Singapore Post (SingPost) has launched a new residential posting box trial, SingPost@MyBlock, which allows residents to post and return mail via their letterboxes under their blocks.
The trial will start across 27 HDB blocks in the Punggol Northshore District and will be progressively expanded over the coming weeks to 226 blocks across five districts: Punggol, Marine Parade, Upper Boon Keng, Bukit Panjang and Bukit Batok. The trial will run through to the end of December this year with an island-wide rollout planned if successful.
“By piloting SingPost@MyBlock, we enhance community convenience, and through our strategic partnerships, we are building an agile network that delivers greater convenience for customers,” says Neo Su Yin, group chief operating officer of SingPost.
SingPost also announced a partnership with Pick Network to incorporate its 1,084 Pick lockers to its last-mile infrastructure on the same day. These lockers, which provide 24/7 access for parcel collection, will complement SingPost’s existing POPDrop kiosks and Parcel Santa lockers. Lazada, one of SingPost’s customers, has already come on board.
The initiative follows the Sept 5 expansion of SingPost’s POPStop drop-off services to more than 160 Cheers and FairPrice Xpress outlets. Customers can now purchase SingPost’s pre-paid Smartpac packaging and pre-paid labels at these locations. SingPost had also earlier announced partnerships with FedEx and DHL Express to expand parcel drop-off services to all SingPost post offices nationwide.
In a media briefing, Neo notes that the SingPost@MyBlock initiative seeks to create a lot more efficiencies and productivity. When asked whether the move would translate to more volumes, she expressed hope that it would.
On whether the move would see SingPost reducing its post office branches ultimately, Neo says the post offices are part of the group’s network review.
The inclusion of Cheers and FairPrice Xpress outlets as part of its drop-off network also “makes a lot more sense” for the group, she adds. Isaac Mah, group chief financial officer (CFO) notes that the move will improve margins.
Overall, the initiatives are expected to strengthen SingPost’s competitive position. “If you look at all our competition in the 3PL (third-party logistics) space, convenience is one of the biggest points with our marketplaces,” says Neo. This expanded network is also expected to be more cost-effective and improve productivity.
“And as you can see, rather than us heavily investing in capex (capital expenditure) for infrastructure, we are leveraging on existing infrastructure through these partnerships and collaborations,” she adds.
Paul Chew of PhillipCapital views the move as “incrementally positive” in that it helps lift the use of its existing infrastructure with minimal capex. However, the initiatives may not “materially lift” SingPost’s earnings as its letter volumes are in structural decline.
