For the first time at Czecha Mail fell CZK 275 million last year. What mainly caused it?
The existing structure of our state-owned enterprise has reached the limit of its capabilities. Therefore, the administration of the CPI concluded that the entire system must be restructured and costs reduced by various measures, so that by 2021 the economy will benefit.
We have two types of clients. The first is the one hired by the Czecha mail. I think for example of collaboration with e-shops and wholesale publishers.
Chief of logistics of the at thea mail Petr Cinkl
Photo: Petr Horník, Právo
With them we negotiate conditions and ability to transport. In addition, we have a legal obligation that, unlike commercial postal services, it is not possible to refuse a parcel.
You come to the post office with a thousand shipments and she has to carry them. This is also an issue that limits us compared to other companies operating in the postal market.
You are therefore welcome that by amending the Postal Act, which has already been approved by the House of Representatives and the Senate, the state will increase the compensation for the loss of universal service CP from the current CZK-500 million to CZK 1.5 billion per year. Will it be enough?
We know that even such a reward will not pay the Czecha Mail all the universal service, our loss of delivery to remote border locations and the maintenance of often-lost branches in the country.
The state, however, pays us to handle any volume of shipments and we can deliver the next day to any location in Theio.
In addition, we have a certain business income from someone delivering the shipment. So the 1.5 billion is a political compromise, but certainly an acceptable sum.
The number of letters sent by the post office decreases by about one tenth a year. This is probably due to the annual rise in prices. Isn't there a time when the price hike should ease?
I don't think the rise in price is the main reason why letters are falling. The first is electronic communication, the ability of people and authorities to communicate via cellphone, the internet, and use databases.
The price increase can have a certain effect on the decline in shipments, but if you realize what it costs to get a letter from Aš to Ostrava, for example, then 19 crowns for delivery is not an exaggerated price.
On average, people pick up a registered postcard in five days
From the cost point of view, the cheapest trip to Ostrava is the most expensive for us and the last mile is the most expensive. Someone has to sort the letter, put it in the bag, and walk long before the package arrives at the briefcase.
So how to solve it?
We do not want to raise prices, but the existing system cannot be strained economically. We are therefore considering introducing a two-speed delivery system.
We assume that we will deliver our new commercial product on a daily basis, delivery cost-effective over the guaranteed delivery service to any location in the Republic. Several delivery speeds are common in Europe, so the Czecha Mail discovered no America.
According to surveys, most Czechs prefer quality over speed, a guarantee that the letter will confidently reach its goal.
This is borne out by the fact that on average people pick up a registered post in the post office in five days. They don't really care if we deliver it on Tuesdays or Wednesdays, but they really do come.
Millions of packages deliver. But there are not thousands of delivery cars.
The organizational structure of the At thea Mail must be fundamentally changed by January 1, 2020. Will this affect your division?
Emails are the basis of mail, the reason why historically created in the world. Only much later were the packages added, and therefore logistics. Today, however, the delivery of letters and packages can no longer be separated.
It would lack a logical and economic sense. Therefore, in the forthcoming restructuring plan of the PC, the transformation of our division into a purely logistic one. In addition, state postal services and financial services and sales will be established.
Many customers' dislike of parcel services has led to this year's measure, when CPP calculates a sizeable surcharge for shipments not in boxes. The volume of many packages has thus increased. Does it really help you simplify logistics?
We are trying to automate the ordering of packages. However, particularly bulky bales not wrapped in the box will not pass through the sorting machine and have to be sorted manually. This delays and at the same time increases our costs.
Chief of logistics of the at thea mail Petr Cinkl
Photo: Petr Horník, Právo
The same applies to the color of the package. The Czecha mail was criticized in the press for refusing to send in black paper. But when you put such a package in a sorting machine that has cameras and scanners, it is not always possible to read the bar code.
At that point, a parcel becomes a shipment that must be ordered manually, and it costs a lot more money than a luggage machine. This is significantly more efficient for sorting than manual labor.
Don't you need to expand your fleet because of the boxes?
We are not increasing the number of vehicles now. And making a small package larger because of the box has a positive impact on handling and thus delivery quality.
Exactly the quality of delivery, however, does not diminish. It is often found in the mailbox a notice that he was not reached by the delivery person, even if he spent all day at home. Is it acceptable for the prestige of the Thea Mail?
