Couriers snatch away post office business

Couriers are fast stepping in to fill the breach in the wake of the postal workers’ strike. And if couriers continue to offer a competitive delivery service, they may permanently snatch away business from the South African Post Office (Sapo). Last week Sapo issued a statement that roughly 60% of mail processing workers were back at work, but that many offices – one in Pretoria, 43 in Johannesburg and 25 in Limpopo, amongst others – were closed for repairs due to vandalism. The remaining 40% of mail processing workers were still on strike at the beginning of this week. Paul Knox of Pasiwa Customs Clearing and Forwarding told FTW that his business had been significantly hit by the strike. “One of our companies is a publishing house where a large percentage of distribution is done by post.” As a result, Pasiwa has had to resort to the time-consuming hand delivery option, or courier the product at an “enormous cost” to the business. “This is the time for innovative courier and logistics services to take advantage by offering a competitive delivery service,” said bidorbuy marketing manager, Joni Calitz. She told FTW that based on the feedback received from the company’s sellers, the strike had had a “huge impact” on business. “Although we advise both buyers and sellers to opt for courier services rather than the postal service, this can be an expensive option.” Garry Marshall, CEO of the South African Express Parcel Association (Saepa), noted that courier services were first choice for timesensitive or high-value parcels where the customer could bear the costs. “The CEP industry carries few documents these days as most of these can be transferred electronically,” he said. A spokesperson for courier company, Aramex South Africa, told FTW that the company had seen a “significant” increase in its retail product offerings such as the Aramex Drop Box. “We also experienced positive feedback from small businesses that were forced to look for alternative solutions and were surprised by the advantages of an overnight delivery service,” she said. “From what we’ve experienced, the individual user in South Africa predominantly sees the post office as the only option for sending a parcel. The strike has forced users to seek other alternatives, even at a slightly higher cost. Based on the feedback we have received, the higher service levels when using courier have exceeded the expectations of the customers. We believe that there will be an increasing trend toward the premium courier option.” CAPTION The aftermath of vandalism at a post office in Benoni.