New divisional structure in place in Norway
Norway Post has created a new divisional structure, which came into force this week. The entire letter area is now gathered in one division – the new Mail Division. Six regions throughout Norway are responsible for production and distribution, and chain operations are intended to ensure a uniform concept in all of the regions. The Mail Division will have overall responsibility for customers and production.
“The combined mail division paves the way for greater cost efficiency and profitability in the mail segment. The merger is also intended to lead to greater customer focus and allow us to adapt quickly to changes in customer needs,” said Dag Mejdell, CEO of Norway Post.
Closer to the market
The two logistics divisions (Logistics and Logistics Solutions) are intended to ensure that the Group focuses more on the logistics segment since this is its biggest business area. The Group management will also come closer to the logistics market. This change makes conditions suitable for continued Nordic growth in both the logistics divisions.
“The logistics field’s increasing importance and key role in the Group are reflected in the fact that there are now two logistics divisions,” Mejdell added.
Economies of scale
The production and transport of parcels in Norway form part of the Logistics Division’s work. The new structure is intended to result in greater interaction across boundaries and ensure that the Group achieves economies of scale in its transport and terminal operations.
“Our goal is further integration between the goods, parcel and transport operations,” states Mejdell.
Hiring freeze
Mejdell says that the new organisation has not led to the Group having too many employees and that the interaction effects have been based on voluntary solutions.
The plan is to reduce the corporate staff/support by 80 full-time equivalents by the year-end. This applies to staff/support throughout the Group, which currently employs 1,200 full-time equivalents. The reduction figure includes initiatives that are already planned.
“We will try to resolve this issue through natural wastage and possibly other voluntary solutions,” he said.
For this reason, a 12-month hiring freeze has now been implemented for corporate staff/support jobs.
Changes to the brands and names of divisions
The new divisional structure affects how the Group appears in the market through its brands. The brand architecture has therefore been adapted to the new organisation, among other things to achieve a better correlation between the names of business areas and Bring specialists.
The names of the divisions have also been re-evaluated. Following an overall assessment, it was decided that the Parcels and Goods Division is to be renamed the Logistics Division.
“We chose the name Logistics because it is a good common denominator for the parcels and goods area and describes the division’s operations very well. Together with the Logistics Solutions Division, we also manage to underline that two of our divisions operate in the logistics segment,” explains Mejdell.
This means that the final names of the divisions are Mail, Logistics and Logistics Solutions.
For more details on the restructuring of the Bring brand, click here.
