Networking Dinner PostNL - the digital journey
Networking Dinner PostNL - the digital journey
On Tuesday 2 July, PostNL's package sorting center in Nieuwegein was the setting for the second Network Dinner of 2019 for members of the CIO Platform Netherlands. Host Marcel Krom and his team presented some 30 CIOs the digital strategy of the market leader in parcel delivery.
After a warm welcome from Arthur Govaert, chairman of the CIO Platform Netherlands and discussing the permanent program component "member information", Ronald Verbeek gave the floor to host Marcel Krom, CIO PostNL. In order to optimally organize the delivery process for the Netherlands and Belgium in the growing parcel market (15% annually), PostNL will open 2 new parcel sorting centers in Dordrecht and Tilburg this year, in addition to the existing 22 locations in the Netherlands. Nieuwegein, open since 2017, is the largest in the Netherlands with 9,400 square meters. This location also serves as a hub for cargo and pharma & care. The handling and distribution of goods transport and medicines takes place in conditioned spaces. In addition, this building has extra facilities for processing large packages that cannot be handled by a sorting machine.
PostNL Digital Journey
Marcel took us along in an enthusiastic speech about the distribution structure of the package division and the digital challenges. A costly component is, for example, the "Revisit" when the consumer is not at home. In addition, the Parcel Division has peak moments at which capacity of the mail division is used, which should not stand in the way of each other.
No app, no glory
Marcel talks about the great added value of the "jewel", the PostNL app, where the customer can follow the package, take action and for letters, the app even shows the front of the letter. PostNL has an excellent performance, 98% is delivered the next day. The CIOs present are informed about the ins and outs of his "digital journey" of four phases in which elements such as agile and extreme transparency are extensively discussed. Click here for Marcel's presentation (behind login).
Stay in control of the supply chain
Frank Ferro, Director Insights, then went into detail regarding data. Data and analytics will be the center of the PostNL business. Frank gave us insight into the algorithms needed to improve the so-called "parcel delivery notification" with greater accuracy within a smaller time slot. Issues such as predicitive and prescriptive forecasting and the exemplary fraud prevention, lead generation and personnel retention projects passed by at an attractive pace. Frank stressed the consequences of Data analytics at PostNL: “can you handle the transparency you create? Sometimes you will not like the answers we find ”. Frank believes that Analytics should be given a place in every department in your organization. You have to know the business through and through to make a good algorithm.
Take outs Data Analytics
1. Walk the (real) process
2. Business Commitment
3. Domain knowledge is essential
4. Cultural Effect
5. Data governance
6. Learn to deal with transparency
Building a digital supply chain
Jasper ten Hove, Manager of Logistics e-commerce IT Platforms, took the floor as the next PostNL speaker and gave us a look into the "Data Driven Supply Chain". He talked about the LSP (Logistics Service Provider). In order to meet the increasing need for agile development and CI / CD, it is no longer possible to work with specific chains and processes for each type of service. The various chains have since been divided into sub-processes, which are designed to be as generic and interoperable as possible. In this way, innovations are immediately available for all chains / services that use them.
Discussion tables and tour
After this plenary session, the CIOs split into groups to exchange ideas about data-driven supply chain, data quality & AI and digital strategy. Refreshing insights were shared. This interactive session was followed by an extensive tour of the sorting center. Three skilled employees (location and process managers) guided the CIOs through the different steps of the sorting process. The various process (set-up) changes were explained with great passion, the error process was shown and all of the sorting steps were completed. It was impressive to see how data is an essential part of the process.
The varied program ended with a tasty buffet and a warm word of thanks for our host. This Network Dinner has again provided a lot of inspiration and insights. The next Network Dinner is scheduled for October 10, 2019. Of course there will be another technological challenge on the agenda that we will be discussing together.