The Brazilian Postal Service (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 reduce the cost of unwanted shipping for the end consumer.
Correios Log is an integrated logistics solution that now allows Correios to offer storage, handling, distribution and reverse logistics services, in addition to the collection and delivery services previously available.
The service will initially serve the entire country from the Cajamar Unit in São Paulo, which currently has a physical space of 72 thousand square meters, which should become 86 thousand next year, 18 thousand pallet rack positions and 550 thousand storage positions.
It took a year to complete Log's modeling and was based on data from several surveys of Correios customers. The results showed that 90% of online stores in Brazil are small businesses, of which 89% handle their own logistics, such as storage and handling, and only 47% have physical stores.
Second José Furian Filho, vice president of logistics at Correios, "The intention is to handle volumes up to 30 kilos and dimensions within the limitations that Correios already works with, which are a few centimeters. The service is the same that Correios already provides on demand for customers with large volumes and financial capacity, but which was not available to small and micro-entrepreneurs. We found a way to allow several small and micro-enterprises to share the same warehouse."
To make the new service available, the state-owned company invested more than R$5 million in the purchase of warehouse management software that allows it to control several small inventories within the same space, providing fast turnover, online monitoring, productivity calculation, and traceability.
Mode of operation
Through a commercial contract formalizing the partnership with Correios, e-commerce businesses deliver their product inventory, which is then stored by the state-owned company. After inspection, the products are stored in picking positions at the integrated logistics center. Because Log's systems are integrated, the post office receives fulfillment orders from each online store, removes the items to be shipped from inventory, prepares, packages, prints labels and tax documents, and finally, ships them.
The Post Office provides tracking codes for each item shipped and all necessary after-sales and reverse logistics support.
Stored items are charged per unit for the monthly period and fulfilled orders are also charged per unit.
The Post Office bills all items stored in the month and all orders fulfilled in the monthly period.
There is no minimum monthly billing quota, not even for storage, order preparation, or express or non-urgent delivery.
To learn more, visit the page Correios Log.
