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FedEx Corp. first quarter earnings expected to exceed guidance

FedEx Corporation announced that it expects to report earnings of USD 1.23 per diluted share for the first quarter ended August 31. Previous earnings guidance was USD 0.80 to USD 1.00 per diluted share. For fiscal 2009, the company reaffirmed its earnings guidance of USD 4.75 to USD 5.25 per diluted share, as weaker macroeconomic conditions offset better-than-expected first quarter results. This outlook assumes current fuel prices.
“First quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management,” said Alan B. Graf, Jr., Executive Vice President and Chief Financial Officer. “While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by USD 400 million, to USD 2.6 billion for fiscal 2009.”

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GLS launches returns service in Germany

GLS has launched a new service in Germany named ShopReturn for easy management of return shipments in the B2C mail-order market.

ShopReturn allows customers of mail-order companies as well as the mail-order business itself efficient and easy management of return shipments by enabling customers to hand in their return shipments at any of the 5,000 GLS parcel shops in Germany.

Those mail-order firms who make use of ShopReturn attach a return label with the parcel in advance so the customer can adhere this to the return shipment. After the customer hands in the parcel at a GLS parcel shop, GLS delivers the return shipment back to the mail-order company within 24 hours.

GLS said that it will only charge shippers the costs of actual returns. There is no return charge for the customer.

The launch of the ShopReturn service is part of the company’s extended B2C development strategy using its network in Germany as alternative delivery points when private customers are not at home to receive their shipments. The new service responds to the boom in online orders from e-commerce.

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Pitney Bowes Appoints Murray Martin Chairman of the Board

The Board of Directors of Pitney Bowes Inc. announced that effective January 1, 2009 Pitney Bowes Chief Executive Officer (CEO) Murray D. Martin will become Chairman of the Board of Directors. Mr. Martin has been CEO since May 2007 and he will retain these responsibilities when this new appointment becomes effective. The company previously announced Michael J. Critelli’s decision to retire as Executive Chairman and Director at the end of 2008.

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UPS Capital offers small businesses new global trade finance solution (U.S)

UPS Capital, the financial services arm of UPS, is offering a new service – UPS Capital Cargo FinanceSM – enables small U.S. importers to use their in-transit UPS shipments as collateral for loans, reducing the need to rely on paper-intensive letters of credit to finance international trade transactions.

UPS Capital Cargo Finance is designed for U.S. companies with annual revenues up to USD 50 million that import 1-to-10 ocean or air freight containers of goods per month.

Most global trade transactions for small companies are financed via letters of credit or cash in advance, with trading on open account terms typically available only to large companies. While effective, letters of credit are time-intensive and costly. Cash-in-advance transactions can strain cash flow for small companies. Additionally, traditional financial service companies may be hesitant to lend against goods that are in-transit or housed in a foreign location, leaving few options for small businesses that want to participate in global trade.

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U.S. Postal Service combines kiosks, digital screens

Margot A. Myers is the manager of retail in-store programs for the U.S. Postal Service.

The Postal Service made progress with the testing and deployment of large, complex communication networks. In 1996, we introduced Postal Vision, an employee communications network that now is integrated with our USPS-TV network. As an “early adopter” of digital signage, we began testing the impact of digital vs. static menu boards in retail lobbies in 1999.

And in 2003, we laid the groundwork for a test of digital signage that began in selected post offices in 2004 – The Post Office Channel. This third effort took advantage of the advances that had taken place in a growing medium including content delivery methods and the declining costs of technology.

One of our challenges is to improve the customer experience in more than 32,000 retail locations. Digital signage can have a positive impact on the retail environment in several ways. One opportunity is to increase the range of information available to customers while they are waiting to be served. The Post Office Channel features product and service messages to educate and inform retail customers. For example, one message compares the product features of overnight express mail and two-to-three-day priority mail. Another compares delivery confirmation to signature confirmation and shows which form to use depending on which service the customer chooses.

A second opportunity is to redirect customers and actually change customer behavior. Part of the long-standing tradition of how customers behave in our retail space is that many are totally focused on getting in the full-service queue and getting served as quickly as possible. That sounds reasonable.

But what if there are 10 people in line and all you need are some stamps? Can digital signage help change customer behavior and redirect them to the Automated Postal Center (APC), a fully automated kiosk that not only sells stamps but also allows customers to mail packages?

