Australia Post delivers record 100 million parcels – but snail mail is costing $182.1m
“The new delivery model we are trialling will help address the decline in our letters business, but our outsized retail network will need to be addressed,” Graham said.
“We have been very disciplined in managing our costs in a high inflationary environment, we’re focusing on simplifying our operations and making the changes needed to build a sustainable business.”
Paul Graham joined Australia Post in September 2021.
The postal service is in the midst of executing its modernisation strategy, dubbed Post26, aimed at simplifying its services, making it financially viable and strengthening its digital experience. It has also been pushing for the government to make a number of reforms to be financially sustainable.
As of April 3, the basic postage rate will increase from $1.20 to $1.50, subject to finalising regulatory processes, to help mitigate letter delivery losses and the rising cost of delivery.
Australia Post is in a stronger position now than it was 12 months ago, Graham said.
The postal service axed about 400 hundred jobs last year in a bid to streamline head office operations.
In August, Australia Post launched a next-day delivery service in metro areas for a select group of retailers to compete with speedy delivery times from online marketplaces such as Amazon.
Graham joined the postal service as its new chief in September 2021 following the resignation of former CEO Christine Holgate. He previously spent five years as Woolworths’ chief supply chain officer.
More to come
