of transport vehicles that follow fixed timings and routes. Many posts have a transport network where trucks leave and arrive at the same places, following the same routes daily regardless of volumes and in the absence of an understanding of network demand. To help overcome such issues, posts need to instill greater levels of flexibility into their business models, a move that will provide a multitude of benefits in areas that include capacity planning, working practices and transportation, and most of they need to collect and analyze different data that is accumulated through these processes.

CITYMAILERS MAGAZINE | 43 POSTAL MAGAZINE | 24

GOING DIGITAL

STRATEGICAL APPROACH This is where an effective IoPT strategy can pay real dividends. Most posts collect a large amount of data from their day-to-day operations, which is used typically to report what happened in the past. However, knowing what happened yesterday does not prepare a postal service for what happens today, tomorrow or next week. What’s needed is real time processing of big data to predict what will happen in the coming hours. Such data can be used to match capacity to demand, and have the right resources in place to deal with that demand at the lowest possible cost. Without doubt, the IoPT is relevant to every post, regardless of their current level of automation and technology in their processes. Furthermore, it can be applied to all parts of the business to improve operating efficiency and service provision, while allowing posts to exploit new business models.

MORE DATA IN - MORE INTELLIGENCE OUT At present, there essentially exists a perfect storm of need versus capability. With regard to capability, integral to an IoPT strategy would be integrating data generators, such as microchips or sensors into processes and physical points in the postal network, which combined with ubiquitous access to data networks, would gather live data from across the operating area. In terms of operational efficiency and performance, the familiar adage ‘knowledge is power’ remains true, namely the power to make informed decisions based on current (or predicted) circumstances. Unfortunately, essential assets in current postal infrastructures are pretty much living in a data black hole, in that their whereabouts at any specific moment in time may not necessarily be known, nor their status or serviceability. However, with sensors employed across infrastructure in an IoPT strategy, all assets have the potential to become ‘smart’ assets, which in turn delivers the power to make decisions in a timely (even predictive) manner.

EVERYBODY WINS Any yet there’s far more on offer from IoPT than business-specific benefits. By using a dense mobile and fixed physical network to collect data, a post will amass a wealth of intelligence that isn’t just valuable from an operational standpoint, but attractive to other businesses too. Posts are in a unique position: they are present in every inhabited part of their market, almost every day of the year. Very few businesses can match that. For instance, there is potential for field workers to collect all manner of data while they are out and about doing their postal job and combine that with data collected by fixed infrastructure such as parcel lockers and buildings

. For example, information could be gathered on air quality or noise levels, while infrastructure status reports could be generated for municipalities and utilities. It would even be possible to collect data about traffic hot-spots. Remember, this is in addition to information that is of direct benefit to the post. In essence, all real-time data can become a lucrative service to others. The IoPT allows posts to think out of the box and introduce new products to complement their core activities.

IT`S COSTLY BUT NOT EXPENSIVE Of course, a common misconception is that implementing an IoPT strategy is expensive. In reality, however, nothing could be further from the truth.

Recent years have seen the market witness a marked reduction in the cost of sensor and mobile data collection technology, enabling the economic transformation of passive assets into smart ones. The availability of cloud-based storage is also far cheaper than when it arrived.

START NOW So, what of the market need? Well, the postal industry is presently facing unprecedented challenges as a result of digitization. Growth areas such as parcel deliveries fueled by the e-commerce boom are presenting new opportunities, but along with them arrive challenges in keeping up with consumer expectations for delivery options and a higher percentage of returns. With this in mind, it’s clear that all posts should go for smarter value-added services in order to survive. Overcoming such challenges will undoubtedly reap significant rewards. For instance, in a recent report from the USPS Office of Inspector General it was stated that “interconnecting the postal network can provide endless opportunities for new, smarter applications, especially in the areas of delivery, transportation and logistics, building management, and government services”. Add to that a report published

by DHL & Cisco at the DHL Global Technology Conference, which estimates that “IoT will deliver a $1.9 trillion boost to supply chain and logistics operations,” along with “game-changing consequences from creating more ‘last mile’ delivery options for customers, to more efficient operations and freight transportation”. In terms of specific advantages for posts, there is potential to offer deeper level track and trace capability, along with new services such as live re-direct, and live collection/returns based on current and predicted location of mailmen and vehicles, potentially even using autonomous robots and drones in the mail and parcel handling process. The possibilities are almost endless.

CITYMAILERS MAGAZINE | 44

GOING DIGITAL

THE $250 BILLION DATA INDUSTRY In entering the information services industry, distributors will be participating in a market worth $250 billion globally, with segments attractive to distributors growing between 5 percent and 11 percent annually, according to market research firm Outsell. The data that distributors hold is uniquely valuable, as it provides a holistic view of the market that suppliers and customers do not have. For example, chemical distributors could tell how high the demand is for benzene, used in the production of petrochemicals, in Texas and thus be able to forecast if oil production is increasing or decreasing in the state. Alternatively, a food distributor to school cafeterias could calculate the average sugar content of foods shipped to schools, providing valuable health information by district. At the same time, there are challenges around security, privacy, and competitive concerns that need to be addressed before data can be monetized. We believe these challenges are surmountable and can be addressed using well-established practices from the information services industry. Overall, getting this right is a very attractive organic revenue growth opportunity for distributors in an industry where growth has typically come from acquisitions.