We focused on changing this customer behavior specifically by including a digital screen at the main entrance to each of the test sites. Nicknamed the “Stop and Turn” device, it is a 30-inch screen hung portrait fashion in a custom mount. The content on this screen is all very short (3-5 seconds), bright colors, and designed to catch the eye of customers as they walk into the post office. It’s also very direct in its messages. “Jump the line. Ship packages at the APC.” Or, “Get out of line. Buy stamps at vending.”

In addition to 2,500 APCs, the Postal Service offers 70,000 alternate access locations where customers can buy stamps or mail packages without ever setting foot in a Post Office. This includes supermarkets, drug stores, convenience stores, ATMs and a robust online commerce site at usps.com.

We established four key metrics for our digital signage test: revenue lift in products promoted on the screens, actual and perceived wait time in line, customer satisfaction and shift to alternate access. For the fourth metric, we defined success in three ways:
Re-direct traffic away from fill-service

Increase number of customers using self-service options (APCs and vending machines)
Increase awareness and usage of alternate access channels for purchasing stamps and other simple transactions.

The shift to alternate access channels was the most successful result in the test. The Post Office Channel had a positive impact on redirecting customers to in-store self-service options. Customers who saw the Stop and Turn screen were more likely to use vending (8.7% vs. 6.5%) and the APC (7.4% vs. 3.4%).

We also tracked revenue changes in the test sites as compared to alternate access locations within a five-mile radius. We measured customer awareness of the availability of alternate access locations before we installed the digital signage and again post-installation and found that awareness rose by 22 percent. Revenue from stamp sales decli

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Royal Mail unveils modern and stylish new uniform

Royal Mail has unveiled a stylish and up to date new uniform to take the company proudly into its next phase of modernisation.

Designed in collaboration with postmen and women, the uniform is practical and contemporary. Not only will it allow postmen and women to carry out their duties in comfort, its practical qualities will also benefit customers with a specific aspect of the design tailored for Royal Mail’s new customer-focussed technology.

The new uniform design reflects a wide range of roles within Royal Mail. Items in the range include polo shirts, fleece tops, and summer hats, as well as cycle helmets. Also included are light-weight cagoules and all-weather jackets to protect Royal Mail delivery staff both from the elements and the challenges of the modern delivery round.

And the new trousers have specially designed pockets to hold new handheld computers – this week being rolled out to 33,000 postmen and women to provide customers with real time proof of delivery of tracked products, including Royal Mail’s Special Delivery services.

The changes have proved popular with Royal Mail employees; 81 per cent of postmen and women who trialled the new uniforms said they felt proud wearing them.

Post men and women in Brighton and Redhill are currently trialling the new uniforms. They will be introduced more widely across the organisation during 2009.

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USPS uses transportation modeling to reduce transportation costs

ILOG announced that the United States Postal Service (USPS) has realized over USD 5 million in annual savings through a strategic transportation management initiative. Developed by USPS and IBM using ILOG CPLEX(R) optimization software, the Highway Corridor Analytic Program (HCAP) uses advanced technology to analyze USPS highway transportation scenarios and identify cost saving opportunities. The HCAP model examines routing and scheduling options to minimize costs while meeting business goals – leading to a savings of over USD 10 million in the two years since the model was deployed in 2006.

The USPS transportation network is large and complex – including responsibility for shipping over 200 billion pieces of mail per year through a system of transportation networks – and accommodates many different levels of services to its customers. The USPS network must consider different classes of mail, including Priority, First Class, and Standard, as well as different types of mail, such as letters, flats, and parcels. These complexities of various mail sizes, weights, and classes, coupled with the large scale of the USPS network, create a challenging environment in which to plan and manage transportation.

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NetPosti to be integrated with S-Bank’s online bank

S-Bank and Itella have concluded a cooperation agreement to integrate Itella’s electronic transaction service NetPosti with S-Bank’s online bank.

– Via NetPosti, we will be able to make eInvoices, looking exactly the same as traditional paper invoices, available in our online bank alongside other electronic documents, such as payslips, sent as letters. This will render our online bank more diverse than ever before”, says Pekka Ylihurula, managing director of S-Bank.

He is confident that the use of eInvoices will become increasingly more common once electronic invoice data becomes as easy to read as a paper version.

According to Jukka Alho, Itella President & CEO, this cooperation, which combines online bank transactions with electronic official communication, will make everyday transactions more fluent.

According to Mr Ylihurula, Itella’s determined efforts to develop electronic transactions further and the ability to manage large customer volumes, alongside the positive feedback received from NetPosti users, made it easy to start cooperation.

This partnership will make an electronic, intelligent archive available for S-Bank customers via the online bank.

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