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Magazine

2019-07-15

THE DAY AFTER TOMORROW

Which major forces will reshape logistics over the next decade and beyond? New research brings the future into focus. Delivered. The Global Logistics Magazine,September 2018

Logistics is set to undergo the biggest transformation in its history. That’s the headline finding of a survey of more than 10,000 logistics professionals and technology experts. The work, which was conducted by DHL Trend Research, highlights 28 separate trends that are reshaping the sector, grouping them into four primary categories: ­customer centricity, sustainability, technology and people.

The latest DHL Logistics Trend Radar report is the fourth in a series that has been running since 2013. The research is developed through the analysis of mega- and microtrends as well as direct input from partners, including research institutes, tech players, startups and customers. Most of the insights are collected firsthand from over 10,000 logistics professionals and technology experts who visit the DHL Innovation Centers each year. The findings are then aggregated and reflected on the Logistics Trend Radar, which acts as a dynamic and strategic foresight tool that tracks the evolution of trends spotted in earlier editions and identifies promising new trends with every update.

“Our Logistics Trend Radar acts as a roadmap for innovation, helping to structure and catalyze further industry-leading research and projects together with our customers and partners,” says Matthias Heutger, Senior Vice President, Global Head of Innovation & Commercial Development, DHL. “In this edition, we focus strongly on the digital revolution happening in the industry and its impact across four key elements defining the future of logistics.”

Read More:http://www.delivered.dhl.com/en/articles/2018/09/the-day-after-tomorrow.html#__prclt=9qf4BN0l

2019-07-07

Understanding platform business models: A mixed methods study of marketplaces

Karl Taeuscher , Sven M. Laudien, European Management Journal

Abstract

Recent technological advances have enabled the emergence of novel business models based on digital platforms. Marketplace like Airbnb or Uber offer such digital platforms to connect previously unmatched demand-side and supply-side participants through innovative forms of value creation, delivery and capture. While countless firms claim to offer the next ‘Airbnb for X’ or ‘Uber for Y’, we lack knowledge about the defining business model characteristics of these marketplaces. To close the gap, this paper provides a conceptually and empirically grounded taxonomy of their business models. Applying a mixed methods approach, it first develops an integrative framework of marketplace business models. Guided by the framework, the research systematically analyzes 100 randomly selected marketplaces with content analysis and binary coding. The gathered data is analyzed with cluster analysis techniques to develop a taxonomy for marketplace business models. The clustering process reveals six clearly distinguishable types of marketplace business models and thus shows that there is no one-size-fits-all approach to creating, delivering, and capturing value with marketplaces and platforms in general. We characterize these distinctive types on basis of the qualitative and quantitative findings. Among others, we find that two of these types are highly aligned with business model characteristics associated with the so-called sharing economy. The findings are discussed against platform, marketplace, and sharing economy literature to contribute to a higher integration of different literature streams that are concerned with similar organizational types and phenomena.

2019-06-30

Analysis of parcel lockers’ efficiency as the last mile delivery solution

Last mile deliveries are one of the major effectors of heavy traffic of commercial vehicles in the whole city area. Due to ecommerce’s generic specificity, its functioning on B2C market is based on home deliveries.

In recent years very interesting and popular solution became the parcel lockers as the efficient last mile delivery system. This paper is focused on the analysis of usability and efficiency of this measure based on the example of Polish InPost Company system. It introduces the results of pilot survey realized in Szczecin (Poland), as well as the general expectations regarding the efficient utilization of this kind of solution.

Due to e-commerce’s generic specificity, its functioning on B2C market is based on home deliveries. It is possible to divide home deliveries into three categories:

  • Home deliveries from a supermarket : here orders are prepared by a picker (store-picking), mainly on the outskirts of the urban area without major changes in the supply strategy; the purchased products are either delivered directly to home or picked up by the consumer, mainly by car, avoiding queues and waiting times at the checkout

 

  • Home deliveries from a specific warehouse: here orders can be prepared (warehouse-picking) and where important changes are noted in the supply chain, because the warehouse is not located in a peripheral area. Then, the ordered products are delivered to the place of consumption using light goods vehicles through an optimized route. These trips are made by small city freighters and can be assimilated to traditional e-commerce HDs with more restrictive constraints.

 

 

  • Out home deliveries: through proximity reception points, where the supply changes consist of new local depots. In this case, the ordered products are prepared directly in a depot (depot-picking) located near the place of consumption in which they are picked up by the final consumer

 

A popular solution among customers, due to its convenience, is direct home delivery usually realized by external courier services. One of the biggest problems with the organization of the supply of goods to customers in ecommerce is that there is a significant fragmentation of the orders. Individual customers usually buy small amounts of products, while expecting fast delivery. This forces the competitive market of transport services to respond dynamically to the emerging demand for transport.

 

Therefore, one of the most important categories of good practices in current urban freight transport systems become solutions to rationalize the last mile delivery. The key solutions of this type include:

  • Reception boxes: permanently fixed to a wall outside the customer’s home, to which access is possible using a key or an electronic code; customer can be alerted of the delivery by mobile phone or email; used mostly for parcels, but can be used for foods if the boxes are temperature controlled;

 

  • Delivery boxes: owned by the retailer or delivery company; filled with the goods at the distribution depot, and then temporarily attached to the home via a locking device fixed on the wall in a secure place at the customer’s home; empty boxes or boxes containing returned goods are then collected by the delivery company either as a separate collection round or as part of the next delivery;

 

 

  • Controlled access systems: provide the delivery driver with a means of gaining access to a locked area to leave the goods in; a key may be sealed inside a unit, which is mounted in a location where delivery staff can access it; the driver enters an access code into the sealed unit to release the key and open the nominated delivery location to

 

  • Collection points: based on the use of locations other than customers’ homes to which goods are delivered (the nearest Post Office, convenience store or a petrol station; often have long opening hours. Goods are delivered by the retailer or their carrier to the collection point and the customer is informed that their order is ready for collection. Customers may arrange with the collection point for the goods to be delivered to their home. Collection points result in fewer delivery locations and improved drop density.

