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Distribution Procedure for Indian Postal Services

Founded in 1764, and headquartered in New Delhi India. It's the most widely distributed postal system on the planet where China is next with 57, 000 post offices. The large numbers are due to a long tradition of several disparate postal systems which were unified in the Indian Union post-Independence. Due to this far-flung reach and its presence in remote areas, the Indian postal service is also involved in other services such as small savings banking and financial services.

The Indian postal team is by very good the largest in the world, with about 1, 55, 000 post-offices, the next largest being China with about 66, 000 (Source: Common Postal Union research), and 89 per cent of them are distributed across rural India. Today, India Post, with a work-force of about 5, 20, 000 employees, is reeling under a huge budgetary deficit of Rs 1, 209. 9 crore (Source: Annual Report, 2006)

The Railway Minister, Mr Lalu Prasad, helped along by an current economic climate growing at over 8 per cent, has already flipped around the Railways. It really is now turnaround time for the postal office. The Minister for Marketing communications has mentioned that the Office must move around in the next couple of years to ensure that the deficits in income and costs is wiped out in the non-Universal Service Obligation (USO) segments.

The Administration has roped in global expert KPMG to get ready a report on restructuring the postal network in the country. The mandate given to KPMG includes identifying new regions of business. Going the banking way is one of the sound options advised.

Governance and Organization

The postal service comes under the Team of Posts which is a area of the Ministry of Marketing communications and IT under the Government of India. The apex body of the team is the Postal Service Panel. The board includes a chairman and three participants. The three participants contain the portfolios of Procedures & Marketing, Infrastructure & Financial Services, and Employees. The Joint Secretary and Financial Consultant to the Mother board is also a long term invitee to the Panel.

India has been divided into 22 postal circles. Each circle is headed by way of a Chief Postmaster Basic. Each Group is further divided into Regions comprising field models, called Divisions, going by a Postmaster Basic. Other functional units like Group Stamp Depots, Postal Stores Depots and Email Motor Service may are present in the Circles and Regions.

Besides the 22 circles, there is a special Group called the bottom Circle to cater to the postal services of the MILITARY of India. The Base Circle is going by yet another Director General, Military Postal Service retaining the get ranking of a Major General.

Services Supplied by Indian Post

Indian Postal services provides two major sorts of services with their customers in various domains, these services are the following:

Postal Services

Ordinary Post

Speed Post


Logistics Post


Business Post

Media Post

Direct Post

Postal Life Insurance

Instant Money Order Service

International Money Transfer

Non-Postal Services

Public Provident Fund

National Cost savings Certificate

Kisan Vikas Patra

Savings Lender Account

Monthly Income Scheme

Recurring First deposit Account

Post Office Time Deposit

Post Bins for Mail Receipt

Address Proofs Cards

Speed Post

The broadband exhibit service for letters and documents. Speed Post web links more than 1200 towns in India, with 290 Swiftness Post Centres in the nationwide network and around 1000 Speed Post Centres in the state of hawaii network. For regular users, Speed Post provides delivery 'anywhere in India' under contractual service. Rate Post offers a money-back make sure, under that your Speed Post charge will be refunded if the consignment is not shipped within the publicized delivery norms.


The easiest way to pay your expenses under one roof structure. With its marvelous reach and know-how India Post focuses primarily on acceptance of repayments across the counter-top and their consolidation. E-Payment is a 'Many to One' service by which bills (telephone, electricity, etc. ) paid by customers in post office buildings is electronically consolidated.

Logistics Post

Logistics Post Air can be an Exhibit service under the brand, 'Logistics Post' providing time bound delivery of large consignments by air. Logistics Post Air is aimed at fast and secured travel of consignments in India using transmitting by India Post Aircraft.

Currently Logistics Post Air is operational utilizing the India Post aircrafts linking Delhi, Mumbai, Kolkata, Chennai, Bangalore, Nagpur, Guwahati, Imphal and Agartala stations Logistics Post Air provides express service to the customers who want fast and time-bound delivery with their consignments. With Nagpur as its hub, India Post is working overnight flights in that way providing over night services for the clients.

Airport to Airport Service:Under this service, the client will deposit the consignments at the postal facility offered by the air-port premises and the delivery will be effected to the customer at the Post office center at the vacation spot airport.

City-to-City Service: On repayment of City-to-City charges, the consignment will be booked at the given Logistics Post Booking centres in the foundation city and the delivery will be effected at the Logistics Post Delivery Centres in the Vacation spot.

