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The South African Post Office (SAPO) presented its new restructuring plan to parliament on Tuesday (October 13) as it struggles with financial problems exacerbated by the coronavirus lockdown.
The post office said it has been “severely affected” by the pandemic and the closure measures that have “devastated” the business that relies on the physical presence of the customer and footprints at the branch.
He added that the return of customers to the branches has been slower than expected.
“A key focus is placed on income retention and recovery to bring some short-term financial stability,” the post office said.
“(This will see) the positioning of SAPO as an affordable and reliable delivery and logistics company of choice that will attract business from the highest Standard of Living Measure (LSM).”
SAPO has also proposed a number of planned changes, including:
- Branches managed by the owner – SAPO has proposed the launch of an ‘owner managed’ branch model. This model will provide distribution services and help reduce operating costs.
- Improved messaging services – SAPO plans to establish strategic alliances with investors willing to recapitalize and reactivate the organization’s messaging and logistics business segment. This will include the consolidation of the Docex subsidiary, as well as the courier and freight segments of the business. Expand logistics business capabilities.
- Delivery on demand – The post office plans to implement a delivery platform as an aggregator for owners of vehicles, including trucks, light commercial vehicles, and sedans, to deliver on demand. This will allow greater access and speed of delivery for customers, he said.
- New digital services – This includes the launch of an e-commerce and online shopping platform.
- Data – SAPO said it will seek to monetize the large amounts of data that exist within the organization and will extract existing data in accordance with privacy laws.
While not mentioned in her turnaround strategy, Communications and Digital Technologies Minister Stella Ndabeni-Abrahams says her department plans to introduce a number of new functions at the post office.
in a press statement On Friday (October 9), the minister said that these service offerings will be primarily “digital-centric” but will also include services traditionally offered through the Department of the Interior.
“Some of the government services that the post office wants to provide in the immediate future include, but are not limited to, renewal of driver’s licenses and requests for ID books and passports at its branches.
“But most importantly, ensure that the department and the government achieve their goals of building a digitally connected society,” he said.
Motorists and fleet owners whose vehicle licenses have expired can now renew their discs at the post office.
To achieve this digital approach, Ndabeni-Abrahams said the post office is currently repositioning its e-commerce strategy to be an engine for global exports and improve intra-African trade under the new African Continental Free Trade Agreement.
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