Postal Services
Postal Services’ offering includes delivery services, multichannel services and digital services, which cover, among others, letters (both corporate and consumer letters), multichannel messaging solutions, newspaper and magazine delivery, as well as addressed direct marketing services. Postal Services serves customers nationwide in Finland with a multichannel distribution network.
Postal Services is an established and cash-generating segment, with a strategic position to support Posti’s operating result and contribute to its overall stability. Posti’s nationwide distribution network enables network synergies between Postal Services and eCommerce and Delivery Services. Such synergies include, for example, the utilization of shared infrastructure and delivery capacity, as well as the introduction of new types of services.
Despite the decline in paper mail volumes, Posti’s focus on operational and commercial excellence has allowed it to mitigate such decline effectively, as Posti has successfully adopted a multichannel offering and an adaptive pricing strategy. Posti has also navigated well the challenges of a digitalizing market, maintaining resilient earnings from its Postal Services segment in 2020–2024.
The OmaPosti digital mailbox offers a digital service that has enhanced customer engagement and satisfaction. OmaPosti has a broad customer base, and it provides multiple benefits to consumers, such as a digital postal locker and communication services, which have improved Posti’s competitive advantage in the rapidly developing market landscape. Posti has also been heavily investing in artificial intelligence since 2019, with several pilot projects and dozens of use cases in service production carried out over the years.
eCommerce and Delivery Services
The eCommerce and Delivery Services business’s offering covers parcel delivery services and freight services in Finland and the Baltic countries and freight and certain value-add services in Finland.
The segment is one of the cornerstones of Posti’s growth. Posti's goal is to strengthen its position in Finland and the Baltic countries by growing its next-day parcel locker deliveries.
Parcel delivery services consist of inbound logistics, sorting and distribution. Furthermore, the service includes services such as digital visibility and steering services for delivery as well as standardized digital and application programming interface (“API”) order channel solutions for sending customers.
Service offering for online retailers consists of parcel locker deliveries, home deliveries, scheduled/unscheduled deliveries, returns, “small parcel to door” service, pickup and drop-off services (PUDO), heavy home deliveries and value-added services, such as carry-in.
Groupage freight services cover express freight as well as regional transport and transportation solutions in Finland. Approximately 90 percent of Posti’s top customers that use groupage freight services also use Posti’s parcel delivery services, showcasing cross-selling opportunities between parcel delivery services and groupage freight services.
The eCommerce and Delivery Services’ strategy centers around three focus areas:
Securing leading position in the coverage and scope of parcel lockers and distribution network also in the future
Operational efficiency
Continuous improvement of customer experience.
Fulfillment and Logistics Services
Fulfillment and Logistics Services provides contract logistics and in-house logistics in Finland and Sweden, with one storage in Norway. The business has a comprehensive service offering covering outsourced warehousing at sites owned or leased by Posti, staffing, and in-house logistics at customers’ sites.
The business segment comprises two operating segments, Fulfillment and Logistics Services Finland and Fulfillment and Logistics Services Sweden.
Posti’s near-term strategic focus for Fulfillment and Logistics Services in Finland and Sweden is profitability improvement. Posti plans to achieve this through increased fill rates, operational efficiency improvements, and warehouse footprint consolidation.
Increased efficiency in recent years has enhanced the segment’s cost base. These improvements have been achieved by streamlining daily capacity planning and resource management, which has enabled a more flexible cost base and more profitable customer contracts.
