Posti has completed the competitive tendering process for 2019 for the procurement of five-day delivery for universal service letters in areas without early-morning newspaper delivery as required by the Postal Act. In addition, Posti wanted to voluntarily pilot tendering of a larger service portfolio in two areas; Rääkkylä and Virolahti.
Posti was the only operator to submit a proposal for all universal service letter delivery areas. One other company submitted a proposal for the larger service portfolio in Virolahti. As a result of the tender, Posti will continue to handle all the areas and services stated in the tender.
“Keeping mail delivery profitable is extremely challenging, as the mail volume keeps decreasing as a result of digitalization. Delivery is work carried out by postmen, and the less there is to volume, the more it costs to deliver a single item,” says Noora Laaksonen from Posti.
The areas subject to competitive tendering were determined based on the areas specified by Traficom. The competitive tendering process was carried out area by area in accordance with the Postal Act and the Public Procurement Act for Special Sectors. All of the participants in the competitive tendering process, including Posti, were subject to the same requirements and selection criteria. Posti is obligated to organize the tendering process.
Further information on the competitive tendering process (only in Finnish)
Posti outsources delivery services to hundreds of companies
Laaksonen thinks that the slim results of the tendering process show that Posti’s large partner network with local businesses is a good solution. Posti continuously develops subcontracting concepts together with its partners throughout Finland.
“The essential thing is that we continue cooperating with local businesses even in the future. Together, we can develop new delivery models in a cost-effective manner. Being cost-effective and profitable is necessary to ensure continuity of services”, Laaksonen highlights.
At the moment, Posti employs hundreds of subcontractors in basic and early-morning delivery and other companies and entrepreneurs in transport services.