Australia Post has launched a new division focused on its growing e-Commerce business after blaming a collapse in traditional mail services for its annual loss of $222 million.
The move was revealed in an internal memo to staff but only officially confirmed by Australia Post after the head of the new unit, former Post CIO Andrew Walduck, updated his employment profile on the LinkedIn network to read: Executive General Manager leading Australia Post's Trusted eCommerce Solutions business.
In the message last week, Post CEO Ahmed Fahour told staff: As we shift into delivery on our reform agenda, we are increasingly clear that trusted services opportunities within eCommerce, which we have been deliberately and carefully investing in over the past four years, are core to our future business. We must focus on the growth of this critical opportunity. Today, I announce the creation of a dedicated Trusted eCommerce Solutions business unit, to be led by Andrew Walduck.
Andrew’s team will also work closely with Postal Services to leverage the strength of our connection to consumers and with Parcel Services for sales of trusted eCommerce solutions to their customers as part of complete solutions.
Historically we have enabled governments and corporates to connect with their citizens and customers through letters. We must now, in addition, place dedicated focus on building and delivering solutions that enable governments, financial institutions and major corporates to create and accelerate their own digital futures, so they can easily connect with and provide essential services to their citizens and customers.
Fahour also outlined an internal restructure to “devolve decision making.”
In July, I committed to you that the executive team and I would work through how to better structure our business to ensure we are eCommerce focused. Over the past 90 days, we have further clarified our customer opportunities, and the operating model and structure we need to deliver on our Part of Tomorrow strategy. The current Corporate & Commercial Services business and the Trusted Services team will be reorganised to tighten our alignment with the needs of our key customers and focus on the opportunities we must deliver on to build a sustainable eCommerce company. These changes are effective from 12 October 2015.
In order to maintain lean and highly professional functional support, the current Postal support teams will remain in place to support both the Postal & eCommerce Services and Trusted eCommerce Solutions. As we continue to build out our competitive and sustainable eCommerce business, we need to devolve decision making and work differently to rapidly deliver new innovations for our customers. I have no doubt that under this new operating model we will be successful in taking the next leap forward.
Fahour last month blamed a 10.3% drop in the posting of ordinary stamped letters in 2014-15 for a $222 million after-tax loss for the year, compared to a profit of $116 million the previous year. Total losses in the mail business grew to $381 million, he said. Despite the loss, Fahour said the business had made ‘headway’ in reforming the letters service and transitioning to an eCommerce business model. “We are confident we have the resources, infrastructure and support in place to manage the ongoing transition of our letters business as we become a more eCommerce-centric organisation.”