Gis and Rfid Technology and Saudi Post System Transformation

The Index

Introduction and background of Saudi Arabia mailing system…………………………2

Saudi Post Expectation and plans………………………………………………………………..3

CURRENT MARKET SITUATION…………………………………………………………………..3

INTERNAL ENVIRONMENT…………………………………………………………………………………..4

EXTERNAL ENVIROMENT …………………………………………………………………………..5

Strategies for Growth…………………………………………………………………………………6

The Situation before Adopting GIS and RFID Technology………………………………9

The GIS technology solution and an approach……………………………………………..9

The Implementation of GIS Technology………………………………………………………10

The Implementation of RFID Technology…………………………………………………….13

Advantages of deploying GIS and RFID technology………………………………………16

Challenges………………………………………………………………………………………………..18

References………………………………………………………………………………………………..20

Cover Page………………………………………………………………………………………………..21

[pic 1]

Saudi Post: Leading Provider in Advanced Mailing Services Using State-of-the-Art Advanced Technology in Middle East

Introduction and background of Saudi Arabia mailing system

Saudi Arabia’s modern postal service has come a long way since the days of monthly journeys by camel from one village to another. Among recent developments was the 2002 decision of the Saudi Council of Ministers to make the General Directorate of Post into a public corporation, operating as a private sector company. Now, with around 1230 post offices, 82 agents and 770 postal representatives, Saudi Post (SP) prides itself on its distribution and collection network, which covers 6,123 cities, towns and villages, and handles more than 900 million processed items a year. The Express Mail Service (EMS), launched in 1974, offers same-day delivery within the kingdom. However, there are many more innovations on the agenda. Since the beginning of 2005, developments at SP have accelerated. The country is shifting towards the use of advanced technology, digitalization and mechanization. The government in particular is applying new systems in all of the departments and communications networks are no exception. Having already established new departments, SP has also launched new services, and has set in motion several new strategic projects, including a ground-breaking plan to create a postal address and personal mailbox delivery system.

CHART OF THE REGION’S GENERAL TOTAL OF THE POSTAL SERVICE VOLUME: (1)

[pic 2]

• Saudi Post Expectation and plans

Company Vision Statement:  

The Saudi Postal Corporation (SPC) is witnessing strategic developments in term of the economic and service philosophy of the postal sector. Through the ambition of SPC, we are working to render best and speedy service to all our customers. We are also exerting utmost efforts to enhance our national concept by offering postal services of international standards. Again we work to employ national cadres and train them to positively contribute in customer satisfaction at all Kingdom cities, villages and hamlets. We continue to interconnect with the world in a speedy and efficient manner enhanced by the application of the best available modern technology.

CURRENT MARKET SITUATION

The Saudi Post Corporation (SPC), the sole postal service provider in KSA, Market experts believe the postal and cargo market is projected to grow by six percent annually during the next 20 years. However, soon in KSA the geography of the postal sector is going to change due to accession into WTO. The traditional postal operator has to evolve in order to adapt to the new environment. New entrants and new players, with fresh ideas, lean management and decidedly customer-driven attitudes, have already entered some postal markets, and this trend will probably continue, both nationally and globally. It will ultimately lie with the customers of postal services to determine who will survive. But it will be the business customers who made that decision, due mainly to the sheer size of the business mail market and the relatively small number of major customers that produced the mail. Universal service was guaranteed and underpinned by business mail customers. If their needs are not met, they will simply shift to another operator that meets their needs.

INTERNAL ENVIRONMENT

The Company

At the beginning of 1426H, a number of steps were taken at the Saudi Postal Corporation (SPC) like the establishment of new departments, launching of new services and announcing the new project of addresses and post delivery to business and residential areas in sake of providing superior customer value and satisfaction. The main focus for the senior management team is to prepare the organization’s 10,000 employees and 565 branch offices for privatization—a transition that will involve a significant shift in culture, processes, structure, and systems. The path to realize the company’s shift comprises a three-stage strategy underpinned by the innovative use of technology. Phase one is to establish a robust postal infrastructure, including a new national address system and e-commerce platform that will allow SPC to develop competitive postal services. This tact will signal the start of market regulation. Phase two will focus on outsourcing and in-sourcing activities in preparation for market liberalization, before finally moving to phase three and the full privatization of all postal services. Saudi Post Corporation has been radically reformed, where new units were founded to be run on commercial basis. These included supply, transport (both direct and mixed), points of sale and marketing, financial services, investments, real estate, express postal services, informatics and post handling.

EXTERNAL ENVIROMENT

Economics

The Kingdom’s role and responsibilities in the global economy have been primarily dictated by the unique position as the world’s largest producer and exporter of oil.  For decades, the Kingdom has strived to secure the stability of this source of energy. On many occasions the Kingdom had to employ its excess capacity to mitigate the impact on global markets of temporary short supply or price hikes, whether due to global increases in demand, production cutbacks, shortage of refinery capacity, and political unrest or speculation. The Kingdom is the largest economy in the Middle East and one of the largest exporter and importer of goods and services in the world, Saudi Arabia has a resilient economy which is highly integrated globally. In fact, since its inception one hundred years ago, the Kingdom has always believed in free trade and market economy principles, with open and liberal policies complimented with transparent and predictable procedures. The Kingdom trade relation is in growing, especially following the Kingdom’s accession to the WTO and its adoption of new economic policies to encourage diversification and growth by reforming the economic and restructuring the strategies. One element of the reform strategy is the capitalization on the vigor and vitality of the private sector and officially declaring its role as the prominent one in the development of the economy. As a consequence, the Government published a white paper announcing the various ways of private sector involvement in the management and execution of economic activities. An important section of the paper addresses the privatization of twenty major service sectors including telecommunications, postal services. Another reform strategy is to create favorable investment climate in order to make Saudi Arabia a strong competitor for foreign as well as domestic investments. The Kingdom received the largest share of foreign investment among Arab countries. In 2005, the World Bank and the IMF (International Monetary Fund) boosted the Kingdom rank from 67 to 38 as the best investment environment, ahead of France, Portugal and Italy. Saudi Arabia has been awarded the favorable Sovereign Rating of (A+) from Standard and Poor's and Fitch rating agencies. As a result of the economic reform, The private sector initiative has been announced to create three economic cities: first city is King Abdullah Economic City in Rabegh on the west coast with expected total investment of US$ 30 billion focusing on promoting energy and transport related industries while creating 500,000 job opportunities. Second city is Prince Abdulaziz bin Musaed Economic City in Hail, in the north of Saudi Arabia with expected investment of US$ 11 Billion and focusing on transportation and logistical services while creating 120,000 job opportunities. Third city is Al-Madina Economic City which was announced to become an international knowledge based industry icon. Overall, during the next ten years the various sectors in the   Kingdom have been allocated approximately one trillion dollars for development or improvement.