Author: Archive

Reksoft brings technology innovation to the postal service business

Reksoft, the software outsourcing vendor with primary resource base in St. Petersburg, Russia, announced that it successfully developed an innovative software solution to raise the efficiency of Germany’s leading manufacturer of franking machines, Francotyp-Postalia.

As an innovative, total solutions provider, Francotyp-Postalia offers a full range of mail center solutions, notably post processing machines. The company manufactures all kinds of franking machines from compact entry devices to high performance mailing systems serving the perfect solution for organizations in every size. With more than 900 employees worldwide and sales and service subsidiaries in Austria, Belgium, Canada, Germany, Italy, The Netherlands, United Kingdom and USA, the company is proud to have more than 260,000 installed franking machines worldwide.

Reksoft and Frankotyp-Postalia GmbH cooperation started in 2005, when Reksoft was chosen from among other providers of software development services from Eastern Europe. The core idea of the project launched by the customer was to improve the performance of operations and it was requested that Reksoft focused solely on the software part of the system, leaving hardware and mechanics untouched.

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Integration of Itella Finland Ltd and Elma Electronic Trading

Finland Post Group’s leading information logistics subsidiaries, Itella Finland Ltd and Elma Electronic Trading, will join forces. Although operations under the new organisation began on 1 September, the companies will see their combination take legal effect on 1 January 2007.

With a combined staff of around 900 and net sales of EUR 115 million, the new company forms part of Itella Group which operates in eight Northern European countries. It is a top expert in electronic messaging services, eInvoicing, printing services, data management and marketing.

This integration will enable the new company to provide corporate customers with an increasingly seamless service package for invoicing and customer relationship management, and generate greater efficiency in their customer service processes. With respect to consumer solutions, consumers can choose how and in what form they wish to receive their invoices – in printed form delivered to their letterboxes, or electronically to their online bank or Netposti.

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Dutch Vanderlande Industries gets USD 400 mln order from U.S. UPS

Dutch automated material handling systems producer Vanderlande Industries has received a large order worth over USD 400 mln (USD 311.6 mln euro) from U.S. package delivery company United Parcel Service (UPS), Vanderlande chief communication officer, Frans van Duren, said on September 1, 2006.

Vanderlande will deliver a fully automated package grading system to UPS Worldport airhub in Louisville, the USA, which will double the airhub’s capacity. The contract is running until the end of 2009.

Vanderlande has been delivering package grading systems to UPS since mid-1990s.

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FedEx beating UPS in delivering stock growth

At first glance, United Parcel Service Inc. and FedEx Corp. seem alike. The two shipping giants compete for some of the same customers, and their operations are sensitive to trends in the world economy, such as rising oil prices.

But investors are rewarding FedEx for continuing to post healthy profits and to enforce strong cost controls. UPS, which has tightened its business, generates more revenue and has higher operating margins and return on invested capital than FedEx. Consequently, margins and return on capital at UPS haven’t changed much, while FedEx’s have steadily improved.

“FedEx, along with other best-in-class transports, has been able to offset higher operating costs with strong pricing growth and strict cost controls in other areas of their businesses,” BB&T Capital Markets analyst John Barnes said in a recent research note.

Operating margins and return on invested capital are measures of a company’s profitability, essentially gauging how well a company is running its businesses and using its money invested in its operations.

Since November 1999, when UPS went public, FedEx’s share price has more than doubled, to more than USD 101 a share. After a 36 percent run-up on their first day of trading, UPS shares are trading less than USD3 higher. In the past 12 months, UPS stock has traded between USD65.50 and USD83.99. FedEx had a 52-week low of USD76.81 and a high of USD120.01.

The result was a 15.9 percent decline in the UPS share price at one point during the day and 10 percent at the market’s close, its largest one-day percentage drop since going public. FedEx’s stock closed that day down USD1.13, or 1 percent, at USD109.31. FedEx earlier in July had reiterated its upbeat outlook for its fiscal year that began June 1.

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FedEx Ground Package Systems wins USD11.49 Million delivery rrder

The U.S. Army has awarded a $11.49 million delivery order to FedEx Ground Package Systems Inc., Coraopolis, Pa., to support Defense Logistics Agency’s Surface Small Package program.

The contract was awarded by the Army’s Military Surface Deployment & Distribution Command, Alexandria, Va. Work will be performed in Anniston, Ala.; San Diego, San Joaquin, Barstow, Calif.; Jacksonville, Fla.; Albany, Warner Robbins, Ga.; Cherry Point, N.C.; Oklahoma City; Columbus, Ohio; Tobyhanna, Susquehanna, New Cumberland, Mechanicsburg, Pa.; Corpus Christi, Red River, Texas; Depot Hill, Utah; Norfolk, Richmond, Va.; and Puget Sound, Wash.

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TNT delivers on promises: Dave Kulik, managing director of TNT's logistics group, shares his strategy following the sale of the company to Apollo Management.(TNT Network Logistics)

Things couldn’t look more different between the two largest express/mail companies in terms of their attitude towards logistics. Where Deutsche Post acquired Exel to build a stronger logistics capability within its network of services, TNT NV of Amsterdam has announced the sale of its logistics division to the private equity firm Apollo Management LP for 1.48 billion (euro) (USD1.89 billion).
In making the announcement TNT’s Peter Bakker pointed out the company had now delivered on two of the three promises it made in December 2005 when it announced it would exit logistics.

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Keeping Down the Cost of Delivery

Challenge: Decrease cost and improve efficiency of delivery options

Solution: Adopt a new postal delivery system for packages of one pound or less

Result: Operational improvements and approximately 35 percent net savings on overall delivery expenses

Cost-efficient, timely product delivery is at the heart of any successful mailer’s operation. Empi-Compex Technologies, a division of orthopedic device marketer Encore Medical, is no exception. The New Brighton, Minn.-based pain management and rehabilitation products marketer wanted to lower the cost of shipping its medical devices, particularly those weighing one pound or less. These lighter weight products make up approximately 42 percent of all packages sent by the company, and more than half are sent directly to patients at their homes.

The company explored alternative delivery methods for all of its shipping needs and switched to UPS Mail Innovations mail processing service for its lighter product deliveries. By switching to UPS Mail Innovations, the marketer now can deliver supplies directly to its customers at their residences at a much more economical rate.

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