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DPD to hike prices for parcel deliveries instead of parcel shops expansion

DPD has stopped the expansion of its parcel shops in Germany and is instead planning to increase prices for parcel deliveries to cope with the rising fuel costs, DPD CEO Arnold Schroven told the German newspaper Frankfurter Allgemeine Zeitung in an interview this week.

In the beginning of April, the company had announced that it would continue its strategic growth by opening another 1,500 parcel shops in Germany by the end of 2008 in addition to its existing 3,000 retail outlets. Meanwhile, DPD has surprisingly changed its strategy and is now planning to invest in the development of a new express delivery service and to concentrate on its international parcels business. In both segments, the company generates considerably higher profits than in the domestic parcels business, Arnold Schroven further explained. He added that the company was under pressure as it couldn’t fully implement the price increase of 4 pct for parcel deliveries planned for this year.

In view of the rising transport costs, further increases in parcel deliveries between business clients – the company’s core service – are unavoidable from 2009, Schroven said.

From October this year, the company plans to increase the prices for a single parcel by 3 cents due to the government plans to hike truck toll fees. As a result of the price increase, Schroven expects an annual revenue growth of 50 pct in the express sector. Currently, DPD’s express division accounts only for 5 pct of the total group revenues.

Last year, the company’s sales grew more than 5 pct, exceeding EUR 1 billion revenues for the first time.

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Chronopost extends geographical coverage of delivery service (FRA)

Chronopost has extended the geographical coverage of its next-day delivery service “Chrono 10” providing next-day delivery before 10 a.m now covering all important cities and regions in France.

More than 1000 new French “communes” will be accessible with this service offered to contract customers and customers of the Chronopost online shop.

“Chrono 10” delivers parcels to all destinations nationwide from Monday to Saturday and covers 6000 communes from a total of 36000 French communes representing the last subdivision of 100 départments and 26 regions in France. The new cities covered by the extended service include Le Havre, Perpignan, Nancy, Monaco, Angers and Lorient.

“The optimisation of the coverage will strengthen our next-morning delivery service. Thus we are responding to our customers’ demands for parcel delivery in the service and industry sectors. For certain types of shipments, it is essential that the parcel arrives in the beginning of the working day”, said Chronopost CEO Christian Emery.

Founded in 1985, Chronopost is specialized in express delivery of parcels up to 30 kg to companies and private customers worldwide. In 2007, the company generated revenues of EUR 587 million. It has a nationwide network of 76 operational sites including 6 hubs and employs 3500 people.

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Post-Expo Survey – World Postal Survey Announced

Are things getting better or worse? This is the sixth world postal survey and it is about the health and state of the postal world. It has become a regular feature on the annual postal calendar as a “barometer of confidence in the postal industry”. The results for 2008 will be announced at Post Expo 2008 in London. As in previous years, it is designed to capture the morale and expectation of as many people in the industry as possible.
Simply indicate one answer for each of the questions – it should be possible to complete it in just a few minutes and we welcome responses from any person who works in any company or organisation that is part of the postal industry. Everyone’s views are valid, whatever position they hold, as this is simply about your perception.

http://www.postexpo.com/postsurvey/

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Royal Mail strike up a customer dialogue

Royal Mail is continuing to support the direct marketing industry with the launch of “Dialogue Mail”, a customer relationship management solution combining traditional direct mail with digital media.

In partnership with dialogue marketing company, Vialuna, Royal Mail now offers a product that claims to offer “an integrated solution that will enable brands to have more in-depth and engaging conversations with prospects or existing customers.”

Recent Royal Mail research revealed that over half (55%) of consumers prefer to be contacted by a combination of DM and online and that integrating digital advertising with direct mail campaigns can increase customer spend by almost 25% and Dialogue Mail leverages these findings.

The Dialogue Mail journey begins with an intrigue-based mailshot designed to pique recipients’ interest and direct them online. Vialuna’s technology creates personalised URLs, meaning the campaign is individually tailored to each customer. The interactive microsites can be designed to allow customers to share their preferences, request specific products or information and direct the overall customer journey.

The system claims to capture all interaction, allowing the brand to learn more about individual’s behaviour and shape future communications to make them more relevant. Vialuna’s Dialog Engine’ tracks campaign responses and delivers lead alerts directly to sales teams in real-time.

Martin Pang, Managing Director of Vialuna UK, explained the power of Dialogue Manager “We have been operating in the US for eight years and are quickly expanding across Europe. In all that time, we have achieved double-figure response rates for our clients. The reason is that Dialogue Mail is mutually beneficial marketing. The customer gets the benefit of a personal experience whilst the brand captures customer insight leading to deeper, more relevant and meaningful relationship.”

