1 POSTAL AND COURIER STANDARDS AND OPERATIONS

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1 POSTAL AND COURIER STANDARDS AND OPERATIONS PRESENTATION AT AFRALTI By Milka Mugwe Postal Consultant, Nairobi, Kenya 2016 INTRODUCTION OF THE COURSE This course is designed to give the participants a comprehensive overview of Postal and

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1 POSTAL AND COURIER STANDARDS AND OPERATIONS PRESENTATION AT AFRALTI
By Milka Mugwe
Postal Consultant, Nairobi, Kenya
2016

INTRODUCTION OF THE COURSE This course is designed to give the participants a comprehensive overview of Postal and Courier operations and standards. It is an intensive course that will equip the trainees with essential knowledge and skills required in developing and achieving both domestic and international standards. 2

TARGET AUDIENCE Staff working in Postal and Courier industry.
Pre-requisite/s
Basic Knowledge in postal and courier services. 3

PAIN POINTS Some of the challenges that face the Postal&Courier sector include:
Dealing with informed customers who constantly demand for better services.
Understanding declining revenues and mail volumes.
Globalization(Rapidly developing technologies) 4

PAIN POINTS CONTINUED Unfair Competition from well funded companies
Higher quality of service expectations. 5

VALUE PROPOSITION The training module covers standards and operations that players in the Postal and Courier industry need to understand, formulate and implement at all levels of operations. Adherence to the above mentioned components will lead to: 6

Continued: Efficient and competitive staff
Enhanced customer satisfaction
A strong global Postal and Courier image –Access new markets easily
Improved performance hence increased revenue growth. 7

Reduction in costs by reducing customer churn.
Consumer Confidence-safe, reliable and good quality services. 8

METHODOLOGY The course is delivered through a combination of PowerPoint presentations, case studies, discussions and group presentations. 9

COURSE OBJECTIVES The key objectives are to:
To enable Postal, Courier operators and other stakeholders understand the following; 10

OBJECTIVES Continued: Explain the fundamentals of operations in Postal & Courier business in line with customers’ expectations and market dynamics.
Impact requisite knowledge that will help staff understand and recognize the meaning of standards and benefits of adhering to the documented Standards. 11

Objectives Continued: Understand how to formulate standard operating procedures tailored to improve quality of service.
Participate in the formulation of standards and their wider usage.
Use of standards/technology to measure Quality of Service.
Understand regulatory & statutory obligations that Postal &Courier stakeholders need to adhere to. 12

Workshop Learning Outcomes: At the end of the workshop participants will be able to:
To have a comprehensive understanding of Postal & Courier industry operations.
Develop effective procedures that will guide operations and other initiatives. 13

OUTCOMES Continued Apply relevant standards to enhance service delivery.
Implement standards that are aligned to the regulatory and statutory obligations in their respective organizations. 14

MEMORABLE QUOTES “The best preparation for tomorrow is doing your best today.”H.Jackson-Brwon Jr.
“We cannot solve our problems with the same thinking we used when we created them."Albert Einstein.
“There is nothing impossible to him who will try". Alexander the Great. 15

Workshop Content/Topics: POSTAL AND COURIER OPERATIONS INTRODUCTION
What is Operations?
What is Postal and Courier Operations?
Definitions & Explanation 16

Meaning of Operations One question that is often asked by many people is “what is operations and what do you do?”
While there are many definitions regarding operations, many scholars view is that the operations group in any Business Enterprise is responsible for running the day-to-day business of the organization, maintaining profitability 17

Definitions. Continued targets, ensuring consistency, and being a key part of a team whether at functional or management level.
In other words of E.N. Gladden,2003, operations is responsible for getting things done(execution of all things) where the expected output is producing quality goods/services for customers. 18

Definitions. Continued In the words Luther Gulick: ”Operations refers to the mobilization and proper utilization of material and human resources to achieve the desired ends.
He further amplifies his opinion by defining Operations as a cooperative group effort to accomplish common goals. 19

Other definitions of Operations Operations is also perceived as an art of serving, directing, controlling and managing affairs. In its literal sense L.D. White views operations as management of affairs-public or business affairs. He further cements his views by saying that; "Operations is a slightly pompous word, but it has a humble meaning, for it means to care for or to look after people, to manage affairs”. 20

It occurs even in such a simple activity as “when two men co-operate to roll a stone that either could have moved alone". In this example, the two men rolling a stone. Are mutually involved in a joint Endeavour which is as essential element of Operations. Therefore Operations is thus a goal-oriented, purposive and co-operative group activity. L.D. White,2001. 21

