“It is critically important for Posti to secure its competitiveness and profitability. We want to be the leading provider of logistics and postal services in Finland, and we are making excellent progress towards achieving this goal,” says Heikki Malinen, President and CEO of Posti. “We must develop our core operations, but simultaneously keep looking for growth in new areas.”
Posti has updated the strategy it released in 2015. Posti’s main strategic goal still is to be the first choice for its customers as the provider of postal and logistics services in Finland, the Baltic countries and Russia. Now, the focus is on how to achieve the goals set in the strategy.
The new Postal Act and the proposed changes to Government ownership steering mean that Posti must renew itself even faster. Digitization will change Posti’s business models and create new business opportunities. International e-commerce will grow and increase the volume of parcels and letters delivered in Finland. At the same time, competition will become tighter in postal and logistics services. Posti must continue to renew its procedures in order to remain profitable and competitive.
The Finnish Government drew its new ownership steering policies in May. The Government’s proposal to the Parliament is to lower its ownership of Posti from 100 to 50.1 per cent. Listing has also been discussed. However, no decisions on selling shares of Posti’s ownership have been made yet.
- From Posti’s point of view, this change would support our renewal amidst the transformation of the postal industry and give us new opportunities for growth. The extension of the ownership would be a continuation of the European privatization trend that started in the 2000s. The postal market is nowadays fully open to competition, both in Finland and in Europe, Malinen says.
The Board of Directors of Posti has specified the company’s strategic goals for 2016–2018. They are aimed at Posti’s renewal and profitable growth in new services.
Home services are an important growth area for Posti in Finland. They allow us to play an even more important role in the everyday life of our customers.
- We visit the door of every Finn five times a week and we have a nation-wide network on which to build our new services. Positive customer experience and smoother everyday life are close to our heart, says Sanna Ahonen, Senior Vice President, Strategy.
Thanks to the renewal of delivery times, mail is flexibly delivered on every weekday, from early-morning newspapers to online store purchases delivered in the evening. In addition to home services, postal services are seeking growth in marketing that is based on Posti’s unique data.
In parcel and logistics services, the goal is to offer cost-effective e-commerce and logistics solutions in Finland and in the Baltic countries, as well as efficient supply chain outsourcing solutions. Posti already is the industry leader in comprehensive, service-driven supply chain solutions.
Posti wants to help Finnish e-commerce operators to become international. Posti has an e-commerce cooperation agreement with DHL and Bring, covering 16 countries and 43,000 service points. In Transport Services, Posti is growing strongly in, for example, food logistics services. In the Baltic countries, we will continue to focus on our strong warehousing service and growing e-commerce parcel business.
E-commerce is also expanding in Russia and Itella Russia wants to be involved in its growth. Itella Russia’s goal is to be the market leader in contract logistics and to grow its market share in transport services. Another goal is to expand to new services, such as food deliveries, and to develop e-commerce solutions, offering an extensive terminal network.
OpusCapita is seeking international growth in both Europe and the US.
- OpusCapita’s goal is to be the global market leader in buyer-supplier ecosystem solutions, based on its strong position as a provider of automation services for document and financial management in the Nordic countries, Ahonen says.
The changing needs of our customers require developing the competence of our personnel continuously. For all of us at Posti, this means learning new things and common practices.
- Competent personnel will enable this renewal. In order to meet the changing needs of our customers, we will invest in personnel development, in line with our strategy, Malinen says.