This is a summary meeting focusing on the phased results of the Yangtze River Delta region mail speed-up work, and also a mobilization meeting to accelerate the development of the parcel, express and logistics business for new breakthroughs.

In order to fully implement the requirements of the central government for putting quality first and giving priority to performance and promote the high-quality development of parcel, express and logistics business to build the delivery wing of China Post into the "national team" of the industry, China Post Group launched the "Mail Speed-up Campaign" within the Yangtze River Delta region on December 18 last year. After 4 months of unremitting efforts, the target has been reached three months ahead of schedule and remarkable results have been achieved. On April 28, China Post Group held an on-site meeting on this speed-up campaign in Nanjing, Jiangsu. At the meeting, successful experiences were summarized. Discussions were made on further reducing the time limit of the postal network, improving customer experience, reducing operating costs, enhancing market competitiveness, expanding market share and promoting the higher quality development of the parcel, express and logistics business. Besides, the meeting also laid out specific tasks on further improving the speed of mail delivery and deepening the reform of the delivery wing.

Three major achievements accomplished while breaking through difficulties

After the launch of the mail speed-up campaign within the Yangtze River Delta region, four provincial and municipal postal branches, namely Jiangsu, Zhejiang, Shanghai, and Anhui, faced up to problems, made innovations, challenged themselves, overcame difficulties, pushed forward the speed-up work in a down-to-earth manner, and made three major achievements. First, the time for regional express parcel service was significantly reduced. Second, the awareness of addressing inadequacies in three perspectives (customer, competition, and industry best) was significantly enhanced, and measures were effective. Last, the ability of regional postal network management was greatly improved.

As of the end of March 2019, the next-day delivery rate of express parcels within the Yangtze River Delta region reached 85.5%, rising by 34.6 percentage points. While that of standard express items became 93.5%, increasing by 11.8 percentage points.

According to the data platform of Cainiao, the next-day delivery routes of standard express provided by the four provincial and municipal postal branches remains the top two in the industry, while Zhejiang, Jiangsu and Anhui Postal Branches have always been the number one. The next-day delivery routes of the express parcels by the four provinces (municipality) have all ranked the top 4 of the industry. Zhejiang, Jiangsu and Anhui Postal Branches have long been in the second place, and Shanghai Postal Branch has jumped from the 12th to the 4th.

Shorter time limit and better services have been gradually perceived and recognized by customers, and efforts to drive the development of the key markets have also begun to take effect. In Q1, the domestic standard express business volume of the four provincial (municipal) postal branches in the Yangtze River Delta region reached 80.99 million items, a year-on-year increase of 10.5%, and an increase of 2.75 percentage points over the Q4 growth of last year. In Q1, the daily average volume of express parcels mailed within this region was 1.3 million, a year-on-year increase of 44.6%.

At the meeting, Du Fu, General Manager of Jiangsu Postal Branch, and Cao Ming, Secretary of the Leading Party Members’ Group of Jiangsu Postal Branch, said that starting with benchmarking the whole end-to-end process, all links and all elements of all the services, Jiangsu Postal Branch has addressed inadequacies, shored up points of weakness, and strengthened advantages. Meanwhile, it has attached great importance to technology empowerment and developed independently a monitoring system that could control the whole process from collection to delivery. In March, the next-day delivery rate of express parcels from Jiangsu to other part of the Yangtze River Delta was 81.85%, 43.8 percentage points higher than before the campaign. The next-day delivery rate of standard express items was 89.65%, 14.82 percentage points higher than before. The average delivery time of express parcels shipped within the province and to the other parts of the Delta region was compressed from 34.21 and 27.52 hours to 26.73 and 24.37 hours respectively. In Q1, the volume of express parcels to the Yangtze River Delta region from the province increased by 37% year-on-year, 14 percentage points higher than the average industry growth.