TAKE STOCK: IDENTIFY WHO WILL FIND VALUE IN YOUR DATA AND HOW The first question you need to ask is: “Who would find value in this data, and how?” There is a standard layer of data that all distributors have from their position intermediary between customer and supplier.

This data can serve suppliers, customers, and even third parties.

PLAN YOUR MONETIZATION APPROACH Once you have identified data that is valuable, the next step is to come up with a viable monetization approach, including offering type and go-to-market approach. There are typically three basic product or offering models for information, ranging from simple to complex along with their go-to-market needs.

PILOT AND FAIL FAST Once the initial opportunity has been identified, it is important to acknowledge that there is much to be learned before you have a successful and viable business. So it is necessary to pilot, test, fail fast, and refine to get to something that is viable. At this point, it is important to ensure the targets and definition of success are clear and aligned with your capabilities, ambitions, and investment appetite. To pilot your opportunity, the data needs to be standardized, cleaned automatically, and regularly updated.

Additionally, you will need to host the data in a secure way and develop the technology to make it available. Depending on the opportunity, this may mean acquiring capabilities and skills that do not exist in your organization today. Bring this first offering to market, then learn and iterate on an ongoing basis.

Piloting this new business opportunity will result in both successes and failures to learn from. Choosing technologies that allow you to adapt and develop the service in an agile way will allow you to “fail fast” and rapidly adjust course towards what is working.

CONCLUSION The conditions are ripe for distributors to activate their data as an incremental revenue stream, either independently or as a consortium. Data monetization is a highly attractive additional business model and is complementary to offering deeper, technology-enabled services to the core product offering of distribution. Furthermore, once established, information-services businesses offer a multitude of expansion possibilities, additional data sets, more analytical capabilities, and further geographic coverage. The ultimate goal is a high margin, high recurring revenue business with strong sustainable growth. It is both an attractive financial addition to the core business and an enhancement through deeper customer relationships. Those who move quickly, leading the innovation and development in this sphere and working closely with their customers, are likely to lead the way for years to come.

CITYMAILERS MAGAZINE | 45

TECH AND STUFF

RFID That Goes Where You Go IP30 add-on passive UHF Handheld RFID Reader

The only long-range, industrial handheld RFID reader on the market that combines five wireless technologies in one integrated system: RFID, Wireless WAN, GPS, Wi-Fi and Bluetooth®. Easy snap-on installation to Honeywell mobile computers, featuring near/far area imaging and multiple network-communication options.

Provides a lightweight, ergonomic design Bluetooth® connection to the mobile computer. The modularity of the IP30 when combined with the RFID-readiness of the Intermec mobile computers, transforms into a RFID handheld in a snap. The IP30 supports both in-premise and in-field applications, such as warehouse operations, enterprise asset management, retail and enterprise inventory management, field service, and exception handling. When combined with one of Intermec’s powerful mobile computer products, the IP30 gives the user unmatched data collection and communication capabilities. And combining RFID with multiple network communication options in a single handheld unit enables pinpoint location accuracy for real-time asset, source and service tracking. When added to one of Intermec’s 70 Series handheld computers, the IP30 gives users unprecedented versatility both inside and outside of the four walls through combined advanced data collection methods, GPS location association, and communication via multiple network radios, including the latest cellular technologies. In fact, the IP30 is the only long-range handheld RFID reader on the market that combines five wireless technologies in one integrated system: RFID, Wireless WAN, GPS, Wi-Fi, and Bluetooth. RFID reads can now be associated with time stamps and location coding to enhance supply chain visibility for applications like track and trace, point of origin, and field asset and inventory management.

When harsh and hazardous environments make RFID one of the only viable identification and data collection methods, the non-incendive (NI) rated version of the IP30, combined with an NI option of the 70 Series, or mobile computer, provides a solution certified by Underwriters Laboratories (UL) for use in environments in the United States and Canada where gases, dusts, and fliers or fibers may be present. Similar to Intermec’s industry leading fixed and vehicle mount RFID readers, the IP30 has an EPCglobal certified radio that enables seamless application portability among all RFID applications using Intermec readers. SmartSystems™ Foundation, standard on the Intermec mobile computers, provides a single, convenient console for quick set-up and configuration of all of the settings contained in the device. Administrators can change device settings, send firmware upgrades, update software applications, and execute other changes directly from the console to save time and cut costs.

Specifications WEIGHT Without Handheld Computer: 430 g with battery (0.95 lbs) Weight with CN70 and CK3B: 880 g POWER Removable Lithium–ion battery pack (2400 mAh) FREQUENCY RANGE RFID Frequency Ranges: 865 and 915 bands, supporting multiple regional configurations COMMUNICATIONS INTERFACE Bluetooth CERTIFICATIONS Meets ETSI and FCC regional standards, and is factory configured to operate in many additional countries worldwide.

