Opinion: Correios’ trajectory – recovery and competitiveness

October 26, 2022 | 14:00 hours

Opinion: Correios’ trajectory – recovery and competitiveness

Floriano Peixoto *

A source of pride for Brazilians for 359 years, Brazil’s postal and telegraph company has faced serious liquidity and compliance problems in the past decade. One of the most relevant companies for the country, Correios, at the beginning of 2019 was a potential liability of R$ 18 billion for the public administration. Accounts for business maintenance were not closed and there was inevitable dependence on the State Treasury, that is, on taxpayers’ money. In addition, logistical and operational problems caused delays in the delivery of packages, which caused the company to lose its position in relation to the competition.

It took almost four years of intensive work to clean up and recover the administration of the Post Office, and the results are remarkable. In 2022, the company recorded a profit of R$ 3.7 billion – the best in the last 10 years. By clearing the accounts, it was possible to distribute a share of the profit in 2022 to all employees of the Post, which has not happened since 2012.

We invested R$ 1 billion in logistics processes, revision of business lines, rationalization of costs, renewal of service channels and, finally, restoration of financial predictability.

We have increased cargo handling capacity and reduced the cost of a transported facility from R$5.46 to R$4.24, while reducing delivery times from more than five days in 2019 to less than two days in 2021. The company has become competitive again.

New products specially designed for traders, entrepreneurs and e-commerce users were launched. Other services have been expanded to better adapt to the digital environment, following the significant growth of the parcel sector in the context of restrictions imposed by the Covid-19 pandemic. Customer service channels have also been redesigned to better support online customers.

The company is committed to promoting actions to protect the health of employees and customers in the midst of a pandemic. He was also able to contribute to the fight against the spread of Covid-19 by transporting biological material intended for disease research.

Reducing staff costs was an important part of the Posta’s restructuring plan. In addition to qualifying the workforce, we implement new technologies to utilize resources. We maintained and guaranteed all rights provided for by labor legislation and implemented voluntary redundancy programs that helped dry up the machine and save R$600 million.

“The post office is ready to be installed
the transformations they mark
development of postal services in progress
In the whole world”

All over Brazil Correios maintained a large number of useless movable and immovable assets at very high costs. All unused or unused merchandise was auctioned off. As a result of this action, over the course of four years it was possible to renew the fleet of a thousand operating centers for distribution and treatment. In addition, R$ 200 million was invested in the renovation of the computer park throughout the country.

After overcoming the initial difficulties and getting the company back on track and operating at full capacity, we are looking for new goals for the next five years. We want to double the volume of orders, result in revenue and triple the net worth.

Now Correios is ready to incorporate the transformations that mark the development of postal services around the world. Restoring the company’s reputation on the market and the recognition and trust of the population, the company is ready to incorporate the most innovative and challenging trends on the international and domestic markets.

* Executive Director of the Brazilian Post and Telegraph

Note: The signed articles do not necessarily reproduce the opinion of the newspaper Diário do Aço