Application of revenue management in supply chain of postal services

E-commerce has been changing the rules of marketplace by empowered customers seeking immediate and flexible delivery. Advantages of online shopping opportunities lead to the constantly increasing parcel volumes that need to be shipped and delivered through postal services network. This evolution caused capacity management to become a serious challenge for postal organizations. Postal services have been upgrading their static value chain inherent to letter-mail to more dynamic for e-commerce parcel. The current solutions mainly focus on improving the productivity of collection and delivery (i.e. higher truck utilization) and increasing the efficiency of the equipment (i.e. fewer missorts). However, these solutions are temporary and expensive. This paper addresses the shortcoming of the existing solutions by conceptualizing application of revenue management and developing capacity management model for postal services.