IPC’s Intercompany Pricing services support postal operators in their objective to remain competitive in the dynamic e-commerce world in which competitive market-oriented and performance-driven pricing is key. Participation in specialised networks such as INTERCONNECT is underpinned by relevant remuneration agreements which IPC Intercompany Pricing services neutrally administers. Applying competitive rate arrangements outside of UPU standard remuneration, members can also benefit from independent payment and performance reports, analytics and improve service quality for consumers.

How does it work?

Developed to underpin the INTERCONNECT suite and focus on e-commerce, the INTERCONNECT remuneration agreements cover both letters (tracked and untracked) and parcel products. The specialised remuneration agreements cover letter packets (LIRAE), parcels (PIRA), as well as the exchange of INTERCONNECT products between USPS and other members. The agreements are open to INTERCONNECT members and their membership in 2022 includes all major European designated
postal operators, as well as USPS.

With a strong focus on competitive remuneration and strengthened quality of service, these remuneration agreements are one of the building blocks of the INTERCONNECT system, setting the basis for a global postal e-commerce delivery network.
Since its creation, IPC has been central to the arrangement, as the administrator of the remuneration agreements, as the facilitator of negotiations, and as the chair of steering committees and working groups.

Furthermore, IPC offers expertise in processes and reporting which can be equally applied for multilateral and bilateral remuneration arrangements.

 

Benefits

  • Wide coverage expected to grow further, with 28 major postal operators from across Europe in 2022, and link with US covered
  • IPC as an impartial facilitator of agreements
  • System support with the provision of payment reports underpinning multilateral or bilateral remuneration agreements
  • Best practice sharing between the postal operators
  • Simplified and standardised accounting processes among members
  • High target level of quality of service and data provision, ensuring customer satisfaction

Intercompany pricing agreement facilitated by IPC

Letter-mail INTERCONNECT Remuneration Agreement Europe (LIRAE)

The LIRAE, covers INTERCONNECT tracked and untracked letter packets as well as legacy letter-mail services. One of the main objectives targeted under the LIRAE is to provide a quality-driven terminal dues model for postal operators to be more
competitive in the e-commerce market.

Parcels INTERCONNECT Remuneration Agreement (PIRA)

The PIRA covers INTERCONNECT parcel services. With the focus to improve postal operators’ competitiveness in a very dynamic segment of the e-commerce market, quality of service and data driven performance are incentivised to underpin
PIRA’s remuneration model. The agreement has strategic importance in the migration of parcel services from EPG to the INTERCONNECT network.

IRA USPS 2

Developed in 2020 as a multilateral framework of bilateral agreements, the IRA–USPS is a multilateral solution that facilitates exchanges to and from the US, for select products from the INTERCONNECT suite. Benefiting from the standardisation of terms, processes, and functions required to support bilateral rate arrangements, this agreement is signed by 14 postal operators.

More information

To know more about Terminal Dues, please contact helpdesk@ipc.be.