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Carvell 'excited' to be Business Direct CEO

Paul Carvell, the former chief executive of Business Post Group, has returned to active service as chief executive of distribution company Business Direct.

Carvell, who quit Business Post in December 2005 following a marked downturn in its fortunes, says he is “excited” by his new role and has already launched a strategic review of his new company’s activities; this is due to be completed in October.

The former boss of Business Post is back at the heart of the road transport industry following his resignation last December. Chris Tindall reports.

He was appointed non-executive chairman of Business Direct, which specialises in specialist secure distribution, in June, and replaced outgoing CEO Tim Houston on 4 September.

Carvell explains: “Since leaving Business Post I’ve been looking for a vehicle for my ambitions to build another substantial logistics business. I firmly believe that Business Direct is the best such vehicle. I believe the company’s business model is robust and am excited by the opportunity that it presents.”

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UK Royal Mail selects six groups for GBP 1.3m 'tactical' design work

Royal Mail has appointed six consultancies from more than 200 applications to create its E2m (GBP 1.3m) ‘tactical’ design roster, which is due to run for up to four years.

The successful consultancies – Home, Meteorite, Open Agency, Rufus Leonard, Start Creative and True North – were selected from a final shortlist of about ten groups and will be responsible for all of Royal Mail’s internal and external ‘tactical design projects’, says Andrew Hammond, head of campaigns for Royal Mail. The projects will have a budget between E1.5m and E2m (GBP 1.0m-GBP 1.3m).

Open Agency, Start Creative and Home are retained from the previous five-strong roster, while The Design Group and Carter Wong Tomlin are dropped from the new roster, despite re-applying. The contracts run for an initial three years, with a possible one-year extension, but no groups will be added or removed during that time, says a spokeswoman for the company.

The roster does not extend to stamp design and related materials, such as year books, which are commissioned separately and overseen by Royal Mail’s Stamp Advisory Committee. Consultancies will work on projects across Royal Mail, but not for Royal Mail Group divisions Parcel Force and the Post Office.

‘We are facing a massive challenge in terms of the market opening up and we need the skills of design consultancies to meet these challenges, internally and externally. This is a good mix of groups, all with very different skills,’ says Hammond.

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More to door

While the ecommerce sector rests on efficient delivery, customers are more interested in knowing when an order will arrive than getting it quickly, reports Sean Hargrave

Although some consumers may have been confused at the Post Office counter, the evidence is that the country’s etailers were ready for the Royal Mail’s Pricing in Proportion (PiP) scheme introduced last month.

PiP changed the way the Royal Mail charges for deliveries by considering an item’s size as well as its weight – hence the addition of a ‘large letter’ category for letters larger than the normal C5 business letter yet smaller and lighter than a parcel. In all, 80% of items carried by Royal Mail will either remain the same price or be cheaper, a spokesman predicts.

The Royal Mail’s optimistic vision that the scheme has been introduced without disruption has been mostly backed up by ecommerce sites. Online photo print service Photobox’s MD Mark Chapman, for example, says there was enough warning of changes to the pricing of the million packages it sends through Royal Mail each year and that the moves are sensible.

“We’d been consulting with Royal Mail for a year or so, so every major ecommerce provider would have known about the changes,” he says. “Overall, we reckon our post bill will come down. I think, though, for the next couple of months ecommerce players are going to be in flux as they wait for their bills from Royal Mail to confirm they’ve got the savings they were expecting. When we have confirmation we’ll be able to pass on the savings through our prices.”

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UK Royal Mail adds online post tool

Royal Mail has redeveloped an automated web-based pricing calculator to assist customers with its new Pricing in Proportion (PiP) payment structure.

PiP establishes the price of sending a letter based on size and weight, while the calculator (Pricing Configurator) helps customers determine exact costs.

Royal Mail has integrated the calculator more fully with its web site to improve speed and customer experience. The Pricing Configurator also links to its StampNow application which enables businesses to print their own postage.

‘The first implementation of a pricing calculator did not integrate fully with the common server,’ said Royal Mail head of ebusiness Dennis Greene.

‘It is now faster and the user experience is less disjointed. The system is a quantum leap better.’

Vendor Selectica redeveloped the system, which can be found on Royal Mail’s web site.

