keynote –“ think big –act bigger”competitor forces shaping the marketplace – “other”...

Keynote – “ Think Big – Act Bigger”

Jeffrey Hayzlett

Primetime TV & Radio Host, Keynote

Speaker, Best-Selling Author and Global

Business Celebrity

Running the Gauntlet

B2Me – Retail Back End – Last Mile

John Callan

Ursa Major Associaties

The PostalVision 2020

Initiative

Idriss Al Rifai

Fetchr

Patrick Armstrong

Snaile

Gregory Mackin

ParcelHome

Dan Treiman

Doorman

Introducing Doorman Package Delivery for E-Commerce www.doorman.co

are worse than parking tickets.”

“Missed Deliveries

PROBLEM SOLUTION EXPANSION ANALYSISThe Problem

- Doorman Customer

Shop online & Ship

to New Doorman

Address

Orders are stored In

secure Doorman

Depots

DELIVERY

Orders arrive when

you’re actually

home!

Schedule convenient

deliveries 6pm –

Midnight

SHIP TO US WAREHOUSE SCHEDULE

Amazon

Apple

Overstock

Zappos

PROBLEM SOLUTION EXPANSION ANALYSISIntroducing Doorman

Doorman APIfor Retailer Integrations

iOS + Android + Web Appsfor Our Customers

Operations Appsfor Warehouse & Drivers

PROBLEM SOLUTION EXPANSION ANALYSISOur Solution

Our Technology 7

Consumer Shopping Increase

With Doorman Delivery

Before Doorman 4.6

After Doorman 7.0

52%

Average Number of Packages Ordered / Month

PROBLEM SOLUTION EXPANSION ANALYSISUnlocking Consumer Behavior

“Life changing app.”

PRURA CRUM ORADLorem ipsum dolor sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod dro tempor invidunt ut labore et dolore magna aliquyam erat, sed diam voluptua. At vero eos et accusam et justo duo dolores et ea rebum. Stet clita kasd gubergren, no sea takimata sanctusm. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet, consetetur sadipscing elitr. Aton accusava aliquyam diam fresun coras.

“This service is a dream.”

— Jeff via the App Store

— Michelle M.

via Twitter

“Awesome

customer service!”

— Priscilla via

the App Store

PROBLEM SOLUTION EXPANSION ANALYSISTalk About It

Customer Delight 9

PARCELHOME

ParcelHome automates the handover

of goods at home with a connecting box

www.parcelhome.com

PARCELHOME: THE FIRST MULTI-CARRIER PARCEL DELIVERY BOX

12

THE PRODUCT AND SERVICE

• Receive & return packages• Consumer financed• No cables, solar powered

• Open box with smartphone• Open box with smartphone• Safe & secure control

www.parcelhome.com 13

SECURE• Authorization based deliveries• Full server and box tracking of

interactions• Weighing scale

COST EFFECTIVE• On-site: Minimal installation costs• 1 electronic card for access control• No/minimal equipment to deliver

(no key management)

UNIVERSALLY ACCESSIBLE• Simple authorization management

system• NFC tags, apps or code based

UNIQUE IN SOLVING DELIVERY SOLUTION CONUNDRUM

PARCELHOME: GREATER PRODUCTIVITY, GREATER VOLUMES

15Note: Core user group includes only effective users of the box, and impact of B2B outliers normalised (June), B2C only (Sept) pilot participants: N=65 (June)/N=60 (Sept)control group: N=72 (June), N=63 (Sept)

0

2

4

6

8

Overall

Pilot

(consum

ers

)

