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Postcomm decide on financial relief for industrial action & future of the bulk mail compensation (UK)

Postcomm published decision documents about giving Royal Mail financial relief for industrial action in 2007-08, and potentially also for 2008-09, and set out the future of the bulk mail compensation scheme.

Postcomm has largely accepted Royal Mail’s application for relief from the financial consequences of transformation-related industrial action in 2007-08. This means Royal Mail will forgo GBP 21.6m of allowed revenue (due to the C-factor) because of poor quality of service performance during the year, but bulk mail customers will not receive compensation. If Postcomm had not accepted the application, Royal Mail would have had to pay around GBP 77m in bulk mail compensation to customers and would have forgone around GBP 91m in allowed revenue. If Royal Mail’s application had been accepted in full, Royal Mail would still have forgone GBP 12m because of its poor Postcode Area performance.

Postcomm has agreed, conditionally, to Royal Mail’s request to suspend the Bulk Mail Compensation Scheme and to adjust the C-factor in 2008-09 where quality of service failures are caused by transformation-related strike action. However, Postcomm will consider a wide range of factors in reaching a final decision on relief at the end of the year.

Postcomm has decided to remove the regulated bulk compensation scheme for delay from 1 April 2010. The main reasons for removing Royal Mail’s compensation scheme for delayed bulk mail are:

– In the developing competitive market it is more appropriate to move towards market driven outcomes;
– Removing the scheme will allow customers to negotiate compensation schemes to suit their own needs;
– The current scheme does not necessarily target those customers who have suffered poor performance.

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Postcomm to Amend Postal Operator Licences

With Postwatch soon to be absorbed into a larger multi-consumer watchdog known as the National Consumer Council on 30th September, Postcomm is making adjustments to its paperwork which includes existing postal operator licences.

To prepare for the abolition of Postwatch and the new complaint handling standards, Postcomm needs to make relevant licence modifications to postal operators’ licences to reflect the transfer of functions from Postwatch to the new NCC and the new complaint handling standards.

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CEVA Logistics integrates businesses worldwide

CEVA Logistics, one of the leading supply chain companies in the world, has announced a major restructure. Effective immediately, four Regional Presidents will be responsible for running the integrated businesses in Contract Logistics (CL) and Freight Management (FM). In making the announcement, CEO John Pattullo commented: “We believe this will bring our business even closer to customers and help us meet their growing need for integrated solutions.”

CEVA resulted from the merger of the former TNT Logistics with EGL Eagle Global Logistics in August 2007. The new company originally retained the CL and FM businesses as separate divisions, with the exception of Asia-Pacific, which tested a model integrating the two businesses at country level.

Following a very successful nine-month pilot in that region, the company has now decided to adopt the integrated model globally. As Pattullo explained, “The Asia test has delivered outstanding results. The integrated structure allows for one CEVA ‘face’ to the market, helps us stay very much attuned to customer expectations, and enables the provision of integrated solutions. Put simply, we think this new structure will let us do an even better job of supporting our customers.”

In recognition of its global nature and need for coordinated leadership, Joe Bento retains responsibility for the FM network to ensure cross-regional effectiveness.

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CEVA Logistics integrates businesses worldwide

CEVA Logistics has announced a major restructure. Effective immediately, four Regional Presidents will be responsible for running the integrated businesses in Contract Logistics (CL) and Freight Management (FM).

CEVA resulted from the merger of the former TNT Logistics with EGL Eagle Global Logistics in August 2007. The new company originally retained the CL and FM businesses as separate divisions, with the exception of Asia-Pacific which tested a model integrating the two businesses at country level. Following a very successful nine-month pilot in that region, the Company has now decided to adopt the integrated model globally.

CEVA announced the following appointments at the most senior level:

> Joe Bento, President, Americas and Global FM network
> Vittorio Favati, President, Asia-Pacific
> Bruno Sidler, President, Northern Europe
> Gianfranco Sgro, President, Southern Europe, Middle East & Africa.

In recognition of its global nature and need for coordinated leadership, Joe Bento retains responsibility for the FM network to ensure cross-regional effectiveness.