 

 

  • Locker-banks are groups of reception box units (lockers), which are similar to collection points although they are not sited at each customers premise but sited in apartment blocks, work places, car parks, railway stations etc. Customers are not usually assigned to their own locker to optimize usage (lockers have electronic locks with a variable opening code, and can be used for different customers on different days). They may be dedicated to one delivery company or used by many. Customers may be notified by message about when their delivery has arrived, the box number and location, and the code to open the box. Locker-banks require the customer to make the final leg of the journey. However, locker-banks are located to make the deviation in customers’ journeys as short as possible. Example of this type of solution is Pack station by InPost.

 

Parcel lockers as the last mile delivering system

Functioning of parcel lockers:

 To a large extent using parcel lockers aims at delivering parcels in e-commerce. Customers send parcels using customer’s account, previously created on the system operator’s website. After payment and preparation of special label affixed to the parcel, it is sent either personally by the sender through the chosen parcel locker or received by an employee of the InPost Company. Collecting the parcel involves the following steps:

  • Internet shopper selects the parcel locker while making online shopping,
  • After ordering a package for the parcel locker, internet shopper receives an e-mail confirmation,
  • Within 2 business days, the parcel is delivered to the chosen parcel locker and then the customer receives short email and SMS message with the code to open a specific reception box in the specific machine.
  • The customer shall provide the code with the phone number using the touch screen on the selected parcel locker,
  • During the service the customer can track the shipment.

The above procedure usually takes about several seconds. The customer has 3 days to collect the shipment from the selected parcel locker. If a package is not collected within this period, it will be transported to the nearest branch of InPost. In order to ensure the safety of both the senders as well as consumers, parcel lockers are placed in the monitored locations (e.g. petrol stations, 24h car parks, supermarkets). In addition, each machine of InPost is equipped with 4 video cameras and alarm system. According to the data available on the website of InPost, at the end of February 2013 the company had 631 stations in 181 Polish cities. It is worth noting that this solution is also available in many other countries.

With the selection of appropriate locations, parcel lockers can provide not only significant economic benefits, but also, or even primarily, they can have a positive impact on the reduction of pollutants emitted into the environment by urban freight transport.

Parcel lockers in practice – the drivers and barriers:

Parcel lockers seem to be a very interesting and innovative solution for any type of city, beneficial to both customers and online stores. Taking into account the growing number of B2C e-commerce customers, this measure meets the needs of present and future society. It gives many benefits, such as:

  • Extra income from rent paid by InPost Company,
  • Commercialization of non-utilized outdoor space,
  • Extra revenue resulting increased footfall (research conducted in Poland showed that 52% of customers attending locker site visited shop to make purchase),
  • Be a focal point for the community,
  • Opportunity to become part of international operation from cross-border deliveries,
  • Reverse use of locker for potential advertising space,
  • Building of reputation as city supporting sustainable development.

 

Efficiency of parcel lockers – case of Szczecin

Influence of parcel lockers on reduction of negative environmentally impact of urban freight transport:

The most important aim of parcel lockers’ implementation is to reduce the number of deliveries in the city area, including failed deliveries and the subsequent return of goods by couriers and postal services. It helps to reduce unnecessary vehicle mileage with associated energy use and congestion impacts. According to the results of analysis made by researchers, the courier servicing InPost parcel lockers is able to deliver 600 parcels in just one day, with travel distance of about 70 km in comparison to respectively 60 parcels and 150 km in traditional delivery system

The importance of proper location of parcel lockers on their efficiency:

The most important factor of efficient utilization of parcel lockers is their proper localization in the city area. According to data received from InPost Company, the best locations for this kind of measure are related to availability of

 

  • Local hot spots within suburbs – next to convenience stores (high density of population living in the neighbourhood),
  • High traffic pedestrian areas in city centres,
  • Shopping centres and supermarket car parks,
  • Bus/underground stations next to local commuting hubs,
  • Petrol station forecourts,
  • Service stations,
  • Business centers

 

The other most important reasons for parcel lockers’ utilization are their availability and localization. The most important expectations of parcel lockers’ users regarding the localization include: close location from home, on the way to work and availability of parking spaces

To assess the influence of locations of parcel lockers on their efficiency, the experiment regarding relocation of chosen machines were realized in Szczecin. Based on the analysis of monthly number of parcels delivered by each parcel locker, the set of the most and the least popular machines was prepared

It seems to be the major direction for the shaping of future delivering systems in cities and good opportunity to reduce their negative environmental impact.

2019-06-23

Keep It Up-To-Date! Adaptable Business Models Are The Bests

Mohammad Reza Derakhshan, born in 1968, is the consultant of the managing director at Fakher Holding. He started his studies in mechanical engineering and has his master in executive management, and received his Ph.D. in Business Administration Leadership (DBA). He worked about 23 years as a quality assurance manager in the design and manufacture of light aircraft, and has about 10 years of experience as a consultant in the field of business models and strategies. The following interview was published at the 7th Tipax Magazine (spring of 2019

Nowadays, we hear a lot about business model. What is your opinion about its real meaning and the importance of it?

