Spring Global Mail to close Cologne hub as volumes decline
Spring Global Mail, the international joint venture between Royal Mail and PostNL, looks set to close its operational hub in Cologne, Germany. The company is carrying out a network optimisation review in the light of declining international mail volumes.
Although exact arrangements are under discussion with employee unions, the company is expecting to consolidate its operations into two European hubs, in Belgium and the UK.
Spring Global Mail has appointed Rudy van Rillaer as its new vice president global operations, and he will be responsible for implementing the results of the company’s “extensive” network operations review.
The company told Post&Parcel today that closure of the Cologne hub is likely to take place before the end of the year, but could not say how many jobs would be lost.
Spring Global Mail’s German Country Team will remain in place in providing customer service for its German customers, the company confirmed.
“Currently, we are in discussions with the relevant Works Councils to minimise the social impact of the overall Network Optimisation Programme. We do expect to complete the Network Optimisation Programme which includes the closure of our Cologne operational hub, by the end of 2011,” said Spring Global Mail spokesperson Freia Goederaad.
Flexibility
Spring Global Mail, which has its headquarters in Diemen, the Netherlands, said the consolidation of the network was not only in response to declining international mail volumes, but also to provide more flexibility when the mail volume mix changes.
“Our network will be able to handle changing volume profiles in a much quicker and cost effective way,” the company’s spokesperson explained.
Rudy van Rillaer has been with Spring Global Mail since the cross-border mail joint venture was established in 2001, and was previously vice president of network distribution.
His new management team position has been defined as a direct result of the company’s network optimisation review.
The company, which currently employs 600 people in 15 countries, said phasing in changes to its network would bring “almost instant benefits” in the flexibility and reliability of operations, as it seeks a long-term strategy “to remain best in class for cost effectiveness and service”.
