Postal operators are facing significant challenges in an increasingly digitized world. As the volume of physical mail continues to decline globally, action must be taken to preserve an adequate service at acceptable cost.
The postal industry has seen a structural decline in the number of letters sent in the past decade, with aggregate mail volume falling by nearly a third since 2011 in advanced economies , dragging down revenue and average profit margins. The trend is unlikely to slow down, driven by further digitization and changing business and consumer preferences for faster, more environmentally friendly communication methods.
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