Door to Door Service:In the event the customer really wants to have consignment picked up from the premises or sent at the premises of the consignee, collection charges/ door-to-door delivery charges of Rs 1 per kg, subject to at the least Rs 100 per consignment will be levied in addition to Logistics Post Air charges.


Documents and greetings sent online but sent by mail.

Business Post

Total pre-mailing alternatives including collection/printing, inserting, and handling.

Media Post

Reach thousands and thousands through advertising on Post cards, Letters surfaces of post office buildings, letter bins, post cards and stationary.

Direct Post

Distributing advertising materials right to prospective customers

Postal Life Insurance

Postal Life Insurance was were only available in 1884 as a welfare solution for the employees of Articles & Telegraphs Department under Authorities of India dispatch No. 299 dated 18-10-1882 to the Secretary of Express. Due to attractiveness of its schemes, various departments of Central and Point out Governments were long its benefits. Now Postal Life Insurance is wide open for employees of all central and state government departments, nationalized banks, open public sector undertakings, finance institutions, local municipalities and Zila Parisads an Educational Institution along with the Government.

Instant Money Order Service (iMO)

The instant domestic money comes in 717 post offices. However no International Money Order facility is available.

International Money Transfer

As a result of the cooperation of the Department of Content with the European Union Financial Services, advanced international money copy service is currently available through post office buildings in India. This permits instantaneous remittance of money from 185 countries to India. The recipients can certainly collect the amount of money in minutes following the sender has made the remittance. The service is targeted to particularly fulfill the needs of NRI centered households in India, browsing International vacationers and foreign students learning in India.

Other than these basic services Indian postal Services are very dynamic in providing personal savings accounts in post offices and different financial and personal savings and investment strategies. Post office buildings have dished up as a traditional financial institution for rural areas.

SWOT Evaluation:

The SWOT research on Indian Postal Services and on its working process is really as follows:


Strong Network

Cost Effective

Security / Safe practices with respect to deposits

Efficient Manpower


Unchanged working culture

Lack of reviews in communication process

No Job Rotation

Job Stress among employees

Lower interest on debris as compare to competitors


Increasing variety of customer

Inflationary market

Technological Advancement


Customer Dissatisfaction

Increasing market share of competitors

Market Competitors

There are so a lot of local, countrywide and international rivals for Indian Post that day by day it is getting very difficult for the business to survive in this though market. Indian post had almost a monopoly in the Indian market since 1999, following the launch and wide-spread use of mobile network and internet services market has been flooded with much cheap and easy to use services and communication methods. Other than that local level courier services, national scale couriers and international courier services are taking u over Indian market and Indian Post's talk about. The major competition of Indian Post are:



First Flight


Blue Dart


Telecom Networks

Due to such increasing rate of competition and competitors Indian Post has started out facing losses and deficit problem. Before years 2006-2007 Indian Post documented the total annual deficit of Rs. 1209. 9 crores. Inspite of the fact that Indian post contain the longest and the most widespread distributed network which can establish a leading edge over their opponents, Indian Post has various benefits of its network, huge capital basic, huge recruiting, government support and subsidies, very good enough than compared to their local and nationwide competitors but nonetheless they are continuously performing low. Indian Post although is taking initiative to boost their output by providing various non postal financial services but anyhow it is all not up to the mark.

Indian Post was founded in 1764 in order to provide quick postal deliveries for the EAST INDIA COMPANY in India, later it as exposed for common general public too, therefore it can be concluded that Indian Post's basic central process is to provide with the quick service of providing articles and parcels around the united states and globe. It is also noticeable that Indian Postal services aren't doing much good specially following the launch of telecom services and internet in India therefore we can conclude that at various places BPR initiatives can be applicable.

Core Business Processes

Delivery of post (logistics)

Availability of stamps

Sorting of post and parcels

In the above mentioned procedures BPR initiatives can be studied and applied.

Why opponents are gaining a larger share in the market?

It is also notable that competition of Indian Post are less but still they are attaining increasingly more per time than compared to Indian Content market share. There are some basic reasons that happen to be benefit to local business and curse for Indian Post. They may be the following:

More widely sent out system in each city: local level couriers such as First airline flight and DTDC has a more outreached and easily available point of business in locations, we can certainly find these organisation's franchisee in local stationary shop, standard stores all over it is easily available in your nearest down road. Whereas if we look for post office buildings and even for post bins we can evaluate that they been distributed on a very wide range of area. Every big block has one post office and even post bins are very a long way away from each point thus people avoid or feel sluggish about using postal services even if indeed they need to pay more in local private services.

