Correios has just launched a new service that will positively impact not only e-commerce companies but also their consumers. The new service called Correios Log promises to reduce logistics costs by 47% for companies, which will consequently lower the unwanted shipping costs for the end consumer.
Correios Log is an integrated logistics solution that allows Correios to now offer storage, handling, distribution, and reverse logistics services, in addition to the collection and delivery services already available.
The service will cover the entire country, initially starting from the Cajamar Unit in São Paulo, which currently has a physical space of 72,000 square meters, expected to increase to 86,000 next year, with 18,000 pallet positions and 550,000 storage positions.
Before reaching the market, the Log model took a year to develop and was based on data from various surveys with Correios customers. The result outlined a scenario in which, in Brazil, 90% of online stores are small businesses, of which 89% handle their own logistics regarding storage and handling, and only 47% have a physical store.
According to José Furian Filho, Vice President of Logistics at Correios, "The intention is to handle volumes of up to 30 kilograms and dimensions within the limitations with which Correios already works, of a few centimeters. The service is the same that Correios already provides on demand for clients with large volumes and financial capacity, but that was not accessible to small and micro-entrepreneurs. We found a way for several small and micro businesses to share the same warehouse."
To make the new service available, the state-owned company invested over R$ 5 million in the purchase of warehouse management software that allows control of multiple small stocks within the same space, providing quick turnover, online tracking, productivity calculation, and traceability.
Operating Mode
Through a commercial contract formalizing the partnership with Correios, e-commerce businesses deliver their stock of products, which are then stored by the state-owned company. After being checked, the products are stored in picking positions at the integrated logistics center. As the Log systems are integrated, Correios receives the order fulfillment requests from each online store, retrieves the items to be shipped from stock, prepares, packages, prints labels and tax documents, and finally dispatches.
Correios provides tracking codes for each shipped item and all necessary post-sale and reverse logistics support.
The stored items are charged on a unit basis for the monthly period, and the fulfilled orders are also charged on a unit basis.
Correios bills for all items stored in the month and all orders fulfilled during the monthly period.
There is no minimum monthly billing quota for storage, order preparation, and express or non-urgent delivery options.
To learn more, visit the Correios Log page.