درخشان

A business model describes the rationale of how an organization creates, delivers, and captures value. It is a plan for making profit. It defines the products and services that a business sells and anticipated expenses.

Three points are very important in this regard. First of all, each and every organization should have a business model, regardless of whether they are profit or nonprofit, private or public, small or large, old or newly established.

Secondly, it's likely that an organization does not recognize the suitability of its business model and everyone in the organization do not have a clear understanding of it. Finally, the third point is that it is necessary to ensure a suitable method of adapting the business model of organizations to its external environment.

If the managers of an organization do not have a clear understanding of their business model, they are not able to control their compatibility with the external environment. Therefore, they will fail to take necessary and timely steps to rebuild the business model. And this is the starting point of the challenges of the business model of an organization.                            

How can managers find the best business model for their organization?

In order to achieve this goal, we need to have the tools to have the ability to visualize and create an integrated image of the business model. Various tools have been proposed for this purpose over the past decade, most notably is the “Canvas” proposed by Alex Osterwalder in 2009.

But it's not just enough to have this tool, the way we use is also very important. Creating a Focus Group to describe or design a business model is prior to selecting a tool. The appropriate focus group for this purpose consists of 4 to 12 managers in a business as well as relevant experts. The focus group is managed by two guides. One is the Internal Moderator, who is familiar with the business environment and the other one is an External Moderator, who is an expert and has academic abilities related to Business models.

Topics are designed and guided by the two guides in focus group meetings with Brainstorming method.

 

Which approaches are taken by Fakher Holding for Business Model?

Fakher Holding Founders were well aware of the importance of the business model from the beginning. Therefore, some months before the establishment of the company, the Business Model meetings were held with participation of Dr. Mehrdad Fakher, Chairman of the Board, and Mr. Kashani as the CEO, and myself.

In the past three years the redevelopment of the business models of older companies including Tipax and Octiran  as well as design and approval of the business model for new business was the main focus of Fakher Holding.

The vision of the founders of the holding is participation of more than one million businesses in the Fakher business ecosystem by 1420, creating and delivering value to the ultimate ecosystem customers by knowing their business model and consistent adaptation of their environment.

 

What is “Fakher business ecosystem” that you mentioned before?

Each business model is a community of business models that make it possible to work, create, deliver, and make value. In the large community of business models, which are referred to as the business ecosystem, various business models interact with one another, relies on each other, and also collaboratively creates value for the final customers.

In our business model, the most prominent value proposition for the core group of our customers, which is our shareholders, is the design, implementation and management of the Fakher Holding ecosystem.

Our ecosystem is a large community of businesses that complement their business models and create value for customers and end users of ecosystems. Ecosystem architecture is currently being finalized and I will inform you more about it in the near future.

 

How can the Fakher business ecosystem affect our national economy in the future?

In developed countries, there are many managed business ecosystems that arose from the interconnection of a large number of structured networks. In Iran, such ecosystems are far and few between but I believe that Fakher ecosystem can increase the chances of creating new businesses, thereby reducing unemployment rate, which is one of the most important economic indicators.

Obviously, the improvement of the economic situation will affect the welfare of the community as well, but our main goal is to increase the number of businesses that have learned to continuously adapt their business model to the environment and see themselves as a part of this ecosystem.

 

2019-05-28

Inside Hema: A look into the cornerstone of Alibaba’s New Retail Strategy

Roni Hiranand,Oct 8, 2018 -Medium

Digitized aisles, farm-to-store food tracking, service robots, and cashless check-outs, Alibaba’s plans to re-invent offline retail are already well underway

 

Ever since Jack Ma coined the term “New Retail” at an investor briefing in 2016, you would be remiss not to notice the phrase at every subsequent briefing, presentation and correspondence from the company since. That’s because Alibaba, who built their reputation in online commerce, have identified New Retail as a core pillar and launching point for their “New Five” strategy, areas of strategic importance the company believe will allow them to continue to spread Alibaba’s ecosystem of services not just in China but globally.

While many praise Amazon for their attempts to blend offline and online retail through Amazon Go, in more ways than one they are playing catch up to Alibaba. The company’s internet powered supermarket, Hema Xiansheng first launched in 2016, and is now rapidly scaling throughout China. Despite this, many are not aware of its existence and (more so) its features and functionality — a recent trip to Shanghai brought an opportunity to show Hema and all its inner-working up close.

HEMA

WHAT IS NEW RETAIL?

For the unfamiliar, New Retail refers to the fusion of e-commerce with brick & mortar retail through integrating both online and offline experiences and services across a single value chain. Often associated with, but different to, the original term “O2O” (Offline to Online), New Retail looks to change the engagement paradigm we have with retail by bringing the best of both worlds together, including logistics, data, payments, smart hardware and more.

It may seem like an odd space for an online titan like Alibaba to get involved in. After all, online sales penetration in China is the highest in the world, and the company operates the country’s largest e-commerce platforms, already serving over half a billion customers. Despite this, brick and mortar retail still astoundingly accounts for over 80% of total retail sales in China. We see a similar narrative in the US — offline retail still dominates.

If Alibaba wants to increase share of wallet among consumers, and continue to evangelize its services (cloud, logistics, payments etc.) then getting a strong foothold in the offline retail world is going to be of critical importance.

