For over 170 years, Swiss Post has been an institution that fosters national cohesion and provides public services on behalf of the Swiss Confederation. However, Swiss Post’s environment has changed dramatically over the past 20 years: action is needed, but new opportunities are also emerging.
The requirements for handling sensitive information and data are increasing, and the demand for trustworthy communication solutions is growing. But there’s also a greater need for simplicity. The parcel and letter business continues to change: customers want their consignments delivered quickly, conveniently and in an environmentally-friendly manner. Customer needs are constantly changing and require new solutions.
The volume of addressed letters continues to fall. Parcel volumes are still rising, but these do not offset the decline in revenue in the letter business. International logistics flows in the parcel business and goods logistics are becoming more significant, and this means that connections between Switzerland and its neighbouring countries are increasingly important for Swiss Post.
PostFinance’s business model is under tremendous pressure: this is partly due to factors that are affecting the entire sector, such as negative interest rates and digitization, and partly due to specific restrictions and requirements, such as the lending prohibition, the universal service obligation and emergency capital required by law. This puts pressure on Swiss Post’s balance sheet and casts doubt over its ability to finance the universal service from its own resources in the medium term.
Automation and digitization are progressing apace, making processes more efficient and enabling Swiss Post to adopt new business models.
To ensure that Swiss Post remains successful in future, it still seeks to generate profit, which it then invests in its development and in universal service provision. By pursuing its new “Swiss Post of tomorrow” strategy, Swiss Post is clearly focusing on competencies and markets that create the greatest benefits for Switzerland. It aims to achieve further growth and develop new competencies – especially digital ones – in logistics (transport of physical consignments) and communication (transfer of information). Swiss Post will invest over three billion francs in renewing and upgrading its infrastructure and services over the next few years. The company aims to improve its revenue through acquisitions and partnerships. These plans extend beyond national borders. Swiss Post ensures that Switzerland is connected to global goods flows.
Swiss Post is opening up its branches to large service providers and public authorities. By taking this step, it is establishing new service centers in all regions of Switzerland with products and services that are relevant to everyday life.
The targeted investments in growth require capital. Swiss Post has solid financial reserves and is creating additional liquidity, not least by assessing whether to dispose of individual properties in its real estate portfolio that are not operationally relevant.
We wish to operate in a resource-efficient and socially equitable manner, to lead the way in terms of reducing CO2 emissions and to contribute to attaining Switzerland’s sustainability goals. Compared with 2010, Swiss Post has improved its CO2 efficiency by 30 percent – but it aims to be completely carbon-neutral from 2040. Swiss Post plans to run all delivery vehicles on fossil-free fuel from 2030. It is participating in Exemplary Energy and Climate, a Swiss Confederation initiative, and is fully harnessing the economic potential of photovoltaic systems.
PostBus, PostalNetwork and PostFinance are also making their contributions to the new strategy, albeit with restricted entrepreneurial freedom. Swiss Post Solutions is already growing internationally and is supported on this path by Swiss Post.
On 1 January 2021, Swiss Post aligned its Group structure with its new strategic direction. PostBus, PostalNetwork, PostFinance and Swiss Post Solutions remain un- changed in organizational terms. PostMail and PostLogistics were merged with effect from 1 January 2021. Logistics competences are now pooled in the “Logistics Services” unit and communication competences in the “Communication Services” unit. As of 1 January 2021, the new Executive Management comprises the heads of the Logistics Services, Communication Services, PostalNetwork, Mobility Services (PostBus), Swiss Post Solutions, Finance and Human Resources units and the CEO. The Head of PostFinance retains his role as an observer without voting rights. Swiss Post Solutions Ltd continues to operate and will carry on evolving autonomously, with Swiss Post as its umbrella holding company. PostalNetwork will be transferred to the new, legally independent Post CH Network Ltd, so that Swiss Post can continue to develop its network and open it up to third parties.
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