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“For the most part, the effort has been worth it”

Head of PostalNetwork Thomas Baur on the intensive discussions with the cantons and municipalities, the changes for employees and why he never has sleepless nights.

Sandra Gonseth

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Video: network restructuring

We’re at the halfway point in the network restructuring project. Are you satisfied with the progress so far?

I am very satisfied! Our network specialists and regional managers are doing a great job. At the beginning, we learned the hard way but now, for the most part, the project is running very smoothly. We are making good progress.

How difficult was it to find the right solutions with the different Partners?

It varied from one case to another. I remember the first discussions, where there was massive opposition to the project from every side. Over time, however, the situation has improved considerably. It’s easiest when both sides talk to each other openly and try to find the best solution both for the public and for Swiss Post. We managed to achieve that in more than 80 percent of the branches we reviewed.

And the rest?

There are some municipalities where we were unable to find a joint solution. These cases are then presented to PostCom, which gives a recommendation.

Self-operated branches are being reduced. But Swiss Post is still talking about an increase in the number of access points. Isn’t that a contradiction?

No, not at all. The number of access points is increasing rapidly. The most recent example is our cooperation with Migros: together, we have created new service points. As a result, the number of service points has quickly risen to more than one hundred. Month by month, we are moving nearer to our customers.

Do people actually make sufficient use of the service points – for example, the My Post 24 terminals?

In some cases, they are not yet used enough. When a self-operated branch is being converted, we have to make better use of the transition period to make customers more aware of the alternatives.

In spring 2018, the 100th My Post 24 terminal was brought into service, and it is planned that another 100 terminals will be in use by 2020.

Is this kind of machine a genuine substitute for a closed branch?

No, of course not. A My Post 24 terminal never replaces a self-operated branch. It is a supplement. While letters and inpayments are declining, the parcel business is growing considerably. We are obliged, and keen, to provide services for this sector that are accessible 24/7.

In the coming years, we will invest about 40 million francs in modernizing around 300 branches.

Thomas Baur, Head of PostalNetwork

So self-operated branches won’t simply disappear in the future?

By modernizing the branches, we are sending a clear signal: we believe that self-operated branches will continue to play an important role in the future. In the coming years, we will invest about 40 million francs in modernizing around 300 branches, because we want to maintain direct access to our customers. This allows us to understand their needs and to bring them closer to our products. I have faith in my people. They have the expertise to be familiar with a wide range of products and services. Now, it is a question of investing more in training them on digital products.

As a public service company, does Swiss Post really need to generate profit with its branches?

We do not have a target of covering our costs. However, we are required to operate efficiently and to constantly adapt our network to our customers’ changing needs. At present, our network costs us around 100 million francs. This is absolutely justified, as we generate profits with our Swiss Post products. If this were no longer the case, we would certainly stop operating such an extensive network.

What are the plans for the postal network after 2020?

We will continue to develop the network, although not at the same speed. We provide a network where there is demand. For this reason, we do not intend to launch another major network restructuring project – unless the market changes radically.

Any examples?

If inpayments at counters were to disappear completely, 30 percent of our revenue would vanish at a single stroke. In that case, we would have to take appropriate action. Just like any other company would do. However, I don’t expect any scenario of that kind. I assume that further adjustments will be required, but only on a case-by-case basis.

Copyright: Lena Schläppi

written by

Sandra Gonseth

Editor