Following my previous article, numerous inquiries arose regarding the direction NIPOST should take to maintain its relevance. The old saying goes, “The best time to act is now.” The Nigerian Postal Service, NIPOST, has two potential paths: undergo total privatization, or establish a Public-Private Partnership (PPP) to streamline its operations by specializing in a select scope of services. The first option screams akotileta (one who is so unenterprising as to live only by selling its inheritance) and giving foreign entities easy access to the wealth of data NIPOST possesses could be likened to handing over your house keys to strangers. The question of whether NIPOST has this data effectively mapped and structured is another discussion entirely.
Data is the new gold, and it’s baffling why we continually strive to create new data collection channels without maximizing existing ones. We have NIN centers, immigration offices, BVN centers all for the purpose of gathering citizen data. However, NIPOST is within reasonable distance to every location and can easily validate citizen information. In the US, citizens can apply or renew their passports at the local post office. Yet, in Nigeria, we’re subjected to the inconvenience of visiting an immigration office and subject to extortion for a process that simply involves payment and biometric capture for the passport renewal. This is assuming someone needs to physically verify you for this process
Returning to the main point, expecting NIPOST to implement a radical technological overhaul in a short period is as unrealistic as expecting an elephant to sprint 100 meters in 20 seconds. My proposition would be for NIPOST to collaborate with a PPP, utilizing its existing infrastructure to deliver tailored last-mile services driven by eCommerce offerings.
NIPOST has the potential to launch a competitive bidding process and implement a profit-sharing strategy to drive its innovative initiative over a specified period. This approach would allow for the integration of new technologies by its PPP partner to facilitate the new services which can then be adopted to enhance its existing services. The ultimate aim is to empower Public-Private Partnerships (PPP) to streamline and optimize the eCommerce service offering and operational process before transferring it back to NIPOST, aligning with the Build, Operate and Transfer model.
The ongoing collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is viewed by some as a strategic maneuver. However, it’s worth noting that this alliance may prove more beneficial for SMEDAN than NIPOST, as SMEDAN could leverage it to increase its membership base. I would like to assess the current available data of the number of SMEDAN members that have registered with NIPOST and are utilizing this 15% discount.
To counterbalance this, NIPOST must implement effective marketing strategies and offer services that bring tangible value to unregistered vendors. To effectively leverage the eCommerce platform and service offering, NIPOST should introduce a tailored last-mile delivery service, offering a range of package discounts, instead of the existing flat 15% discount for SMEDAN members. It’s crucial for NIPOST to avoid becoming merely a channel for SMEDAN memberships, as vendors should not need to hold (SMEDAN or any other) membership to qualify for these discounts.
NIPOST should instead introduce volume-based discounts for vendors, offering a selection of monthly or annual packages. This could involve vendors paying ahead for a set number of packages, such as 100 – 500, at a specific rate, with NIPOST providing discounts based on these volumes. This strategy would enable NIPOST to forecast its weekly or monthly volumes and revenue, facilitating more accurate logistical planning.
Furthermore, NIPOST could revolutionize its services by introducing a convenient, premium pickup service. This would allow for packages to be collected directly from vendor locations, adding value for an additional fee, and eliminating the need for vendors to visit the post office. This innovative eCommerce service should operate seamlessly alongside the traditional walk-in service, offering customers the flexibility to choose their preferred parcel delivery method. Furthermore, the eCommerce service should be readily available at all service counters.On the operational front, NIPOST could enhance its efficiency by streamlining its sorting processes across its 32 territorial head offices or central hubs. By leveraging the ample space these locations offer, they could be transformed into comprehensive sorting centers. The use of an optimized allocation engine would help drive the delivery process. This is a software or system that uses algorithms to determine the most efficient way to allocate resources. In the case of NIPOST, it could be used to determine the most efficient routes for delivery, the best way to group parcels together, and the optimal schedule for delivery. This would help to reduce the amount of time and resources spent on the delivery process, ultimately leading to low cost and better delivery service for customers. NIPOST can also leverage economies of scale to drive operational cost reduction.
A cursory examination of the NIPOST website reveals a need for significant improvements. Despite the expectation that the entire country should be accessible via NIPOST, a simple search for locations such as Agbowo and Abadina in Ibadan yields no results. The website also lacks a “post office near me” map feature. By integrating with map services, NIPOST can enhance its customer experience, making it easier for users to locate their nearest post office when registering for services.
Similar look at USPS, show the “Use Current Location” link which can map your IP address to a location and use that to find the closest post office to you. This feature allows anyone map their location to the closest post office. This would also give multiple post office location based on distance to the location from the IP address.
A significant advantage of this is that NIPOST can map delivery addresses to P.O. Boxes, requiring recipients to set up their deliveries for P.O. Box drop-offs. However, NIPOST leadership must grasp the complexities of the logistics business, understand market dynamics and use its operational strength to drive better efficiency whilst also adapting its systems to leverage latest technology for optimized delivery.
As someone who has extensively worked on last-mile delivery optimization, I can attest to the intricate process involved in establishing and exponentially scaling this type of service. Therefore, designing a service that caters to the needs of emerging entrepreneurs will necessitate adapting the service to match their current tech-savviness. Not to tooth my horn, I would love an opportunity to tackle this challenge.
One promising opportunity lies with small and medium-sized businesses, especially those not affiliated with professional organizations and thus unaffected by existing partnerships. To reach this customer segment, NIPOST could create a dedicated marketing division to collaborate directly with influencers and digital vendors, promoting awareness of this new service. It’s crucial for NIPOST to market directly to businesses, bypassing associations, due to the prevalent distrust of private delivery companies in Nigeria. NIPOST can fill this trust gap by providing a reliable, insured, and efficient last-mile delivery service.
Additionally, there are opportunities for partnerships with major retail companies such as Ebeano, Shoprite, The Game, and Addide, offering delivery services. This would necessitate Access Point Integrations (APIs) with business platforms. If needed, NIPOST could assist with the setup, enabling these businesses to process orders via eCommerce and transfer the details to NIPOST for direct customer delivery. Furthermore, NIPOST could extend its services to major online companies like Jumia and Konga, providing last-mile deliveries beyond major cities.
The one major advantage is NIPOST can also map delivery addresses with P.O. Boxes. This will require receivers setting up their deliveries to be dropped in their P.O. Boxes. The leadership of NIPOST must understand the market dynamics and the nature of the logistics business. Having worked extensively on the optimization of last-mile delivery, I understand the intricacies involved in setting and scaling this type of service drastically. Therefore, trying to create a service that targets the new set of entrepreneurs requires adapting a service to meet them at their current technological level.
A significant low hanging opportunity is with small and medium scale businesses, particularly those that are not registered with any professional bodies and thus are not influenced by current partnerships. To target this customer segment, NIPOST may consider creating a new marketing arm to directly collaborate with influencers and digital vendors to drive awareness of this new service. It is important for NIPOST to market directly to businesses (and not through associations). Given the substantial distrust of private delivery companies in Nigeria, NIPOST could fill a void by offering a reliable, insured, and efficient last-mile delivery service.
There’s also potential for collaboration with major retail companies like Ebeano, Shoprite, The Game, and Addide, to provide delivery services. This would require Access Point Integrations (APIs) with business platforms. Where necessary, NIPOST could help with the setup to allow these businesses capture orders via eCommerce channel and transfer details to NIPOST. NIPOST picks up and delivers directly to the customer. NIPOST could also extend its services to major online companies like Jumia and Konga to provide last mile deliveries outside major cities.
