Tag: TNT Mail

Rivals aim to deliver the goods as Royal Mail strike looms

Posted by | Jun 28, 2006 | |

As the Royal Mail faces up to its worst industrial crisis for years and the very real prospect of a damaging strike, rival companies such as TNT, DHL and Business Post will be aware of an opportunity.

Such companies have increasingly “cherry picked” the Royal Mail’s business – a trend that was given a fillip on 1 January when the Royal Mail’s letters monopoly was finally removed.

The state company’s competitors had already been creaming off the bulk mailing business used by large financial companies, utilities and government departments. Under a gradual deregulation process, rivals had been allowed to handle batches of 4,000 items and more since 2002. Under a so-called “access” agreement, private sector competitors collect the post from the organisations concerned, then distribute it to regional centres where it is then handed over to Royal Mail offices to be taken “the final mile”. The state-owned organisation receives 13p per item it delivers under the access arrangement, whereas the figure goes up to an average 17p if it supplies the full service.

Since 1 January and “full liberalisation”, Royal Mail’s competitors have been introducing services for smaller batches of mail, eating further into the Royal Mail’s bread-and-butter operations. Business Post’s UK Mail division has recently launched a service for volumes as low as 250 letters a day.

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Whitehall ditches UK Royal Mail in favour of cheaper private rivals

Posted by | May 31, 2006 | |

UK Government departments are being told to stop sending letters via the Royal Mail because it does not offer the same value for money as its rivals, despite its huge subsidies. The Government wants to cut GBP30 million from the cost of delivering post and is urging departments and councils to consider using one of the eight private-sector suppliers. The news comes two weeks after the Royal Mail said the Government had given it GBP1.75 billion in emergency help to plug its pension fund deficit and pay for modernisation. The pressure to abandon the Royal Mail is coming from the Office of Government Commerce (OGC), which negotiates business deals on behalf of Whitehall. The man responsible for negotiating with the Royal Mail has told the Treasury Select Committee that the discussions had been “not as fruitful as I would have liked”. Hugh Barrett, the chief executive of OGCbuying.solutions, said: “It is a commercial decision for the Royal Mail to make as to how far they want to lower their prices in response to competition. That is established policy. We are taking advantage of the deregulated market to get the very best deal for taxpayers in that marketplace.”

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TNT repositions UK mailing brands

Posted by | May 4, 2006 | |

TNT Post has announced a shake-up of its UK mail brands. The Dutch firm, formerly TPG, is merging its Circular Distributors and TNT Mail companies under the name TNT Post. TNT bought 90% of Circular Distributors, the free sheet and sample delivery firm in 2001. According to TNT Post, the move means it is the only company, apart from Royal Mail, that has the resources to deliver both unaddressed and addressed items. The company’s UK chief executive, Nick Wells, said: “The re-brand is an exciting and positive step forward for both companies as well as being extremely logical.”

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Mailing Houses: Tough lessons in deregulation

Posted by | Apr 10, 2006 | |

Postal liberalisation is revolutionising the UK’s mailing house market. It may put smaller firms out of business and encourage consolidation, but canny operators that rise to the challenge will survive and could even benefit from the competition, writes Alex Blyth.

The mailing house as we know it is becoming a thing of the past.

Postal deregulation, which came into force on 1 January, will change the shape and nature of the industry forever. It will put some mailing houses out of business, and many of the smaller ones will need to merge or align themselves with postal carriers in order to survive. Those who do survive will find their role significantly altered, as clients increasingly ask them for advice on which postal carrier to use. Quite simply, this is an issue that no-one in the mailing house sector can afford to ignore.

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Dutch TNT buys German mail carrier

Posted by | Apr 3, 2006 | |

Dutch mail and logistics group TNT NV has bought German regional mail delivery company Cbs city briefservice GmbH, TNT said on April 3, 2006. Financial details were not disclosed. The acquisition makes TNT’s unit TNT Post the second largest mail carrier with an own network in the German state of North Rhine-Westphalia after Deutsche Post AG. The deal provides TNT Post access to additional 129,000 households and enterprises in Moenchengladbach, where the acquired company is based. TNT Post services some 5.6 million households and firms in North Rhine-Westphalia.

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