Author: Archive

In Finland, Your (RFID) Chip's in the Mail

Finland’s postal operator will soon begin mailing 7,000 to 8,000 envelopes a month with passive RFID tags inside to trace the flow of mail through the system. Itella, a private company that operates the Finnish postal system, has completed installation of RFID readers at three Finnish distribution centers and plans to have all 11 DCs in the network equipped by the end of September.

The readers will identify pieces of mail that have RFID tags inside. The trace mail will not be identifiable to postal workers. Itella will use the read data to measure velocity of mail through the system, analyze flow, and to measure its performance against benchmark levels of service.

Allen said the application is technically challenging because handling systems can operate at high speeds, and item orientation is inconsistent. Itella previously used active RFID technology to track mail. The passive system is less expensive to operate, in part because tag costs are significantly lower.

Itella has also applied passive RFID tags to 650,000 reusable totes used to move mail, and may tag more, according to Kari Hanninen of Finn-ID, which is the system integrator for the project. There are no current plans for widespread use of RFID to track individual pieces of general mail.

Postal operators worldwide have used RFID for a variety of operations, from track-and-trace operations like Itella’s to reusable container tracking and other asset management. In ten years postal operators will buy USD 2.5 billion worth of RFID equipment and services and tag ten trillion items annually, international market research firm IDTechEx predicted in a recent report.

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Correos guarantees daily collection for 100% of its letter boxes

Correos has successfully completed the implementation of Marabú II, the new automated system for monitoring collection from letter boxes, which will improve the efficiency and quality of the postal service.

This computer application can accurately track collections of letters and other post deposited by the public in the boxes on the main streets and squares of all Spanish capitals and all towns of over 50,000 residents.

The results obtained to date show that Marabú II ensures collection efficiency of nearly 100%. Through this computer system, which provides data daily, Correos monitors the entire trajectory of the different collections carried out each day and obtains information as to their exact time, as well as the arrival of this post at each automatic sorting office.

Efficient design of routes

The letter boxes and sacks containing the mail are identified with their corresponding bar code. This enables the letter carriers to use their portable terminals to register the barcodes of the letter boxes and the sacks that carry the collected mail, as well as other data: the condition of the letterbox, how long the collection took, the time of day when most letters are posted, the most and least used letter boxes, and so on.

At the end of their route, the letter carriers can upload the data from their portable device to a central computer, where the exact time and the sacks collected are registered in a database. This way, any service issues can be dealt with immediately.

With this information, Correos has designed the routes for more efficient collection and set times according to the volume of post. The post is now handled more effectively and delivery times are reduced.

Marabú II is another step forward by the public postal company towards its strategic goal of increasing the quality of the postal service, improving the reception of post through letter boxes and offices, automatic sorting at its reception centres and delivery, with the use of PDAs.

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USPS flex fuel vehicles lowered fuel efficiency

The U.S. Postal Service tried to do the right thing, buying more than 30,000 American-made flex fuel vehicles capable of running on ethanol. However, the vehicles, purchase from 1998 to 2003, ended up decreasing overall fuel efficiency by 29% and increasing gasoline consumption by 1.5 million gallons, according to a USPS study.

The plan went wrong in two ways. The vehicles had larger than necessary engines and distribution of E85, the 85% ethanol blend of fuel, is still largely restricted to the midwest.

As a result, vehicles outside the midwest were run on gasoline, and their engines, which were larger than predecessor Jeep engines, burned more fuel.

In addition, E85, though cleaner burning than gasoline, contains less energy. It takes 1.33 gallons of E85 to travel the same distance a a gallon of pure gasoline. Thus, fuel efficiency was reduced even farther.

The USPS said in the future, new flex-fuel vehicles will only be deployed where E85 is conveniently available and competitively priced. The study said the price of E85 must be 30% less than gasoline to be cost effective.

The program was most successful in Minnesota, where the number of stations selling E85 increased from 15 to more than 200 over the last 5 years.

The flex-fuel vehicles purchased included Long Life Vehicles (LLV), Dodge Caravans and Chevrolet Uplanders.

The study also details the results of smaller-scale experiments with fuel cell, hybrid, electric and compressed natural gas vehicles.

