Postal Transformation

CANADA POST MUST INVEST IN OUR INFRASTRUCTURE TO ENSURE THAT CANADIANS CAN CONTINUE ­CONNECTING TO EACH OTHER.

Over the past two years, we have ­established and embarked on a Postal Transformation plan. This national infrastructure-renewal program includes significant investment in our equipment, technology and processes as well as extensive new skills training for our employees.

There is a critical and pressing need to invest now as our aging infrastructure is holding us back. Many of our plants are approaching 40 years of service and can no longer support a modern operation. Much of our mail processing equipment is almost 20 years old and has reached the end of its life cycle. While we make every effort to maintain the machines in safe working order, the existing equipment has reached its technological and physical limits. The addition of new functionality is not possible.

If we do not invest now, meeting service standards will be more challenging, and we will not be able to address our unacceptably high rate of injuries and modified duties.

Replacing obsolete equipment

Canada Post relies heavily on automated mail sorting equipment to deliver affordable and quality service. The replacement cycle for this equipment is very long and very complex. Given the age of this equipment, we must start now to ensure that we are able to continue to offer the level of service Canadians need and expect, without incurring huge costs required to maintain outdated technology and processes.

Our plan is to first replace the aging machines in our sorting plants with new state-of-the-art ergonomic mail processing equipment, capable of automating Lettermail to a much finer degree. This is a major step towards becoming a Modern Post, as the new machines will also enable us to enhance health and safety in our workplace, defend our core business by improving efficiency and productivity, and build a foundation for new and improved service offerings.

There is also a major opportunity to improve the health and safety of our employees by redesigning and introducing new modular containers used in our plants and depots. The new, smaller ergonomic containers have sturdy handles for ease of lifting and carrying, and are completely recyclable. These improvements, plus a unique sliding feature, will reduce the high incidence of common injuries from manual mail handling.

A new way of delivering

The current delivery model has not changed in more than a century, so starting in Winnipeg, we will be introducing new ways of delivering mail.

More letter carriers will be “motorized,” using lower-emission, more fuel-efficient vehicles. By equipping carriers with vehicles, they will be able to deliver all products in their delivery area, including parcels, and collect on route. This will allow Canada Post to effectively respond to changes in market demand. This delivery approach is already being used in Europe and in the U.S.

It all starts in Winnipeg

A location was chosen for the new Winnipeg plant in 2008, and ground was broken by September. The plant, considered the flagship for Postal Transformation, is slated for completion by mid-2010. It will be located on a 27-acre property near the airport, allowing mail to be processed closer to this vital transportation link, rather than trucking it downtown, where the plant is currently situated.

Designed with health and safety in mind, this facility will be equipped with new ergonomically sound equipment, operate in an environmentally sensitive manner, and provide employees with a brighter and safer work environment. The building will have LEED^TM (Leadership in Energy and Environmental Design) certification. This new plant will incorporate new, modern processes and feature new containers and carts that address safety and ergonomic issues for our employees.

Working with our customers

While change is often necessary, it is not always easy. As our Postal Transformation unfolds, Canada Post will ensure that our modernization efforts cause as little inconvenience to our customers as possible. We will also keep our customers informed at all times. With that in mind, Canada Post held many customer consultations in 2008 to discuss Postal Transformation. These sessions help us better understand how changes could affect our customers, so we can plan to make any transitions as smooth as possible. In addition, this invaluable feedback has influenced our design decisions.

Investing today for service tomorrow

Designing, purchasing and installing new equipment, introducing new processes and technology, and training our people all take time and effort. However, there is a critical need to invest now in order to avoid equipment failure and the associated service and cost implications.

Moreover, we have an opportunity to make these changes and realize productivity gains without negatively affecting our employees, as we expect nearly 32,000 retirements and other departures from Canada Post over the next decade. Processes will be modified and streamlined to enable us to avoid replacing many of these departing employees.

Decades of postal technology cannot be changed overnight, but by recognizing the need and planning ahead, we will continue to meet our customer needs well into the future.