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General debate sets tone for UPU Congress

Decision-makers from the international community today participated in a high-level general debate during the 24th Universal Postal Congress. Themed “The postal sector, an essential component of the global economy”, the debate gathered stakeholders from the larger postal sector.

The World Trade Organization stressed the crucial role infrastructures such as postal services play in international trade. For the International Monetary Fund, the postal sector has a considerable impact on the reduction of trade costs. For its part, the World Bank noted the importance of money transfer services for migrants, adding that postal operators were in a unique position to offer such services so essential to development. The Russian Post said postal networks could work with banks to offer additional services and increase their revenues.

eBay International noted the role of postal services in the distribution of millions of items bought online annually. However, many online shoppers still hesitate to order goods from abroad. Only 20 pct of goods purchased on eBay sites cross borders. Citing high shipment costs and a need for improved quality of service, eBay urged postal operators to find solutions to these issues.

The Tunisian Post showed how the Government has made postal services part of a national policy to promote the information society by using the Post as a trusted intermediary in the electronic world and as a facilitator of e-commerce. On a regional level, the African Union expressed its desire to integrate postal services in its regional infrastructure development plan, as it does with water, electricity, telecommunications and transportation.

The United Nations Environment Programme (UNEP) finally invited the postal sector to take part in a worldwide awareness campaign on environment challenges. Thanks to an agreement signed in April between the UPU and UNEP, postal operators will work together on greening the postal sector.

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Postal Service seeks flexibility in closing facilities

Facing falling mail volume and limited control over its prices or costs, the U.S. Postal Service is relying on post office consolidation to stem losses, but the effort faces stiff political resistance.
The self-supporting agency on June 19 sent Congress an outline of how it hopes to save money by streamlining a network of 37,000 post offices and 400 large mail-processing plants.
The outline did not provide any details indicating how many facilities the Postal Service might consider closing or consolidating.

Sharp declines in first class mail leave the network larger than needed, allowing the agency to eliminate facilities — and related maintenance costs — without sacrificing service; Deputy Postmaster General Patrick Donahoe told the House Oversight and Government Reform Postal Service Subcommittee Thursday.

The Postal Service is largely blocked from lying off employees, but an effort that involves considering closing facilities in hundreds of congressional districts nevertheless draws opposition from lawmakers, postal unions and other stakeholders.
Members have regularly used appropriations bills to protect individual postal facilities from closing.

Acknowledging that challenge, Donahoe asked the subcommittee for help.

Laws requiring mandatory arbitration in contract disputes leave the Postal Service’s labor costs fixed at about 80 percent and the recent postal reform act put inflation-based caps on mailing rates. That means the agency can change its bottom line only through increasing market share or cutting operational costs, witnesses said Thursday.

Without dramatic cost reforms “there will be serious and rapid financial consequences for the nation’s mail system,” Postal Service Inspector General David Williams testified.
Williams warned the agency might have to “borrow substantial funds if [it] cannot generate substantial savings.” He noted the agency is likely to borrow heavily this year.

Williams and Phil Herr, Government Accountability Office director for physical infrastructure issues, urged the agency to improve communications about the network plan with affected parties, though they noted recent improvement.

Acknowledging that stakeholder resistance regularly derails Postal Service plans to close facilities, Herr said “part of the problem [has] stemmed from USPS’s limited communication with the public.”

Oversight and Government Reform Federal Workforce Subcommittee Chairman Danny Davis, D-Ill., pressed the agency to avoid service problems.

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DHL wins Heidelberger Druckmaschinen contract

DHL has been awarded a three-year contract by Heidelberger Druckmaschinen to manage the warehousing and distribution of its newly established DHL-Heidelberg Hong Kong Logistic Centre (HLC).

Operating 24/7, the HLC serves as a spare parts centre for the Asia-Pacific region, and will reduce delivery time for Heidelberg customers by up to 50 pct.

Prior to the establishment of the multi-million dollar HLC, spare parts were sent to customers directly from Heidelberg’s spare parts centre in Germany.

DHL will manage the 15,000 sq.ft warehouse located in Tsuen Wan, which houses inventory in excess of USD 2 million.

With DHL’s extensive air express network in Asia-Pacific, it will enable the next-day delivery of spare parts to Heidelberg’s customers in major cities in the region, overcoming geographical spread, reducing lead times and optimising inventory levels.

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DHL registers remarkable growth in Colombia

DHL registered double-digit growth in the import and export sector of the textile and fashion industry in Colombia. Imports with DHL Express increased by 60 pct during the first semester of 2008 as compared to the same period in 2007, while exports increased by 43pct.

These trends are announced on the eve of DHL’s participation at Colombiamoda, from July 29th thru the 31st, where the company will introduce the customized solutions designed to meet the demanding needs of the textile and fashion industry.

A recent study by research firm In-Trend revealed that the main products fashion designers import from Colombia include pieces and materials such as dyes, machinery, spare parts and thread in addition to textiles and raw materials.

In fact, DHL Express’ exports between Colombia and the United States have increased 60 pct during the first semester of 2008, one of the highest growth rates registered in Latin America. Following the U.S., intra-regional textile and fashion industry exports within Latin American countries encompasses 40 pct of the total textile exports of Colombia, primarily to Venezuela, Mexico, Ecuador, Panama and Peru.

DHL has a complete suite of solutions designed to meet the needs of the textile and fashion industry, such as Import Express, a solution that enables fast, innovative and secure imports in more than 255 countries with a complete customs clearance service.
Similarly, DHL has dedicated consultants at DHL Import Desk center that helps customers through each step of the importing and exporting process, from the required documentation to the rapid customs release. In terms of exporting, DHL Express Worldwide is a service that offers early morning international door to door deliveries.

