Posti to renew its operating model, new appointments in business group management

27.08.2018

Posti is renewing its organization and operating model to better correspond to market needs and e-commerce growth. As part of the renewal, Posti has made new appointments to its business group management.

Posti is continuing to make target-oriented changes in line with its strategy. Postal operations are undergoing a historical transformation: e-commerce is experiencing strong growth, while traditional postal operations are moving from paper to electronic format and competition is getting tougher.

With this in mind, Posti is changing its operating model and renewing its organization. The goal is to improve the customer experience and streamline Posti’s ability to respond to changing market needs and seize the opportunities provided by digitalization. The new operating model will enable more comprehensive development of the customer experience and even more target-oriented growth in e-commerce and logistics.

As a result of the changes, Posti Group’s business will be divided into five business groups, of which three will be new. Starting January 1, 2019, the new business groups will be:

The Itella Russia and OpusCapita business groups will remain unchanged and continue to be headed by Jussi Kuutsa and Patrik Sallner, respectively. The heads of all the business groups will report to President and CEO Heikki Malinen.

“The new distribution of business groups is based on the fact that when it comes to customers, technology and competition, our operating environment is experiencing rapid changes. By renewing our operating model, we will be able to better respond to customers’ wishes and thereby improve our competitiveness,” says Posti President and CEO Heikki Malinen.

Jukka Rosenberg, the current Vice President of Parcel and Logistics Services, will leave his position on September 1, 2018.

“I would like to thank Jukka for his excellent, long-term renewal work at the heart of our great transformation process. I wish Jukka the greatest success in the coming years,” says Heikki Malinen, President and CEO of Posti Group, expressing his gratitude.

“These nearly eight years at Posti have been fascinating. The work has been quite varied and I have learned a lot. Now, however, the time has come for me to move on. It has been great to be involved in creating a new Posti and to see how such a big, traditional company has been able to adapt itself into a versatile, modern service provider in the face of a transforming business environment,” Rosenberg says.

Malinen: “We have only scratched the surface of e-commerce growth”

Mail, Parcel and Logistics Services make up 88 percent of Posti’s net sales. In Third Quarter of 2017, Parcel and Logistics Services surpassed traditional postal services in terms of the proportion of net sales for the first time. E-commerce trends and the digital transformation present Posti with opportunities for growth. 

“The e-commerce boom is increasing the number of parcels, with consumers buying more from online stores than ever before. The change is clear to see, as in the first half of the year, we delivered more parcels and goods than ever before, 20.9 million parcels in total. We have only scratched the surface of e-commerce and logistics growth so far. We want to be strong operator in logistics,” Malinen says.

Posti aims to preserve the strong position of paper communications

According to Malinen, Posti is strengthening its competitive position and growing in Finland and the neighboring markets.  For example, this coming fall, Posti will begin providing same-day and weekend delivery of e-commerce parcels in the capital region in order to meet customers’ expectations for new services. Posti will also increase the number of Posti Parcel Lockers to 1,500 as planned.

“In addition to our efforts in e-commerce and logistics, preserving the strong position of the traditional medium for as long as possible is very important to us. We are digitalizing and developing our delivery services to correspond efficiently with our customers’ needs and consumers’ purchasing habits,” Malinen says.

 

Posti is Finland’s leading postal and logistics service provider. Our core business operations include postal services, parcel services, freight services and logistics services. We have the most comprehensive service network in Finland, and on weekdays we visit around three million households and companies. We manage the flow of everyday life in 11 countries. Our net sales in 2017 amounted to EUR 1,647 million, and the total number of our personnel is approximately 20,000. www.posti.com