Contr

ol G

roup

6.9

5.7

Hardware

2.42.1

Clothing

1.9

1.3

Food,pharma,beauty

0.50.4

Others

2.11.7

22% 10% 42% 21% 21%% differencePilot vs. Control

Num

ber

of

pack

ages

delivere

d p

er

custo

mer

>20% Volume increases vsreference groups

www.parcelhome.com

• Fewer than 2% of deliveries now cannot be done on 1st attempt

• ~10s deliveries vs average of 40s for door deliveries

>98% of 1st deliveries,Faster deliveries

Challenges and Opportunities – Cross Border

Elmar Toime

Postea Group

Philip J. Warker

U.S. Department of

Homeland Security

Tom Forbes

MetaPackGiselle Valera

U.S. Postal Service (USPS)

Shoshana Grove

International Bridge

De minimis level raised from $200 to

$800

H.R.644 - Trade Facilitation and Trade Enforcement Act of

2015

(1) Modernizing international customs is critical for United

States businesses of all sizes, consumers in the United States,

and the economic growth of the United States.

(2) Higher thresholds for the value of articles that may be

entered informally and free of duty provide significant

economic benefits to businesses and consumers in the United

States and the economy of the United States through costs

savings and reductions in trade transaction costs.

17

De minimis

(b) SENSE OF CONGRESS.—It is the sense of Congress that

the United States Trade Representative should encourage

other countries, through bilateral, regional, and multilateral

fora, to establish commercially meaningful de minimis

values for express and postal shipments that are exempt

from customs duties and taxes and from certain entry

documentation requirements, as appropriate.

(c) DE MINIMIS VALUE.—Section 321(a)(2)(C) of the Tariff

Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended by

striking “$200” and inserting “$800”.

( (d) EFFECTIVE DATE.—The amendment made by

subsection (c) shall apply with respect to articles entered,

or withdrawn from warehouse for consumption, on or after

the 15th day after the date of the enactment of this Act.

http://uscode.house.gov/quicksearch/get.plx?title=19&section=1321

Implementation

• Implementation on March 10 as specified in the law

• ACE system update needed, but low impact and

automated systems ready

• Interim Final Rule (IFR) to be issued as soon as possible

• CBP expects the number of de minimis value exemption

from entry filings to increase

• As of March 10, 2016, shipments valued at $800 or less

eligible for release under the same processes and with the

same restrictions as currently apply

E-commerce Strategy

DHS developing a holistic strategy to address the security and

facilitation of electronic commerce - digital marketplace holds

extraordinary potential for higher volumes – but with that

potential there is also risk.

Opportunity to partner further with the private and postal

sectors, and embrace how collaboration can build a security

apparatus that facilitates legitimate shipments. ACAS was a

new model for how we develop programs and regulations in

partnership. E-commerce will be done the same way – but

now the process is more mature, based on the lessons we

both learned during the air cargo effort.

20

E-commerce Strategy: Focus areas

At present, we intend to focus on five broad areas for

improvement:

removing barriers to help electronic commerce grow in a

safe, secure, and efficient fashion;

leveling the playing field to ensure no carriers or operators

have an advantage over others simply by the nature of their

operations or pre-digital era regulatory regimes;

harmonizing data requirements to the extent possible, in

order to reduce advance data impacts;

expanding trusted trader concepts to embrace micro-, small-

, and medium- enterprises; and

ensuring our enforcement in the e-commerce realm is risk-

based and focused.

22

Tom ForbesVP, International

24

MetaPack connections

25,000 status updates

3,500 carrier services

300 carriers

1 API

25

1) Downward Pressure on Pricing: High Shipping Costs Simply Will Not Work in Today’s

Environment

2) Buyers Demand Robust Tracking Most Will Not Order Without It Via What Carrier (and When!) Will My Package be

Delivered?