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Rhenus takes over part of TNT unit Cendris in Germany

German logistics group Rhenus has acquired parts of postal services company Cendris Deutschland, a TNT subsidiary. Rhenus Office Systems has taken over the document logistics activities of Cendris in Germany with effect from September 1, 2006, Rhenus said in a statement. This was because TNT had decided to concentrate on its mail and parcels network business.
Rhenus would integrate the Cendris outsourcing services in the fields of internal postal departments and document management. This would enable Rhenus to offer a full range of postal outsourcing services from incoming mail to archiving.

The Rhenus Logistics group, with annual turnover of euro 2.3 billion and 11,000 staff across all its logistics activities, said that it has several thousand Office Logistics customers, including renowned companies such as DaimlerChrysler, BMW, Bayer and the Allianz group.

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UK Royal Mail starts review of interactive business roster

Royal Mail is overhauling its interactive agency roster in a bid to improve its communication with customers. The new strategy follows an increase in competition from new postal service providers.

Proximity London was handed the bulk of the postal giant’s interactive work in 2003, but its three-year contract has now come to an end. It is not clear if the agency is intending to repitch for the business.

Omnicom-owned Proximity was appointed to replace Ogilvy Interactive following a pitch, and was given a brief to oversee the postal operator’s digital strategy, online advertising, e-marketing and a redesign of royalmail.com.

It recently launched its first foray into interactive TV as part of a #10m blitz to introduce “pricing in proportion”, which bases postage cost on size and shape as well as weight (MW July 6). But it is not clear if it plans to develop any further interactive services.

A spokeswoman for Royal Mail confirms the organisation is reviewing the business and plans to appoint a roster of agencies. She says: “We are looking for a number of agencies that will enable us to make the best use of digital media for our customers.”

Royal Mail has come under increasing pressure from new entrants, such as TNT Post, DHL Global Mail and UK Mail, after the deregulation of the sector at the beginning of the year.

Meanwhile, Royal Mail has announced a new roster of agencies to handle tactical design work across all of its internal and external communications. Home, Meteorite, Open Agency, Start Creative, True North and Rufus Leonard have all been appointed.

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The hunter hunted? DPWN targeted by private equity company

DPWN CEO Klaus Zumwinkel has made a public statement welcoming the prospect of a major purchase of equity by Blackstone, the very large American private equity company. “Private equity and hedge funds are welcome because they invest and lift the shares higher” he said in an interview with a newspaper.
Yesterday rumours emerged in the US, UK and German stock markets that Blackstone was planning to buy a 10% stake in the company. The German state investment bank KfW initially denied that there would be a sale to Blackstone.
A further tranche of DPWN has just been sold by the German government through KfW, increasing the liquidity of the stock and making it easier for Blackstone to buy into the corporation. A 10% stake would make Blackstone the largest stockholder after the German government. Blackstone is also a major investor in the other big German privatised company, Deutsche Telecom.
Transportation infrastructure has been the target of substantial interest by private equity groups. Their motivation varies. Some –such as the pension funds are looking for long-term stable income stream and are willing to pay a premium. An example of this was the ‘ADMIRAL’ consortium that bought Associated British Ports earlier this year.

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GeoPost may pick 10% in DTDC

Geopost of France may pick up 10% stake in Bangalore-based courier and express company DTDC, in which Anil Ambani-controlled Reliance Capital holds 40%.

Subhasish Chakraborty, chairman and managing director of DTDC, who along with his family, currently holds 60% and management control, is expected to dilute stake to 50%.

Mr Chakraborty told ET said he is in talks with a few international players for a tie-up. But he refused to divulge further details.

One of the three leading players in the domestic industry, DTDC is steadily increasing its foreign presence. It has already set up its own network in all Saarc countries, the US and the UK. Recently, it tied up with a Pakistani company ACB Care, and signed an agreement with the Chinese Kerry Logistics, to foray into two growing markets in terms of India’s bilateral trade.

DTDC now enjoys a network of 3,700 centres comprising franchisees and own offices, and clocked revenues of Rs 125 crore on standalone basis during last financial year, and Rs 250 crore cumulatively with franchisee revenues. DTDC now aims to grow to Rs 500 crore revenues by ’10.

Sources said DTDC is also looking at taking over small regional players to grow in the domestic market. It had initiated negotiations with Mumbai-based Speedage Express Cargo Services, but Speedage was subsequently taken over by TNT last week. Sources said DTDC would soon announce a few mergers that will propel the company into the top league in the domestic market.

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