HEMA

One of Hema’s Shanghai locations

“We believe the future of New Retail will be a harmonious integration of online and offline, and Hema is a prime example of this evolution that’s taking place”

Daniel Zhang, CEO of Alibaba Group

As of October 2018, Alibaba already has 87 Hema stores in China, with plans to open 2000 more in the next 3–5 years. These 87 stores are not scaled down or sandboxed projects — they are live, fully functioning and equipped to serve the mass-market. In a time where tech giants across the world have thrown their name in the hat to re-invent offline retail, the sheer number of market-tested stores that already exist give Alibaba a significant advantage over everyone else.

The store serves 3 core functions:

  1. Supermarket
  2. Restaurant
  3. Fulfillment Center

What ties these functions together is Hema’s own native app. It enables virtually everything for the customer. The entire experience from payments, product discovery, in-store research and more is bound together by mobile. If you are a customer of any of Alibaba’s services such as Alipay or Tmall/Taobao, your details, preferences, and spending history can all be linked directly, allowing the app to understand the type of customer you are and what you could be looking for, based on your activity across these platforms and services.

DIGITIZED AISLES AND BARCODES

Every product in the store is equipped with a price tag and a corresponding barcode and QR code. These price tags are actually internet connected “e-ink” tags that allow pricing to change dynamically depending on supply and demand. This comes into use for fresh/new/in-season goods (particularly seafood) and for popular goods that are also available on the Hema app.

Most aisles are also equipped with large touchscreens. These touchscreens give an overview of the products in that aisle, show recommendations for similar products, suggest pairings, and show which products are the most popular — they can even be segmented by popularity among age group.

SCAN FOR INFORMATION

Scanning the code on the price tag with the Hema app takes the customer to an individual product page that contains all the information recorded for that product (this goes a step beyond for fresh food, more on this below).

Chinese consumers take fresh very seriously, and so does Hema. In a country where food safety and transparency is such a contentious issue, this was an area that had to be built out thoughtfully. Virtually all fresh food has a feature that unpacks the entire farm to store journey of that particular item. As you can observe above, for items like fresh meat, vegetables, seafood, you as a customer will be able to scan every product barcode and see:

Farm to store tracking

Chinese consumers take fresh very seriously, and so does Hema. In a country where food safety and transparency is such a contentious issue, this was an area that had to be built out thoughtfully. Virtually all fresh food has a feature that unpacks the entire farm to store journey of that particular item. As you can observe above, for items like fresh meat, vegetables, seafood, you as a customer will be able to scan every product barcode and see:

The product origin

The producer/company name and background

For meat, the life of that animal (what date and time it arrived at the farm or when it was born, what date and time it was slaughtered, when and where it was transported to and from). The timestamps for some products are accurate to the second

Transport information such as the license plate of the truck, or the temperature inside the truck for items that need to travel under cold storage

Official scanned copies of food safety certificates and business licenses complete with an official government seal

Arrival date in-store so customers can assess freshness

Me stamped produce information including the farm/factory and official food safety certificates.

COOK YOUR GROCERIES

One of the standout attractions at any Hema is the fresh seafood section. Built across a large open area, customers can openly browse, research and inspect their seafood up close, something that is very important to Chinese consumers. Despite seafood being flown in from all over the world, if it is in the store, it was caught within the last 72 hours — guaranteed.

Produce from the seafood area can be purchased normally or even delivered to your home. However, you also have the option to have it prepared and cooked on the spot according to your liking by one of the various restaurants in the store and enjoy it there.

RESTAURANT (WITH ROBOTS)

Every Hema store comes equipped with customer dining areas, however this Hema in particular is the first one to launch its very own robot restaurant, Robot.he. Access is simple, scan with your phone to get a table number, go to that table, scan another QR code at the base of that table and access the full in-store menu. There you can place your order, including with the fresh produce from the seafood area.

When ready, food is placed on robots that resemble Roombas by chefs, and make their way directly to your table. It is a coordinated and efficient process that frees up time spent with waiters on ordering and paying. With the automation of the front end of restaurant service already in motion, one wonders how long before this will start encroach into the back-end of food preparation.

FULFILLMENT CENTER

Hema stores do have staff like regular supermarkets, but you will quickly notice most of them keeping busy, zipping around the store filling bags with various goods. This is because every Hema store also serves as a distribution center that collects, fulfills and delivers customers online orders.

For customers that live within a 3km radius to a store, Hema enables delivery to the customer within 30 minutes. Staff fulfilling these orders in store look to gather items ordered in 7 minutes or less. Recently, Hema expanded its 30-minute delivery service to operate almost 24 hours a day — with service being added between 10pm and 7am. Also, cooked meals are available for delivery until 1am.

After orders are picked by staff they are placed on conveyor belts that run across the store’s ceiling, transporting them in full view (and above customer’s heads) to the back of the store. The back of the store is where the orders are packed into boxes and sent to customer’s doorsteps.

CHECKING OUT

Self-Service checkout stations are the norm at Hema. It’s a quick, easy and seamless process that even allows customers to “pay by face”, leveraging Alipay’s facial recognition payment technology. The entire experience requires no cash.

 

An interesting tidbit we noticed was actually how little check-out counters there were despite the size of the store. There were also no signs of lines or people turning to in-store staff, it seems the lack of checkout counters is a deliberate tactic to encourage shoppers to order online and go deeper into their ecosystem of services, particularly logistics. This was referenced at Alibaba’s latest investor event where they cited 60% of all orders in Hema stores are placed online.

