In addition to recovering the company’s financial situation, the current management of Correios sees the implementation of an operational improvement plan as urgent. In yet another attempt at restructuring, the strategy developed by the team of the company’s current president, Emmanoel Rondon, foresees a significant reduction in fixed expenses, which includes the closure of around 700 agencies and logistics units, in addition to the dismissal of 10 thousand employees through a voluntary dismissal plan (PDV).
Another bet in the company’s restructuring plan is the formation of a real estate fund, designed by Caixa, with the assets that the company owns — there are 2,366 properties valued at R$5.4 billion. The idea is to sell properties, receive the funds and then rent them. Correios management does not rule out including even the building that currently houses the state-owned company’s headquarters, in Brasília.
The operational improvement plan is one of the pillars of the government’s strategy to recover Correios without the need to contribute public resources. The strategy is in the final stage of preparation and is treated by federal management as a condition for the Union to provide guarantees for a loan requested by the state-owned company from financial institutions.
Take your business to the next level with the country’s top entrepreneurs!
One of the targets for reducing fixed costs is to eliminate areas and departments with idle labor and overlapping agencies and logistics units, that is, those located in locations close to each other and that can absorb demand.
The company prepares a study and assesses the need for an intelligence analysis, which goes beyond the distance from one point to another, but also evaluates the profitability of that unit.
Cutting payroll expenses is also one of the main challenges facing the new management of Correios. In the last PDV, out of a potential audience of 8 thousand employees who expressed interest in leaving the company, only 3.6 thousand signed up.
The assessment by the company’s current management is that, this time, it will be necessary to offer conditions to reach the target of 10 thousand layoffs. The idea is to convince these workers that it will be advantageous to leave the company with the POS. The goal is to reduce the payroll by R$2 billion per year.
There is concern among the current management of the state-owned company with the ongoing negotiations on a collective agreement with two large worker confederations. During the previous government, when the state-owned company was included in a privatization plan, some labor clauses were suspended, and were later restored under the current administration. The plan now is to review these benefits.
Cutting expenses with terminations via POS and reviewing benefits, however, should not be enough to solve Correios’ financial problems, according to the company’s current management. It will also be necessary to increase revenue.
Continues after advertising
Stopped in time
The idea is to increase the scope of services provided and seek new customers, given changes in the market. The assessment is that while the state-owned company’s main competitors, such as Mercado Livre and Amazon, have evolved and become technology companies, incorporating an ecosystem that goes beyond deliveries and includes everything from e-commerce to banking services, Correios has stopped in time.
In view of this, Correios intends to readjust its operation and seek niches where large competitors do not operate, creating its own business ecosystem. The marketplace will be rethought, according to the plan.
On another front, Correios management intends to change logistics to expand the provision of services to the government, such as transporting medicines and vaccines, which require temperature control. Currently, this is not possible.
Continues after advertising
In the field of partnerships, the plan is to seek innovative market solutions to gain agility. One of the examples is a partnership between the state-owned company and an overseas company, which uses an ink with an identity printed on parcel shipping boxes.
It works as a smart seal developed with security inks. The idea is to sell this type of product, which reduces waiting at the counter. Just hand the box with the recipient to the attendant.
Offering financial services is another bet and, for this, the idea is to partner with a bank. These partnerships do not require bidding.
Continues after advertising
Partnerships with private companies may occur in any aspect of Correios’ business, in the view of the current board. The objective is to find solutions that help generate financial sustainability, with the possibility of private capital entry and corporate rearrangement.
