About Integrated Product Plan (IPP)
With the introduction of the IPP, the UPU is for the very first time taking a fully integrated approach to product development and ensuring speedier decision making in response to market needs.
Posts worldwide are confronted with the same challenges of declining letter volumes accompanied by an exponential increase in postal items containing goods. The cross-border mail and parcel-post market is mature, highly competitive, and highly fragmented. The market space has changed dramatically in the last two decades.
One of the challenges faced by the UPU in relation to customer needs and product features is to find ways of satisfying market requirements by rationalizing, modernizing and integrating the existing framework of products. However, as part of an industry sector involved in the cross-border exchange of goods, it will also need to be mindful of how its products fit in with emerging customs, security and regulatory requirements.
Furthermore, with expected worldwide growth of over 10 per cent per year, cross-border e-commerce represents untapped potential for the postal sector. However, a primary barrier to postal market growth is the complexity of the postal product portfolio, which is preventing Posts from fully exploiting the burgeoning opportunities offered by the e-commerce market.
The UPU's Integrated Product Plan (IPP) is designed to break down this barrier.
The sustainability of the recent increase in demand for postal items containing goods depends ultimately on the UPU continuing to meet customer needs. In this sense, the UPU's IPP constitutes a first-stage response to these recent market developments. Importantly, in such a competitive and rapidly evolving environment, the IPP needs fast, globally coordinated and integrated implementation, as well as continuous innovation, adaptation and reliability. Only by doing this will we be able to persuade international e-shoppers and e-retailers to make the Post their preferred choice for international delivery services.
The main aim of the IPP is to develop a fully integrated portfolio of postal products and adequate, competitive remuneration systems that cover the costs of delivery. This, in turn, will ensure that the opportunities created by e-commerce can be taken up by the whole UPU membership.