A FEW LAST THOUGHTS

Hema in many ways serves a fourth, less obvious function — that as an experiential retail platform. Alibaba’s vision for New Retail goes beyond Hema but what Hema provides is an excellent testing bed for future products/services. I expect a multitude of different services to make its way through Hema, including: computer vision cameras, in-store social plus experiences, personalized subscription based deliveries, and more.

Alibaba’s Tao Cafe is another new retail store currently operating, albeit at a much smaller scale than Hema. Much of Tao Cafe is similar to the Amazon Go approach of no cashier, walk in and out by being automatically charged- leveraging cameras and sensors as well as real-time customer data to power the experience.

Starbucks and Alibaba inked a partnership earlier this year that looks to supposedly “Transform the coffee industry in China”. One of these partnership outlets includes Starbucks is bringing its own “Starbucks Delivery Kitchens” to Hema, which will feature robots combined with mobile-based orders, and deliveries.

Hema is certainly a transformative experience compared to the current retail paradigm. However, in many ways its mission is not to create shock and awe among consumers, but demonstrate how technology that we already see being used in the world today can seamlessly integrate into a practiced experience and make that experience infinitely better.

 

The future of retail is already happening, it’s in China — and Alibaba is leading the way.

2019-05-19

4 ways you're making your job harder than it needs to be

Julia Tell Oct 16, 2018, 4:54 PM - Business insider

If going into work feels like slogging through mud, you may be making your job (and your life) harder than it needs to be.

When you're struggling with your career, everything in life can feel out of whack, and your feelings can snowball until you really hate work. Such a situation can lead to burnout , weak job performance, and eventually, getting fired or needing to quit .

But almost any situation on the job can be improved if you just get out of your own way.

Here are four ways you're making your job harder than it needs to be, and how to fix them:

 

You're putting off tackling difficult tasks

 

As best-selling author and time management expert Brian Tracy wrote, " Start with the biggest, hardest, and most important task first."

The concept, also known as "eating a frog," is said to have come from Mark Twain. If you eat a frog first thing in the morning, you can generally be sure that it's the worst thing you'll have to do all day. Once you have accomplished this, the other tasks won't seem as difficult, and it should be smooth sailing for the rest of the day.

Look at your to-do list every day and figure out the most difficult things on the list. Get them done and out of the way right off the bat. Don't procrastinate - that will just prolong your suffering, reduce your productivity, and get in your way until you have finished it.

 

You isolate yourself instead of reaching out for help

 

You can't do it all yourself, and you will get more done if you trust your colleagues and direct reports to take on some of the work.

Inga Beale, chief executive at Lloyd's of London, told the New York Times in 2017 that her secret to success is to " surround yourself with the best people you can find and empower them."

You may feel that you can do everything better than anyone else, but let go of some of your perfectionism to allow someone else's way to be good enough. And if they fail - that's the best way to learn, right? Find a way to work with the people around you, rather than feeling threatened by them.

According to a study from Stanford University, just the feeling of working together with others can increase motivation when working alone and help turn "work into play."

Working together not only increases the enjoyment of work, but it can also improve workplace relationships, which in turn can improve trust, foster greater creativity, and even improve your health.

 

You struggle with indecision

 

If you have decisions to make at work, and you spend time agonizing over finding the very best choice in a situation, you can drive yourself crazy. You could also be setting yourself up for more misery later.

As Tim Herrera, the founding editor of Smarter Living, wrote in the New York Times, trying to find the absolute best choice may lead to " indecision, regret and even lower levels of happiness ." People who insist on finding the absolute best solution to a problem tend to be less satisfied with their choices than people who make quicker decisions.

Try to make a good decision, one where you will be fine with the outcome. Then move on to other tasks. You'll waste less time and feel better, too.

 

You make your life all about work

 

When you spend time away from your work, you come back to it refreshed and with new perspectives.

Keep a barrier between your "off" self and your work self, and get some balance in your life. A study by researchers from the University of Pittsburgh found that pleasurable leisure activities improve not just mental health, but physical health as well.

Happy people are more productive workers, as a study at Warwick University found. With no down time to refresh, you just bring a burned-out shell to work every day, and that burned-out you is making your job harder. Bring a better you to your job, and you'll get more done with ease.

 

2019-05-18

The winds of change and modernization in Tipax

What you read is a summary of my interview to the Winter 1397 volume of Tipax magazine .

Our keys to Survival

 

In Iran, the number of companies that have been operating continuously for half a century is few and far between. Tipax is alive and this is because we put our heart and soul into our work.

In the 60's and with regard to the problems we faced in the Iran-Iraq war, it was not efficient for our company to continue its activity. But my father, as the founder of Tipax, spent a large part of his capital to survive this company.

Some of my friends and colleagues believe that this interest in the post industry has also penetrated in my gene.

I think it is true. I love this industry. I've always been with my father experimenting all parts of this work with him, from writing a contract to loading trucks. I also spent a lot of time in the UK, studying the postal industry in the world and my goal was always to return back to my country and introduce a modern postal service to Iran.

As one of my friends said once,

"it is my mission to improve postal and courier service round-the-clock.”

 

Tipax international is coming back

 

Tipax was the only option for international post and parcel in 50’s in Iran, however, we suspended our international department due to some issues.

Nowadays, we are going to open our Tipax international again and we had negotiations with the countries of the region.

 

Need to improve the standards in the postal industry

 

Unfortunately, our people do not get standard postal services. Although UPU (Universal Postal Union), has defined standards for the provision of postal services, and anyone who works in this area is required to comply with this standard, it not the case in Iran.