CITYMAILERS MAGAZINE | 46

HISTORY OF MAIL

TRACKING AND TRACING THE ROOTS OF POSTAL SYSTEM Postal history is the study of material carried by and related to official, local, and private mail systems. It illustrates routes, rates, markings, usages, and other postal aspects. It describes services, functions, and activities related to the history of the development of postal services. Postmark collections—also called "marcophily"—demonstrate classifications and studies of postal markings related to official, local, and private mail on covers and other postal items. In this modern world of mobile devices, digitization and delivery drones and robots POSTAL MAGAZINE dedicates this corner to cherish the 4000 years long history of postal communication and its contribution to the human civilization. In this first issue of Postal Magazine we write about Robson Lowe, regarded by philatelists as the father of postal history

Robson Lowe January 1905, London – 19 August 1997, Bournemouth

Robson Lowe was the towering giant in the world of stamp collecting or philately. A stamp dealer, auctioneer, writer, editor, publisher and organiser, he has left an enormous amount of literature on all aspects of philately.

"Robbie", according to his own story, started stamp dealing as a schoolboy when he was 15 years old, in 1920. He was determined to establish a career in stamp dealing and first applied for a job with the London stamp dealers Fox & Co, in South Kensington, but was not accepted due to his outspoken comment that he was only working to learn how to become successful himself. Funded by his parents, he started a business which grew until its name became renowned world-wide. Initially it was called the Regent Stamp Co, with a subsidiary, Robson Lowe Ltd (1926), which became arguably the leading stamp auction house in the UK and was taken over by Christie's in 1980.

His auction house became famous and he handled many of the great collections, primarily through personal contacts established through his standing as a philatelist. Collectors of today owe much to him through his marketing the archives of the stamp printing companies of De La Rue, Bradbury Wilkinsons, and Waterlows, and selling these publicly and privately, spreading the sales over a period so that the market could absorb this tremendous original artwork, proofs and essays of the stamps of so many countries. From a humble beginning, Robson Lowe became one of the great entrepreneurs. By 1934 he was successful enough to launch his own magazine, the Raconteur, which became the Philatelist in 1937 and is still published today. Promotion of the hobby, and hence himself, through the written word was his particular strength.

CITYMAILERS MAGAZINE | 47

HISTORY OF MAIL

By 1948 he had published his first major book, Handstruck Postage Stamps of the Empire 1680-1900, which introduced the field of postal history - the study of routes, rates and postal markings of the mail - to the philatelic world as a serious collecting field. Between 1948 and 1990, this was followed by his six volumes of Encyclopaedia of British Empire Postage Stamps, which became the authoritative points of reference for the stamps and postal history of Great Britain and the Empire.

Such books not only were learned, they were also propagandist in their promotion of postal history, an aspect of collecting which he established as a most important part of philately. His belief in the subject led him to introduce the first Postal History auction sales: they have now been copied by hundreds of auction houses across the world.

In the 1970s he gained yet another landmark in the development of postal history by persuading the Corsini family to sell their letter archive. This material was the first major source of early postal history and did cause problems as the letters, and the associated private postal markings, were written in antique Italian. Not to be defeated, Lowe taught himself the language, and translated many of the historical letters. Indeed, he became so proficient that he lectured learned societies on the subject in Italy.

Whilst an extremely successful businessman, he also contributed much in the promotion of the hobby, and assistance to others not so fortunate. Unable for health reasons to serve in the Second World War, he created in Bournemouth the 1940 Stamp Exhibition to celebrate the centenary of the Penny Black, the world's first postage stamp. Linked to this, he organised many events, including an auction, to support the Red Cross in its war efforts. His talent for organising stamp exhibitions led to his being the Organising Secretary of the 1960 London International Exhibition on the South Bank and the early British Philatelic Exhibitions at the Seymour Hall.

Lowe received many philatelic honours. He was the first "stamp professional" who was invited to become an Honorary Member of the Royal Philatelic Society, London.

In recognition of his contributions to newer aspects of philatelic collecting he was made Honorary President of the Cinderella Stamp Club in 1983, and of the Revenue Society of Great Britain on its formation in 1989.

Lowe is regarded by philatelists as the father of postal history, having published many definitive works on the subject and having introduced the term in his first major book Handstruck Postage Stamps of the Empire 1680-1900 in 1948.

In 1970 he was awarded the Lichtenstein Medal by the Collectors Club of New York.

CITYMAILERS MAGAZINE | 48

MAIL CULTURE

The Unbearable Lightness of Global Mail Art movement

Mail art is a movement based on the principle of sending small scale w2orks through the postal service

Mail art began in the 1960s when artists sent postcards inscribed with poems or drawings through the post rather than exhibiting or selling them through conventional commercial channels. Its origins can be found in Marcel Duchamp and Kurt Schwitters and the Italian futurists. But it was the New York artist Ray Johnson who, in the mid 1950s, posted small collages, prints of abstract drawings and poems to art world notables giving rise to what eventually became known as the New York Correspondence School.