Another example is two men fighting with each other. Similarly, one man moving a stone is not an operations activity as it lacks co-operative effort by two or more people. Operations, as it may be noted, is concerned with means to achieve prescribed ends. 22

Further Explanation: Continued The operations group is the cornerstone of any organization typically the group works very closely with other support directorates including Customer service, Strategy/planning, ICT, HR,Finance etc.
This co-operative group activity(synergy) leads to production of quality goods and services. 23

What is Postal and Courier Operations? Postal and Courier operations is simply defined as the art of planning,organizing,directing,co-ordinating,staffing,reporting and budgeting of postal and courier resources in order to achieve the prescribed goals.
The operations revolve around receiving, collecting, dispatching, conveying and delivering of mail or postal item, as well as 24

performing all services incidental to these primary tasks.
Key postal operations are related to letters, Parcels and Courier products. The three services consist of either pick-up, transport and delivery. 25

KEY COMPONENTS OF OPERATIONS Before identifying the key components of operations, the first step is to start seeing your organization differently i.e the Postal&Courier (P&C) business. Assuming P&C industry has the right products or services that have value in the world, they must organize all of their many moving parts of their operations into one holistic, all-encompassing system that; 26

Consistently delivers those products or services with excellence.
To help operations group succeed.One ought to see the business as being made up of five key components. As you focus on strengthening these components, your operations will become complete, everything will start to work harmoniously, 27

and all your obstacles, problems, and frustrations will greatly diminish.
As a result, you’ll gain tremendous traction. 28

KEY COMPONENTS OF POSTAL AND COURIER OPERATIONS The five key components that drive Postal & Courier Operations are;
Vision
People
Data
Issues
Processes 29

MEANING OF A VISION Jimmy Dean defines a vision as “An inspirational description of what an organization would like to achieve or accomplish in the mid-term or long term. It is intended to serve as a clear guide for choosing current and future course of action”. 30

VISION Continued Postal and Courier business is quite competitive and therefore Operators need to come up with clear visions that articulate the sectors aspirations.
An organization’s vision needs to be simple, clear, and concise. If you can’t clearly articulate and communicate your vision in a page, then it is too complex to be understood by staff. 31

The real power is for the Operations team to align their activities to the organizational vision. 100% of the team should be on the same page with where the organization is going and how it is going to get there.
This way operations might not change the direction of the wind but they can adjust their sails to always reach their destination as per the vision. 32

PEOPLE Postal and Courier operations is incomplete without the “People". Staff are both a company’s greatest asset and potentially its greatest liability. Getting “great” people in operations to do the work is a vital step that needs to be done. The impact of even one individual who is a poor fit can be profound. 33

A good example is when you have a delivery officer who ought to deliver courier items using a motor bike and yet he/she doesn’t have the riding skills. It will definitely be difficult to deliver the item to the customer on time and yet you have the people but with the wrong competencies. 34

It is therefore imperative to strengthen the People component by ensuring the operations group is structured properly, with the right competencies and with only positions that are necessary to deliver quality products or services consistently and with excellence. 35

DATA Data is a key component in Postal and courier operations.
Strengthening this component will enable the industry players objectively manage their operations through a small set of activity-based on numbers that are leading indicators of future results. 36

Data gives an accurate pulse on the business and the ability to predict future results. To address the evolving customers demands, Operators should strive to analyze data on weekly basis to ensure that everything is on track in their operations. 37

There is need to assign someone to manage and be accountable for each number, then start tracking them weekly. When a number is off track, the accountable party must take appropriate action to get that number back on track. 38

This will give patterns and trends. Thereafter, continue to refine this scorecard as you move forward; it takes about one to three months until it evolves into something you love.e.g it would be in the interest of the operations team to collate data on the number Postal & Courier items processed in a day and the return on investment. 39

ISSUES(COMPLAINTS) In Postal & Courier operations issues/complaints are inevitable.Strengthening this component therefore helps you to compartmentalize all issues/complaints and solve them effectively in order of priority at all levels. Unresolved issues drain your energy and are barriers to moving forward. To strengthen the issues component, list all the issues as they arise. 40

Record and rank the issues in order of priority.
Step 1: Identify the underlying root cause of the issue.
Step 2: Discuss the best possible ways to resolve the issue.
Step 3: Solve the issue by selecting the best action steps to make the issue diminish forever. 41

This will stop issues from lingering for days, weeks and months.
Finally set standard operating procedures that will guide your complaints resolution mechanism.i.e on time response to telephone calls or inquiries(respond to inquiries within 24 hours).
Come up with long term solutions that will address recurrent issues. 42

