India Post – P&G (Proctor & Gamble) Agreement 

Introduction

          Logistic Post started in the year 2004 Since then Uttarakhand Post tried twice enter into the logistics market by issue of tenders, but failed for the reasons that the underhand practice of price cutting trends that exists in this market around this region does not allow a level playing field for a rule bound organization like India Post, where the records are transparent while rates by and large inflexible.  

          Under these circumstances possibility of logistic service in this State exists only if India Post is able to provide a value added “Logistic Plus” service like “Logistic-cum-retailing” or “Logistic-cum-distribution” through our Post Offices. 

Logistic-cum-Retail Service

          Uttarakhand Post signed an agreement with Divya Pharmacy at Haridwar for sale of their health products through the Post Offices. The sale showed some encouraging results in a quick period of time, to the extent that transporting full truck load of these products on different routes was viable. Today the total tonnage of retail being transported by our logistic to be sold through Post Offices is per month about 9000 Kgs. Divya Pharmacy finds its advantageous to send their goods through our logistic services because thereby the goods could be transported up to different Post Offices directly avoiding any possibility of loss or breakage for which Logistic Post takes responsibility. 

          So far, Uttarakhand Post has earned a net revenue of about Rs. 4 lacs during the year under this Logistic service.  

Logistic-cum-Distribution/delivery

           To harness the potential of our excellent distribution network, Uttarakhand Post entered into an agreement with P&G (FMCG) for transmission and delivery of their packets through Post Offices, especially in the remote areas. The agreement further provides a value added services of collection of the value of the packets corresponding to the amount showing in the bill from the remote retailers and depositing it into the CBS account of P&G. For this turn-key package, P&G remunerates the Department separately for- 

(a)          Transmission of packets up to the Post Office.

(b)          Delivery of Packets

(c)          Collection of money from the retailers and its deposit into the P&G account. 

          The operation has been recently launched from 22^nd January 2009 as a test case in Garhwal region of Uttarakhand. After successful testing, it will be extended to the rest of the state. If successful, it has the potential to become world’s biggest distribution network, especially in the rural India.

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