Mail art and can take a variety of forms including postcards, packages, faxes, emails and blogs. In the 1960s the Fluxus artist On Kawara sent telegrams to friends and family that informed them he was alive. In the mid 1990s, the artist and curator Matthew Higgs set up Imprint, which posted art by young British artists, among them Martin Creed, to critics and curators.It is considered to be the predecessor of net art.

CITYMAILERS MAGAZINE | 50

MAIL CULTURE

Through September 25th, 2016, London’s Whitechapel Gallery is hosting an exhibition called Imprint 93, titled after a mail art project initiated by curator Matthew Higgs in the early 90’s. Iconic artists like Jeremy Deller, Martin Creed, Peter Doig, Chris Ofili and Fiona Banner all have artworks on view, celebrating and contributing to the populist art movement that rose to prominence some thirty years prior.

Although Ed Plunkett, one of its members, once said that mail art probably began when Cleopatra delivered herself to Julius Caesar in a rolled-up carpet[1], its real roots can be traced to a much later period – in the groundbreaking pieces of one Marcel Duchamp and the practices of the Italian Futurists from the early 20th century.

The truth is that artworks had been traveling through envelopes all the time, from Van Gogh’s drawings of painting ideas sent to his brother Theo to Egon Schiele’s letters from his short stay in Vienna, but it wasn’t until the 1950s that someone finally decided to give this creative process some proper credit and proclaim it a true artistic movement.

What is Post Art ? n 1943, an artist by the name of Ray Johnson began experimenting with art in the mail by embellishing envelopes in Detroit, while an artistic group called Nouveau Réalism used letters and rubber stamps in their conceptualism[4]. By the time Johnson, who later turned out to be the pivotal figure for the postal art movement, saw the creative potential of postage, another group of artists appeared on the scene. Embarked on a journey without an idea (or the need) of an end, Fluxusrecognized its visions in mail art’s fusion of performance and collage-making and embraced it all. In particular, artist Robert Filliou often used envelopes and paper in his practice and was recognized by founder George Maciunas for it, although other Fluxus names like Robert Watts and Ben Vautier also used postage items such as stamps and postcards.

Yet the real recognition of postal art as a concept of its own came with the development of The New York Correspondence School in 1962.

What is Post Art ?

To describe the phenomenon of Post or Mail art, also known as Correspondence art or Postal art, one could say that it represents any form of the arts created meant to be sent through postage service[2], or better yet: works that are only big enough to be put in envelopes and posted away. This movement was particular in many aspects, perceived as a kind of activity shared by many people – or anyone interested – around the world. As such, it diverged from the structures of the commercial art market and traditional venues and institutions such as galleries and museums[3]; rather, it was meant to be an aesthetical communication and interaction with a few guiding rules. Artists would send their artwork by post to the person of their choice, who would then have the complete freedom to decide whether to receive and/or to respond to the piece of the incoming post. Many of these artworks were often a result of a group project and were put in exhibitions without any kind of jury, censorship or admission criteria, at first only in alternative spaces such as private apartments, shop windows and municipal buildings. The idea of the founders and the members of Mail art was to create a global community, through post as a mass medium, putting an emphasis on the act of exchange and collaboration, free of barriers like language, ideology and religion.

Left: Marcel Duchamp – Rendezvous of Sunday, February 6, 1916 (Rendez-vous du Dimanche 6 Février 1916) / Right: Kurt Schwitters – Opened by Customs, 1937-8. Paper collage, oil and pencil on paper. © DACS, 2002. The Dada artist used postal elements like postcards and rubber stamps in his paper collages

CITYMAILERS MAGAZINE | 51

MAIL CULTURE

The New York Correspondence School

Towards the New Millennium

The New York Correspondence School was a term coined by the aforementioned Ed Plunkett, who used it to describe Ray Johnson’s activities. Johnson, in return, accepted the moniker, although he sometimes intentionally misspelled it as “correspondance”, thus evoking the free, playful spirit of the movement and its participants. The Correspondence School institutionalized the free exchange of postal messages among artists or creators and audience. It also encouraged meetings of its members, which were a big part of the School’s “program”, because for him it was all about interaction with a good sense of humor. Ray Johnson often highlighted mail art’s ability to convey a non-verbal, non-confrontational message which connects the involved parties in its absence, where ”an object is opened in privacy, probably, and the message is looked at”[5].

Although mailed artworks escaped the influences of the art world, they were still sometimes exhibited in major museums and galleries. Such is the case with the 1970 show which took place at the Whitney Museum of American Art in New York City. Organized by Ray Johnson and Marcia Tucker, it was the first time that the postal pieces went on display, and within the walls of such a great institution too. Similarly, these artworks nevertheless attracted a great number of librarians, archive managers and collectors as well, despite (or perhaps fuelled by) the fact that the Correspondence School closed in 1973. They were small and they were always inside envelopes, but they were works of art either way, with a strong concept behind it.