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SwissPostCertificate : The simple way to a secure digital identity

The SwissPostCertificate is available at over 2,400 post offices and can now be acquired more easily and at a more attractive introductory price. The SwissPostCertificate is a form of digital ID and can be likened to a passport or ID card for the digital world, enabling users to communicate confidentially. Swiss Post’s digital ID is now available at a more attractive introductory price and via a much simpler procedure. With the help of the new wizard, customers can now download the digital certificate for authentication, signing and encryption with just a few clicks of the mouse after completing the registration and identification procedure.
The personal identification (yellow identification) required for the SwissPostCertificate has been possible at all of the 2,400 Swiss post offices since April. Thanks to the new means of identification, which requires a notarially certified or legally attested copy of an identity document, the certificate can now be purchased worldwide. Registration is the key to secure identification as SwissPostCertificates are only issued once the registration documents and the customer’s identity have been carefully checked.
Another benefit is that the customer can now choose whether to pay for the SwissPostCertificate annually or for three years in advance. Furthermore, the introductory price for the various certificates has been reduced for natural persons. The cost for the first year was previously CHF 90 for the starter kit plus a minimum annual fee of CHF 35. Now, the entire package is available for under CHF 100. Anyone opting for the three-year deal will benefit from a discount. New Swiss customers needing to use the certificate immediately will be able to apply their digital signature in just 24 hours, thanks to the express order option.
1 CHF = 0.963112 USD

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Postal Operators – Fuel prices hitting profits

Higher fuel prices are having an impact on operating profit for all postal operators, and with many European countries already investing in alternative fuel sources, the U.S. Postal Service is now looking for ways to reduce it’s annual fuel bill, expected to increase by USD 600m this year.

The U.S. Postal Service has around 195,000 local delivery trucks and is already testing alternative transport powered by hydrogen, ethanol, lpg, and electricity.

French postal operator La Poste has a long-term plan to replace as much of its fleet as possible with electrically powered cars and is already using the battery-powered CleaNova, produced by Société de Véhicules Electriques (SVE), a joint venture between Dassault and Heuliez. Italian postal operator, Poste Italiane, has continued to replace many of its vehicles with gas-powered versions and has carried out several trials on alternative fuel vehicles, with special interest on serial-hybrid vans.

Royal mail aims to reduce its fleet fossil fuel usage by 14 pct by 2010 and has already bought Smith Edison and Newton higher function delivery vehicles which have a top speed of up to 50mph and can cover up to 150 miles on one battery charge. Royal Mail recently launched a company wide awareness programme to help its 180,000 people switch to greener driving, whether for social or work driving. And almost 1,000 Royal Mail drivers have received in-depth classroom training to help them adopt more environmentally-friendly motoring practices with plans to train a further 2,000 in the coming months.

With petrol and diesel prices expected to stay high this year, alternative fuels are likely to play a greater part in the selection of replacement vehicles for most postal operators.

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Kuehne+Nagel announces Klaus-Michael Kuehne's personal succession plan

Effective October 1, 2008, Klaus-Michael Kuehne will delegate important functions within his scope of responsibilities to Karl Gernandt.

Gernandt will become board member of the Kuehne Foundation, Schindellegi, and managing director of the newly planned Klaus-Michael Kuehne Foundation. He will also be appointed president of a new Hamburg-based company – the Logistics Centre of Excellence – that will co-ordinate all the donor’s activities in worldwide logistics research and education.

Gernandt will maintain offices in Hamburg, Germany and Schindellegi, Switzerland.

Kuehne plans to step down from his post as delegate of the board of directors of Kuehne + Nagel International, and will recommend Gernandt as his successor.

Klaus-Michael Kuehne commented on his decision: “At the age of 71, I have decided to pass many of my responsibilities into younger hands and I am fortunate to have found a person to whom I will entrust a significant part of my life’s work.”

He added that he intends to expand the field of interest of the Kuehne Holding AG and to initiate new entrepreneurial engagements. “As the Kuehne Foundation will someday inherit my shareholding in Kuehne + Nagel, the board of the foundation will be enlarged and rejuvenated with top management talent.”

Kuehne will remain president of the board of the Kuehne Foundation and chairman of the board of directors of Kuehne + Nagel International, working in close cooperation with Gernandt.

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Royal Mail bosses under pressure for closing profitable branches (UK)

MPs warn in a new report that post offices in pubs and shops could be at risk because of inadequate funding and call for more transparency in the way Royal Mail treats its public subsidy.
Ministers have told Royal Mail to close 2,500 out of 14,000 branches in a bid to cut the network’s annual subsidy by GBP 40million to GBP 150million a year and stem losses running at GBP 4million a week.
However, Paula Vennells, Post Office Limited’s branch network director, told MPs on the Business and Enterprise committee that some of the condemned branches were making money.
She disclosed that 10 profitable branches will be closed during the 18 month-long Network Change Programme – or just over one every six weeks.
The committee’s chairman Peter Luff, who is publishing the report into the financial viability of the post office network, said it “made no sense” to allow profitable post offices to close.
The committee calls on the National Audit Office to investigate the financial arrangements for so-called ‘outreach’ services which Royal Mail is setting up when it has to close branches.
They call for close examination of the relationship between Post Office and its parent company Royal Mail Group after finding that money provided by Royal Mail was not enough for the Post Office to run its services.
The MPs also said Royal Mail should provide “clear information” on what services Royal Mail expects to be provided, how it works out what to pay for them, and how much they actually cost to deliver.
They questioned whether Royal Mail was using the Post Office to “cross-subsidise” some of its mail services. Last year the network received GBP 358 million for providing mail services to Royal Mail.

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