CEVA has also emphasised the critical significance of its three global sector teams covering the Automotive, Technology, and Consumer/Retail industries. These will shape sector strategy, lead product development, co-ordinate the Company’s Century (Top 100) key accounts, and act as trouble-shooters

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UPS – Alcatel-Lucent agreement

UPS will be the Lead Logistics Provider in Asia for Alcatel-Lucent Enterprise Solution Division (ESD), which has expanded its venture in Asia-Pacific with the recent opening of its new 45,600 sq.ft distribution centre in Hong Kong. The facility, being a radio frequency-driven operation, enables real-time transactions and guarantees 100 pct accuracy.

UPS will perform various logistical activities like inbound receiving, storage services, inventory management, pick-and-pack operations, returns management and outbound transportation management.

The activation of the new Hong Kong logistics centre, which is fully dedicated to Alcatel-Lucent ESD, cuts delivery response time by days and reduces direct operating expenses for Alcatel-Lucent. In the past, products were shipped from Europe and the US to customers in Asia.

Since being appointed as contract logistics consultant in 1999, UPS’s relationship with Alcatel-Lucent has led to various signed agreements like the XPO MOU (return logistics with repair vendor management) in July 2003, the XPL contract (4PL contract for logistics distribution with one DC in France) in August 2003 and the LOGOS contract (4PL contract for logistics distribution with one DC in France and one RDC in Hong Kong) in April 2008.

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TNT and Postal Corporation of Kenya sign parcel delivery deal

Postal Corporation of Kenya (PCK) and TNT Express Worldwide Kenya Ltd have signed an agreement that will allow the companies to extend their services and value-additions to customers.

TNT Express will begin the delivery of international parcels on behalf of EMS Kenya (PCK’s express delivery division) to an initial 90 international routes where EMS Kenya does not have an agreement. PCK will assume local distribution of TNT consignments through the 300-plus post offices.

The agreement was signed by the Postal Corporation of Kenya Postmaster General Fred Odhiambo for EMS Kenya, while TNT Express was represented by the Country Manager Sam Gichohi.

“This is a true ‘win-win’ agreement that will allow us to offer customers world-class and extensive express delivery of services,” said Mr Gichohi.

PCK has grown its international business to 109 countries. The new partnership will extend this count beyond 200.

PCK will, on its part, enable TNT Express to expand and streamline coverage in this market by offering better national coverage for their international consignments.

“The forging of this new partnership is in line with PCK’s refreshed go-to-market strategy, which includes forging useful partnerships with key players to widen our market,” said Odhiambo.

The move comes only two months after TNT Express announced its commitment to invest Sh136 million (USD 1.98 million) in expanding operations. This new announcement with further its objective of strengthening its presence Kenya.

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Estonia Post Chairman Suggests Selling the Company As Soon As Possible

Meelis Atonen, the chairman of the supervisory board of the state owned postal company Eesti Post, suggest selling over half of the company as soon as possible as this could bring the company out from the financial difficulties.

However, the social democrats are strongly against selling Eesti Post since they are afraid it may cause fall in service’s quality, ERR News writes.

All neighboring countries’ postal companies are interested in buying Eesti Post.

Atonen said that over half of Eesti Post should be sold. “If the politicians dare to deal with privatization, I suggest privatizing at least 51 pct of Eesti Post. In that case, a simple logic says that Eesti Post would get a good, strong owner whose interest would be company’s strength and competitiveness,” Atonen said.

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TNT completes integration of Speedage

TNT is rebranding its India-based domestic road express arm from Speedage to TNT. The name change shows the successful integration of Speedage, a company TNT acquired in September 2006, into TNT’s global express network. Operating under a single brand will support TNT’s strategy to become the market leader in the Indian market for domestic and international express services, using an integrated air and road network.

“This is the first acquisition in India by one of the top four express players to be rebranded. We now offer customers a single point solution for international air, domestic next day and domestic day-definite services, using an integrated air-road network”, says Abhik Mitra, Managing Director, TNT India.

The rebranding will be accompanied by the set up of a single Customer contact number. The name change will encompass signage, vehicles, uniforms, the website, and every touch point where the brand is visible. A single brand gives more visibility to the company, its products and services.

Headquartered in Bangalore, TNT India has 3,500 employees, 614 depots, 29 hubs and 1,546 road line-haul vehicles all over India.

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