Ahead of the World Mail & Express Asia (WMX Asia) Conference in Hong Kong, we caught up with Filipp Panfilov, Head of Business Development at Post11. Filipp will be speaking at WMX Asia 2019 and offers his thoughts on the conference and the future of the industry.
WMX – Tell us a little bit about yourself and your company.
FP – Since the year 2016 Post11 is a significant player providing one-stop solutions to E-tailers worldwide. The company mainly concentrates on Cross-Border E-commerce Logistics Solutions, providing Fulfilment Services and a variety of Value-Added Services. I joined the company in 2017 to develop existing and new businesses.
WMX – What will you be speaking about at WMX Asia this year?
FP – The speech will be about E-parcel Logistics flow from Asia to consignees around the globe and about solutions that Post11 offers to customers in Asia.
WMX – What do you hope our delegates will take away from your presentation?
FP – Postal Operators have the solution for Asia-Europe and Asia-South/North America flows with rapid transit time, reliable tracking and competitive rates.
WMX – How has the post and parcel industry changed in the past 5 years? What do you predict will happen in the next 5 to 10 years?
FP – Previously postal operators and their systems were not adjusted to provide e-commerce parcels delivery statuses: parcels data didn’t reach in time, which impacted the delays in postal handling.
We can predict that the demand for on-time tracking will be growing. The systems will be fully digitalized for providing proper tracking data from the moment of dispatch.
In the nearest future postal and commercial operators will be competing even more. Their delivery rates have reached almost the same level and now the quality issues play a bigger role. Fully trackable solutions are in high demand and the commercial are more ready for that as their system are more optimized for digitalization.
If postal operators won’t change, we can expect that some of the e-commerce flow will move from postal to alternative delivery solutions.
WMX – What is the biggest challenge in the post and parcel industry at the moment?
FP – One of the challenges we see is forwarding the electronic pre-alert on the parcel level including description, value and the HS code. The provided data must be inserted in the right format. Incorrectly inserted data may cause delays or even be undelivered. We must accept that machines are handling and routing our parcels, not human anymore.
WMX – What are the most critical changes that we must make to face the future effectively?
FP – Starting from the year 2021 the 0 EUR threshold will be adopted in the EU. It will cause that regular DDU shipments will be handled and delivered much slower as it will be required to proceed them via customs declaration. The demand for DDP solutions will grow.
We will face that the exact description of content and correct value will be mandatory (HS code must include at least 8-10 digits).
WMX – What is the most interesting trend for 2019?
FP – We see the trend of increasing popularity of Parcel Machines (Automated Delivery Solutions). In the Baltic States above 85% of end-users prefer to receive their parcels in Automated Parcel Machines. Final addresses do not want to stand in lines anymore and want to have freedom of time when to receive their parcels.
WMX – How can postal organisations adapt in the face of falling mail volumes? Can they really compete with new industry disruptors and faster-moving global operators?
FP – Historically the mail volume flow was the priority flow of postal operator. Nowadays, as the amount of regular mail volume is constantly falling, the postal operators need to focus on increasing e-commerce volumes by adopting their postal delivery networks and adjusting their services and solutions to fulfil the e-commerce needs. They need to consider themselves as open market players and all the delivery companies can equally compete with them. At the same time, their strength is in using postal ways of delivery, that only postal operators can use.