Why government should support the Postal Corporation of Kenya to lead the e-commerce revolution
By Francis Muriuki
A new trend could be witnessed in the retail sector as economies recover from Covid-19 pandemic. For the past two years, most consumers preferred online shopping through e- commerce platforms as opposed to physical shopping. And the consumer behaviour change is set to change the retail sector landscape in a big way.
The good thing is, Postal Corporation of Kenya (PCK) may be in for a sweet experience. The organization is well positioned to spearhead the use of e- commerce not only in Kenya but also in the greater East African region.
In Kenya, PCK boasts a vast network which currently stands at 623 post offices and partners with over 5,000 stamp vendor licensees across the country. The numbers show that the corporation can compete the rising global and local e-commerce platforms and companies.
First, it can leverage on its delivery and distribution networks and effectively ride on the growth of e- commerce by positioning itself as the logistics expert given the years of experience and home-grown expertise in the sector.
The corporation will also thrive in the sector because it already has the requisite infrastructure and boasts of a national footprint. By leveraging on digital technology, it can excel in the e-commerce space by providing parcels, payment, hosting and direct marketing services, connecting their solutions to merchants’ websites or developing their own e-shopping capabilities to offer merchants’ products to the Internet using postal services.
In the last two decades, the emergence of new and disruptive digital technologies has had a big effect on businesses across all the sectors of the economy. The new emerging digital platforms have become crucial enablers that have made work easier as they able to perform tasks that previously only humans could do. The platforms have also affected the way organizations interact with consumers leading to the emergence of new distribution channels, new products, services and business models.
On the global front, the Universal Postal Union (UPU) has introduced the concept of e-commerce hubs where the public postal operator in certain countries is charged with the responsibility of establishing a facility to serve as a regional clearinghouse for international packages. The facility comprises a warehouse, sorting and dispatch centre, and customs services. The distribution of packages is then done through the public postal operators’ network.
The UPU has initiated discussions with Kenya on establishing an East African hub and further engagement is needed at national as well as regional levels to determine the appropriateness of the concept for the region. However, question is, how can a corporation like Posta lead the revolution of e-commerce?
Depending on where one sits, the emergence of digital technology can be seen as a threat to the very existence of the corporation. The flipside is that emerging technology can and should be seen as an opportunity by the corporation to grow its competitive advantage and change its business model especially in the areas of e-commerce and logistics.
The corporation can offer real time, reliable track-and-trace facility to make it easy for customers to find out where their package or parcel is at any time. It can also offer SMS notifications as well as delivery to customers without their own Post Office boxes.
If transport companies like 2NK and Kukena, with their limited technological capacities and infrastructure support, can offer track and trace delivery services, the corporation is in a better position to offer better and cost-effective logistical services to customers.
Another major advantage for the corporation is its linkage with other Government agencies like the Ministry of Information and Communications Technology, Industrialization; Devolution; Foreign Affairs and International Trade; Tourism; East African Community; just to mention a few. These linkages to key focus areas of the economy make it easier and cost efficient for the corporation to roll out e-commerce and logistics services.
Already, the corporation’s role in offering services that support Government delivery within the Big 4 Agenda and Vision 2030 has been significant.
However, the initial investment needed for anchoring the corporation as an e- commerce and logistics hub is huge. For the corporation to realize its full potential as a one-stop shop for e-commerce and logistics, it needs adequate support and funding by the exchequer.
As the Government embarks on the journey to restructure the corporation in tandem with the needs of the 21st century, it also needs to come in strongly and infuse the necessary capital needed to enable the corporation play its rightful role in entrenching e-commerce into the national psyche.
The writer is a communications consultant with Valorem Consulting Ltd
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