I don't want to bring it down, we know about this problem. It is not caused by the poor quality of people, but by the capacity of the delivery network. It already exceeds the capacity to which it has been historically valued.
Our package delivery needs to do other things, operate branches and mail. He spends one fifth of his working time in addition to delivering parcels. Therefore, through an internal change in the organization of work, we want a full purpose for this activity.
The pack market in At Theio is growing by ten to fifteen percent annually. Millions of packages deliver. But there are not thousands of delivery cars.
In Czechia, carriers are missing tens of thousands of drivers and it is not easy to get them by mail. We also have a lack of handling of workers and delivery of letters. After all, the turn in the Postal Mail is eight thousand people a year.
If you do not have a driver, you cannot deliver. This is not an excuse, but a statement of the state of the mail market in At Theio today. However, the Czecha mail is known to achieve its internal efficiency to increase the delivery capacity and quality.
Will you pay the state for universal service to invest and raise wages to improve working conditions and reduce turnover?
The At Czecha Mail must raise money for investment; it has no obligation on the state to pay for it. And our state-owned enterprise must also be able to earn its own standard business salaries.
It is about how much we can save in-house for greater efficiency and make decent pay for mailers, regardless of whether it is a letter or a package delivery or a writing worker.
However, we need to persuade people not to leave the Thea Mail by simplifying their work.
This is certainly compounded by an unprecedented influx of offshore virtual shop packages.
We have a big problem with international shipping. Their growth is enormous. Additionally, Asian e-shops offer free shipping to people in the Czech Republic.
But they will be sent as an ordinary letter. When such a shipment arrives at Theio, it turns out to be a large package.
In addition, when ordering, our employees have to work manually because we lack the necessary data from the sender. The provider then discovers that this "letter mail" does not fit in the information box in its dimensions.
For this reason, we will have to remove some of the letters from abroad to luggage, which increases our costs. We would like to solve this problem with the regulator, the at Czecha telecommunications office. We do not have the levers to change the practice of foreign web stores.
In the restructuring plan, you expect Czecha's share of the parcel market post to grow from the current 37 to 40 percent. Will you collaborate more with external carriers?
Last year, we delivered nearly 45 million packages, and in the pre-Christmas period in one day half a million. Achieving a market share of 40% means increasing the capacity of a PCP delivery network to 60 million parcels per year.
We are able to slightly increase our current capacity by restructuring the logistics network and internal processes, but not on the planned 60 million packages.
Therefore, we must increase the number of dispensing points where the recipient will pick up the shipment. This includes collaboration with other companies and use of their distribution points.
Today we have less than 93 percent success in delivering deliveries the next day after delivering packages at post offices, and our ambition is to approach 100 percent.
We look forward to new installment transmitters especially in areas where the customer can easily reach and where there is parking. For example in shopping centers.
We would like to make parcel delivery a superior, high quality service as our flagship product. From this, the service will soon be truly luxurious.
You've also started a new service, releasing packages to code. What can you imagine?
We recognize that regardless of whether we deliver the shipment to an external dispatch point, our own affiliate, or deliver it home, we need to improve communication with the sender and the recipient to make it more comfortable.
This is also intended to distribute packages to the code. You don't have to wait long at the post office. He simply enters the code he received via SMS, and the shipment is sent to him within minutes.
So far it is at select post offices, but gradually we want to extend this service as much as possible. In addition, any parcel can be sent to the parcel to which the recipient communicates his code and entrusts it with the choice of shipment.
Noun changes are also expected to occur in the branch network. The government had earlier said that the Czecha Post should maintain its 3200 branches. You are gradually converting some of them into franchises operated by city authorities or privately as part of the Postal Partner project. What will you do to keep this project against the resistance of many municipalities?
Everything we do in relation to our partners and clients must make economic and operational sense on both sides. I understand that the post office, especially for smaller municipalities, is something to keep, just like a pub.
And if we say that stone mail does not make economic sense in a given village, then we need to look for a way together with the local authorities to understand.
It is also related to logistics, as the Partner Post is actually the disposition point of a parcel or letter.
I would like to add that it is assumed that 2500 post offices were delivered to the Post Partner, but the one at Czecha Post administration later implemented this plan in 1463.
This can certainly be achieved without compromising the availability of basic postal services for the population.