3) Long and/or inconsistent transit times Two Weeks or More no Longer Cuts It)

CHALLENGES IN TRANSBORDER E-COMMERCE

Copyright 2015, International Bridge, Inc. • myib.com

Top Six Challenges and Opportunities

26

4) Duties/tax/customs issues & delays Surprise-Not All Buyers Want Duty Prepaid

5) International Customers Want to Order with Their Local Credit Card, and in Their Currency and/or Payment Platform

6) Localized Customer Service & Returns Are a Must High Cost of Localization Can be a Barrier to Entry

CHALLENGES IN TRANSBORDER E-COMMERCE

Copyright 2015, International Bridge, Inc. • myib.com

Top Six Challenges and Opportunities

American Postal Ecosystem Policy – 2020 Beyond

Jessica Lowrance

Association for

Postal

Commerce (PostCom)

John Kane

Committee on

Homeland

Security and

Governmental Affairs

U.S. Senate

Joe Murphy

Office of Specialized

and Technical Agencies

U.S. State

Department Bureau

of International

Organizational Affairs

Jim Sauber

National

Association of

Letter Carriers (NALC)

Hon. Robert G. Taub

Postal

Regulatory

Commission (PRC)

Tammy Whitcomb

U.S. Postal

Service Office of

Inspector General (OIG)

First Class Mail

Parcels

Illustrative -Only

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

The USPS: Total Annual Volume (Billions)

First-Class Mail First-Class Single Piece Package Standard Ad Mail

USPS Financials & Ursa Major Associates LLC

The Gamecontinues to change

0

5

10

15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

The USPS: Annual Revenue (Billions)

First Class Mail First-Class Single Piece Mail Package Standard Ad Mail

USPS Financials & Ursa Major Associates LLC

What is thedriving the change?

Workshop Review – Where Do We go from here?

John Callan

Ursa Major Associaties

The PostalVision 2020

Initiative

Dr. Andrew Tipping

PwC

34

WORKSHOP RESULTS: ALL PARTICIPANTS

Consumer Forces Shaping the Marketplace

2.8σ :1.9

3.2σ :2.0

3.9σ :1.9

4.1σ :2.2

5.0σ :2.2

5.5σ :2.0

6.0σ :2.1

6.5σ :1.6

8.1σ :2.2

Imp

ort

ance

Sco

re

Force

Consumer Forces Shaping the Future Marketplace(Average Score on Scale of 1-9; 1 being most important)

*Survey results are based on a total of 56 responses. 35

Consumer Forces Shaping the Marketplace –“Other” Forces

*Survey results are based on a total of 56 responses.

Other Force Average Score Frequency Identified

Cost of delivery 6.3 3

Demand for privacy 9 1

What provider will share of the parcel business 1 1

Fuel costs 9 1

Price of efficiency 3 1

Measures to improve value of hardcopy mail 5 1

Mass marketing of the adult entertainment industry overseas 9 1

Security 9 1

Security and assurance of delivery 4 1

Economic growth 1 1

Consumer pickup rather than shipper push for delivery 9 1

36

Competitor Forces Shaping the Marketplace

2.6σ :2.3

3.0σ :2.1

3.6σ :2.0

4.0σ :1.9

4.4σ :2.5

5.8σ :2.3

6.3σ :1.8

6.4σ :1.9

9.0σ :1.9

Imp

ort

ance

Sco

re

Force

Competitor Forces Shaping the Future Marketplace(Average Score on Scale of 1-9; 1 being most important)


37

Competitor Forces Shaping the Marketplace –“Other” Forces



Ease/Robustness of the customer experience (user interface) 1 1

Ability to meet personal needs in advance 8 1

Proprietary technology 1 1

Customer directed delivery 1 1

Cost 9 1

E-Commerce Becoming their own delivery service 9 1

38

Technology Forces Shaping the Marketplace

3.3σ :2.0

3.4σ :1.7

4.1σ :1.8

4.1σ :2.2

4.8σ :2.4

5.2σ :2.2

5.4σ :2.0

5.9σ :2.4

8.8σ :1.1

Imp

ort

ance

of

Forc

e

Force

Technology Forces Shaping the Future Marketplace(Average Score on Scale of 1-9; 1 being most important)

