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Postwatch response to DTI’s post office closure proposals

Posted by | Dec 14, 2006 | |

On 14 December 2006 the DTI launched its consultation on rationalising the current post office network. The consultation proposed funding the closure of 2,500 post offices throughout the UK. Postwatch has today submitted its response, which includes 99 recommendations.

The Postwatch response can be viewed at www.postwatch.co.uk under policy documents. The executive summary sets out Postwatch’s key recommendations.

Millie Banerjee, Chair of Postwatch, said: “We had to submit a detailed response, with many recommendations, because the DTI failed to explain the thinking behind its proposals. The DTI did not answer even such basic questions as how they arrived at the figure of 2,500 closures, why they proposed the access criteria set out in the consultation and how they plan to avoid additional unplanned closures. We have had to say so much because the DTI said so little.

“The weaknesses of the consultation may actually have made contributors think harder and could lead to a better set of decisions. Whether this happens is now up to DTI ministers. They must consider and respond fully to the complex and important issues that have been raised by us and others.

“We all want the DTI’s decision document to be a thorough, well thought out piece of work. It must unambiguously explain to customers and their representatives how and why the pain ahead will eventually result in a viable and sustainable, if somewhat smaller, nationwide network of post offices that provides reasonable access for all.

“DTI Ministers have said their decision will be made within 3 weeks. This could give the impression, perhaps wrongly, that decisions have already been taken. But it is, of course, the quality of the decision, not the speed at which it is made, that counts. Ministers will need to demonstrate that they have given the many hundreds of responses the careful consideration they deserve.”

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Sorting the UK post office network

Posted by | Dec 14, 2006 | |

The closure of any post office is a loss to the customers and community involved. But Postwatch recognises that the current situation of increasing financial losses and fewer transactions cannot continue.

To let the current drip-drip of unplanned closures continue would be irresponsible and would undoubtedly lead to some areas losing access to post office services. The government’s consultation on future funding and structural arrangements for the post office network is the first step in putting in place a strategic plan.

For over a year, Postwatch has been urging the government to propose a sustainable way of meeting customers’ post office needs. In response to the consultation, Millie Banerjee, Chair of Postwatch, said: “Today’s announcement and consultation are the first steps in providing a clear view on how the post office network will look in the future. We have consistently urged the government to provide that clarity and are pleased we now at least have proposals to work on.

“This is not a simple numbers game of how many post office buildings are to close. The focus should be on ensuring customers have access to post office services. Solutions will vary from location to location. But, for example, if a number of expensive-to-run, seldom used post offices can be replaced with a cost-effective mobile service that meets communities’ needs – doesn’t that make sense?

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DHL switching to a customer-centric database model: NCDM

Posted by | Dec 14, 2006 | |

DHL is switching from a product-centric database model to a customer-centric one.

This was a key takeaway from Susanne Albert, senior manager of database marketing at Plantation, FL-based DHL Express, who spoke on the 2006 National Center for Database Marketing panel, “Strategy & Tactics for a Successful Shift to Customer Centricity.”

“Back in 2003, DHL was relatively new in the U.S. and we really had no choice but to utilize mass marketing for our brand transformation when we acquired Airbone Express,” Ms. Albert said.

“[But] today, we are implementing some very strong customer marketing programs, whereby we are segmenting not only by channels, but by customer behavior,” she said. “We still have a long way to go in the U.S. in terms of identifying our customer segments and understanding the kind of clusters required for customer-centricity.”

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RFID adoption held up by vicious circle

Posted by | Dec 14, 2006 | |

Demand for passive radio frequency identification (RFID) labels, particularly UHF labels, is being stymied by a vicious circle of high unit costs that can only be reduced if production volumes increase.

According to a new study from ABI Research, the reason these core components of RFID tags have failed to achieve their expected potential is the relationship between prices, volumes and the business case for RFID.

In a classic vicious circle, production costs for UHF labels are still at levels tending to inhibit the high-volume deployments that would provide economies of scale.

“At current prices, many end-user companies in the retail supply chain struggle to determine a compelling business case for RFID,” said ABI Research analyst Robert Foppiani.

“Those companies that have high value, high risk goods are often able to find a business case to justify the investment in RFID passive labels at current prices.

“But many members of the value chain are operating on thin margins, and most are unwilling to drop prices any further until there is much greater volume.”

Foppiani added that label vendors are trying a variety of tactics to “wring every last cent” out of the cost of their products.

ABI Research’s report noted that a number of EPC Gen 2 RFID vendors are engaged in “loss-leader” activities, offering labels at unsustainable prices in an effort to gain market share.

“Eventually, some will drop out of the running or will find niche markets where their products can find a role. ABI Research believes that cost reduction tactics will not have a short-term effect on market volumes,” the study stated.

“The substantial price cuts seen in the past year were necessary to attract end users complying with mandates.

“Future vendor attempts at lowering production costs will make more sense as higher volumes are reached. Users will proceed cautiously case-by-case and volumes will rise slowly and steadily rather than dramatically.”

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UPS Delivers Again

Posted by | Dec 14, 2006 | |

For the seventh consecutive year, UPS has set a new record for contributions to United Way. UPS, its employees, and retirees pledged USD59.3 million during the 2006 campaign to United Way for continuing support of those in need.
In addition, UPS employees volunteered more than 800,000 hours of service around the world in 2006, much of it in the United States helping local communities by repairing schools, reading to children, landscaping for local organizations and assisting food banks.
UPS and its employees’ and retirees’ commitment to create lasting, measurable change in local communities through United Way has continued to grow year after year. UPS is a leader in corporate philanthropy and an example for those across America who strive to make a difference.
More than 246,000 UPS employees participated in this year’s United Way campaign, contributing more than USD51.3 million. The company then contributed an additional USD8 million through The UPS Foundation. In the company’s hometown of Atlanta, Georgia, UPS and its employees donated more than USD4.45 million, the largest contribution to United Way of any Atlanta-based company.

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DHL places even greater stakes on Galicia with the opening of its customs services in Santiago

Posted by | Dec 13, 2006 | |

Since last 28th November, DHL has started operating with its own import customs office in Santiago de Compostela.
Prior to this change of service, all shipments carried to Galicia by DHL were managed by the Customs Office in Vitoria, the head office for incoming and outgoing air freight in Spain, Portugal, the South of France and North Africa.

International shipments to any part of Galicia will therefore be directly dealt with by the Santiago customs office, simplifying the procedures involved and delivery to end clients, improving consequently the quality of the service.

DHL is the only company in the sector to offer this service of receiving merchandise sent by air and carrying out the corresponding customs red tape in Santiago de Compostela.

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Lithuanian mail, courier services market grows to eur 40 mln in Jan-Sept

Posted by | Dec 13, 2006 | |

Lithuanian mail and courier services companies posted 137.1 million litas (EUR 39.7 mln) in aggregate revenue for the first nine months of this year, a rise of 34 percent from a year earlier, the Communications Regulatory Authority (RRT) reported.

In the third quarter, the country’s mail and courier services market, as measured by revenue, grew by 22 percent year-on-year to 47.2 million litas.

(EUR 1 = LTL 3.45)

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