Ray Johnson continued to practice mail art after the closing of his School, and so did many other creatives and enthusiasts around the world. The fact that it was cheap and flexible made the movement accessible to many, particularly those within communities encountering censorship and the inability to express their opinions and ideas. Johnson’s mission to endorse meetings influenced the birth of many festivals and conventions on a large scale, which took place in the United States in the early 1980s, for instance. Another exhibition of correspondence art was held in New York in 1984, although it was followed by a controversy regarding the fact not all submitted artworks were shown – something which was generally accepted within the movement, as we’ve seen earlier. This didn’t stop the expansion of the ideology behind it all, and mail art became common sight in Europe, the Americas and Australia, with rising interest in Asia and Africa as well. In the 1990s, the mail-interviews by Dutch artist Ruud Janssenwere the movement’s great and perhaps last contributions of sorts, as artists turned to the wonders and possibilities of the web which allowed the creation of digital communication. However, the influence of mail art on the Internet at large can be examined on a much more conceptual level.

The cover for Ruud Janssen’s mail-interview with artist Anna Banana, which can be found on the International Union of Mail-Artists website

CITYMAILERS MAGAZINE | 52

MAIL CULTURE

To Envelope Art – Media Used by Correspondence Artists Just like anyone can take part in the making of mail art, the choice of the materials is vast and versatile too.

Because of their accessibility in terms of production and price alike, items like paper and techniques like painting and collage provided the participants with a great number of opportunities to express themselves – and it is interesting to see the ways they were, and are able to turn a “plain” concept of letter and envelope into a true piece of art.

Decorated Envelopes In a way, envelopes represent the “packaging” of the postal artwork, although many focused more on their aesthetics rather than on what’s inside them. The hand-written address becomes a part of the piece, and is often surrounded by painted or drawn elements as well as stitching, embossing and all kinds of designs.

This way, envelopes become their own artwork and on many occasions they get delivered without any accompanying content. The most famous project in this field is The Graceful Envelope, which has been running since 1995 and has had the annual theme every year.

In Washington D.C., the selected envelopes even go on view as part of renowned exhibitions.

Artistamps and Rubberstamps

An important part of a postage item is the stamp, and mail art was the perfect opportunity for individuals to create their own designs. These pieces go by the names of artistamps, postoids, faux postage and even cinderella, inspired by those used by the Fluxus creatives. Artistamps also became a part of a subnetwork, formed by those who were exchanging their own stamps and stamp sheets; an example of such practice is Jerry Dreva and his conceptual group Les Petits Bonbons. Rubberstamps, on the other hand, were officially used for franking mail, but their designs were radically changed to fit the needs of Postal artmakers. Many of them created trademark designs which helped the recipient recognize their work easily, and functioned as a sort of an artist signature.

Examples of Artistamps by artist Fraenz

Postcards

Mail Art envelope from H.R. Fricker, 1990

Apart from envelope and paper, another and perhaps the most popular form of mail art has to be the postcards. There is no packaging, just a piece of surface waiting to be altered, edited and designed.

Postcards are sent quickly and easily, and interestingly enough even the postage costs less than regular envelopes, which makes it even more accessible and wanted by the correspondence artists. Those interested in sending postcards can join Post Secret, a project that’s been running since 2005 that invites the participants to send an anonymous postcard with a secret written on it, which is then published online and in one of their many books.

CITYMAILERS MAGAZINE | 53

MAIL CULTURE

Lettering and Other Media When it comes to what goes inside the envelopes, there are many, many possibilities. Starting from the writing paper, many mail creators use printing and copying as a method of mass distribution; this is where Copy art, in particular xerography and photocopy, take the stage. With the advent of computers, mail artworks got inkjet and laser printouts as well. Naturally, media like photography, collage and photomontage, recycled images, found objects, even sounds, poetry, artist trading cards and other envelopefitting items (like banknotes, badges, stickers, tickets, food packaging, maps, diagrams and smaller books) are also integral to the practice. On the other hand, lettering in both handwritten and printed form is still considered the most important part by many, as it carries the word in its many forms, be it literature, recordings, poetry and prose, as well as translations.

(E-)Mail Art – Does it Exist Today?

Democratic and participatory, yet personal and expressive, postal art has been connecting people for more than five decades. Today, there are a few projects continuing the legacy, such as Mail Me Art, which resulted in several exhibitions as well, or Mail Art Projects, maintained by the members of Ruud Janssen’s IUOMA. The most prominent institution dedicated to the movement is probably The Electronic Museum of Mail Art, which has several galleries of artworks and a small collection of artistamps by various names. As we can see, postal art did not give in to the dominating digital era, but rather expanded into its field. The concept of an indirect relationship that the participants form over a mailed work of art is still very much alive and well, and the post-internet tendencies only seem to have contributed to the evolution of the written word, with electronic mailing and countless online communities. The movement can be seen as the anticipator of the cyber communities founded on the Internet today because of its spirit and the idea of creating virtual groups of people bonding over a common interest. Nevertheless, many still prefer the printed matter, which is why mail art is bound to exist in its original context as long as there’s paper and creativity.