PROCESSES For effective operations to be realized development of processes/systems/procedures that are scalable, consistent, and easier-to-manage is paramount.
Think about your business operations and its core processes (e.g. processes on posting, transmission and delivery of courier items would guide staff on who when,where,what and how to deliver the items. 43

It is therefore important to identify &document each of the core processes in a simple manner that will be understood by all.
Finally ensure compliance to the documented processes at all times.
Review the procedures/processes/systems from time to time to accommodate market dynamics. 44

Conclusion: If you work to strengthen these five components, you will definitely be able to deal with informed customers who constantly demand for better services, reduce customer churn, mail decline just to mention but a few. 45

SYNDICATE “Identify what bothers you in Operations and how you solve it”? 46

3.SCOPE OF OPERATIONS IN POSTAL & COURIER BUSINESS. Establishing Current Operations of the Sector
Establishing Future Operations and how to get there 47

Establishing Current Operations of the Sector The current P&C sector largely deals with letter post/parcel or a courier item which simply means a package, a consignment, or a container that can be collected, transmitted and delivered through the postal and courier network.
The operations of this sector are guided by both international and domestic standards.(UPU & CAK guidelines)Visit the websites for more information. 48

Research has it that most of these companies are grappling with automating their operations and therefore not meeting customer’s requirements fully.
There is need to focus on the future and put in place strategies that will drive the sector to the next level of excellence. 49

Statistics indicate that the current status globally is characterized by decline in mail volumes due to technology based products that have replaced the traditional mail. Nonetheless, there is hope in the Parcel business due to the emergence of E-commerce.(everything you need to sell or buy online).Postal & Courier service providers partner with online buyers/sellers for last mile delivery. 50

Establishing Future Operations and how to get there; John F.Kennedy once said that “It has become appallingly obvious that technology has exceeded humanity”.
The future of Postal and Courier players lies in embracing technology fully. The Future is indeed in the Post with the emergence of E-commerce products. 51

Consumers are no longer interested in physically going for shopping in the supermarkets or shopping malls. They prefer to do it online.
The sector therefore needs to swiftly adapt to these changes in order to remain afloat.
Document standards/strategies that are in congruence with the future. 52

The words of Barack Obama cements these sentiments as he once said that "Change will not come if we wait for some other person or some other time. We are the ones we have been waiting for. We are the change that we seek”
All the industry players are therefore called upon to adapt to this change as it is inevitable. 53

4.UNDERSTAND PRIMARY RESPONSIBILITES OF POSTAL & COURIER OPERATIONS STAFF IN LINE WITH CUSTOMERS PREFERENCES &MARKET SCENARIO Continued Operational
Change Agent
Budgetary
People
Leadership 54

OPERATIONAL The operations group drives flawless execution across all engagements. They are responsible for allocating resources i.e. fleet, working tools managing and placement of staff in liaison with HR,engaging third party vendors and partners, analyzing and recommending acquisitions, developing operating policies, standards, processes, fostering teamwork and overseeing.. 55

office management.
Establishing and measuring key Performance Indicators(KPI), resolving issues, customer care and taking charge in crisis situations. Simply, they are responsible for driving operational excellence across the organization. Words of Frederick Taylor, scientific management book.
All operational aspects must in line with customer’s preferences. 56

Change Agent The operations group is responsible for developing a framework for cultural change, enabling the organization to do the best that it possibly do. They work under the auspicious to challenge everything as they work to change the status quo. As the king of efficiency, they are constantly looking for better ways to get things done. 57

In Postal & Courier industry it is not any different as the organizations can only improve when individual behavior changes.
Individual behavior only changes when the employee internalizes the need to change.
Embracing change has been documented as one of the hardest nut to crack. Woodrow Wilson’s quote. 58

“If you want to make enemies try to change something". Nonetheless, the Operations group bears the greatest responsibility of effecting change in their set up. They must consistently and persistently change the way of doing things in their areas of operations to be in tandem with the evolving market dynamics. 59

Budgetary The operations group is responsible for planning, overseeing, directing and evaluating the office’s fiscal function and performance. Working with the finance group, they develop the budget to support the strategic business goals, manage operations to meet the budget goals, review revenue forecasts and monthly Profit &Loss, taking action as needed, reviewing profitability across client engagements and the office. 60

Budgeting forms the basis of planning, allocating resources depending with the cash flows and more importantly measuring performance.
Words of George Washington sums it up by saying that.”We must consult our means rather than our wishes.”
Allocate adequate resources giving priority to customer’s demands. 61

