Présentation à PostExpo 2006 Trier les lettres industrielles (Relevés bancaires, factures EDF, assurance Etc..) à la fabrication par zone de distribution, créer un colis de lettres, livrer le colis dans un local E-BOX avec pour destinataire le « concierge de rue » de la zone, celui-ci se chargeant de la distribution. Plus besoin de La Poste, réduction des couts du courrier de 35%, traçabilité E-BOX a été nominée aux World mail awards en 2006 pour ce concept dans la catégorie innovation In the case of the further innovation here proposed, mailings from partnering routers are shaped in packets of letters by these routers for an optimal distribution in relation to each postal facility of a wide enough area, such as their surrounding or nearby familiar major city or region. Packets are taken from their own facilities every day and thrown into the mainstream of packets nightly carried across such area from one postal facility to the next by CitEbox logistic system at average public price, that is to say 1.5 euro per packet for the combined urban transportation plus the early morning retrieval by the partnering entrant’s mailman or mailmen related to this postal facility. Depending the number of routers and the type of mailing the number of letter-parcels per mailman may vary from one to ten each day but the total has always be planned so as to come close to the 1,000, as an example, that he is able to distribute each day for the precise sub-area targeted such day. Throughout their twice a week frequency per block, if not once, each mailman is able to concentrate on a narrow enough area, allowing them to distribute roughly 1,000 letters per day in these dense city locations, in a 400 m radius around each postal facility. This type of organization is the one that historical postal groups are heading to, thus promoting the advantages of their vertical integration upward. Other End-to-End mail distributors will adopt the same organization as soon as they can rely on night deliveries of the packets of letters mentioned above, each delivery stopping at regularly posted storage points from which the local postmen will start their already optimised tour each morning. As an example it is expected that DP/DHL will become a competitor of La Poste in France and the question comes about which kind of organization might be an efficient competitor of such behemoths. The innovation proposed by E-BOX, with its ‘CitEbox logistic system’, is that packets of 1,000 letters each, dropped during a day at CitEbox suburban depot, are delivered during the night and taken already sorted for optimal local final distribution by a mailman, for a mere 1 £ per packet, that is to say 0.1 penny per letter. The complementary payment to reach 0.13 comes from value-added services such as tracking and also the fact that all non delivered mail of a day are sealed by the related mailman in an appropriate bag, which was enclosed with the packet of this lo

1. TECHNOLOGY WORKGROUPS
A radical break
in the mail
supply chain
costs
Antoine MERCIER
CEO
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

2. Background TECHNOLOGY WORKGROUPS
E-BOX has since inception in 2000 focused on
research and development of innovative postal
services
In 2005, E-BOX invents “L’Agence Postale Rapide
e-box™”, presented at Post expo 2005 conference
in Paris
E-BOX has also conceived the CitEbox logistic
system™, which optimizes routing from a suburban
depot to all its related urban postal facilities
The urban depot will support a cluster of
conveniently located E-BOX automated postal
facilities remotely piloted through secured VPN,
high-speed line and Internet connection from a
central database
When parcels are put in each shared automated
box by a CitEbox delivery man their recipients
receive a text message and an email telling them
that they have mail or parcel to be collected at their
24/7 convenience.
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

3. TECHNOLOGY WORKGROUPS
The mail stream (mail manifesto 2006)
Mail & Physical Customer
Data Media Print & Documents Mail Response management
Services Services Production Services Distribution
8% 16% 14% 7% 51% 4%
72%
Electronic Mail Mgt Consolidation
Consolidation Services Transport
Print & Electronic Value added
Production Documents Mgt Delivery
Outward fulfille- Physical Commodity
ment & dispach Documents Mgt Delivery
Facilities
management
Represents 65% of the total market, that is to say for EU countries
133 billions of euros
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