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TNT Hungary revenue jumps 26 percent in 2007

Net revenue of the Hungarian unit of Amsterdam-based express delivery company TNT jumped 26pc in 2007 as the result of a one-off project, managing director of TNT Express Worldwide Hungary Marton Jarosi said at a press conference in Budapest on Thursday. Mr Jarosi declined to reveal an absolute revenue figure.

The unit’s revenue rose well over TNT’s global revenue increase of 9.5pc in 2007.
TNT Express Worldwide Hungary spent a little more than HUF 300m on developments last year, including HUF 120m to build a 1,200-square-metre logistics centre in Szombathely, near Hungary’s border with Austria. The centre is the unit’s third in Hungary. TNT Express Worldwide Hungary also spent HUF 55m to upgrade its IT system and HUF 128bn on other infrastructure investments.

This year the unit plans to spend HUF 310m on investments, including HUF 83m on IT developments. Mr Jarosi said TNT is market leader on Hungary’s HUF 20bn a year express delivery market. The unit employs a staff of 459.

1.00 USD=155.313 HUF

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Correos promotes social causes through solidarity and awareness (SPA)

CORREOS chairman José Damián Santiago Martín and Spanish Fund-raising Association (AEF) chairwoman Marta Cardona Patau have signed a collaboration agreement for its social and charity work project. The event took place at the postal company’s Automated Processing Centre in Madrid.

This year, CORREOS will contribute EUR 260,000 to this NGO association and professionals in the sector to enable them to carry out their philanthropic and fund-raising work in Spain. It also aims to help them disseminate good marketing and communication practices applied to management and fund raising for humanitarian causes, while also providing education and making society aware of general interest humanitarian causes.

CORREOS will donate EUR 245,400 to the AEF for activities that promote the collaboration and solidarity of Spanish citizens with NGOs, especially in the association’s special areas: education, human rights, health, social well-being, environment, development co-operation, research, leisure and culture. It will also provide a further EUR 14,600 to finance the AEF’s website.

The commitment to set up a Monitoring Committee figures in the agreement, made up jointly by representatives from both organisations to supervise the activities covered by this agreement. Likewise, the AEF will publicise CORREOS’ participation in its social and charity work project

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Royal Mail on target to save GBP 300m with SAP (UK)

Royal Mail is on course to save GBP 300m over three years through efficiencies created by its SAP-based procurement transformation programme.

Central to the project is SAP supplier relationship management (SRM) software and its E-Procurement module.

Royal Mail director of performance and transformation, Daniel Cameron, explained that the SAP software has helped the organisation source items much more efficiently and get better deals.

Cameron’s group put together the business case for the project around two years ago with the aim of making the Royal Mail’s procurement department one of the top three in Western Europe.

Now 18 months into the project, Cameron is confident these ambitious savings targets can still be achieved.

Around half of the savings are expected to come through a reduction on operational expenditure with the rest coming from lower capital expenditure.

The rollout of the e-procurement technology has seen the introduction of small chunks, each of which has been well received, according to Cameron.

Royal Mail already runs its business applications on an SAP backbone and so the decision to use technology from the German business software giant for the procurement project was an obvious one.

The e-procurement platform was developed by SRM specialist Frictionless Commerce, which SAP acquired just over two years ago.

Royal Mail also uses the SAP financial application and plans to upgrade to SAP’s SRM 7.0 and add a supplier collaboration module in the near future.

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Postal Service reinforces commitment to greener future (U.S)

The U.S. Postal Service chose the state with the most progressive environmental record in the nation as the place to announce the creation of a corporate vice president of sustainability.
Postmaster General John Potter named Sam Pulcrano, a 33-year Postal Service veteran, as the organization’s first vice president of sustainability, responsible for coordinating energy and environmental programs across all departments of the Postal Service. One of Pulcrano’s first goals will be to complete an inventory of greenhouse gas emissions and create an action plan to reduce emissions.
Pulcrano currently serves as director of safety and environmental performance management, overseeing a staff of about 600 responsible for all environmental policies and programs, as well as safety compliance and procedures at more than 38,000 facilities across the country.
Under his direction, the Postal Service has become an industry leader in employee safety. Employee work-related accidents were reduced by 50 percent and the number of Voluntary Protection Program sites, the Occupational Safety and Health Administration’s (OSHA) highest safety recognition, increased to 150 in less than six years. No federal agency has a better record. The Postal Service also is a leader in the Environmental Protection Agency’s (EPA) “Performance Track” program, earning 31 applications for environmental programs and stewardship.

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