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Posti to reform Tuesday basic delivery to control the rise of delivery costs

07.06.2016

Posti intends to reform mail delivery on Tuesdays. The significant decrease in mail quantity due to digitization requires the introduction of a new delivery rhythm over different weekdays to control delivery costs. The number of delivery days will not change. The change will have no effect on newspaper early-morning delivery or delivery of parcels.

In conjunction with the service reform due to begin in January 2017, basic delivery on Tuesdays will continue to cover the majority of newspapers as well as parcels, express letters, international letter items and laboratory items. Newspaper early-morning delivery will not change.

In the future, Tuesday delivery will no longer cover magazines, advertisements, letters and free publications, provided that all early-week items have been delivered on Monday. Universal service letters posted on Mondays will primarily be delivered on Wednesdays. Posti will pick letters and parcels normally on Tuesdays.

In practice, the change will affect mail recipients very little, because traditionally less mail is delivered on Tuesdays than on other days.

"Our customers require us to find methods for controlling delivery costs. Major sender customers, specifically, consider prices a more relevant factor than whether their products are delivered on all days," says Vice President of Posti Letter Services Kaj Kulp.

Letter and publication delivery volumes decrease by approximately 10% annually, which increases delivery costs per unit. According to Kulp, simply increasing prices is not a viable strategy.

"The reform is intended to meet customer needs. Mail operators elsewhere in Europe are also introducing new delivery methods that allow adapting to reduced mail volumes," says Kulp.

The reform complies with the Postal Act

Many magazines are primarily delivered at the end of the week, because people enjoy relaxing by, for example, reading a magazine over the weekend. They also make the majority of their purchase decisions during the weekend. Invoices are delivered within a few days of posting, which is sufficient for most mail recipients.

According to Kulp, the reform complies with the requirements of the Postal Act. According to the Postal Act, letters that fall within the scope of the universal service obligation must be delivered so that at least 95% of the items are delivered by the second weekday after posting and at least 98% by the third weekday.

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