Corrupt, traditional and bureaucratic way of work: bureaucracy and corruption appears to be an integral part of government organizations, Indian Post is such a exemplory case of business where we can still find traditional way of work style no matter how much they are really technologically advanced. In Indian Post employees know they have a permanent income no matter if they work successfully or not, so they just loosely concentrate on their work which has helped bring down the image of Indian Post like other federal organisations. On the other part private companies concentrate upon customer romantic relationship and principles that they follow in their work. They know that more effectively and efficiently they work the greater they will earn rewards thus no problem or bureaucracy practices here. They have much effective working culture that helps employees to become more productive.

Time Success: Indian Post work on a large size and which is hardly properly integrated thus loosing the good thing about time effectiveness in their work which is the major type in postal services. Well-timed delivery of content and parcels brings client satisfaction and company's goodwill but here Indian Post almost all of the times does not achieve this task their work on time (i. e. faltering in making well-timed deliveries). Whereas private postal and courier services work as fast as they can using all method of travel they can arrange for therefore they can be popular among the neighborhood customers and other business organisations.

Interconnection among small companies: For example a courier company with limited network, makes a tie-up with another company and drops the mails to the required vacation spot. Indian post work as an unbiased body thus sometimes it becomes the root cause and a limitation for the company in deliveries delays and non performance. Whereas private courier services have link ups with others which gave them a advantage to be competitive effectively with Indian Post.

Provides higher rate appealing on debris: Indian Post also supplies the service of an lender in metropolitan and rural areas, providing adequate interest on the investment made. Whereas private bankers and private lenders to be able to compete and become ahead on the market provide a lot more higher rate of interest to the general public which allures and pulls from Post office buildings to them.

About Business Process Reengineering (B. P. R. )

It is essential to have a brief prospect about the process or method that we are going to apply in our report, thus here's something valuable about B. P. R.

Business Reengineering is just about the most broadly embraced approach to business improvement in recent decades. Business reengineering has been describes as "not a voyage of guided discovery but similar to a walk in the fog". B. P. R. , sometimes called business reengineering or simply reengineering, is radical way of boosting the capabilities of any business increasing its performance and and can achieve ecological competitive edge.

Going in short, B. P. R. consists of two basic but major group of models i. e.

As-If model and,

To-Be model

As-If model defines the whole business process model or a specific set of business process, analyzing the working of the present model whatever as it is before us. It identifies that presently how exactly does the business model is working and identifies the faults that are hampering the result of the company.

To-Be model identifies the complete or incomplete business process that were identified that needs to be evolved and a all new model is to be offered. This to-be model is very much indeed new and free from any faults and shortcomings. It is the model that is provided to provide maximum result and desired final result.

Initiatives Taken By Indian Posts

It is not the declare that Indian Post is not taking any step to revive their condition and performance in the market, for example Indian Post has declared a Request for Proposal (R. F. P. ) for hiring of I. T. consultants. Where the following candidates were short detailed:

Accenture Services Pvt. Ltd.

Emst and Young Pvt. Ltd.


McKinsey and Company


Technological Division Initiatives

Funds of Rs. 628. 66 crores earmarked for 2008-2009 and 2009-2010 and authorization of CCEA obtained.

Funds of Rs. 125. 88 crores allotted to the Technology Division for way to obtain hardware/software's/tools/peripherals to the circles.

Committee on IC technology for rural post offices

Committee constituted on 29/01/2009

Objectives: Rural Connection, Rural Devices & Consumer, Private

Partnership Models

Experts include Faculty from, IIIT Hyderabad, IIM Bangalore & Experts likewise incorporate from Industry like TCS, Intel, Infosys.

Reengineering Initiative for Indian Posts' Key Processes

Problem 1 (As-If Model)

Misplacement/damage of content in huge bundles and during sorting or transportation. Use of traditional paper established stamps that are for solitary use. They increase cost because they are to be produced on regular basis. Also customer needs to write everything on the envelope rendering it a boring job. Of course, if same address is required for volume post then it becomes more busy work.

Solution 1 (To-Be Model)

The above mentioned problem can be resolved by using low consistency Radio Frequency Recognition Tags (RDIF) it is a very widespread technology throughout the world commonly known as Radio Label Technology or Printed Smart RDIF brands.

Such radio tag chips are really small and can be purchased in how big is grain of your dust. Most RFID tags contain at least two parts. One is an involved circuit for storing and control information, modulating and demodulating a radio-frequency (RF) sign, and other particular functions. The second reason is an antenna for acquiring and transmitting the sign.

