1. Universal Postal Union “Connecting today’s postal sector with tomorrow’s future” © UPU 2007 – All rights reservedUniversal Postal Union The Postal Sector - A global supply chain facilitator for SMEs WSIS Action Line Meeting #2 C7: E-Business 24 May 2007, Geneva Paul Donohoe eBusiness Programme Manager

2. Titre de la diapositiveOVERVIEW 1.Postal network overview 2.The potential of the postal network as global supply chain 3.Conclusion

3. Titre de la diapositiveA global forum for postal affairs The UPU is the only organization that represents all postal sector players Established in 1874 UN Specialised Agency 191 member countries GovernmentsRegulators Postal operators Consultative Committee External stakeholders Universal Postal Union © UPU 2007 – All rights reserved

4. Titre de la diapositiveIntegrating three networksPhysicalFinancialElectronic The worldwide postal network offers a natural gateway to the information society Universal Postal Union © UPU 2007 – All rights reserved

5. Titre de la diapositiveThe worldwide postal network in figures 258 billion USD revenue 431 billion letters 6+ billion parcels 4+ billion USD in international money transfers 5.5 million employees Millions more jobs in related industries More than 665,000 post offices Universal Postal Union © UPU 2007 – All rights reserved

6. Titre de la diapositiveUPU ACTIVITIES RELATED TO INFORMATION SOCIETY AND MILLENNIUM DEVELOPMENT GOALS The postal network was acknowledged by the WSIS to be an important infrastructure for the information economy. The Summit Outcome Document paragraphs …. 10 d) “Governments and other stakeholders should establish sustainable multi-purpose community public access points … in post offices” 11 k) “Design specific training programmes in the use of ICTs in order to meet the educational needs of professionals such as … postal workers” 90 h) Governments and other stakeholders “… affirmed their commitment to build ICT capacities to improve access and use of postal networks and services.” Additional references in paragraphs 6 d), 9 c) In line with the WSIS outcomes, the UPU is committed to enhance the availability and use of ICT for the benefit of society.

7. Universal Postal Union “Connecting today’s postal sector with tomorrow’s future” © UPU 2007 – All rights reservedUniversal Postal Union SMEs and Trade: an uneasy relationship

8. Titre de la diapositiveSMEs and trade: an uneasy relationship SMEs still hesitate to trade abroad, for many reasons: A) OECD-APEC, Athens, November 2006: Global Conference on Removing Barriers to SME Access to International Markets Survey of 978 SMEs worldwide to determine what barriers to international markets were faced by SMEs. Top 3 barriers identified: 1. Shortage of working capital to finance exports 2. Identifying foreign business opportunities 3. Limited information to locate/analyse markets According to this survey, SMEs that consider shortage of working capital to be a serious barrier also have difficulties with:  Granting credit facilities to foreign customers  Slow collection of payments from abroad  Enforcing contracts and resolving disputes

9. Titre de la diapositiveSMEs and trade: an uneasy relationship B) European Commission, December 2006: “Business attitudes towards cross-border sales and consumer protection” Flash Eurobarometer based on 6,606 interviews of managers (97 of whom working for SMEs) in the 25 countries of the European Union Flash Eurobarometer based on 6,606 interviews of managers (97 of whom working for SMEs) in the 25 countries of the European Union Paradox: 48% of the firms are prepared to trade cross-border, but only 29% do at all Paradox: 48% of the firms are prepared to trade cross-border, but only 29% do at all Key reasons: 1.Perceived insecurity of transactions 2.National fiscal regulations 3.Difficulty to resolve complaints and conflicts cross-border

10. Titre de la diapositiveSMEs and trade: an uneasy relationship C) UNCTAD, 11th Session of the Commission on Enterprise, Business Facilitation and Development “Improving the competitiveness of SMEs through enhancing productive capacity” Benin's statement (on behalf of the LDCs): LDCs [require] investments in transport and communication infrastructure in order to bring about greater participation by developing countries in global trade. […] The promotion of multimodal transport, incorporating the services of local transport service providers, is crucial to enhancing the competitiveness of LDCs (and their SMEs).

