Key challenges
The client was facing sharp decline in letter volume, yet huge increases in packet and parcel volume, causing processing capacity issues. TMX investigated possible network transformation of mail sortation facilities to accommodate future volume growth and reduce fixed costs.
Our approach
TMX reviewed current processes from end-to-end and identified tactical and strategic opportunities.
TMX also proposed the alternative network that will support growth in eCommerce demands and prepared a business case.
The results
TMX generated significant results through the identified tactical and strategic approach, including:
- Delivered a full-spectrum view of end-to-end network flows, processing costs, and product growth, putting data at the core of strategic decisions.
- Unlocked up to SGD$40M+ annual opex saving, lower network footprint, labor efficiency, and rent optimization through an automated sortation solution.
- Exposed bottlenecks and potential wins, activating immediate tactical moves while informing for long-term transformation.
- Engineered a future network with scalable, flexible, high-efficiency sortation, maximizing labor with minimal footprint.
- Delivered a bold, integrated strategy for handling Letters, Flats, Packets, and Parcels, streamlined for tomorrow’s demand.
- Revealed downstream consolidation opportunities powered by upstream automation, cutting complexity and cost.
- Built a board-ready, decade-long transition roadmap, de-risked and ready for execution.
Find out more about building a smarter postal supply chain in our whitepaper, Collapse or Revolution: How a Smart Supply Chain Can Deliver for Postal.
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