Post Logistics

Post Logistics, in partnership with our Shared Services Division, offers business customers international supply chain services from point of manufacture to point of consumption. Services provided by Post Logistics include customs clearance, freight forwarding, warehousing, kitting, pick and pack, international and domestic distribution and returns management.

During the 2005/06 financial year, Post Logistics achieved substantial revenue growth of 75.4 per cent. This growth was supported by the integration of our acquisition State Warehousing and Distribution Services (SWADS), expansion of Sai Cheng Logistics International, establishment of a freight-forwarding capability and establishment of a new facility at Brisbane Airport.

In 2005/06 we actively recruited people with high levels of expertise in the logistics industry. This is designed to provide our customers with an improved level of customer service and the security of knowing that their outsourced logistics operations are being managed by pre-eminent industry experts.

New domestic logistics facilities

Post Logistics opened a purpose-built warehouse and office facility in Brisbane in February 2006. The 1.26 hectare facility, which is strategically located at the airport and near a container ship terminal, is providing international supply chain capability for our Queensland customers.

Another purpose-built facility – in Greystanes, New South Wales – is due to be completed early in the 2006/07 financial year, as is a new 32,000 square metre facility in Altona North, Victoria.

Logistics acquisitions

Since we acquired SWADS in March 2005, we have been working towards integrating this business to extract supply chain synergies across the combined Post Logistics and SWADS customer bases.

The acquisition of SWADS has provided Post with enhanced capability in appliance warehousing and distribution in regional Australia, with links into the Sai Cheng International supply chain. This will enable value-added logistics services from factory gate to retail shelf.

Post Fulfilment Online

Australia Post’s subsidiary company Post Fulfilment Online provides logistics services for on-line businesses. These services include inventory management, fulfilment, pick and pack, and delivery of groceries (including frozen, chilled and fresh produce) and other products.

International supply chain

Last year we reported that Australia Post had established an international logistics business, Sai Cheng Logistics International, as a joint venture with China Post.

China is Australia’s second-largest trading partner but supply chains between the two countries have traditionally been fragmented, involving multiple service providers. Now businesses can simply deal with Australia Post and its joint-venture partner to avail themselves of an integrated supply chain between the two countries.

Sai Cheng and Post Logistics can manage a customer’s entire supply chain – or individual links within it – including collecting goods from the factory, assembling and packing orders, secure bonded warehousing, international shipping and air freight, customs clearance, time-critical delivery, credit management and reverse logistics.

Progress during the 2005/06 financial year included:

	establishing a 12,000 square metre logistics warehouse in Shanghai
	establishing a facility within a bonded logistics park at Shenzhen in southern China
	setting up a Hong Kong-based freight forwarding operation (Post Logistics Hong Kong) that will manage any logistics activities originating in Hong Kong.

At the close of the financial year, more than 10 Australian companies were using our international services and a number of Chinese companies were using our domestic services within China.

As a result of this joint venture, we have already been able to provide some of our customers with a 20 per cent saving on their logistics costs between China and Australia.