Mail Me Art began with an idea. It became a community. But it doesn’t end there. The book features 200 of the best pieces of mail art from the project, showcasing the variety and depth of the international illustration community, as well as interviews with 17 of the people that give insight into the work and the spirit of the project. Open this book, experience the array of mail art illustration, and become part of the journey.

CITYMAILERS MAGAZINE | 54

MAIL CULTURE

Top Five Favorite Fictional Postal Workers in Movies Postal carriers often get a bad reputation for what a few of their disgruntled members have done over the years and they don’t tend to get a lot of respect. The funny thing about it is that they’re in charge of something very important and that has been shown to be vital to the connections that human beings value so much. They deliver correspondences of all types to people back and forth, facilitating the link between people that back in the day was absolutely vital. If not for postal carriers throughout history the rise of civilization might have been a little slower and not as efficient. So next time you see the person delivering your mail say thank you or at least have the decency to try and make their life a little easier.

5. Agent K – Men in Black 2 He tends to run his mail room like a war room, well-oiled and without a lot of muss or fuss that can get in the way. That might be the mark of an efficient man or it could be the mark of someone that knows what it’s like to be in charge because he didn’t know any other way to be. K definitely knows how to assess any given situation and make certain it’s handled with care and professionalism.

Tommy Lee Jones as Agent K

CITYMAILERS MAGAZINE | 55

MAIL CULTURE

4. The Postman – The Postman When it’s your only way to stay fed and alive then there’s not a whole lot of need for decency or truth. Despite the fact that his role was nothing but a lie the Postman brought a lot of hope to a country that had been ravaged by war and torn apart due to lack of correspondence. When a letter is the best you can hope for you cling to that hope with everything you’ve got left.

Kevin Costner in The Postman (1997)

3. Willie Lumpkin – The Fantastic Four Stan Lee is a character. He shows up in pretty much every Marvel movie except maybe one or two. Those could have been movies in which Marvel didn’t own the rights or some other technicality that prevented his cameo. But if you’ll notice in this first Fantastic Four movie he’s playing the postman, in the second one he plays himself when he’s attending Reed and Sue’s wedding.Willie Lumpkin is a fictional supporting character appearing in American comic books published by Marvel Comics. The character is best known as the mailman of the Fantastic Four in their self-titled comic book

Sten Lee as Willie Lumpkin in Fantastic Four (2005)

CITYMAILERS MAGAZINE | 56

MAIL CULTURE

2. Myron Larabee- Jingle All the Way There is nothing that can unnerve people like an unhinged mailman. They handle some of the most private stuff and have a job where they get little if any respect. So yeah, it’s kind of understandable that some of them would get a little bent out of shape at times, but this seems to be taking it to the limit and beyond. Plus, it’s a kid’s movie so it’s likely that a lot of kids wouldn’t get it. t’s a classic plot: Parent forgets to buy a super-popular toy for their kid and must scramble on Christmas Eve to find said toy and prove that his child is, in fact, still loved. From feuding dads to slimy neighbors and shady mall Santas, Jingle All the Way was notoriously panned when it first came out in 1996 but has become something of a cherished holiday classic over twenty years later. Click through the gallery to see what the cast has been up to since saving Christmas.

American stand-up comedian Sinbad alongside Arnold Scwarzeneger in 1996 classic Jingle all the Way

1. Mr. Wilson – Dennis the Menace Stan Lee is a character. He shows up in pretty much every Marvel movie except maybe one or two. Those could have been movies in which Marvel didn’t own the rights or some other technicality that prevented his cameo. But if you’ll notice in this first Fantastic Four movie he’s playing the postman, in the second one he plays himself when he’s attending Reed and Sue’s wedding.Willie Lumpkin is a fictional supporting character appearing in American comic books published by Marvel Comics. The character is best known as the mailman of the Fantastic Four in their self-titled comic book

Walter Matthau as Mr.Willson in ennis the Menace (1993)

CITYMAILERS MAGAZINE | 57

LETTER WRITING

International Letter-Writing Competition for Young People

About the International Letter-Writing Competition for Young People Millions of young people all over the world, up to age 15, have participated in the annual International Letter-Writing Competition for Young People at the national and international levels since its launch in 1971.

The competition is an excellent way of encouraging literacy in children and young people.

It develops their skills in composition and the ability to express their thoughts clearly. The contest also makes them aware of the important role postal services play in our world.

How does it work?

Each year, the UPU International Bureau announces a theme. Participating countries then organize the competition at the national level with support from its Post and often with the support of education authorities. All entries must be submitted through the national Post. Each country chooses a national winner and submits this entry to the international round, held by the UPU. An international jury, chosen by the UPU International Bureau, judges the letters and selects the winners and entries worthy of a special mention.