In Tipax, we're trying to offer different services from the past. We are now the only company to offer all processes in an automated method. The issue of paper sheets in Tipax has been completely stopped. Before this strategic change, our paper consumption was as much as a bank.

 

In our view, the services we provide are not enough and we need to have a variety of services to meet the demands of our customers.

In this regard, Tipax customer service has launched a system to record and track customer complaints. We have recently launched the Customer Care unit in our marketing department as well.

For the environment and to reduce our carbon Footprint, we are ready for electrification of our vehicles and it needs some infrastructure and governmental support.

 

A package can be shipped by bus, for example, at cheaper prices than Tipax. However, maintaining the security of the parcel is very important and, of course, a bus has no facilities and expert staff for parcel delivery. In this wrong way of shipment, the package may be damaged and no insurance will cover this damage.

In Tipax, as one of the right ways of shipping parcels, people can call one of our branches or ask our staff through My Tipax application (in the near future) to deliver their parcel. Our shipping calculator estimates the time and cost of delivery based on the destination and service. This parcel is shipped in a standard method and delivered on time.

 

Tipax in 1397

 

First 6 months of the year was very challenging for us. We launched our modern Hub.

One of our challenges was our technical challenge in the hardware and software sector.

But more important than the above, any change is accompanied by resistance. Some of the colleagues inside the company resisted these changes. Some of them suggested that we should again use those traditional processes. Some believe that Tipax is dying.

“But we accepted The Winds of Change. We believed if we fail to establish a new system today, we will never succeed.”

 

Now, through 300 branches in 220 cities to 250 cities in the country, we have about 50,000 shipments per day.

 

The position of TIPAX in the postal industry in the country

 

According to experts and even our competitors, Tipax is the market leader Courier service in Iran. However, we can take more market share by providing new services.

 

Our major challenges for the next year

 

From our big challenges and, of course, my personal challenges in the coming year is we have a lot of developmental plans and we are keen to implement them as soon as possible, and we have very limited time.

the average age of our colleagues in the headquarters has reached the age of under 35 and the employment of young and educated staff is one of our challenges this year.

Finally, I think that our ultimate challenge will be healthy competition with other industry players.

 

 

2019-05-14

First private postal operator

It is not supposed that the private post operator “overprotects” all postal and courier services in Iran.

          Said Mehrdad Fakher, the chairman of the board of The first private post operator of Iran.

 

         This is the first official talk of the Tipax magazine focused on "the Private Post Operator".

_Dear Dr. Fakher, the Chairman of the Board of Directors in the first private post operator in the country. It is now about six months that the first private post operator of Iran got its license. Which progress has been made in the establishment and launch of this operator?

         - The main part of this question should be answered by the CEO of the Operator, Mr. Rezaei, because he and his executive team are the leaders, and they are aware of the details of the progress in work more than me.

          Yet, I could mention that during this six months the operator has been completed its structure and tried to study and evaluate the exact situation of the postal and courier industry of the country.

We are doing so to provide the optimal business model in accordance with the postal conditions in Iran and international environment with respect to the goals of Fakher Holding.

          Post is a dynamic industry in the world. Our government’s decision to reduce its size is a key strategy for the dynamic and progress in this industry. The government and the Ministry of Communications and Information Technology have made great efforts to achieve this goal.

          It is now the duty of the private sector to demonstrate the outcome of this process in the society through its experiences and agility.

          However, this will only happen with continued government and parliament supports.

 

 Businesses that they want but cannot connect to the post!

 

         - What is the operator's position on the roadmap of Fakher Holding? What are the goals of Fakher Holding for the Operator?

          -What is considered for the operator in the main Holdings strategy is the development of business communications from the perspective of logistics and courier services. This is only possible by creating more opportunities for the profitability of these businesses. Opportunities such as potential postal customers, the discovery of dark markets, or the new services are resulting from the synergy of these businesses.

          For example, value-added services (VAS) for postal businesses in many developed countries, help to increase business revenues and the aggregation of services.

          The transfer is no longer the only duty of the post. Therefore, the operator should not only focus on the development of postal service quantity, but also should pay attention to basic postal services.

Certain things may seem obvious to businessmen or businesses that deal with the post and courier industry.

          For example, it is clear that for improving the quality of mail services, several factors could be important for the receiver or sender at the time of sending, length of route or receipt. There are many factors such as speed and time of shipment, trustee, safety and protection of the package from damage, cost of delivery, ease of delivery and etc.

          But what is not very clear is that many of these variables are directly or indirectly affected by the infrastructure. And if we do not improve the infrastructure, both consumers and businesses could not reach the goals that I said.

          These infrastructures include communication and information technology infrastructure, transport infrastructure, infrastructures for financial exchange, legal issues, insurance and etc.

          It could be interesting for many audiences that in several countries the Ministry of Communications and Information Technology is integrated with the Ministry of Roads and has one minister.

        Of course, it is clear that the operator cannot enter and operate in many of these cases. This means that the operator becomes the designer and implementer of a standard and up-to-date system, based on the local and national characteristics of our country.

          The postal industry of our country and especially its private sector work locally and are almost unfamiliar with the international work space due to various reasons such as the traditional background of our postal activity, sanctions and many other problems.

          As a result of low quality indicators and standards, we won’t be able to connect to the international market. We need to communicate with international companies to improve quantitative and qualitative indicators of the postal service. In this regard, it is imperative to have new and up-to-date systems and methods.

          Here I would like to provide an example of one of the most important business topics which is e-commerce. E-commerce is one of the businesses that has entered and developed in Iran without considering the standard logistic infrastructures.

