Gary Lee

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Gary Lee Group Manager - Letters
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POLICY INTO PRACTICE
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e-commerce strategy
facilitate the transition from the
traditional economy to the online economy for our
consumer and business customers, and web enable
our own business processes.
Linda Bardo Nicholls Chairman, Australia
Post Oct, 1999 MMUA Conference
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e-commerce strategy
EXISTING STRENGTHS

• Logistics/Delivery
• Financial Services
• Bricks Mortar
• Trusted Brand

Leverage POST into e-commerce
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3 PRIORITY PROJECTS
facilitate the transition web enable our
own business processes

• POSTbillpay on the Internet (EBPP)
• Internet Fulfillment
• Internet Procurement

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POSTbillpay on the Internet
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POSTbillpay

• POST already has major role in payments
• Australias 3rd largest bill payment processor
• In 1999
• processed 160 million bills
• face value of 60 billion
• 400 companies participating
• Intimate knowledge of Billers processes

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POSTbillpay
The probable simplification of the facsimile
system must sooner or later interfere with the
transportation of letters by the slower means of
the post.
U.S. Postmaster General Jonathan Creswell (1872)
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POSTbillpay
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POSTbillpay
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POSTBillpay

• POST value proposition
• Major and sustainable advantage
• Partner with Transpoint/Checkfree
• Independent and Trusted brand
• Intend to be leading consolidator
• Flexible customer and biller model
• Supplier Partnerships

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Supplier Options

• IGNORE IT
• DO IT YOURSELF
• PARTNER WITH EBPP SUPPLIER

- Additional output stream without additional
investment - Click rate
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POSTbillpay on the Internet Model
BILLERS
MAILHOUSE
CONSOLIDATOR POSTbillpay
EBPP bills
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POSTbillpay
RELEVANCE TO BILLERS

• Reduces billing costs (presentment payment) up
  to 50
• Low set-up/capital transaction costs
• No carrier or service provider costs
• Improved service and convenience to customers

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POSTbillpay
RELEVANCE TO BILLERS

• Increases visibility with major customers
• Direct integration- low disruption to
  processes/systems
• On-line cross selling opportunities to target
  segments
• Biller has control of content appearance of
  information
• One consolidated statement

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POSTbillpay
RELEVANCE TO SERVICE BUREAUX

• POST working in partnership
• Preference to work with not against
• Set-up costs cheaper through mailhouse
• Accreditation program

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3 PRIORITY PROJECTS
facilitate the transition web enable our
own business processes

• POSTbillpay on the Internet (EBPP)
• Internet Fulfillment
• Internet Procurement

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(No Transcript)
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What is POST eDeliver TM?

• Post eDeliver is our new complete fulfilment
  service designed for companies retailing on the
  Internet.

Warehousing Inventory management Pick Pack
Dispatch Delivery Returns logistics.

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POST eDeliver TM Process
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POST eDeliver TM
More than 40 million investment over the next 5
years
AP will handle everything once the buy button
is hit!
InterWorld - the pipeline linking merchants
platform with POST warehouse and delivery
systemsand 4,500 retail outlets to handle
returns.
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POST eDeliver TM

• Facilitates seamless flow of data between the
  merchants website and Australia Post.
• Enables immediate response to orders and allows
  inquiries on the status of orders and parcels to
  be made at any time.

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Technical Details

• Designed to link with trading partners via the
  Internet.
• Compatible with all popular Java compliant
  eCommerce browsers such as Microsoft, IBM and
  Netscape.
• Communications are secured using the latest
  technology.

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POST eDeliver TM Technical Structure
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POST eDeliver TM Services
Delivery Rate Calculator
eParcel Component
Warehousing Component
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POST eDeliver TM Services
eParcel Component

• Provides electronic means to
• Directly integrate with web site
• Electronically lodge manifests
• On-line order tracking
• Confirm delivery dates

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POST eDeliver TM Services
Warehousing Component

• Provides merchant with On-line
• Order tracking, processing, confirmation,
• amendment cancellation
• Inventory check
• Reports

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POST eDeliver TM
RELEVANCE TO MAJOR MAIL GENERATORS

• Adds efficiency to the value chain
• ELADS users access to parcel status
• Total integration with e-Parcel merchants web
  sales site.
• - End to end order tracking
• - Access to warehouse order
  parcel status

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POST eDeliver TM
HOW WHEN?