*Survey results are based on a total of 49 responses. 39

Technology Forces Shaping the Marketplace –“Other” Forces



Artificial Intelligence being ubiquitous 9 1

Mobile payment 9 1

Innovation - new capabilities 1 1

40

41

WORKSHOP TABLE RESULTS

0 2 4 6 8 10 12

Connected Consumer

Growth of Intermediaries

Mobile Mindset

Consumer control

Customer Centric market

Consumer Force

Number of TablesScored in Top 3

Other:

• Push and pull choices• Cost of delivery• Customer experience simplification• Inventory availability and speed

• Protecting consumer data is critical aspect of customer-centric

• Few respondents thought drone delivery was important

• Many of these consumer influences overlap one another

• It will take time to make 3D printing affordable (where did it go? No longer being discussed)

• Consumer control has privacy challenges – consumer will need to be willing to share data

• US is behind other countries in multi-platform apps, inconsistent experience across platforms

• Amazon is the intermediary (e.g., marketplace) that is influencing consumer demand (e.g., expectations, speed)

• Consumers have very diverse needs, so would expect their influence to be diverse – difficult to score among the choices (e.g., after top 2-3)

Consumer Observations

Consumer Forces Most Influencing the Future Marketplace – Table Results

*Survey results are based on a total of 11 table responses.

• Strong agreement among tables and individuals for same day delivery and B 2 Me Global Ecommerce as Top 3 factors; less agreement for other factors

• Demand for same day delivery “will drive the other” factors

• “Customer directed delivery” added and ranked as the number 1 influencer by one table

• Providers who deliver the customer centric experience simply, timely, efficiently and invisibly –win

2

4

4

8

9

0 2 4 6 8 10

Driverless delivery wheredelivery robots become a…

Growth of a "sharingeconomy" where Lyft and…

Competitive access to thephysical mailbox

Acceptance of b 2 Me globalecommerce fulfillment

Demand for same day delivery


Competitor Forces Most Influencing the Future Marketplace – Table Results

Competitor Force Competitor Observations


• All about artificial intelligence and predictive analytics – “anything that saves time is good.” What about price though?

• Opposing views on influence of a major breach

• Acceptance of autonomous vehicles not viewed as a major technical influencer

• Other forces discussed:

– Regulators who make decisions on if, when and how many of these technologies are adopted

– Postal Reform

– Smart lockers

– Use of bit coin

4

4

6

6

9

0 2 4 6 8 10

Major breach of trusted digitalfirm

Emergence of digital currency

Growing acceptance of omni-channel

The connected home-auto-office Internet of Things

Growth of smart apps andmarkets that anticipate…


Technology Forces Most Influencing the Future Marketplace – Table Results

Technology Force Technology Observations


We Thank and Welcome our New Media Partners

Extending Our Reach, Building New Partnerships, Creating New Engagement Opportunities,More to Come!

Join Us at Upcoming PostalVision 2020 Excursions

PostalVision 2020 Panel

National Postal Forum

Tues March 22 @ 10:30 am

GrayHair Advisors Booth #706Exhibit Hall

PostalVision 2020 & PIP

LIVE Innovation Showcase

PostExpo ‘16 Exhibition and Conference

May 24-26, 2016

Hong Konghttp://www.postexpo.com

Help Us Plan One for Youhttp://www.postalvision2020.com/excursions

We’re Taking PostalVision 2020 on the Road!

Welcome to Washington

Thank you !

Join theConversation

John Callan

Ursa Major Associates

The PostalVision 2020 Initiative

“Pillars of the PostalVision Platform”

PostalVision Team

John Sasso Kathy Siviter Bryan Klepacki

Mike Comstock Evan Grillo

Linda Callan

Caroline Miller

Jeff Gruber

Anne Stuart

7.0

March 21 – 22, 2017The Ritz Carlton,

Pentagon City

keynote –“ think big –act bigger”competitor forces shaping the marketplace – “other”...

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