          Online stores have developed the platform and user interface (UI) and financial transactions, but did not do nothing about goods exchange, supply chain and logistics and they failed to adapt themselves to the infrastructure. This causes dissatisfaction and, as a result, brand loses its attractions for the customer.

          Jack Ma, the founder of Alibaba in China, points out this with a theory called “the Iron Triangle”. The triangle is a combination of e-commerce, logistics and finance.

          It is very important that startups and new businesses, whether they are in the start-up phase or in the process of development, can get help from specialized consultancies and tailor their services to the standards of logistics systems. This can be a key opportunity for the operator to be one of these references.

          The spectrum of these businesses is wide in terms of the financial outcomes and other terms such as cultural, geographic, age and diversity of business itself. For example, for a person working with a van on Mellat Street, who loads goods for three cities, it's a nightmare to hear the name of an operator. The use of terms such as standardization and the organization of the courier structure means bureaucracy and the fear of costs for that person and he thinks he has no profit from it. However, if we can fit ourselves with his mindset, he will come to us and accept our plan. We must first know his needs. This person does not have any insurance for a rainy day and there is no guarantee for those goods which carry from Tehran to specific cities in the country. There is no improvement for his income and If he wants to talk to his child about his job, he does not have a clear title or vision. These are all the pain points of our audience. This person is a small courier system which is an unstable one.

This instability can harm his own family, customers and society. The operator is responsible to organize this situation. And this position should be properly explained by the public relations and brand management specialists of the operator.

 

For a person working with a van on Mellat Street, who loads goods for three cities, it's a nightmare to hear the name of an operator.

 

-What do you expect as the chairman of the Board of Operator from its managers and staff?

         - First of all, I want from management, and then from the public relations department of the operator, holding, Tipax and its other sister companies to clarify any ambiguity regarding the role and position of the operator. Many of the staff in the Holding congratulated me, put the posters in their branches, and were pleased that the Holding family has received the license of the first private postal operator. However, perhaps if one of their customers asks them about the operator, they cannot provide an explanation about the position and roles of the operator. Or worse than this, they give an explanation that is false and damages the operator's brand.

          For example, one of the old employees of the branches told me: "It would be good if the operator lunches. nobody can threaten our business and smuggle”. Yet, this volume of investment and activities is not supposed to make us a so called “Big brother” in the postal industry.

          As one of the major policymakers, I say that this is a wrong illustration about the operator. This the is not mission and vision of the operator that we want to stablish in the post industry. The operator should help small businesses, local couriers and even the government to expand their market and connect properly to the supply chain. If we were unable to build this platform, we could not properly capture the main task of the operator.

 

We should not destroy the brand of the “Operator”!

 

- What is the relationship between of the  brand of Tipax and the Operator?

          - Tipax has more than half a century experiences in the field of courier service, and perhaps this has also contributed to building the trust with the government and obtaining technical license. However, Tipax, TPX, or any other company that wants to participate in the post and courier services are the target audience for these development strategies of operator.

          The certain position of operator is the organizer of the whole system of postal and courier service. In order to establish a transparent and fair order, it must behave in a way that all activists can achieve a win-win business. This this is only possible when we treat Tipax, TPX and other sister companies in the holding_ that interact with the postal system_ in a fair and honest way.

          For example, one of the most important ethical principles in the operator is keeping the information of businesses secret. For that reason, the entire operator structure is designed and managed independently.

          Even the majority of operator’s staff do not have any record as Tipax employees. The first principle of working in a healthy environment is to keep business data safe.

 

a continuous and win-win relationship requires fairness

 

- Can you explain about the name and the brand of the operator and its situation?

          - We had good negotiations with reputable and experienced agencies for brand and naming and we also signed a contract. Good signs and logos are also designed. I hope their information programs are well implemented so that they can communicate with their main audience.

 -Can I ask your opinion or, more precisely, your feelings about the post industry in Iran?

           - According to my information, Iran has the first postal system in the world.

“...neither snow nor rain nor heat nor dark of night will keep these swift messengers from the accomplishment of their appointed rounds."

          I'm proud to see this statement from Herodotus, which is installed on the door of the post office of James Farley in New York City, USA.

          This sentence could be the slogan of the “Chapars” about 2500 years ago for the postal system that the Iranians invented and developed.

          However, we are not proud of the todays status of post industry in Iran. I do not want to give you an exaggerated overview of the numbers and figures that managers provide from post and logistics.

          We can say that, our rank is about 50th in the world in terms of quantity and number of postal items and a little higher than Turkey and Saudi Arabia in the region.

          Moreover, we can say that the average delivery of items per person in Iran is about 8 packets per year, while the index is 50 in the world and we are far away from the first rank, the United States, with about 1000 items per year per person, or Switzerland which has the next rank with about 800 items per year per person.

 

The standard we need to reach is the Iranian satisfaction smile that we are still far from it!

 

I do not want to make a black-out or projection. Obviously, our current post, which has been re-launched and developed since the Qajar dynasty, is still young and endures harsh conditions such as sanctions and international pressures. I was born and raised in a post related family. my problem with the current status of the post is from qualitative rather than quantitative perspectives.

          To assess the status of the post, it's enough to ask the micro-customers or businesses that deal with the courier and Post industry. Then we realize that we are still far from the standards we need to comply with.  The result of that standard is the satisfaction of Iranians. Our people deserve more quality than what our post have today.

          I am always proud of the post history in Iran. We can only pass this test if we will answer the needs of our ordinary customers, large businesses and International exchange in their desired quality.

