Thursday, August 6, 2015

India Post - Revenue Model & Suggestions

Post offices must effectively work/MOU with e – commerce based companies to delivery packages to tap in on revenue. Govt free hand to officials and allowing tie-ups with e-commerce companies and large shipment based companies to transport couriers and packages of ecommerce firms like amazon, flipkart, myntra, freecultr, etc,. at least partial of their entire list will boost India post double revenue. Post man don’t have capacity to transport small packages as they use cycles and need to be provided pizza man like vehicles with box at back or like private firms which delivery for e commerce have small vans to transport packages and couriers at door step.
India post must revise its bulk transportation charges and make it competitive for more usage by small and medium companies and compete with private courier companies. The rates on packages for various ranges should be revised say like for 10 packages, 20 packages, 30 packages like that at competitive rates comparing market.
India Post provided aircrafts will help high speed delivery of couriers within India and for the same India Post can charge higher rates for same day delivery packages. Any old aircrafts of Air India can be re-branded or other airlines and one new airline can be purchased by Govt of India and given to India Post to tap faster transportation and also world market. I think only 3 aircrafts for entire India will be enough in major routes. The world’s logistics companies have own aircraft like FedEx, UPS. I am aware that India Post works effectively with Air India but having few separate airlines will reduce dependency and improve operations to world standards and own pilots. Various models of US Post, UK and Australia need to be analysed and also how private companies like FedEx, UPS operate.
India Post should setup e-commerce website to enable sale of goods through govt agencies (specifically handicrafts, govt posters, etc,,.) and public to use the platform and also vendors. India post can have special charges for the same. Govt enabling spending of 50 Crore to setup IT website & back office operations. India Post can handle logistics so creating this website on its own can help tap revenue.
India Post should recruit more IT/BPO professionals instead of contract will enable India post grow and also employment to many and better functionality can be handled independently. The initial look can be decided with help of 3rd party contract companies who are expert in designing website and later operations can be taken up by own IT professionals of NIC and India post.
India Post banking license has to be speed up by Govt and RBI. Earlier govt prevented India post from getting license. The ATM in all post offices and the debit card issued by post office should be accessible in other banks ATM also.

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