• Commercial release late August
• Connection early September
• Register as an Intended User via POST web site
  or POST
• eBusiness consultant

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3 PRIORITY PROJECTS
facilitate the transition web enable our
own business processes

• POSTbillpay on the Internet (EBPP)
• Internet Fulfillment
• Internet Procurement

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WORKING TOGETHER
LINKING BUYERS SELLERS ONLINE
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FOUNDING SHAREHOLDER GROUP
Coles Myer
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• Buyside procurement Marketplace that is open
  and stand-alone
• Driving total cost reductions for all
  participants
• Creating new value for buyers and suppliers
  through collaboration sharing of best practice
• An efficient transactional tool
• A catalyst to identify supply chain processing
  efficiencies
• Will represent the pre-eminent site for
  Australasian industry

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There is a powerful value proposition for the
marketplace, demonstrated by the net value
generated for buyers and sellers.

• Systems integration and strategic sourcing costs
  per organisation varies between 0.2m and 2m per
  annum
• Potential market of 150bn2 for indirect spend.

Note 2. Press release by corProcure estimated
the total indirect market in Australia of 300bn
Gartner Research indicates volumes of 60bn by
2003 in Australia
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Value Propositions

• Dramatic reduction in transaction costs
• TODAY Buy 100-120
• Sell 100-120
• corProcure 20
• Goods and Services channel
• Lower cost of connectivity

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CURRENT BUSINESS MODEL
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corProcure BUSINESS MODEL
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Extend model to establish corProcure as the de
facto switching, integration and standard setting
eMarket for Australian industry.
SMEs
PwC eMarkets switching integration technology
eMarkets
corProcure (with added fulfillment mgt.
information)
Shareholders
Manage logistics distribution
Volume aggregation
Service Offerings
Suppliers
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Hosting support
Produce products
Buying Consortiums
Auctions
Collaborative Planning
Procure materials services
Knowledge Management
Develop products
Buyers
Manage customer orders
Perform sales
Advertisers

• Additional value adding services
• real-time eMarkets switching
• channel enhancement/marketsite hosting
• vertical eMarkets monitoring service

Provides complete SME connectivity solution
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RELEVANCE TO MAILING INDUSTRY

• Connectivity to CorProcure
• Increases customer base
• Reduces transaction costs
• Leverage off CorProcure purchasing power
  (8bill)
• Potential integration of own supplier

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Some Developments
e-directPOST internet system providing creative,
print, lodgment and electronic or physical
delivery PCePOST an internet based system
allowing electronic transmission of postal mail
from desktop PCs directly to EDI POST for
printing, addressing, folding, inserting and
lodgment Web-enabled mailhouse process
improvement
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OPTIMISING PHYSICAL MAIL
via web enabling processes
O
Mailhouse
O
Originators
Mailhouse
Mailhouse
O
DANDENONG
O
Mailhouse
Mailhouse
Customers
Mailhouse Process Improvement
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Developments

• e-directPOST internet system providing creative,
  print,
• lodgment and electronic or physical delivery
• PCePOST an internet based system allowing
  electronic
• transmission of postal mail from desktop PCs
  directly to
• EDI POST for printing, addressing, folding,
  inserting and lodgment
• Web-enabled mailhouse process improvement

• Pay.It_at_POST

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Pay.It_at_POST
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(No Transcript)
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e-commerce strategy
EXISTING STRENGTHS

• Logistics/Delivery
• Financial Services
• Bricks Mortar
• Trusted Brand

Leverage POST into e-commerce
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POLICY INTO PRACTICE
FOCUSING ON THE FUTURE BUILDING PARTNERSHIPS
TODAY
TO PROVIDE CHOICE FOR CONSUMERS BUSINESS
TOMORROW