Annual Report 2015

Operations

The mission of Posti’s Operations unit is to ensure high-quality mail, parcel, and logistics services in Finland and to engage in developing new services to meet customer needs. The Operations unit ensures that we reach approximately 2.8 million Finnish homes and approximately 200,000 business customers in an optimal fashion.

We have the best and most comprehensive service network in Finland. We deliver over eight million postal items each day, which adds up to over two billion postal items per year. Posti’s delivery and transport fleet covers around 200 million kilometers per year.

Our strategy highlights four key areas: cooperation with customers, increasing automation, a process-oriented production network, continuous route optimization, and bold exploitation of digitalization. Our goals are an improved customer experience, higher quality and enhanced cost-effectiveness, flexibility, and safety at work.

Cost-effectiveness through joint operations

In early 2015, Postal Services’ and Parcel and Logistics Services’ production units merged and a new Operations unit was launched. Joint operations allow us to produce high-quality, cost-effective services, and to experiment and develop new services quickly and in an agile manner. We continuously measure all process components in order to be able to effectively manage our operations.

Last year, we tested a number of new services and launched, for example, Postinen. The Operations unit plays a key role in the development of new products, specifically in ensuring efficient, high-quality production methods that meet customer needs. This is particularly important for enhancing existing and developing new services.

Increased automation

Over the course of the year, we invested in increased automation, specifically in letter, publication, advertisement, and parcel sorting. We increased automation at the Helsinki postal center and invested in the bundling machines required for Postinen production. We have been able to use the bundling machines to insert unaddressed advertisements inside Postinen folders instead of inserting the advertisements manually. In the autumn, we also began test using a new-generation sorting machine and enhanced the use of our current sorting machines.

Last year, we invested in process management and network design, which allowed us to improve the delivery accuracy of our parcel and freight services according to customer needs. We adapted our freight terminal network, invested in a new joint operations terminal in Joensuu, and launched terminal construction in Pirkkala.

We enhanced our delivery network by optimizing mailbox grouping and the number of mailboxes. We grouped mailboxes in different parts of Finland in cooperation with our customers. We have been grouping mailboxes since the late 1970s. Over 80% of the mailboxes in Finland have been grouped, and grouping operations will be continued in 2016.

Posti also has the use of top expertise and tools that allow us to plan and optimize delivery route design. The sensors in our delivery vehicles report the location of the vehicles in real time. The information collected by the sensors has enabled us to enhance vehicle usage rates and to promote safer, more environmentally friendly driving styles.

The Posti Mobile project brings mobile equipment to mail deliverers

We have also launched the Posti Mobile project. In 2016, all delivery employees will be given the use of mobile smart devices. This way, we will be able to provide more flexible and effective services to our customers.

We are conducting a number of experiments together with our customers and partners to investigate the uses of digitalization and the industrial Internet. For example, the sensors in our vehicles offer many types of useful information concerning the road condition, telecommunications network signal strength, fuel prices, and traffic flow.