Our strategy and performance

LOWER COST

The old adage ‘less is more’ has never been more apt for New Zealand Post, as we strive to provide outstanding service to our customers while keeping vigilant control of the costs of doing so. Trade-offs are inevitable, but they’re far outweighed by the benefits that cost-effectiveness, efficiency and simplicity bring.

In the past few years we’ve gradually streamlined and reshaped our business, so that today we have a single-minded focus on mail and logistics that’s reflected in our people, our structure and our day-to-day operations. From this position of strength we’ve spent the past 12 months exploring new ways to reduce our costs – of which many have brought opportunities to improve our customer relationships too.

  • Ability to attract, nurture and retain talent.
  • Competition for capital.
  • Big Data.
  • Economic wellbeing.
  • Regulation.

"The abilities, attributes, attitudes and aspirations of our people underpins our ability to transform in a way that is both relevant and sustainable"
Senior Manager, New Zealand Post

"Innovation is in NZ Post’s DNA, there are many examples in the past. And innovation with the workforce plays a big role"
Matthew McCracken, Corporate Partnerships and Trust Fundraising Manager, New Zealand Red Cross

Simplifying the way we work

In 2015/16, our drive to simplify the way we work included:

  • Uniting previously separate teams around a shared goal of improving the customer experience. The new model consolidates our customer engagement channels (call centre, sales and marketing team, product and service developers, and franchises and agencies) and integrates our domestic and international operations. This provides a stronger, more efficient foundation from which to retain existing and attract new customers
  • Investing in our in-house talent to develop new, innovative and cost-effective online and digital solutions for our customers
  • Investing in technology to develop smarter, faster, better ways of working that empower our people and reduce the costs and risks of cumbersome manual processes
  • Exploring shared-service opportunities for core business functions such as payroll, procurement and IT
  • Investing in GPS and other tracking technology to manage our road and air delivery network in real time. This enables us to monitor and fine-tune van, truck and aircraft movements 24 hours a day, and identify and manage issues (and their costs) before they escalate into problems
  • Piloting a new business model at our Seaview branch, with the aim of finding new ways to meet our customers’ needs for convenient, reliable and professional service while achieving operational efficiencies and reducing costs.

Eliminating duplication

During 2015/16 we continued our drive to eliminate duplication in the way we work,with the aims of more consistent customer service, more efficient operations, a reduced risk burden and lower overheads.

Initiatives that have helped or will help us to reduce our costs (as well as improve the customer experience) include:

  • Integrating our mail and parcels network and service delivery roles, senior leadership roles and physical locations
  • Developing new parcel delivery options for our customers
  • Investing in technology to simplify our administration systems and processes, including mail and parcel processing and distribution
  • Consolidating the domestic aircraft fleet that carries our volumes from eight planes to three Boeing 737-400s, through a joint venture between airline service suppliers Airworks Flight Operations and Fieldair Holdings, a subsidiary of Freightways. A single aircraft type and a shared network gives lower overhead and maintenance costs, lower fuel costs, greater transport efficiencies, more rapid recoveries from disruptions and a faster overnight parcel delivery service.The agreement also includes a controlled cost structure that mitigates the risk of large fluctuations in aviation expenditure.

Being a modern organisation

Our efforts to be ‘more modern and responsive’ have at their core our drive to develop strong, enduring relationships with our customers. In 2015/16 they included:

  • Moving towards our new organisational model, which includes giving frontline leaders greater levels of freedom to make decisions in the best interests of local customers
  • Working with our frontline leaders to identify the tools and technology they need to track, analyse and report on their financial performance, and the administrative support they need for functions such as payroll and invoicing
  • Building the Southern Operations Centre, which will reduce our costs through greater efficiency and faster, more automated processes
  • Continuing to explore ways to lower our running costs by improving the energy efficiency of our workplaces, reducing the waste we dispatch to landfill and cutting the fuel consumption of our vehicle fleet. We’re also taking a whole-of-value-chain approach by encouraging and supporting our customers, suppliers and communities to do the same.

Looking ahead:

We’re constantly on the look-out for ways to streamline our operations and reduce our operating costs while improving the services we provide to our customers. In 2016/17 we plan to:

  • Continue integrating our mail and logistics businesses so that we offer a single, seamless service to our customers
  • Simplify and standardise our core processes and services, while providing customers with greater flexibility in how they interact with us
  • Continue investing in technology that will help us to reduce costs and improve productivity
  • Update and improve our processes for identifying and reporting on hazards and incidents, with a goal of reducing the number and costs of workplace accidents and illnesses.

Case Studies: