Australia Post to shake up procurement practices to slash costs

Australia Post is set to change its business procurement practices and is cutting deals with foreign counterparts to limit the impacts of an onerous global accord that costs it more than $20 million every year.

The moves come as the postal giant looks to cash in on – and fuel- the internet shopping boom.

Among other initiatives, Australia Post is trialling electronic parcel lockers in Melbourne, Sydney and Brisbane that allow customers to collect deliveries outside working hours.

Announcing his biggest shake-up at the corporation since he joined last year, Managing Director Ahmed Fahour said packages from online retailers accounted for 70 per cent of Australia Post's parcel business.

Australia Post chalks up about $1 billion a year in revenue from parcels sent by online retailers. But it loses more than $20 million a year processing incoming parcels that weigh less than 2kg under global rules imposed by the Swiss-based Universal Postal Union.

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