Latvia Post looks to RAF AI-developed OCR solutions to handle growing cross border e-commerce packets and to provision more accurate data.

The Situation

In common with posts across the globe, Latvia Post has seen a sharp increase in small, “complex” cross-border mail items from across Asia. These items are referred to as “complex” because address information can be badly printed, barcodes have little or no information behind them, and packages are small and difficult to handle.

Latvia Post is positioning itself to become a market leader through the provision of world-class postal services across the Baltic states and Europe. The company seeks to achieve this business growth and tackle these market challenges:

• increasing customer demand for quick and dependable parcel delivery
• faster turnaround
• limited availability of labor resources for processing and sorting
• provision of more accurate data (detailed information on the size and weight of items critical for billing)

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Solutions

With this, the company has now implemented its most ambitious modernization project ever. With a backbone of artificial intelligence and data analysis, Latvia Post has installed fully automated parcel weighing, scanning, and sorting equipment capable of processing twice as many items in half the time, compared with its previous labor resources.

Latvia Post board chairman Mārcis Vilcāns commented, “Revolutionary change in the sphere of technology has substantially altered the global postal industry. Ten years ago, letters, accounted for the largest share of our services. However, with the rapid growth of e-commerce and online shopping, the function of and demands upon postal companies and the range of services required have changed rapidly."

“Data exchange, speedy processing, and efficient delivery, as well as options for delivery locations, are basic consumer demands. To meet such demands, human resources alone are no longer enough – significant adoption of artificial intelligence is required.”

According to the head of the company, the artificial intelligence incorporated into the new sorting equipment will facilitate continual learning – the more parcels the equipment sorts, the better it recognizes various labels and their position on the package, as well as the ways in which people project in recent years. Its principal manufacturer is BlueCrest and the total investment in the equipment amounts to US$4.75m.

Albe Pereira, Business Development Manager at BlueCrest commented, “A growing aspect of Latvia Post’s operation is small, hard-to-handle packages from e-commerce activity. The organization recognized the efficiency and integrity with which our TrueSort system handles very small, lightweight packages up to 10kg. We look forward to a very successful, business partnership and supporting Latvia Post to achieve their strategic objectives.”

Latvia Post will continue to implement targeted modernization projects including improving the parcel locker network, automating and modernizing customer care and service processes in post offices, as well as providing automated transportation solutions in the processing and sorting center, connecting various processing locations as efficiently as possible.

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The Result

“Now we provide increasingly fast, high-quality, and flexible services to our customers, both locally and internationally. This is just one of many steps in a far-reaching modernization and we do not intend stopping now. We will capitalise on what has been achieved so far - to see beyond current trends, confidently manage challenges and embrace future opportunities.”

-Mārcis Vilcāns

Chairman of the Board

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