Swiss Post realigns small consignments and warehousing logistics division

Press release dated 30.05.2012

Swiss Post is paving the road to success for its small consignments and warehousing logistics. This will ensure that customers are provided with comprehensive logistics services in the future. This business is an important supplement to the parcel business and supports it in the long term. For the sustained future success of this division, measures will have to be taken. Implementation shall commence immediately and continue on a step-by-step basis over the next two years. This is likely to involve job cuts affecting about 250 employees. As far as possible, this will take place through natural attrition. A redundancy scheme has been negotiated with the trade unions. Thereby, Swiss Post acknowledges its commitment to its social responsibility.

PostLogistics, a Group unit of Swiss Post, not only operates in the traditional parcel business, but also in small consignments and warehousing logistics. Customers work increasingly with a single logistics partner and demand solutions "all from a single source". For PostLogistics, as a comprehensive logistics provider, it is therefore important to continue providing small consignments and warehousing logistics in the future as a supplementary service to support its core business. However, this division increasingly has to face aggressive competition and price pressures from the international arena, resulting in a lack of profitability. By modifying its rendering of services, PostLogistics intends to restructure small consignments and warehousing logistics within a two-year period. This is the only way to ensure that the business will be able to assert itself successfully in the market with a good price-performance ratio in the future.

Focus on smaller consignments

In order to improve competitiveness, PostLogistics is focussing on smaller and lighter consignments. New 3.5-ton delivery vans driven by external carriers with close connections to PostLogistics are increasingly being used for delivery rounds. Considerable cost advantages will be gained by the delivery van concept for smaller-sized consignments. However, this will in turn bring about a reduction in the proportion of our own drivers.

Further development of the logistics network

Warehousing logistics productivity also has to be increased. On the one hand, this can be achieved by aligning work conditions to the level that is typical for the industry. On the other hand, it can be achieved by improving the connection to the transport networks of Swiss Post, by bundling activities and by shortening transport routes. For example, in summer 2013, we will move into a new location in Pfungen (Zurich), which will optimally satisfy the modified requirements. Overnight logistics, small consignments transport and warehousing activities can be handled there by a single site.

Redundancy scheme negotiated

Implementation of all the measures will take place gradually and will continue until 2014. Overall, about 250 full-time positions are expected to be cut. This decrease in the workforce will take place as far as possible through natural attrition. As a socially responsible employer, Swiss Post will do everything it can to avoid making people redundant. Should this be unavoidable, a redundancy scheme, which has been negotiated with the trade unions, will be implemented. The employees affected by the respective wave of redundancies will be informed personally about their professional futures, and given support in their job search both within the company and outside. The first location to start a pilot project for the new transport concept will be Daillens (Vaud).