Hossein Ghazanfari, the CEO of Boxit, believes that a considerable portion of the logistics industry constitutes a gray area where monitoring is not feasible. To resolve this issue, regulation should be introduced to encourage service providers in this gray area to obtain licenses.
According to Iran Digital Economy Annotation, The CEO of Boxit considers the uncertainty of the position of the post to be one of the always ambiguous points. According to him, speaking of the post, it is not clear where it will be placed in the logistics industry. Post is a part of the retail industry. Considering the whole industry, we notice some parts that happen to be very up-to-date and progressive. But in the logistics industry when we look at the postal sector, there are a limited number of players.
Ghazanfari believes that Post has a small share in the market. According to him: In 1400, by studying the market and comparing different data, we realized that the National Post Company has about 17% share of the market. Meanwhile, this year this number has reached about 10%, and a significant part of this share happens in the gray market and the part where there is no trace for the government. For this reason, the issue of monopoly of the National Post Company is not serious. Regarding the reason for the lack of serious progress in this industry, he mentioned the lack of formation of a big actor and said: This industry is not the industry of small companies.
The CEO of Boxit explains the reason why strong private sector actors have not been formed as follows: In 1395, friends in the Licensing Regulatory Organization looked as if they were selling mobile frequencies. While the only important things include the existence of a great personality for the trustworthiness of people’s messages, providing a good service level and providing a good infrastructure for the message data for the purpose of enabling monitoring. According to him: This process was facilitated since 1400 and for this reason more companies were formed in recent years. Providing the infrastructure and software of these companies has a one and a half to two year process.
Bold role of the operator
Ghazanfari answered when it can be said that the private post office has become powerful, and said: The role of the regulator in the operator’s activity is very serious. Unfortunately, we always have these problems in the government and it is not limited to this area. The public manager thinks he has more sympathy for the private sector’s contribution and understands more about business. While it is only enough for the regulator to specify things for the interaction between the service provider and the customer and leave the space for the creativity of the private sector. There are things like there are standards for signboard design in exchange for licensing. If it can be limited to include important information.
He said about the gray area: I think there should not be overregulation so that a large part of this percentage above the gray area gets permission and the possibility of monitoring and supervision is provided. Activity in the field is possible for actors who have the possibility of scaling, and for this reason, actors who lack this advantage and wisdom will be eliminated. He believes that in the next 10 years, we will see only a few large operators, which is significant, doing retail.
According to Ghazanfari: One of the serious problems in our country is the very high cost of providing vehicles.
A matter that is almost not a concern of the operator in other countries, and there are no different ways to finance it.
The CEO of Boxit believes that the post in the government has many decision-making problems. My experience at the post shows that if a decision is made, it takes at least 6 months and an average of a year to be implemented. For example, holding a tender in Post took 17 months from the time of decision, while in Bauxite, this process took 15 days and was executed in 45 days.
Cost and competition
Ghazanfari considers the provision of many postal services as a loss and believes: From an economic point of view, if the price you offer is below the direct cost, the service should be stopped. This is the case with many postal services, and if we do not consider the indirect costs, the cost of delivering the parcel is a loss. Solving this issue requires a larger policy to enable both the development of the National Post Company and a fairer competition for the private sector.
Regarding the possibility of handing over the services of the National Post Company to the private sector, he said: There is no legal prohibition except for the violation of the tender law, and the regulation of the relationship with the operators may be considered in the comprehensive law of the postal industry, which will probably go to the parliament next year.
He said about the interaction between the private and the government: We are currently interacting with Gateway Post so that the customer is more comfortable, and we seek help from the National Post Company in places where we do not provide service. In the meetings, he announced that we can help in the field of technology because the private sector is ahead.
Ghazanfari explained Boxit’s interaction with other businesses as follows: At Boxit, we strive to provide the missing link in logistics in the most convenient way that businesses can connect to us. For this reason, the first step was to provide a variety of ways for small and large businesses to use our services. The second point is to provide SLA in a stable and reasonable manner.
Regarding the possibility of sending parcels to the general public using private mail, he said: We have a large number of agencies and in addition to cooperation with counter offices. Our goal is to reduce the distance to the customer to less than 500 meters at the end of 1403 in the centers of the province and densely populated cities. It is also possible to receive the parcel at home, although this service is not very cost-effective, but we plan to seriously enter the on-demand delivery sector.
In the end, the CEO of Boxit said: In the next ten years, the share of private post will reach 30 to 40 percent according to the events that are going to happen in the National Post Company.Currently, arriving on time is very important for customers, and after that, the priority of users is the safe arrival of the shipment. In Iran, the packaging industry still has a lot of work to do.
No Comment! Be the first one.