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Australia Post partners with Salesforce for digital transformation

Australia Post partners with Salesforce for digital transformation
Australia Post partners with Salesforce for digital transformation

Australia Post (AusPost) has announced a multi-year deal with Salesforce that will leverage Salesforce’s data and artificial intelligence capabilities. This business move will help support a better customer experience in sales and marketing. 

Michael McNamara, Executive GM, Enterprise Services at Australia Post, says establishing our key strategic technology platforms is a crucial first step for transforming the company’s digital customer experience. 

“Investment in cutting-edge technology is crucial in ensuring we set the business up for success as we continue to simplify and modernize our operations. Salesforce has the right platform for us to revolutionize how we connect with customers by harnessing the transformative potential of AI and data-driven insights,” says McNamara. 

Australia Post digital journey 

Last year, AusPost suffered a massive loss of $200 milion, and it was noted the company needed to modernize. In September, the company announced it would digitize its delivery notifications. 

This month, AusPost announced its Post26 strategy and modernization helped the company improve its financial performance in the first half of 2023. 

Group CEO Paul Graham says: “We are in the early stages of the modernization of Australia Post and now more than 18 months into our Post26 business simplification strategy. Post26 is delivering significant benefits to the business and, subject to approval, I am confident the modernization reforms announced in December will also strongly enhance the business.” 

Also Read: Australia Post opens new facility in Victoria

Australia Post financial performance 

Last month Graham addressed the Australian Senate. He said that Without doubt, both Post26 and the government’s modernization reforms will put AusPost on a more sustainable financial pathway.

Some of the highlights of the company’s performance for the half year to 31 December 2023 include: 

  • Group revenue $4.7 billion, an increase of 0.6% on the same period last year. 
  • Group profit before tax $33.6 million.
  • Parcel and Services revenue $3.86 billion, an increase of 1.3% in the first half of last year. 

AusPost says: “Through disciplined cost management, $140.8 million in efficiencies was achieved in 1H24, which included further simplification of the support office, product portfolio, and broader network productivity improvements.” 

Australian parcel delivery market 

Mordor Intelligence reports the Australian courier, express, and parcel (CEP) market is estimated to grow at an annual compounded growth rate (CAGR) of 5.12% in the next six years. 

Another report by IBIS World says online retail is underpinning a boom in demand for parcel delivery through courier services. “These trends have opened up opportunities for many smaller operators, which has encouraged a flood of new entrants into the industry.” 

The report adds the industry’s ability to compete with the related postal services industry strongly influences its performance. “Australia Post dominates the Postal Services industry. Australia Post is excluded from the Courier Pick-up and Delivery Services industry because it uses centralized collection points, such as post offices and boxes.” 

Now Read: Amazon surpasses eBay to become Australia’s top marketplace

About the author

Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.

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