11. Universal Postal Union “Connecting today’s postal sector with tomorrow’s future” © UPU 2007 – All rights reservedUniversal Postal Union Postal role of facilitation in global supply chain The potential of the postal networks of the for SME trade

12. Titre de la diapositivePostal network as Global Supply Chain 1. PHYSICAL POSTAL NETWORKS Most populated city Second most populated city Third most populated city Rest of the country (smaller cities and rural) Median share of the population living in (50 % over 50 % below) 9.3 % 2.5 % 1.2 % 82.5 % Median share of total post offices placed in 10.1 % 2.9 % 1.9 % 80.8 % *Source: UPU Sub Saharan Africa study Feb 2007 Post offices are distributed proportionally to the population in DCs

13. Titre de la diapositivePostal network as Global Supply Chain 2. ELECTRONIC POSTAL NETWORKS The electronic nature of the postal network allows people to access postal services on the internet. Posts are offering their increasing ICT capability and brand recognition to host SME market portals Information network of flows and movements 3.INTEROPERABILITY/INTERCONNECTION 4.PARTNERSHIP FOR TOTAL SOLUTIONS 5.SECURITY 6.INNOVATION Knowledge is becoming integrated into postal services

14. The Brazilian Post Export Service

15. Titre de la diapositiveCase Study: Brazil’s Exporta Fácil The situation of SMEs in Brazil in 2000 Less than 15,000 companies exported, of which 29% were micro and small companies In Brazil, these companies accounted for 11% of the exports, compared to 50% in Mexico and 53 % in Italy In Brazil, these companies accounted for 11% of the exports, compared to 50% in Mexico and 53 % in Italy Reasons for such a situation: 1.Bureaucracy 2.High cost of exporting 3.High logistics and product delivery costs 4. 4.Logistics specialized in large volumes. 5. 5.Complex Formal Processes. 6. 6.Absence of exportation culture.

16. Titre de la diapositive An answer to these problems: Exporta Fácil Exporta Fácil is a complete solution to facilitate the export process developed by the Brazilian Post in close cooperation with the Brazilian government 1. Availability and affordability Available at all Brazilian Post offices Available at all Brazilian Post offices Affordable for SMEs, craftsmen or even small farmers Affordable for SMEs, craftsmen or even small farmers 2. Accessible information

17. Collects information on exportersCollects information on exporters A tool for exporters to consultA tool for exporters to consult –Restrictions –Additional Documentation Needed –Estimated Deadlines –Merchandize codes Price SimulatorPrice Simulator Automatic fill out of the AWBAutomatic fill out of the AWB www.correios.com.br/exportafacil

18. Titre de la diapositiveCase Study: Brazil’s Exporta Fácil 3. Integration/Interoperability: Exporta Fácil simplifies the customs processes: Does not require exporters and importers registration Does not require exporters and importers registration Centralizes customs control: the Post is the only logistics operator in Brazil with customs operations within its premises Centralizes customs control: the Post is the only logistics operator in Brazil with customs operations within its premises Sends the export certificate to the customer Sends the export certificate to the customer

19. Simplification of the exporting process History DocumentsUsual WayExporta Fácil Way Shipping ClerkYes- Dispatch TaxYes- Costumer Dispatcher Sindicate Tax Yes- Origin CertificateYes Transportation until the airport Yes- Airport TaxesYes- Exchange DutiesYes  Through Exporta Fàcil, the administrative costs of the export are reduced to 1% of the value of the merchandise, down from 16%

20. Results Amount exported (x1000 USD) * Until April

21. Results Main Destinations (amount exported)

22. 22 Integration of Poste Italiane’s Assets An integrated or modular platform to satisfy all customer needs Partnership strategy to cut development costs (technological partnerships) and increase market penetration (commercial partnerships) An integrated or modular platform to satisfy all customer needs Partnership strategy to cut development costs (technological partnerships) and increase market penetration (commercial partnerships) Poste Italiane’s e-commerce

23. Universal Postal Union “Connecting today’s postal sector with tomorrow’s future” © UPU 2007 – All rights reservedUniversal Postal Union CONCLUSION

24. Titre de la diapositiveCONCLUSION SMEs don’t have the logistics capacities of larger companies Producers and Consumers need to be connected The tri-dimensional postal network is capable of moving goods, goods, communication, communication, information and information and money money from anywhere to everywhere. Easily-accessible global supply chain for SMEs. Affordable Affordable Universal Universal Non-discriminatory Non-discriminatory

25. Universal Postal Union “Connecting today’s postal sector with tomorrow’s future” © UPU 2007 – All rights reservedUniversal Postal Union THE POSTAL SECTOR …. DELIVERING A TRUELY WORLDWIDE INFORMATION SOCIETY Paul Donohoe eBusiness Programme Manager +41 31 350 3450 paul.donohoe@upu.int