Global companies are investing billions of dollars into artificial intelligence systems to manage parcels, according to a TMX Transform report, “Collapse or Revolution: How a smart supply chain can deliver for postal”.
The sums involved highlight the challenges facing the debt-ridden South African Post Office (Sapo).
According to the report, Amazon will commit over $100 billion in capital expenditure by 2025, focusing on AI-driven logistics, robotics and automation.
Since acquiring Kiva Systems for $775 million in 2012, Amazon has integrated robotics into its fulfilment centres, cutting $1.6bn in logistics costs and reducing CO₂ emissions by one million tons.
DHL Express (Asia Pacific) introduced DHLBot, an AI-powered sorting system that processes over a thousand parcels an hour with 99% accuracy, improving operational efficiency by 40%. The initiative aligns with Deutsche Post DHL Group’s $2.1bn Strategy 2025 investment in automation, robotics and data analytics.
In the United Kingdom, Evri has launched a $1.2m AI strategy to analyse delivery of photo data, verify secure parcel placement, and cross-check geo-locations to detect fraud.
In Sweden, PostNord recently completed a six-month AI robotic arm pilot at its Rosersberg terminal, where the AI system sorts small parcels at twice the speed of human workers.
PostNord is now evaluating how to scale AI robotics across more of its terminals, the report states.
“AI isn’t specific to just one part of the supply chain,” comments Bob Black, of TMX Transform.
“It needs to integrate across the entire process - from manufacturers and their suppliers through to final delivery.”
The report notes that postal services which have not adopted new technology are failing.
A first step towards modernising Sapo was the signing into law of the Post Office Amendment Bill by President Ramaphosa in December 2024.
The law enables Sapo to serve as a hub for government and other agency services, and as a digital hub for businesses and communities, according to a statement from the presidency.
“The post office is now empowered to continuously adjust its business model in line with the technological and industry developments in the provision of postal services and other services,” it adds.
Core business for Sapo should come from government institutions, with the law encouraging government to use Sapo rather than private operators. “This aims to eliminate the company’s over-reliance on government funding and ensure efficient utilisation of post offices,” the statement notes.
It will take some time to gain the trust of the private sector.
“Postal providers are an extension of the retailer’s brand, so alignment, certainty and consistency are non-negotiable,” says Christine Corbett of TMX Transform.
“Deliver exactly what’s promised. If the promise is five days, the customer expects five – not four, not six. That precision builds trust. And behind the scenes, a reliable delivery partner should actively support upstream operations, helping retailers streamline fulfilment and improve resourcing efficiency.”
