CPC Supply Chain Management

CANADA POST CORPORATION

Created by:

Victoria LuticTarun Kumar

Halima SiddiqAsim Rauf

1. Executive Summary 2. Mission Statement

3. Code of Conduct 4. History

5. Organization Structure 6. Management Structure

7. Supply Chain Management 7.1 Information Technology Systems7.2 E-Commerce & M-Commerce 8. Financial Statements

9. SWOT Analysis 10. Conclusions & Recommendations

TABLE OF CONTENTS

Type Crown corporation

Industry Courier

Founded 1867

Headquarters Ottawa, Ontario, Canada

Key people Deepak Chopra, President and CEO

Marc Courtois, Chairman of the Board

Products Courier express services

Freight forwarding services

Logistics services

Employees 71,000

Website Canadapost.ca

Executive Summary

Outside of its letter service, CPC competes directly with other suppliers and has the same flexibility enjoyed by private-sector enterprises to move in and out of markets and services.

Canadian postal administrations have been providing parcel services since 1859.

In 1990 the CPC formed Canada Post Systems Management Ltd (CPSML) to market Canada Post systems and technology worldwide.

CPC and its affiliate Purolator Courier Ltd collected, processed and delivered 9.23 billion pieces of mail and parcels during the 1997-98 fiscal year.

Together with its affiliated companies, Canada Post ranks 32nd among Canadian businesses in terms of revenue and is the 5th largest employer in Canada, with 63 000 full and part-time employees.

Executive Summary

Canada Post is basically a post agency, its mission is collection, transmission, and delivery of messages on a right time, letters and documents from one place to another. The company's service include ePost, PostCS and Boarder free. It operates three lines of business such as Transaction Mail, Parcels and Direct electronic communications.

Vision: Canada Post will be a world leader in providing innovative

physical and electronic delivery solutions, creating value for our customers, employees and all Canadians.

Our Values: Transformation - a change into someone or something

completely different to win in the market place. Customer- Serve customer with pride, passion and the golden

rule when dealing with such a situation is customers are always right.

Integrity- act with responsibility and its a concept of actions, principles, values, methods.

Respect- Treat each other with fairness, taking care of each other respect while you do something.

Safety- Main point is what we do, making sure everyone is safe and have healthy environment for all the stake holders.

Mission Statement

Canada Post’s corporate values reflect the principles, beliefs and aspirations that guide our behaviour and shape our culture.

Building and maintaining trusted relationships with employees, customers, partners, suppliers and our shareholder is fundamental to our business, our reputation, and our success.

Harassment: Every Canada Post employee has the right to a

workplace free from harassment. This includes harassment based on a person’s race, national or ethnic origin, colour, religion, age, sex (including pregnancy and childbirth), sexual orientation, marital status, family status, disability (including previous or present drug or alcohol dependence), or pardoned conviction.

Code of Conduct

Equality in Employment:

Canada Post makes its employment decisions based on each person’s qualifications and abilities, and not on race, national or ethnic origin, colour, religion, age, sex (including pregnancy and childbirth), sexual orientation, marital status, family status, disability (including previous or present drug or alcohol dependence), or pardoned conviction.

Canada Post makes reasonable individual accommodation for qualified individuals with known disabilities or other special needs.

Conflict of Interest: Canada Post expects its employees to act in a way that

preserves and enhances its reputation as a trusted provider of service. The honesty and impartiality of Canada Post employees should never be in doubt.

Code of Conduct

Workplace Safety and Health: Canada Post makes every effort to work with employees and

bargaining agents to make our workplaces as safe and healthy as possible.

Canada Post provides resources and programs through Occupational Health Services and the Employee Assistance Program to foster healthy lifestyles, assist employees and family members who may be experiencing difficulties in their personal or work lives, and help to safely reintegrate disabled employees into the workforce.

Marketing and Competitive Practices: Canada Post competes vigorously but fairly in the marketplace to

provide products and services of good value, generate a profit and ensure the company’s future growth.

Privacy: Canada Post protects the privacy of employees, customers and

business partners who share information with the corporation.

Code of Conduct

History

Organization Structure Set targets in the Service

Charter and the Financial Framework; 

Approve prices in the exclusive privilege area;

Authorize expenditures and investment above a certain threshold;

 Limit the Board’s borrowing authority to a certain level;

Approve corporate plans and budgets and required dividends.

Establish a scorecard for corporate performance.

