DHL takes next step in plan to rival UK Royal Mail
DHL Global Mail opened its first distribution centre outside London yesterday as part of its plans to be a national network rivalling Royal Mail for business post.
The German postal operator, which is one of eight companies licensed to handle UK mail, already has a contract to use Royal Mail's extensive delivery network for "the final mile".
Similar arrangements have been made with other licensed carriers ahead of the introduction of full competition next January.
However, DHL hopes that by building its own network for business-to-business deliveries it can guarantee a faster, more reliable service than the national carrier.
The new service, called Smartmail Citispeed, aims to deliver 99 per cent of mail on time, including the option of overnight delivery.
It extends the company's business-to-business service, acquired in January 2004, which until now has only delivered to addresses in 22 London postcodes. A new distribution centre in the north-west will enable DHL customers to send items to company addresses in Manchester, Liverpool, Stockport and Warrington.
DHL will be able to collect and sort items from customers' offices, acting as a "virtual mailroom", and can make door-to-door collections from companies nationally.
John Iver, UK managing director of DHL Global Mail, said: "The fundamental factor missing in today's mail service is reliability. By building our own network we have 100 per cent control over this."
The expansion was welcomed by Gregor McGregor, chief executive of Postwatch, the consumer postal watchdog. "Customers want regular, reliable postal services. This hits the mark," he said.
Tim Norman, development director at Mail Marketing International, which uses DHL's London network, said: "Competition is healthy for the market and we've certainly reaped the benefits of getting the mail we produce handled by a company who can provide a consistently reliable delivery service to the standards we expect."
The service will be in addition to the contracts DHL has with large companies to collect and sort their mail.
Those entering the postal market are focused on taking Royal Mail's business customers, the profitable section of the market.
Companies licensed to operate in the UK are: Royal Mail, the incumbent UK operator; DHL Global Mail, UK arm of Deutsche Post, the biggest postal operator in Europe; TNT Mail UK, division of TPG, the Dutch operator; UK Mail, postal arm of delivery group Business Post; Express Dairies, the milk delivery company that now handles post; DX Services, logistics business demerged from Hays; Mail Plus, subsidiary of French postal service La Poste, and Datarun, an alternative mail and parcels delivery service.
Labour said in its manifesto that it wished to see Royal Mail remain in public hands. Observers believe this commitment could be met while handing a stake in the business to staff.
Postwatch Press Release
Wednesday 20 April 2005
THE START OF SOMETHING BIG
Postwatch, the watchdog for postal services, is delighted DHL Global Mail is
from today offering businesses throughout the UK the reliable postal service
they have been asking for.
The new business-to-business service called Smartmail Citispeed aims to
deliver 99 per cent of mail on time.
Smartmail Citispeed will at first be delivering to businesses in selected
postcodes within London, Manchester, Liverpool, Stockport and Warrington.
Gregor McGregor, Chief Executive of Postwatch, welcoming this important
development said: "A good day for postal customers. A landmark date in the
development of a competitive postal market. We hope the new service attracts
and retains customers and expands to make deliveries throughout the UK.
"Customers want regular, reliable postal services. This new service hits the
mark."
NOTES TO EDITORS
1. For more information about the new service from DHL Global Mail contact
Dan Bleakman on 020 8834 3417.
