This is your postal service on drugs

This is your postal service on drugs

If you’re running a business, chances are you are as disillusioned as we are with the state of Australia Post these days. With the effective rate of a postage stamp recently going from 60 cents to $1.50, delivery time frames blowing out, items getting lost and generally poor customer service, it’s getting very hard to run a business when you need to mail things to your clients, suppliers and others.

With the recent news that the Australia Post CEO is enjoying a whopping $5.6 Million dollars, you’d wonder why the service wasn’t a world leading logistics company. We suspect some are a bit embarrassed by the package Ahmed Fahour is on, as they’ve sought to hide the fact from the public.

You’d also wonder, if the top man is doing a $5.6 Million dollar job, why are senior managers fudging figures to keep bonuses, and why are deliveries so slow? In fact, you would expect profits to be going great if the top man is on that money, so there’s no need to sell counterfeit goods in Australia Post stores, right?

We won’t belabor the point that Australia Post is also taking rival Sendle to court, mainly because Sendle is a little bit cheeky going to market with a slogal like “Post without the Office”. It will be interesting to see how that goes, but lets be honest; If Australia Post were running a world leading logistics business, Sendle would have no hope, and there’d be no need to sue them at all.

So lets look at just one real world example of why Australia Post is floundering, and at serious risk of becomming irrelevant in the Australian distribution market;

If you want a letter to get somewhere reasonably quickly (By today’s standards, that up to 4 working days, don’t get us started on that), you need to purchase priority labels and add one to the $1 stamp you put on the letter.

You can order these, and anything else Australia Post supplies, on their website, and have the stamps, labels etc delivered to you. Makes sense, as that’s what Australia Post does! If you have a post office box, you would like this process would be super efficient.

For example, if I order some priority labels, delivered to my post office box, you’d reckon that their high tech system would simply alert my post office to pop a few sheets of the labels into my post office box. After all, they must have them on hand to sell over the counter, and my box is right there. Total cost to deliver the labels – almost nothing.

However, in Ahmed Fahour’s high tech, efficient Australia Post, things work differently;

What they actually did, was send the order to a distribution centre somewhere. In that centre, someone picked the four little sheets I orders, and put them into a large cardboard container, which doesn’t seal shut.

Next, they put that container into an even larger cardboard envelope. They chose the biggest one they could find I suspect, it’s at least double the size of the first container, which is itself double the size of the labels.

Then, the trucked this oversized envelope to my local post office, where there is no way it would fit in my post box, so the local post office had to store it, put a card in my post box, and then they had to serve me at the counter to enable me to collect it.

This has to be the absolute most inefficient solution to the problem they could come up with, and it’s wasting so much money (not to mention the environmental impact) that it make us wonder, just how much do you need to pay the CEO of a company to have it run properly these days?