SingPost trials longer delivery hours

It also looks to replace letterbox masterdoors with slam-shut versions to improve security.

Singapore Post (SingPost) is implementing several operational changes and infrastructure enhancements to address service lapses for the past two years.

The postal service announced that it will extend delivery hours to evenings for a higher chance of completing deliveries to someone at home.

Pending regulatory approval, SingPost also proposed the replacement of letterbox masterdoors with slam-shut versions to improve the security of letters and avoid human error, with trials planned for August.

Other changes include a better segregation of workforce to ease the postmen’s workload and the optimisation of delivery routes.

Newly-appointed CEO of Postal Services Vincent Phang is expected to lead these changes and help the company avoid heavy fines. SingPost was penalised $300,000 and $100,000 in 2018 and 2017, respectively, after it failed to meet delivery standards.

Also read: SingPost ties up with Synagie to provide on-demand warehousing

UOB Kay Hian (UOBKH) analyst Lucas Teng thinks that it will take time for the improved efficiency to enable volume growth, especially with some of the trials taking place in the second half of 2019.

The industry also remains a challenge for SingPost, UOBKH added, as warehouse vacancy in the country remains high. The postal service also reported an operating loss of $2.5m in 2019, mostly due to exit from contracts with logistics service Quantium Solutions. Accordingly, SingPost is expected to record modest operating margins of 0.5-1.0% for the segment in the near term.

UOBKH also noted that SingPost faces renewed competition from online courier services. Grab recently partnered with logistics provider Ninja Van, a move that will see the extension of GrabExpress’ same-day parcel and courier delivery services to include more options like nationwide scheduled deliveries.