We are executing our strategy to be the leading e-commerce logistics and postal service provider in, to and from the Benelux. To realise this, we are concentrating on working towards our strategic objectives in five different domains of value creation for our stakeholders:
Customer: Help customers grow their business;
Customer: Secure a sustainable mail business;
Social: Attract and retain motivated people;
Environmental: Improve our environmental impact;
Financial: Generate profitable growth and sustainable cash flow.
We have identified relevant focus areas for each objective, which help us execute our strategy. And we use several company-wide programmes to strengthen our strategy execution and stimulate collaboration between business units. These programmes are:
Digital Next, to accelerate our digital transformation
Orange Compass, to steer our culture and behaviour
Zero 2030, to direct our environmental progress
Financial & Capital Management, to ensure a strong balance sheet and financial position.
We link our strategy to our key material topics, which help ensure we focus on creating relevant value for our stakeholders. Resource allocation, based on required input capital, plays an essential role in our strategic decision-making.
Our business model is developed to maximise the value we create for customers through three essential logistic activities: collect, sort and deliver. Over time, we have built dense networks and state-of-the-art processes throughout the Benelux and beyond, while divesting non-core activities. As we operate in a dynamic marketplace we are continuously enhancing our business model to adapt to market developments, and collaborate with customers on implementing new, increasingly digital, solutions. We have successfully transformed from a business dominated by mail, to a full-service e-commerce logistics and postal provider. The acceleration of digitalisation helps us transform the way we do business and enhance our business model to improve our competitive position. Delivering smart and reliable logistics solutions, innovating our business model and further advancing customer interaction enables us to further improve the customer experience. Our committed people play a crucial role in fulfilling, and where possible exceeding, the promises we make to customers.
Our Parcels solutions range from delivering standard parcels to more tailored solutions, such as health logistics, and from time-critical delivery to installation services. E-commerce is shaping the future of retail, and we help drive this vital sector through IT, network and infrastructure investments, such as processing the growing number of small parcels. At the same time, our digital platforms enable us to offer e-tailers and consumers greater control over sending and delivery. Together, these factors enable us to focus on optimising our revenues while creating greater customer value through better insights. Within logistics, we have chosen to develop a leading position in the health and home & garden sectors while broadening and strengthening the e-commerce logistics chain, such as by helping e-tailers come online by supplying fulfilment solutions, and offering time-critical services. We provide customers with international delivery solutions through Spring as it transitions towards becoming a provider of global e-commerce solutions. Spring is continuing to provide customers with more options in logistics solutions.
We continue to see the importance of mail as a communication means, which acts as a vital communication element in society. This has been seen throughout the Covid-19 pandemic, as people connected by sending cards and letters. In addition, there were Covid-19-related mailings, as part of the Dutch government's drive to tackle the pandemic, such as invitations for the vaccination programme. As the designated provider of the universal service obligation (USO) in the Netherlands, our job is to maintain country-wide mail coverage. We achieve this by providing accessible, reliable and affordable postal services, with specific delivery quality targets, while also providing employment for many thousands across the country. We also maintain a successful collaboration with sheltered workshops, offering work to around 1,725 people with a distance to the labour market. We are innovating for those customers and consumers that use physical mail, for example by investing strongly in automation to help us increase delivery quality and efficiency. We are also investing in the digitalisation of both our network processes and customer journeys, to continue to improve our business model while realising necessary cost savings.
Pursuing opportunities and managing risks are essential in order to be in control of our strategic progress. Our executive committee, board of management, and supervisory board form our formal governance structure. Line management, risk management and internal control, internal audit and the audit committee, support our governance bodies in overseeing the organisation. This enables us to safeguard our strategy execution, compliance and external reporting, and identify and manage areas for improvement in our business model.
In 2021, PostNL moved its head office to the former station post building in The Hague, where until 1997 mail trains were loaded and unloaded. Nikaj van Hermon was involved in the make-over of the building. “When it was completed in 1949, the building was basically a sorting centre. Before we could return ‘home’, we had to transform it into an office building. We wanted an office that supported interaction and collaboration. Another challenge was to make the building more sustainable and create a ‘healthy’ work environment. Fortunately, the huge sorting halls allowed us to create an atrium, with natural light flowing in from the skylights that we reinstated. We made interior gardens, used recyclable materials and much more. I am really proud that we have been able to keep the character of this national monument despite the metamorphosis it underwent. We gave it a second life and transformed it into a sustainable, inspiring, welcoming working environment that invites us to collaborate and come together.” For more information: postnl.nl/stationspostgebouw
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