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Correos and Viajes Crisol launch prepaid “TURCORREOS” cards

Correos and Viajes Crisol have signed a collaboration agreement by which over 2,200 post offices will offer prepaid “TURCORREOS” cards to customers and other members of the public. The cards are an easy, secure means of payment for travel and associated services, such as hotel stays or car hire, among other things.

The agreement, which is intended to be permanent, was signed by the Correos chairman José Damián Santiago Martín and Viajes Crisol CEO José María Lucas.

The Correos chairman remarked that, with this new service, the post office network can offer a wider range of products and services, enabling the postal operator to consolidate its diversification strategy and to meet its goal of turning post offices into multi-service centres, simplifying life for the public, who will be able to carry out several tasks in the same place quickly and easily.

Meanwhile, the Viajes Crisol CEO said that the choice of Correos as the first company to distribute these prepaid cards is related to the excellent sales opportunities offered by the broad coverage of the over 2,200 post offices throughout Spain.

The agreement includes granting Viajes Crisol the use of the registered trademark “TURCORREOS” and an economic agreement in which the postal operator will receive a commission on the total revenue. Sales of the Crisol cards at Correos offices will begin in the next few weeks, once the computer systems have been adapted to handle the payments and charges.

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TNT expands in Kenya

TNT Express has acquired its long-term Kenyan agent Aircare Charters in a bid to strengthen its position in the country and develop Nairobi into a regional hub, the locally-based newspaper Business Daily reported.

The courier company has invested 138 million Kenyan shillings (EUR 1.4 million) towards expanding its foothold in the country, the newspaper said. Kenya will now be the company’s hub in the region providing a link for its operations in East and Central Africa.

TNT Express regional MD for Middle East and Africa, Jinendra Sancheti, said that the move was part of TNT strengthening its position in emerging markets and providing an extensive network to support intra-regional and international trade growth.

Kenya was strategically positioned to offer the company major traffic flows linking Southern, Eastern and Central Africa, he noted. Africa has been identified as a major growth point for the company. “Kenya provides a business opportunity for the group and we shall continue investing in the market,” he added.

TNT Express has been operating in the Kenyan market since 1980 through Aircare Charters, which held the franchise. Other major players in the market include DHL, UPS, FedEx, One World, Sky Net and Globe Flight.

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ABX Air and DHL to renew their hub services agreement.

ABX Air has announced that its Hub & Line Haul Services agreement with DHL is scheduled for renewal in August for an additional one-year period.

The agreement, as amended, covers sorting, maintenance, and other logistics services that ABX Air performs in support of DHL’s express package network in the US, including its management of DHL’s national sorting centre in Wilmington, Ohio, and fifteen of its regional sorting centres across the US.

The agreement took effect in August 2003, with a provision calling for subsequent automatic one-year renewals after the initial amended four-year term unless either party provides notice of intent not to renew at least 90 days before the anniversary date. ABX Air has not received a non-renewal notice from DHL before the 90-day deadline.

In addition to its renewal provisions, the agreement allows for DHL, with a 60-day notice, to change the scope of services that ABX Air is contracted to provide to DHL.

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Deutsche Post still to decide on selling Postbank

Deutsche Post hasn’t decided whether to sell its majority stake in German lender Deutsche Postbank AG as the company considers options for the holding.

Germany’s largest banks have been positioning themselves for takeovers since Deutsche Post, which owns 50 percent plus one share of Postbank, said last year it was assessing a possible sale. German newspaper Handelsblatt cited Postbank CEO Wolfgang Klein as saying in an interview that he expects Deutsche Post to decide on the future of the lender by fall.

Speculation about a sale of the bank has been fueled by a report in Manager Magazin that Frankfurt-based Commerzbank AG and Munich-based insurer Allianz SE made a combined bid for Postbank valued at about 10 billion euros (USD 15.7 billion). Appel declined to comment today on the report. Deutsche Post has started to collect bids for Postbank, Die Welt reported May 23.

The German government wants to be assured that a sale of Postbank, the country’s largest consumer bank by customers, would result in a stronger banking industry, Economy Minister Michael Glos said in a Bloomberg Television interview May 23. The German government controls about 30 percent of Deutsche Post through development bank KfW Group. Commerzbank Chief Executive Officer Martin Blessing said in a separate interview that he “can imagine a lot” in German banking consolidation.

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