People The operations group ensures that staff are properly aligned to the work. They resolve some questions such as: Do we have the right people in place? Do we have a pool of freelancers that we can pull from if needed? How are staff assigned to their tasks?
Do they have their job descriptions? 62

The Operations sector also ensures that every person’s roles and responsibilities are clear so that everyone knows what is expected of them.
They identify and track the rising stars and drive out the bottom feeders. In liaison with HR, they develop a program to build organizational capabilities, ensuring that core competencies and organizational values are instilled. 63

Finally borrow the words of David Ogilvy who opines that;"Hire people who are better than you are, then leave them to get on with it . . . ; Look for people who will aim for the remarkable, who will not settle for the routine.“ 64

Leadership Leadership is a key component of operations.The Head of Operations is part of the senior management. Their major role is to advise the team on strategic business development and key corporate planning issues and making recommendations on major business decisions. They shape and develop operations department strategies and help identify opportunities and potential threats. 65

In the courier industry Head of Operations leads the department in evaluating and taking actions that are consistent with organization’s overall strategies which will lead to high performance. For more information I recommend you read, The Discipline of Getting Things Done. 66

UNDERSTAND IMPORTANCE OF EFFECTIVE OPERATIONS/PROCESSES IN POSTAL AND COURIER BUSINESS: Continued Quality of Service
Customer satisfaction
New Opportunities
Improved performance
Reduced costs
Consumer confidence>Strong brand 67

QUALITY OF SERVICE (QoS) QoS refers to continuously improving business processes in order for companies to compete in today's global markets effectively.
Companies need to compete both by bringing new products to the market and by improving existing products and processes. e.g. (E-commerce products) 68

For effective and efficient operations to be realized in any entity right competencies are required to manage, improve and transform innovative and organizational processes e.g. developing new innovative offers, delivery standards etc. 69

Providing good quality is a competitive advantage against others who offer similar products or services in the marketplace.In addition, good quality can:Raise a Business Reputation by
Decreasing Liability Costs
Increasing Productivity
Increasing Customer Loyalty 70

& Increasing Customer Satisfaction

Consequence's include:
loss of business and existing market share
legal liability
lack of productivity
Increased costs 71

CUSTOMER SATISFACTION In customer relationship management, customer satisfaction (CSAT) is a measure of the degree to which a product or service meets the customer's expectations.
Measuring Customer Satisfaction proves to be a challenge for many, and it is a type of research that is essential for growth of any company. 72

Research has it that 89% of consumers stop doing business with a company after experiencing poor service delivery.
Therefore, no matter how small the research is, get started as soon as possible.
Measuring customer satisfaction entails?
Validating whether the work that you are doing is paying off. 73

Making sure your customers are loyal and continue to buy from you.
NB/Need to conduct the exercise periodically. 74

4. ELEMENTS OF POSTAL AND COURIER STANDARDS Introducing Postal and Courier Standards
Meaning of Standards
Difference between Standards & Regulations
Relationship between Operations &Standards 75

MEANING OF STANDARDS European committee for standardization defines standards as a technical document designed to be used as a rule, guideline or definition. It is a consensus-built repeatable way of doing something.
According to British standards; “A standard is a published specification that establishes a common language and contains a technical specification or other 76

precise criteria and is designed to be used consistently as a rule, a guideline or a definition.
In Australian context, “Standards are published documents setting out specifications and procedures to ensure products, services and systems are safe, reliable and consistently perform the way they were intended to. They establish a common language which defines quality and safety criteria. 77

Other definition; Continued; “A standard is a document, established by consensus and approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context”. IEC Committee 78

Differences between Standards & Regulations in Postal & Courier Operations Regulations and standards are not the same though related.
Universal Postal Union(UPU)differentiates standards from regulations as follows;
REGULATIONS
Common rules applicable to international Postal Service.i.e all Designated Operators are obligated under the Universal Service 79

Obligation(USO)to provide basic Postal services to the citizens of their respective jurisdictions.
Regulations are largely governed by UPU Convention.
They define what rules are to be followed.
They are mandatory and binding to all operators. 80

THANK YOU
FOR FURTHER INFORMATION CONTACT:
EMAIL: wamuthigani@yahoo.com, wamuthigani@gmail.com
POSTAL: P.O. BOX 66566 – 00800 NAIROBI, KENYA
MOBILE: +254722308510
+254737366630 81

1 POSTAL AND COURIER STANDARDS AND OPERATIONS

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