INDUSTRY
Travel and Logistics
Data and AI in Travel Industry for a Memorable Passenger Experience
HIGHLIGHTS
- PostNord initiated a major IT transformation focussed on agility and innovation to respond to market demands faster, as it looked to address challenges such as declining revenues and rising operational costs.
- A key part of this initiative was to double the IT delivery speed by modernising legacy systems and reducing dependency on external consultants.
- PostNord partnered with Tata Consultancy Services (TCS) to put in place agile IT systems and faster innovation cycles for future service and enhanced customer experience.
Shared values
PostNord is the leading logistics and communication provider in the Nordic region. It connects businesses and individuals through reliable parcel and mail services across Sweden, Denmark, and beyond. It delivered more than 243 million parcels and nearly 1 billion letters in 2024. PostNord’s vision is to be the most trusted and sustainable logistics partner in the Nordics, and its mission is to make everyday life easier through efficient and innovative delivery solutions.
In the years following the COVID-19 pandemic, PostNord faced major challenges such as falling mail volumes, rising parcel competition, and cost pressures. With the objective of reducing IT costs while ensuring scalability for growing parcel volumes, PostNord wanted to double the IT delivery speed to enable faster innovation.
To achieve these objectives, it tied up with Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions. For PostNord, this was a continuation of an over-decade-long partnership that has gone from strength to strength with shared values of trust, innovation, and customer-centricity.
IT transformation for agility
Partnership
In the initial stages, PostNord’s partnership with TCS focused on IT stabilisation, agile transformation, and building Nordic capabilities instead of localised, country-specific implementation.
As it accelerated its journey from ‘good’ to ‘great’, its focus shifted to creating seamless, hyper-personalised customer experiences powered by advanced technologies such as artificial intelligence (AI) and automation.
TCS introduced a transformation programme, focussing on technology modernisation, product harmonisation, and developer efficiency. The solution included an integrated Lighthouse mode and adopting generative AI (GenAI).
A complete technology transformation road map was conceptualised to modernise legacy systems, standardise application landscape, and to enable Nordics vision, ie, have a common IT system to handle a specific business capability across all four countries, namely Sweden, Denmark, Finland, and Norway, by leveraging microservices event-driven architecture on the cloud, thereby reducing IT run cost significantly and reducing legacy footprint to make IT landscape more nimble and agile.
The operating model transformation plan categorised different capabilities into four quadrants—operational efficiency, business enablers, business differentiators, and support functions)— and defined separate sourcing strategy for insourcing, devops teams, and managed services. This categorisation helped restructure PostNord’s IT to the suggested model. TCS presented a complete transition road map, filling skill and knowledge gaps through customised training programmes.
With TCS’ help, PostNord saved millions of Euros in two years, with more savings in future.
In parallel, a complete technology transformation road map was conceptualised to modernise the legacy, heterogenous technology landscape to enable a microservice event-driven architecture on cloud with AI and automation at the core.
These changes will help PostNord roll out products and services to customers at a faster pace, addressing the fast-changing consumer expectations.
Outcomes and the way forward
PostNord and TCS are shaping a resilient, customer-centric, and technology-driven future for Nordic logistics.
Phase 1 of the IT modernisation plan delivered significant cost savings and improved delivery-related key performance indicators (KPIs) within two to three programme increments. Developer efficiency increased, and modernisation accelerated, positioning PostNord for sustainable growth and digital leadership. The second phase relates to improving Salesforce and customer solutions. The third phase involves shifting corporate functions (mainly SAP and SuccessFactor) from a traditional service model to a platform-based service. This will cover SAP hosting, BASIS support, and ADM services for easy maintainability and traceability.
Looking ahead, the transformation will enable:
- Millions of Euros in savings through the operating model transformation
- Significant reduction in the legacy footprint, and fast-tracking further legacy modernisation opportunities by creating key foundational architectural components
- Service and vendor consolidation, providing 2x faster output from product teams and faster MMTR (mean time to resolve)
- Hyper-personalised customer experiences using AI and data insights
- Sustainable operations through green logistics and optimised resources
- Agile and scalable IT systems to adapt to market changes Faster innovation cycles for new services and features
The TCS advantage
TCS’ global presence ensures we are always close to our customers while providing cutting-edge solutions.
These are some of the other advantages TCS offers:
- TCS has decades of experience and expertise in executing largescale technology and organisational IT projects.
- TCS’ complete innovation ecosystem helps develop futuristic solutions leveraging automation, robotics, and smart technologies.
Jorgen Hellberg
chief information officer, PostNord Group
When we talk about PostNord’s vision and mission, we talk about two things—we make everyday life easier, and we want to be the favourite carrier of the Nordics. We started a quite rapid and aggressive transformation about two years ago. The purpose of that was to increase the speed of business and IT development, our agility and innovation. For that, the partnership with TCS was critical. Without TCS’ knowledge and competence, we wouldn't have had the self-confidence to go through with that type of project.
Arun Pradeep
business head, Travel and Logistics–EMEA, TCS
Having modernised through industrial age and information age, TCS is privileged to have a long-standing partnership with PostNord spanning over a decade. Together, we have modernised logistics operations, optimised transport systems, and transformed technology platforms leveraging cloud data and AI. Now, with our PostNord Competency Center, we are partnering closely to deliver seamless and sustained customer experience while connecting millions of households and businesses in the Nordics. Looking ahead, digital and robotics will be central to our shared vision, empowering PostNord to remain
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