Chen Qing, General Manager of Zhejiang Postal Branch, introduced their practices, which attracted the participants’ attention. Zhejiang Postal Branch focused on institutional and mechanism reform and the optimization of network and process. They innovated and promoted the “mixed collection + integrated packaging” operation mode and the quasi-franchise model of operational units, and refined the cost benchmarking model of all links, so as to effectively reduce cost and improve efficiency. Their T+1 level (next day delivery) within the Delta region has increased significantly since the speed-up campaign. Compared with last November, the next-day delivery rate of the inter-provincial outward standard express items has increased from 60% to 95%, and that of the intra-provincial ones increased from 69% to 95%. The next-day delivery rate of the inter-provincial outward express parcels has increased from 35% to 85%, and that of the intra-provincial ones from 54% to 95%. In Q1, the Provincial Parcel, Express and Logistics business Unit realized a profit of 113 million yuan ($16.42 million), ranking first across the country. The average cost of single mail item was 2.92 yuan, the lowest in the country. The contribution margin ratio reached 25.39%, nearly 9 percentage points higher than the national average.

According to Chen Bichang, General Manager of Shanghai Postal Branch, the next-day delivery rate of express parcels in the Yangtze River Delta region was 88.9% as of the end of March, 35.3% higher than before the campaign. The next-day delivery rate within the municipality was 94.1%, also increasing by 35.3%. Their main practice is to strengthen coordinated development based on the integration of postal and express resources. They formulated targeted schemes to address inadequacies, stimulating joint efforts from all outlets. Meanwhile, they optimized the operation and organization of all links, enabling great changes and positive results through some detailed reforms.

Chen Hongtao, General Manager of Anhui Postal Branch, said at the meeting that Anhui Postal Branch has significantly improved the quality of parcel, express and logistics business. In Q1, the first-contact resolution rate of the questionable mail items was 91.53%, ranking first in the country. The timely rate for mail claim settlement was 99.61%, ranking second in the whole country. At present, its market share (including standard express) in Anhui province is 19.3%, ranking first in the same industry across the province. These achievements owe much to their “handbook-style management” in the mail speed-up campaign. They laid out appraisal measures on the campaign within the region, and established a provincial appraisal and accountability mechanism. They stuck to problem-oriented approach, promoted evening-shift delivery, integrated customer service hotlines 11183 and 11185, and fostered WeChat groups of customers to provide them with caring and attentive service.

The unexpected achievements of the speed-up campaign firm the confidence in building "national team" of the industry

Liu Aili, Chairman and Secretary of the Leading Party Members’ Group of China Post Group, highly recognized the phased achievements of the mail speed-up work in the Yangtze River Delta region. He pointed out that since last year China Post had taken the chance of the discipline inspection and rectification of the central government and launched a "study, discussion and implementation" campaign to promote the in-depth and earnest study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, which had brought about tremendous changes to the whole group and enabled it to assume a new look. In particular, the four provincial and municipal postal branches in the Yangtze River Delta region have made great achievements in improving the quality and performance of the parcel, express and logistics business, which is far beyond expectation. They have achieved incredible goals, and the effects are quite inspiring and encouraging in terms of reducing time-limit, controlling costs, deepening reforms and integrating resources. Meanwhile, the staff have manifested great executive force and fabulous morale in this campaign.

Liu Aili said with excitement that this meeting held in Nanjing reminded him of the famous lines written by the late Chairman Mao Zedong after the People's Liberation Army took over Nanjing 70 years ago--"The Tiger girt with Dragon outshines days gone by. Heaven and earth overturned, our spirits never so high!" The tremendous changes in the development of the parcel, express and logistics business in the Yangtze River Delta region owe much to the discipline inspections and rectifications by the Central Government, as well as the continuous improvement made based on problem-oriented approach. They also owe much to the postal staff for their perseverance and hard work. It reflects that our leaders and employees possess sound capabilities, high quality and strict disciplines, and can assure victory.

Liu Aili said, the phased achievements of the speed-up campaign in Yangtze River Delta region have made us more confident and determined to accelerate the high-quality development of the parcel, express and logistics business sector and to forge the "national team" of the industry. This fully demonstrates that as long as we have the same understanding of our target, as long as we work hard and make concerted efforts toward it, we will surely be able to achieve tangible results and make the impossible possible.

If the postal branches in the Yangtze River Delta can do it, the postal branches elsewhere can do it too, and it must be done

Liu Aili pointed out that in the implementation of the mail speed-up campaign, the postal branches in the Yangtze River Delta has made new achievements, accumulated valuable experience, fostered vigorous and resolute conduct, and manifested fabulous executive force and morale, all of which can be taken as a very important reference and guidance for the development of the delivery service nationwide and the future development of China Post.