 Management Structure 

Deepak ChopraPresident and Chief

Executive Officer

Kerry MunroGroup PresidentDigital Delivery

Network

Jacques CôtéGroup PresidentPhysical Delivery

NetworkCanada Post Corporation Management also includes:

• 7 Senior Vice- Presidents, including head management of Innovapost Inc. André Turgeon

• 12 Vice- Presidents

Lower your costs and improve your service... the leaders in supply chain management aim for nothing less

Canada Post Supply Chain Management portfolio includes: Order Management Warehousing Fulfillment Reverse Logistics Transportation

Supply Chain Management 

Supply Chain Management 

Business to business/consumer (B2B/B2C) and direct to store (DTS) logisticsSCI Logistics provides multi-channel fulfillment solutions for businesses of all sizes. Fast and flawless order execution ensures that your inventory is accurately managed, orders are quickly picked and packed, and returns are processed promptly—saving your company time and money. 

Manufacturing, technology, and communicationProgistix Solutions Inc. specializes in building end-to-end logistics solutions for the manufacturing, technology and communication industries, including the development of Critical Parts Networks (CPN) and Field Technician fulfillment processes. Progistix has proven experience helping large companies shrink product lifecycles, support multi-channel distribution, and provide after-market maintenance support. 

Customized transportation servicesFirst Team Transport provides specialized transportation services for high-value and sensitive cargo throughout Canada, along with dedicated contract transportation and freight management solutions.

IT infrastructure: mySAP Business Suite Change CPC from function-based organization into process- based, and from

information -rich environment to a rich -knowledge environment Implemention of mySAP Enterprise Portal; mySAP Customer Relationship Management

(mySAP CRM); mySAP E-Procurement;  mySAP Business Intelligence (mySAP BI); and industry-related applications from the SAP for Retail and SAP for Technology portfolio of software and services

Permits Canada Post to align access channels with customer needs, and in so doing, optimizes the sales and service functions. As a result, the sales force has been relieved of time- and cost-intensive customer interactions.

Canada Post's Address Improvement Program (AIP) The Address Improvement Program (AIP) is a new address repository being created by

Canada Post to ensure that the address data they collect for use in the postal code database is accurate and complete. As part of this effort, a new single database called the Address Management System (AMS), containing all the mailing addresses in Canada, is being created.

Project Management System - Delivering Postal Transformation Undertook a $2B+ Postal Transformation (PT) program to modernize and streamline its

operations while maintaining its high level of service

 Information Technology Systems

E-Commerce & M-Commerce

Canada Post e-commerce Solutions www.canadapost.ca/ecommerce can help savvy online retailers create the best possible online shopping experience — from browsing through checkout, purchase, delivery and even product returns. M-Commerce (2012 data)

• Canadians conducted over 23.7 million transactions on the app

• 26,000 users access their epost account via mobile app

• 15 million times to track a package

• 1.2 million check ups for post office locator

Revenue: 2012 of $ 7,529 million and 2011 of $ 7,484 million Net Income/(loss): 2012 of $ 94 million and 2011 of $ (188)

million. The increase of income from 2011 to 2012 is due profit on accounting gains of $ 127 million.

Liquidity: Cash and cash equivalents of $298 million as December 31,2012- an increase of $27 million compared to December 31,2011

Assets: in 2012 have total of $ 7,018 million comparing with 2011 of $ 6,744 millions. Mainly due to PP&E acquisitions and acquisitions in Logistics segment.

Liabilities: increased in 2012 to $9,666 million comparing with $8,375 million in 2011, due to actual losses on pension, employment and other benefit plans, customer prepayments and corporate restructuring at Purolator

Financial Statements

SWOT Analysis

Strengths• Offer the best reasonable

prices• Advanced technologies• Enhanced efficiency at

each transaction

Opportunities• Reduction of

Administrative costs• To keep updated and

performed the mySAP system

• Low cost strategy

Weakness• Huge Data management

required• Additional investments

required

Threats• Negative publicity• Loss of supplier 'support• Difficulties of internal

users to adapt to new IT systems

Canada Post is a Crown Corporation with mandate from Government of Canada to self-sustain financially and to provide affordable prices and good quality services.

CPC operates the largest retail network in Canada CPC is a component of Group of Companies that additionally

includes SCI Logistics, Purolator Holding Ltd., and Innovapost Inc. The past years CPC shows losses in its revenue that’s why made

decision to make changes in their strategy, policy and the future views

A retail franchise model was implemented placing full service postal outlets within a host business (postal outlet within a drugstore, supermarket, etc.).

Franchise stores are more productive in terms of revenue, traffic counts, and cost.

Conclusions

58 percent of its retail outlets remain corporate-owned and operated.

Canada Post has released an integrated Five-point Action Plan that will form the foundation of a new postal system designed to meet the needs of busy Canadians. The implementation of this plan means Canada Post can return to financial sustainability by 2019.

Conclusions

The extension of door-to-door delivery to all Canadian households. A clear directive to Canada Post to expand into new service areas. Redefying their role in new economy To make investments that will drive higher

performance To improve their digital products for digital

economy To improve the effectiveness of customers’

Direct Marketing mail campaigns

To improve shipping and delivery services to the on-time point

To improve and maximize productivity of service agents, call centers and security of the mail

Recommendations

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