The Application of Consolidation Centers to Postal Services Operations

Abstract: Customers’ approach to goods and services has changed with time, and with those changes, the organization of the operations of postal/logistics/transportation companies drastically changed, too. As the population in urban areas increased, e-commerce developed, the number of e-commerce platforms rose, so rose the expectations of customers to receive what they want, when, where, and how they want it. Instead of bulk deliveries to shopping malls or retail stores concentrated in certain urban zones, the practice now encompasses a large number of smaller deliveries to various locations that call for different routes. The downward mileage trend for large deliveries is bound to continue, while the mileage for small deliveries is predicted to abruptly rise. Many companies will have to reexamine and redefine their transportation logistics since transportation in cities is becoming increasingly difficult and, in certain cases, impossible. The purpose of the paper is to show that the demands that postal operators face, especially those that operate in the above-described environment, can be satisfied with a wide choice of consolidator locations, i.e., consolidation centers. The paper will present suggestions for overcoming the problems related to the optimization of the delivery process, easier access to a higher number of individual customers, as well as ensuring access to office spaces in urban zones where it is currently difficult or too costly.