 

     God willing, with the support of authorities, your guidance and the efforts of your colleagues, we will achieve this great goal. Thank you for providing us and our audience with your time. Hopefully, we'll have another opportunity to get to know more about the details of your personal strategy in the field of Courier and Post.

          It is a pleasure for me. Thank you and all the activists in the field of post and information.

Good bye and God bless you

 

2019-03-02

The Future Banking Magazine

Does Tipax or Fakher holding use the latest technology?

On the pretext of interviewing the Future Banking Magazine.

Does Tipax or Fakher holding use the latest technology?

 

Many of my colleagues know that I believe in one principle which is the Change. In my opinion, when the change occurs, there are three categories of people:   

  • Those who do not accept the change
  • Those who change with it
  • Those who make the change

The first category is omitted, the second group which accepts the change will remain in the path and can continue. But the third category, which is the cause of change, can lead the businesses.

Considering Tipax, due to its first presence in Iran's Private Post, it is a brand that has been shown to be the creator and the agent of change. But we need to consider that the speed of development is high. In order to keep Tipax or other holding’s companies alive and as the "leader" of Courier Services, they should continue to seek changes.

What programs have you implemented for this change?

 JET system, I think, is one of the best examples of this. The mission of this system is receiving and recording items in a network-based dataset for digital tracking.

Moreover, the establishment of  the first fully automatic hub in the Middle East called "T-hub", brands like Tinext, which is an intelligent assistant startup for businesses and customers, and other new sister companies of Tipax in Fakher holding, are the signs of the implementation of those programs in the changing direction that I mentioned before.

We have to be geared toward digital technology and to stay as the business leader by localizing these technologies for Iran, the region, and in some cases for the entire postal and logistics industry.

What happened in sending and receiving methods in physical and virtual areas after Shedding skin in Postal industry. What is the Fakher holding’s policy in this regard?

I read an article from Forbes magazine sometimes ago, which showed that in a survey from senior executive transportation managers, 65 percent of them believe that this decade will be a renaissance in the supply chain, transport, and logistics.

At the first level, the whole circular process of the data from the touch points to the distribution and tracking of items during the transfer should be electronic.

On the second level, the work begins on the data itself. Data mining, artificial intelligence, and deep learning about items are one of the most important horizons of increased productivity in the logistics industry of the world.

In the Fakher Holding, experts in the fields of information science and data are focusing on the localization of these technologies and methods.

T-Hub is the first split-off system form “Afraz Payaneh Iranian” company. It is one of the sister companies in Fakher holding, which is responsible for setting up and managing postal distribution hubs.

Finally, the third level of this skin shedding or changes is actually the fourth industrial revolution. The presence of the Internet of Things and the development of Internet networks are on the cutting edge of science.

What strategies have become the top priority for businesses like Tipax in their business model?

The focus on the development of business communications from the simultaneous perspective of information and logistics is our main strategy. This is only achievable by creating more opportunities for the profitability of these businesses. Opportunities such as potential postal customers, the discovery of dark markets, the new services provided by these companies, and so on.

Moreover, more interaction with the international business environment is also our core strategy.

Our other strategy, as I said earlier, has been to focus on electronic businesses as well as other activities. Developing a distribution system for postal items, developing an e-commerce management system, and other programs in this regard are examples of these programs in our strategy.

In the postal sector, the sensitivity of the customer is more than other industries. what are strategies of Tipax in this regard?

I am born and raised in a postal family. The motto of Tipax indicates our sensitivity to the customer that my family and I are very determined about it. Our slogan was: "speed, accuracy, and security" and it is now “leave it to us”.

 if you look carefully, all of these words are based on customer needs and demands, and our customer-oriented programs are based on these three principles.

Would you please tell us more about Tipax Company?

Tipax is almost 60 years old and is one of the most valuable brands in Iran. This brand has emerged as a courier system and point-to-point transportation in the logistics industry of Iran. Many international multibillion-dollar companies like DHL, FedEx, Ups, and TNT are active in this field. Yet, it’s interesting to know that Tipax is older than all of these brands!

Brand life is one of the most important brand value indices, yet Tipax does not want to boost its age and put it at its core. But is determined to improve its productivity through new solutions, and to play an effective role in restoring Iran's postal industry.

 

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WHAT WE DO
WE ARE HERE TO INVEST IN BUSINESSES

Fakher Holding has been established with the aim of creating a business ecosystem in the specialized fields of post, logistics, e-commerce, manufacturing and trades. Our main goal is creation of new businesses in aforementioned fields and provide products and services in the context of those businesses. Beside creation of new job opportunities, Fakher holding task is creation of appropriate infrastructure, based on information Technology which will result to life welfare level upgrade. Our main strategy is to attract creative ideas, investors, advisers and experts. We endeavor to take solid step towards our mission to upgrade Iran’s economy and welfare.

ABOUT FAKHER
WE ARE A HOLDING AND INVESTMENT COMPANY

Fakher Holding has been established with the mission of formation and management of Fakher ecosystem and strategic management of her subsidiaries and affiliates. Fakher holding is determined to create new businesses and develop appropriate infrastructure, to form a comprehensive exchange of values among people, government and suppliers of goods and services.

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Fakher Holding has been established with the mission of formation and management of Fakher ecosystem
We embrace new thoughts, concepts and ideas. Our value is to thrive, nourish and shape quality businesses and empower Fakher ecosystem.
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Fakher holding considers the organizational culture, as a sharable and transferable pattern. Special architecture of human resources, tailored to the goals of the Holding, directs realization of the new organizational concepts.

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