He stressed that the speed-up campaign of parcel, express and logistics business in the Yangtze River Delta region had concrete objectives, measures and effects. Such achievements are encouraging. Such results can evoke doubled confidence, and such practices can be replicated. Therefore, it is necessary to conduct a detailed analysis, summary and promotion of their experience. If the postal branches in the Yangtze River Delta region can do it, other postal branches nationwide can do it too, and it must be done.

Adhere to problem-solving orientation, and commit to the construction of the "Five Major Systems"

At the meeting, Zhang Ronglin, Vice President of China Post Group, referred to the research findings he obtained from the production frontline of postal companies and non-postal courier companies, studied such cases as construction of mail processing center and continuous optimization of business process. He expounded new approaches and reform measures on how to improve the capacity and efficiency of the delivery network. He called for relevant departments to push forward the optimization of the delivery network in accordance with the new appraoches, and to conduct in-depth research in such aspects as the efficiency of mail processing centers, sorting times, and mixed collection + integrated packaging” operation mode, so as to facilitate the network to reach the international level and industry-leading level.

Liu Aili emphasized the necessity and urgency of accelerating the construction of the "five major systems". He pointed out that the construction of the five major systems of time limit, cost, service, market and IT is an effective starting point for China Post to meet the benchmarks, address inadequacies, strength the weaknesses, and establish new competitive advantages. China Post should adhere to problem-solving orientation, accurately grasp the correlation and scientific connotation of the "five systems", and make clear that time limit is the premise, which is an "open sesame" for enterprises to acquire customers; cost is the foundation, the benefit and profit, and the essence of an enterprise; service is the key, the key point of customer perception, without service, there will be no customers; market is the root, the fundamental requirement for customer acquisition and retention, and the development of an enterprise ultimately needs a certain customer size and market size; IT is the support, it solidifies management ideas and measures, and guides management through big data analysis. Relevant departments should strengthen their responsibilities and commit to the construction of the "five major systems".

To the acceleration of the development of parcel, express and logistics business, Liu Aili stressed that close attention be paid to details and scientific working and effective monitoring should be achieved by continuous process and management improvement. Departments of the group company should play a role in the top-level design of the reform, while local postal branches should constantly put forward questions and suggestions in specific practices. The reform must be conducted from easy to difficult, from shallow to deep, from one point to the whole, from a single case to the whole system and from one link to another. For example, the reform of the collection and delivery ends, the reform of the transport end and the integration of the sorting centers all need scientific and precise planning. We should focus on the "four major services", adhere to the "two principles", take the construction of the "five major systems" as the starting point, work hard to solve the "six major problems" and achieve the "five breakthroughs". Finally, we will take the "three-step strategy" in order to be well-matched with our competitors, and forge China Post into the "national team" of the industry, as well as an important material and political basis of the CPC in governing and rejuvenating the country.

In the development of parcel, express and logistics business, we must clearly know our starting point and destination. Our starting point is to acquire and retain customers, and to expand market share. Our destination is to enhance the corporate competitiveness to achieve profitability, and to truly become an important material and political basis for the Party to govern and rejuvenate the country. All of our work must be centered around such starting points and destination. We should focus on the forecast and perception of customers’ demands, pay special attention to customers’ trouble, think for customers and respond quickly to their needs, acquire and retain customers through integrated solutions. All these are the direction of China Post's future service.

Liu Aili pointed out that General Secretary Xi Jinping repeatedly stressed the need to adhere to problem-solving orientation. The most dynamic enterprises are those that could constantly identify and solve problems. As long as problems arise in development, we must find ways to solve them so as to promote development. Otherwise, opportunities for development will be lost, so will the market. Relevant departments of the group should timely summarize the problems exposed by the postal branches in Yangtze River Delta in their mail speed-up campaign, listen attentively to the opinions and suggestions put forward by these postal branches, and constantly solve their problems. With greater strength, more practical measures and stronger conduct, we should persevere in deepening the reform of parcel, express and logistics business, and fully release the endogenous vitality, development momentum and market competitiveness of the enterprises.