4. TECHNOLOGY WORKGROUPS
Mail & Physical
Postal Industry major stakes Print &
Production
Documents
Services
Mail
Distribution
 The postal industry competes with other media for Direct Marketing and Account
Management communication, the both of which represent 90% of the mail flow
 Pressure on prices is going to increase in order to maintain this flow in developed
countries and create it in others
 The whole chain already has gone through impressive modernising and process
automation progresses. The weakest link still is mail physical distribution
 It is therefore vital for the postal industry to create a radical break in the physical mail
supply chain cost by decreasing the number of intermediaries – as in the « e-commerce »
revolution – and adapting mail distribution to economy realities (two mail deliveries per week
at each address for instance)
 Yet creating « low cost » postal processes shouldn’t be detrimental to the quality of
service as felt by the customer in terms of tracking, « day certain » and confidentiality
 Integrating new technologies at each step of the process will achieve such goal as
explained now
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

5. TECHNOLOGY WORKGROUPS
Mail &
Print & Documents Physical Mail Distribution
Production Services
1 2 3 4
4 Final street delivery by
each postman member
of e-box club
1 Print &Production and sort and
sequence by final delivery
postman from each e-box APR
address (packet of letters)
2 Transport of the packets of
letters to CitEbox suburban depot
3 CitEbox logistic system™
delivers the packets in the
automated postal facilities (APR)
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

6. TECHNOLOGY WORKGROUPS
The proof of the radical break in the mail supply chain cost
Now (1) Future
Print & Production 6,9 p 7,2 p
Mail & Documents Services 3,5 p 3,7 p
Consolidation transport 2,0 p
CitEbox network 0,5 p
Commodity delivery 8,0 p
Physical Mail Distribution 24,0 p Value added services 1,0 p
Cost reduction :
35% or 12 p per mail
Value added services piece
Total (pence per letter) 34,4 p 22,4 p
Hypothesis: UK Market, >35g letters, packets of 350 letters, two deliveries per week, Urban areas
(1) Source : the mail manifesto 2006 PUG
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

7. TECHNOLOGY WORKGROUPS
Advantages
The cost , the cost , the cost….
and even more for the whole mail stream:
 Intelligent mail tracking of each letter to the final customer letter box
 Data Hygiene with the management real time of the wrong address
 Day certain with the shortcut from the producer of the mail to the
final postman (concept of a ‘street janitor’)
 Response handling and data capture low cost solution through CitEbox
infrastructure
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

8. TECHNOLOGY WORKGROUPS
Who wins?
Conclusion on the impact of the Radical break:
- All the mail chain in its broadest sense wins when it is a competitive media.
- However foremost winners are intelligent mail analysis, preparation, printing,
folding and routing companies upstream and their customers since the
squeeze in the mail cost structure will attract them.
- Inasmuch as they can share information with local specialized mail
distribution companies at the final edge of the chain. This is why E-BOX will
bear such “transaction costs” in order to minimize them as shown in the
‘prices’ slide above.
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

9. TECHNOLOGY WORKGROUPS
What do we need ?
 Coordination and information processing aiming at optimizing the packets
of letters
 End to End fair competition in a liberalized European market
 No more reserved sector
 Two deliveries a week to each address
 Deployment of CitEbox infrastructure in dense urban areas before 2010
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

10. TECHNOLOGY WORKGROUPS
A question:
It‘s a very good concept of business for dense urban areas,
but what about the delivery of letters in the country side ?
The answer:
“Rendezvous” next year, next time
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

11. TECHNOLOGY WORKGROUPS
E-BOX is honoured and proud of its two nominations for
the 2006 World Mail Awards in fields particularly
important for the shaping of Postal World future realities,
Innovation and Technology.
E-commerce and Direct Marketing will ‘grow new Parcel
& Mail revenue streams’ and opportunities: with
partnering firms, E-BOX Open Technology & Innovative
processes will, through the deployment of its Automated
Postal Facilities network, be at the heart of this future.
&
A radical break in the mail supply chain cost (MERCIER) 10 October 2006

12. TECHNOLOGY WORKGROUPS
Thank you for your attention and we have the pleasure to invite you to
visit our stand 4037 at Post Expo 2006 for a full presentation of our
innovative range of Postal Facilities
E-BOX
32, rue de Paradis
F-75010 PARIS
Tel : + 33 (0) 149 490 190
Fax : +33 (0) 147 705 945
E-mail : eboxinfo@e-box.fr
www.e-box.fr
www.e-box-club.com
CitEbox logistic systemTM is a department of E-BOX
A radical break in the mail supply chain cost (MERCIER) 10 October 2006