CourierPost, Utilizing Technology to improve service levels.

The New Zealand Courier industry has evolved over the last year where we are now seeing fully automated sorting systems integrated with a higher visibility of parcel tracking through 2D technology.

The courier industry is highly competitive, so investing in technology that can improve efficiencies and minimize the handling of parcels, can position courier companies with a strong competitive advantage, especially in a tightening economy.

CourierPost has a highly evolved technology culture, by understanding the changing landscape of the industry both nationally and internationally, CourierPost has bought together and implemented proven technology from around the world.  
 
One year on from the implementation of their $50 million courier facility in Highbrook Auckland, CourierPost is seeing significant improvements in productivity and service levels.  Handling up to 40% of New Zealand parcel volume, the new facility has been designed with the future in mind.

The utilization of the 2D Barcodes allows CourierPost to capture more detailed information whereas the standard linear barcode is limited in terms of information captured by the length of the barcode, the 2D barcode stores data vertically compared to the linear barcode that stores information horizontally.

Like most barcodes they are susceptible to wear and tear which can make the barcode hard to read, the solution could be an introduction of 3D Barcodes which has been adopted by the manufacturing industry.  3D Barcodes are permanently embedded into the product and in a high volume working environment 3D Barcodes could be looked at in the future.

The implementation of imagery, 2D Barcoding and live data transfer scanner technology allows CourierPost to increase the visibility of the 80,000 items that go through the automated sorting system every day.  Information is captured at every point in parcel transition which is then updated on its website.  CourierPost has noticed a drop off in call centre inquiries due to more and more customers turning to its website for delivery updates.

The Automated sorting system is also compatible with RFID (Radio Frequency Identification) technology.  Although RFID has not yet taken off in New Zealand it looks certain to enter the courier space in the future.  RFID is becoming cost effective to implement with RFID tags costing from 2c and upward.  The rate of technology adoption such as 3D Barcoding and RFID technology will depend on the customer.  Customers are demanding more and more, and businesses that understand their customer react and develop accordingly.

CourierPost is setting a high level of service standards for its competitors to follow; the $50 million facility is the first step in securing its position as an Industry Leader.  The foundation has been established and the results are promising, CourierPost now needs to continually develop and further utilize its technology and data to identify further service level improvements.

Special thanks to Courier Post for providing insight into their operation. www.courierpost.co.nz

Nigel Lewis
CEO - Global Logistics Media Group