Competitive advantages

of new automated parcels delivery technology

PostTech, Dubai, 16th of March 2011

What happened? What did we do? Advantages References

Topics

Start position in March 2009: ◦ 90% of B2C parcel market served by Estonian Post◦ People use for delivery only courier or post office

Current situation in March 2011:◦ Parcel terminal network has 30% share of the market◦ Volume Feb 2011 vs. Feb 2010 more than doubled !!◦ 15% of the population has used the service at least once◦ Feedback from users: „I will never use courier or post

office again“◦ Estonian Post starting to build similar network to avoid

further decline of market share

What happened

Case: SmartPOST Estonia

Ordering the goods 

in a shop

Stock issue Delivery Insert into terminal

Delivery message Collecting and payment

How the service works:

                                                                                                                                                                                                                                                                                   

Establishing a network of automated parcel terminals

Case: SmartPOST Estonia

Parcel terminal delivery method is cheapest option on the market Vs. Post office and courier delivery methods

Lowest total costs – people do not have to take separate trips to post offices

Lowest environmental footprint

Advantage 1 - Costs

Advantage 2 - Availability

Advantage 3 - Usability

Advantage 4 – Speed

PARCEL TERMINAL POST OFFICE

Instant message arriving within 1 minutes after inserting into parcel

terminal

Paper notification delivered next day and person reads it in best

case next day evening

Opening hours till 22:00 or more Opening hours till 18:00 or less

Receiving the parcel takes maximum 45 seconds

(No queues)

Receiving the parcel takes maximum 45 minutes

(Usually queues)

Customer is free to choose:◦where he picks-up his parcel◦when he picks-up his parcel◦who picks-up his parcel

Advantage 5 – Access freedom

For newcomer - Possibility to enter into market with a service which has simultaneously price and quality advantage!

For existing operator – possibility to build barrier for newcomers

Strategic advantages for operator

References

- Acquired parcel terminal delivery network in Estonia from Cleveron

- First 15 locations in Finland will be launched in Spring 2011

- Daughter company of CPCR Express- First 20 locations in Moscow and St.Petersburg

will be launched in February 2011

Cleveron has received recognition from several associations:

Logistic Deed of the Year 2009

in Estonia MORE INFORMATION HERE

Finalist of World Mail Awards 2010 competition

ISO Quality Management Certification

Achievements

Cleveron provides:◦ Support for setting financial business plan◦ Consultancy for finding partners – locations, business customers◦ Production of APT’s◦ Localization of software◦ Setting up APT network◦ Training for operational and sales personnel

More info: www.cleveron.eu

Indrek Oolup, ◦ Export Director / Member of the Supervisory Board◦ GSM +3725056222◦ E-mail: indrek@cleveron.ee

Contacts