CITYMAILERS MAGAZINE | 58

LETTER WRITING

UPU to hold 50th International Letter-Writing Competition The Universal Postal Union’s (UPU) International Letter-Writing Competition will celebrate its 50th anniversary this year. The competition, launched in 1971, aims to promote literacy among the world’s children through the art of letter writing. In 2021 the theme is, “Write a letter to a family member about your experience of Covid-19.” Letters must be handwritten, no more than 1,000 words, and presented to the national organiser of the competition. The closing date for entries is 5 May 2021. For the past 50 years, the UPU has worked with national posts to encourage young writers aged 9-15 to enter the annual competition.

Participants are encouraged to express their creativity and refine their language skills in the form of a letter, which is written in line with the ILWC’s annual theme. On average more than 1.2 million young people take part globally each year. The UPU will award the winner with a gold medal, and second and third will receive silver and bronze medals, respectively. There will also be special mentions for noteworthy letters.

Last year 11-year-old Volga Valchkevich from Grodno, Belarus, triumphed with her letter reflecting on the lessons she learnt from her late grandfather. Whilst announcing the 2020 ILWC winner in October 2020, Bishar A. Hussein, UPU Director General, urged members to encourage their country’s children to take part in the 2021 competition: “It will be the competition’s 50th anniversary, and it would be wonderful if every one of our 192 member countries took part,” he said. Reflecting on the 2020 event, Hussein continued, “Each one of the letters contained a spark of innovation and creativity, which I believe is inherent in all children and the way they see the world. A spark that perhaps invites us to listen closely and to pay attention. After all, I think the world has need of inspiration.”

According to the UPU, the ILWC helps young people develop their skills in composition and fosters their enjoyment of letter writing. It is also an excellent way of making young people aware of the important role postal services play in society – a role that has become even more noteworthy during the global pandemic.

Nguyen Thi Thu Trang is honoured at the closing ceremony of the 26th Universal Postal Congress in Istanbul, Turkey (Photo: Ugur Cobanoglu).

CITYMAILERS MAGAZINE | 59

SOCIAL POST

POSTCARDS ACROSS THE GLOBE Postcrossing is an online project that allows its members to send and receive postcards from all over the world. The project's tag line is "send a postcard and receive a postcard back from a random person somewhere in the world!”[3] Its members, also known as postcrossers, send postcards to other members and receive postcards back from other random postcrossers. Where the postcards come from is always a surprise.

Postcrossing is the union of the words "postcard" and "crossing" and its origin "is loosely based on the Bookcrossing site".[4] However, the "crossing" or exchange of postcards works in a different way. A member sends a postcard to another postcrosser and receives a postcard back from a random postcrosser.

Exchanges between the same two members only occur once; although direct swaps between members happen, they are not part of the official happenings on the site. The project is completely free and anyone with an address can create an account. The postcards and postage fees to mail them are the responsibility of each user.

As of January 2019, Postcrossing has over 750,000 members in 212 countries[5] who have registered and exchanged over 50 million postcards that traveled over 250 billion kilometers.[6] The highest concentration of Postcrossing members reside (in order) in Russia, Taiwan, the United States, China, Germany, the Netherlands, Poland, Belarus, Ukraine, Finland and the Czech Republic, each with over 20,000 members.[7] Globally, most postcrossers reside in North America, Europe and East Asia. Of particular note, Postcrossing is popular in eastern European and formerSoviet states. As of January 2019, more than one third of the combined total of postcards were sent from Germany, Russia and the United States.

39 m Total number of postcards passed 2002 -2017

The idea for the project was created by Paulo Magalhães, who started the site on July 14, 2005. The motivation was based on the fact that he liked to receive mail, especially postcards.[10] “The element of surprise of receiving postcards from different places in the world (many of which you would probably never have heard of) can turn your mailbox into a box of surprises – and who wouldn’t like that?”[11] The project started initially as a hobby for Magalhães, but its unexpected success revealed that the idea was more popular than he ever predicted. He initially hosted the project on an old computer housed in a clothes closet at his home, which was shown to be insufficient. Based on word of mouth, the project quickly expanded over the Portuguese borders where the project was developed.

Over time the project received attention from the media, which contributed to its growth and popularity.

Postcrossing reached its first million exchanged postcards on April 11, 2008 and has since grown even more rapidly.

[12] It reached the second million on February 26, 2009 with a postcard that traveled from Germany to Norway.

[13] The third million was reached on September 24, 2009 with a postcard traveling from Finland to Slovenia.[14] The fourth million was reached on March 28, 2010 with a postcard traveling from the Czech Republic to the Netherlands.[15] The popularity of the site has led to the academic community exploring what makes postcrossing so successful and what other digital communication technologies can learn from that success.[16] Postcrossing.com celebrated its five-year anniversary on July 14, 2010 with a photography contest for its members.

[17] Shortly after celebrating their fifth birthday, Postcrossing.com reached 5,000,000 postcards received on August 24, 2010 with a postcard traveling from Isle of Man (registered under an Italian member) to Thailand.

