Posti invites companies to submit bids on mail delivery

15.01.2018

Posti is about to initiate its first sourcing procedure on the five-day delivery of universal service letters in areas not covered by early-morning newspaper delivery. Interested companies can sign up for the competitive tendering by using the registration link on Posti's website from January 22, 2018 onwards.

The amended Postal Act, which will enter into force at the start of July, requires Posti to put out to tender the five-day delivery of universal service letters-i.e. letters and postcards equipped with a stamp or other cash payment method-in areas not covered by newspaper early-morning delivery that has been agreed upon commercially.

The aim of the sourcing is to introduce new delivery activities to sparsely populated areas. In Posti's view, the increased cooperation in sparsely populated areas is extremely positive.

"This is the first time we are organizing a competitive tendering on the delivery of universal service letters under the Postal Act. The sourcing procedure has been assigned to Posti, and we want to perform this task transparently and impartially. We will develop the process further in the future based on the lessons we learn and experiences we gain now," says Kaj Kulp, Vice President who is responsible for the procedure at Posti.

The sourcing will not affect the basic delivery of newspapers in sparsely populated areas. Newspaper delivery will continue according to existing contracts.

Posti already outsources part of its delivery and transports to over 600 entrepreneurs and companies

Posti already employs over 600 subcontractors in mail delivery and transport services. Most of these are small companies. Posti's annual outsourcing volume is approximately EUR 200 million.

"Posti wants to support small businesses in sparsely populated areas. The share of subcontracting grew by 44 percent last year, and the volumes are increasing even without the competitive tendering. Another aim of the subcontracting and combined transports is to lower our delivery costs," Kulp says.

Over 1,700 areas in the tendering

The areas subject to the tendering procedure are based on a decision issued by The Finnish Communications Regulatory Authority. The tendering covers more than 1,700 areas.

Companies willing to participate in the tendering are requested to register between January 22 and February 8, 2018, using the registration link on Posti's website.

After the registration period, Posti's Sourcing will invite the companies to register to Posti's Sourcing Portal if the company is not already registered. The companies must register in the Sourcing portal by February 28, 2018.

After this, Posti's Sourcing will send a request for proposal to the companies registered in the Sourcing Portal. The request for proposal includes information on the areas and requirements.

At the end of the tendering procedure, Posti's Sourcing will compare the tenders and award the contract to the most economically advantageous tender based on an overall assessment. Operations under the contract will begin on July 1, 2018.