Delivering Results

New Zealand postal operation turns to electronic lock security solution

The earliest forms of postal communications within New Zealand were haphazard at best. Being a maritime country made up of three main islands and a number of smaller offshore islands, the first residents were primarily missionaries, whalers and traders. Residents had to rely on occasional passing ships for mail. Eventually, the establishment of settlements across the north and south islands brought the need for structured postal services—and New Zealand Post was established.

While New Zealand Post’s history spans more than 150 years, it is the past 20 years of change, refocus and diversification that defines it. Today, New Zealand Post’s core postal operations are much the same as those of the U.S. Postal Service. Both face similar challenges when it comes to securing operations, providing quality service and protecting customer mail. Unlike the U.S. Postal Service, however, New Zealand Post is a private organization and operates in a deregulated environment.

Competition Drives Change
On April 1, 1998, the Postal Services Act of 1998 was passed, deregulating the New Zealand postal market and opening it to full competition. The act effectively removed New Zealand Post’s 150-year monopoly on the delivery of standard mail. Under current regulations, anyone can process and deliver mail, at any cost, as long as the person is registered with the New Zealand Ministry of Economic Development. There are currently 25 registered postal operators, including New Zealand Post.

With a number of competitors in its core market, New Zealand Post is always seeking ways to make its network for managing mail more efficient and secure. To accomplish this, the company subcontracts mail collection and preparation services to private firms that are responsible for channeling large volumes of mail to New Zealand Post’s central processing service centers.

Security, Quality Problems
Quality of service was an issue. Subcontractor clearance agents are required to collect the mail from New Zealand Post’s network of approximately 5,000 street receiver boxes during a specific window of time each day. New Zealand Post had no way to determine if and when mail was being collected.

Security also was a concern. Each route includes 20 to 30 street receiver boxes, and sometimes clearance agents service multiple routes. Each series of 50 receiver boxes was keyed alike. If a key were lost, all the locks in that series of street boxes had to be rekeyed. The time required to rekey the boxes put customer mail at risk.

New Zealand Post began looking for a system that would allow it to monitor the performance of each subcontractor clearing mail from its street receiver boxes.

“We put a tender out to the industry with a list of our requirements, inviting companies to present their solutions,” said Ian Bekhuis, letter acceptance network manager. “Many different types of technology were presented to us. We selected CyberLock because it was costeffective and met our requirements in terms of measurability and auditing. CyberLock did not require a huge investment in supporting technology.”

An Electronic Lock System
In the spring of 2006, with the support of its vendor— Electronic Keying Australia—New Zealand Post implemented a successful four-month trial of the CyberLock system in the city of Wellington. Next, the group converted 3,500 receiver boxes to CyberLock by replacing the mechanical cylinders in the locks with CyberLock electronic cylinders.

“We’ve had vandals try to break into the street receiver boxes with hydraulic pry bars and other types of equipment,” Bekhuis said. “The boxes themselves may sometimes fail, but not the CyberLocks because they are so robust. The national networking capability the system provides is a great benefit to us. Not only does the hardware provide a high level of security, but the system’s Enterprise software allows us to perform audits over the network and manage the performance of our subcontractors at each collection site.”

Enterprise software provides daily reports of box clearance times and exception reports when an agent tries to open a street receiver box outside of the scheduled collection time.

Since Enterprise software is Web-based, managers easily can access it from any computer just by opening a Web browser and logging on. Enterprise supports a variety of methods for communication between the CyberLock hardware and the software, including the use of cellular PDAs to program keys on demand in the field. Each clearance agent carries only one electronic key to service all the receiver boxes on his route.

With Enterprise, New Zealand Post sets schedules in each agent’s electronic key for accessing the receiver boxes on their route. It also programs collection times in the key so the agent can’t clear a box before a predetermined time of day. Along with this tight-control functionality, staff can disable a key immediately should one be lost. Prior to installation, a lost mechanical key would cost nearly $2,200 because the New Zealand Post had to replace all the mechanical locks that were keyed alike on that series of receiver boxes.

Reaping the Benefits
The information that the CyberLock system gathers for New Zealand Post on a daily basis consists of box clearance times, denied entries and audit trails for all the keys and locks. It also reports exceptions such as attempted access to a box outside of the scheduled collection time.

“The most important benefit the CyberLock system provides is greatly enhanced security,” Bekhuis said.

Addressing security weaknesses and finding viable solutions to day-to-day problems, New Zealand Post added value to the services it provides customers and lessened its exposure to vandalism and theft.

New Zealand Post is proud of its heritage and eager to be an integral part of the country’s future. By taking advantage of today’s advances in security technology, the company has a system in place that provides the controlled access and accountability needed. The decision to elevate service performance and the security of customer mail will influence that future.

This article originally appeared in the issue of .

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