There are usually two types of RFID tags: dynamic RFID tags, which contain a electric battery and can transmit signals autonomously, and unaggressive RFID tags, without any power supply and require an external source to provoke sign transmission.

Due to technical advancement we've the advantage of polymer and paper electronics where we can stitch or bind such radio tags that are trusted to track, screen and identify using radio waves anybody or thing we desire. These chips can hold 38 digits of number and 128 little bit of memory which may be beneficial as a radio tagged stamps for content.

These chips are broadly and heavily used in many fields across the globe, such as they are used in:

Race timing


Transportation Payments

Currency notes

Product Tracking

Transportation and logistics

lap scoring

animal identification

Inventory systems

Human Implants


Schools and universities


Social Retailing

In Indian Content they can be used for:

Unique Identification of posts and parcels, protecting against from misplacement and damage: these chips are so minute that they can be in built in new stamps, which can be reprogrammed as much times as you can but only through genuine code and signatures. By using such radio tagged stamps the organisations can provide every post or parcel a unique identification which may be easily tracked and supervised by using radio waves no matter where ever in which ever bundle or place these are in. they can be also useful in sorting process in postoffice which is explained later.

No dependence on writing any thing on the envelope except sticking the e-stamp: utilizing the e-stamp or radio tagged stamps the customer shouldn't have to create anything independently on the envelope, they can just go to the Indian Articles business point where they can purchase e-stamps by simply telling the recipients name and address with optionally their own name and address if possible. The staff on the machine can feed the information and on a press of a button generate an e-stamp which supports the customer specified address and name with a unique in built ID no. with yet another small slip with adhesive which recipients' name and address is talked about for postman's reference point.

Reduces cost of stamp creation: due to the efficiency and reusability of e-stamps it can be very cost effective and profitable for Indian Content. As these e-stamps when bought on mass can cost only in some paise, also they can be reused, irrespective they can be reprogrammed and re stick on new envelope.

Reduces the use of artificial stamps: due to its unique radio label system nobody can certainly replicate the stamps so that it can provide security to Indian Post regarding reduction anticipated to forgery etc.

Hitachi is one of the pioneer and leading company in neuro-scientific production and providing RDIF chips.

Problem 2 (As-If Model)

There is a significant difference of option of stamps and postal services over a wider basis. Post office buildings are just one in huge areas whereas same has been the post bins. Now a days credited to technology major portion of people are incredibly time saving and do not like to seek out post containers or post offices easily on first choice. On the other hand one can very easily find business point of local courier services on one or another shop across the road. This gives fast and simple access to the assistance.

Solution 2 (To-Be Model)

The subsequent problem can be resolved in two aspects:

constructing a whole new postoffice and operating them is definitely an extremely costly and non performing process, therefore Indian Post can make small company Point Junctions like ATMS with sitting arrangements for just one or two employees prepared with all necessary gadgets where the customers can contact for e-stamps, submission of mails, parcels etc. also postoffice provides money copy on local and international basis and with profile and money deposit facility. All these financial services can even be carried out in these Business Points. Here the client can offer and transact with any type of postal or non postal services. These junctions can be placed after every 5 kilometers. These junctions can screen the status of their areas' post boxes coming under 5 kilometers, monitoring whatever box is empty or full. Thus keeping more time of the delivery vehicle, they can tell the van where to go first and where to not, as it may happen that they can go to pointless spot too.

Secondly, post bins should be redesigned in square shape with a transparent lid at the top to have a peek inside the field, it can give a insight to the client that his post or parcel is safe inside, and RDIF label potato chips much powerful than e-stamps. These containers should be placed after every one or two 2 kilometers of radius. The delivery truck can get radio alerts from these boxes denoting about the position of the package and whether to bare the pack or not. Additionally, it may notify through radio waves in about 50-100 meters of radius that whether the box is clear or does hold any subject in it without going very near to it. It'll save time of the delivery employees as they don't have to stop and check each and every box, they need to stop only at that box that explains to them any useful information, therefore protecting time and increasing efficiency in conditions of their time and employee performance. For Example it takes 15 minutes for a delivery truck to avoid at post pack, open and check and emptying the field if so. But by using RDIF empowered boxes the time can be reduced to simply less than 5 minutes, where only they have to stop and collect the mails and parcels.

On the other hand if legally agreed upon, contracted or certified then Indian Articles makes it possible for other courier services to use their Business Point Junctions and RDIF enabled post boxes

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