Case Study

Operations & Billing Digital Transformation for Australia Post Letters Business

Australia Post

Challenge

Australia Post has kept millions of Australians connected by delivering their letters and parcels every day for over 47 years. With over 2.7 billion articles delivered to 12.3 million delivery points across Australia just in the last year, Australia Post is without question the most convenient way for small businesses, organisations and individuals to deliver their parcels and letters.

Australia Post’s massive scale also created a unique challenge. Letter centres and business hubs across the country receive letters and parcels through street posting boxes with postage that hasn’t been assessed. Therefore, in case of underpayment, the senders needed a simple way to get notified about the issue and pay the correct amount using their preferred method of payment.

Australia Post partnered with Fabric to design and build a custom software product that allows:

  1. Postal managers to evaluate and invoice underpaid letters and parcels at the culling belt quickly and without having to manually enter article details.
  2. Customers to easily understand the charges for their underpaid mail and be able to pay them without having to come to their local post office.
  3. Help desk team members to assist customers with any queries regarding their underpaid mail, and amend and reissue tax invoices.

To quantify the problem, on average, a revenue controller could spend up to 6 minutes evaluating and invoicing a batch of underpaid items in the letter centre due to the manual effort involved in keying in the details to the legacy system.

Moreover, the invoices were paper-based and were delivered to the customer’s letterbox which also meant that they were missed frequently and underpaid articles were delayed on their way to the addressee.

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PRocess

Fabric and Australia Post started with an inception workshop to articulate valuable business outcomes, the right success measures and the minimum viable feature set so that the platform that gets built is able to deliver its intended value. Through the inception workshop Fabric team discovered valuable insights directly from the revenue controllers, postal managers, accounting help desk team members and customers. These first-hand insights enabled the team to design in a user-centric way and validated the new customer journey map and a technical solution that could support it.

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Solution

The new custom tool is a mobile app on the handheld scanner that allows users to quickly assess and scan underpaid articles relying on optical character recognition and address matching technology, which has improved operational efficiency by reducing the average time per invoice by 50%.

Furthermore, Australia Post collaborated with Fabric to design and test a digital invoice layout to ensure the sender has all the evidence and the information they need to understand the correct postage and provide them with multiple options to pay it. This resulted in an increase in the number of issued invoices that get paid within the first 2 months and greater customer satisfaction.

A digital platform was built to provide the accounting help desk and customer contact centre with immediate access to the evidence captured in the letter centre and to give them the ability to make changes to the customer invoice when needed. This has significantly reduced the time required to resolve customer queries regarding their underpaid mail charges. But most importantly, this has led to over 80% of customer queries reaching resolution on the first contact.

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Results

It took a total of three months to launch the pilot trial and a total of six months from the inception workshop to the go-live with the complete solution and legacy data migration. Fabric has supported Australia Post with the implementation of the change in the business process by creating comprehensive training videos and a knowledge base. Within the first three months of usage, the new underpaid mail system has improved the user experience for more than 3,000 postal managers across 22 letter centres and business hubs nationally by allowing them to work seamlessly on the floor, reducing the time required to scan the articles and capture the evidence. 

Fabric is continuing to support the Underpaid Mail System and advise Australia Post on the future improvements of this digital platform.

“The delivery approach with Fabric starting from the first point was a very collaborative approach, it wasn't us and them, a partner or a supplier, it was one team that was focused on the value.”
- Angus Bissland, General Manager Technology - Retail, Customer and Commercial at Australia Post

“First results have been really great. The team members have given really positive feedback on how it’s worked. It’s increased the amount of articles that they can scan and check, really started to give them a lift-up that we thought it would.”
-Mark Pollock - GM Mail Business Unit at Australia Post
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