[18] The 7,000,000th postcard was sent on April 4, 2011 from China and received on April 19, 2011 in the Netherlands.[19] The 10,000,000th postcard travelled from Japan to Germany and was registered on January 27, 2012.[20] The 15,000,000th postcard travelled from Germany to Italy and was registered on December 31, 2012.[21] At the moment, 1,000,000 postcards are registered in about two months. In January 2017 the number of postcards passed 39 million.

CITYMAILERS MAGAZINE

| 60

SOCIAL POST

How it works?

If a member sends a postcard he or she will receive at least one postcard back from a random postcrosser somewhere in the world.

The first step is to request to send a postcard. The website will display and send the member an email with the address of another postcrosser and a postcard ID (e.g.: US-787) which uniquely identifies that postcard in the system. The member then mails a postcard to that postcrosser and writes the postcard ID on it. The postcrosser receives the postcard and registers it using the postcard ID that is on the postcard.

At this point, the sender is eligible to receive a postcard from a different postcrosser.[8] Each member can write a profile text which will be visible to the postcrosser who requested an address. This profile can contain personal information about the recipient or postcard preferences.

Initially each member can have up to five postcards traveling at any time. Every time one of the sent postcards is registered, that postcrosser can request another address.

The number of postcards allowed to travel at any single time goes up the more postcards a member sends and stops at 100.[9] The Postcrossing system allows for the same two members to exchange postcards only once. By default, members will exchange postcards with countries other than their own.

Users can decide to exchange postcards with other users in his or her own country. Users are allowed to untick the "send to repeated countries" option in their profile, but this does not guarantee no repetitions.

A small percentage of mailed postcards get lost during their travels, while others may arrive with the postcard ID unreadable and are difficult to register. There are also members who become inactive while postcards are on the way to them. The system behind the website accounts for all these factors and compensates active members by attempting to reduce the difference between the number of sent and received postcards of each member.

Postcrossing-themed stamps On October 11, 2011, PostNL released the first set of Dutch Postcrossing-themed stamps at the philatelic exhibition Postex in Apeldoorn.[33] The sheet of 10 stamps was designed by communication agency The Stone Twins, and depicted different types of postcards seemingly strewn about (as if scattered on a doormat).[34] Finland was the second country to follow suit, with Itella launching their own stamps in honor of Postcrossing on September 9, 2013. Designed by Kokoro & Moi, the set includes four different first-class stamps.[35] On January 2, 2014, Belposhta also launched their own Postcrossing-themed stamps in Belarus. The stamp was designed by Inga Turlo and features the words "Happy Postcrossing" in both English and Belorussian.[36] On May 28, 2014, Guernsey Post launched a stamp designed by their marketing team, featuring the words "Happy Postcrossing" over an outline of Guernsey with a smiley face, giving the "thumbs-up" to the hobby of Postcrossing.[37] On January 27, 2015 the Russian Post issued a stamp designed by Olga Shushlebina. The stamp features the words “Я ❤ посткроссинг” (Russian: “I ❤ postcrossing”) and schematic pictures of world sights.[38] On March 25, 2016 the Russian Post again issued a stamp featuring the same words designed by I. Sidenko.[39] Further Postcrossing stamps were issued on March 29, 2016

by PostNL,[40] in 2016 by Guernsey Post and Polish Post, [41] in 2017 by Indonesia Post,[42] and on September 7, 2018 by Swiss Post.[43] Furthermore, the Åland Islands' Åland Post will launch a Postcrossing-themed stamp on June 7, 2019.[44]

2015 has been the best year for Postcrossing stamps so far. After 10 years and over 30 million postcards, it seems more postal operators have started to take notice of the postcard revolution happening right under their noses mail sorting machines! :) The next country to join the club of countrieswith-Postcrossing-stamps will be Ukraine, the 9th most active country in Postcrossing. Their stamp will be issued by Ukrposhta on October 9th, World Post Day. Here is how it will look like:

PostNL created a set of stamps that double as tiny tourism ambassadors, helping draw attention to the country’s most interesting and attractive sites

CITYMAILERS MAGAZINE

| 61

Upgrade to Business-Class Mail with cloud based hybrid mail

Web browser-based tools for creating, personalizing, and proofing mailpieces and for acquiring, building, and managing mailing lists. Our system virtually eliminates the need for sorting, labeling, applying postage, and transport to a post office and does it for not much more than the cost of postage alone. In short, mail made easy.

Intersted in becoming part of the Global evolution?

Our mission is to bring our customers the best of conventional mail through the invention and adaptation of unconventional technologies. To that end we are continually forming partnerships, researching, and investing in systems that bridge the worlds of digital and hardcopy communications.

We process. We print. We mail. You profit.

CITYMAILERS MAGAZINE THE LATEST NEWS, RESEARCH AND TREND ANALYSIS PLUS INSIGHTFUL VIEWS AND EXCLUSIVE INTERVIEWS WITH LEADING GLOBAL MAIL AND EXPRESS INDUSTRY EXPERTS.

CITYMAILERS.COM