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Postal Trendwatch Q3 2007

Posted by | Nov 8, 2007 | |

The Postal Service experienced both revenue and volume growth in the first three quarters of FY
2007. However, overall volume growth appears to be slowing. In particular, First Class Mail continued its historic decline.

The big question that remains is whether the strong growth in productivity and Standard Mail
can fill the gap left by shrinking First Class Mail.

Also, after six years of uninterrupted productivity growth, has the Postal Service finally reached a limit to wringing out more productivity gains?

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DPD opens parcel shops at Staples stores

Posted by | Nov 7, 2007 | |

DPD has opened parcel shops at 56 stores of the office supply chain Staples in Germany to further develop its B2C business and broaden its product portfolio. Staples previously cooperated with GLS.

Staples expects to enhance its product portfolio with the new parcel shops, the DVZ transport newspaper reported. Managing director Sönke Feuerherm said Staples could offer customers nationwide parcel deliveries at attractive prices. The price is based on the box size rather than on weight.

“The Staples stores provide first-class locations, good service quality and high customer orientation”, DPD CEO Hans Fluri was cited as saying. The parcel company expected to increase its competitiveness with the new cooperation.

According to the DVZ, DPD agreed a deal with Staples for lower prices than had previously been the case with GLS.

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Quelle Reduces Volume of Parcels Delivered by Austrian Post, Remains Important Customer for Catalogues and Direct Mailings

Posted by | Nov 7, 2007 | |

Quelle Austria has informed Austrian Post of its decision to primarily rely on the parcel delivery services of an alternative postal service provider. Austrian Post will continue to be responsible for the delivery of all Quelle catalogues and printed documents produced by its subsidiary meiller direct, and for the return parcel service customers have the opportunity to take advantage of. Accordingly, Quelle will remain an important customer of Austrian Post.

Austrian Post has to accept this decision of the free market, and will thus continue striving to win back any lost parcel volume on the basis of its outstanding delivery quality. Austrian Post offers an exceptional portfolio of services. 97pct of all parcels are delivered on the second working day, and its extensive branch network of over 1,300 company-owned branches, more than 600 external postal partners and 183 OMV petrol stations with VIVA shops that accept parcels, and the Post.24 stations with about 5,000 rural delivery staff who also take back returned parcels ensures nationwide coverage.

The measures announced by Quelle as of 2008 will have a negative effect on the revenue and earnings of Austrian Post. Quelle’s planned reduction in parcel volume by about 7 million parcels annually and the resulting changes in the market environment are expected to negatively impact Austrian Post’s operating income by approximately EUR 20m.

Austrian Post will more intensively adapt its product portfolio to proactively respond to the market trend favouring specialised postal service providers.

Austrian Post is continually improving the services provided to all mail-order companies. Furthermore, Austrian Post will continue to deliver mail every day to every doorstep, making postal services available to its customers throughout the country. In this regard, there is no level playing field in terms of the universal service obligation to provide universal postal services. Alternative providers are completely free to choose delivery speed, determine the regions in which they provide services and terms under which they conclude employment contracts.

Austrian Post remains committed to promoting its business operations in the B2B (business to business) segment, on the basis of which it is strategically positioning itself as a strong, reliable partner in the direct mail and parcels segments, in Western Europe as well as in Eastern and South East Europe.

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Logistics giant Deutsche Post to unload property worth 1.5 bln euros

Posted by | Nov 7, 2007 | |

Deutsche Post plans to sell property worth up to 1.5 billion euros (USD 2.17 billion) to generate cash and boost its shares, a press report said yesterday.

Deutsche Post said it had hired U.S. bank Morgan Stanley to organize the sale of real estate it was no longer using or which will be emptied soon, the Financial Times Deutschland said, citing industry sources.
Deutsche Post, which owns the logistics company DHL, wants to boost its profitability in the face of disgruntled investors who have seen their shares fall below the level they were listed at in November 2000.

The property reportedly includes offices, warehouses and distribution centers, including 50 sites outside Germany, which had potential annual rental income of around 90 million euros, the report said.

A spokesman for Deutsche Post declined to comment.

Deutsche Post’s chief executive Klaus Zumwinkel and chief financial officer John Allan were set to present a new capital market strategy Thursday when the group releases its third-quarter earnings.

In its 2006 annual report, Deutsche Post said it owned real estate worth 5.22 billion euros.

The news boosted Deutsche Post shares, which gained 1.29 percent to 20.34 euros in morning trading on the Frankfurt stock exchange, where the DAX index of leading shares was 0.36 percent higher overall. Deutsche Post shares had traded at 21.4 euros in November 2000.

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India Post looks for consultants on Rs 23,000 million technology spend

Posted by | Nov 7, 2007 | |

India Post plans to invite consultants, such as KPMG International and Ernst & Young, to help the loss-making postal department buy technology solutions, including software applications and computer hardware, as it plans to spend around Rs 23,000 million on technology in a year’s time.

Postal revenues last year were Rs 14,000 million short of the department’s expenses in 2005-06, the latest data available showed.

An “expression of interest” inviting consultants “will be floated in few days’ time”, said a senior official at India Post, who did not wish to be named because the plan had not been finalized yet.

“We have been allocated Rs 23,000 million under the 11th Five Year Plan for computerization,” the official added.

For decades now, the department has been supported by the government in making up losses while running low-priced and inefficient services. A business software known as enterprise resource planning or ERP software, which integrates functions of finance, operations and distribution, is “very compelling for India Post for managing their large network”, said Arvind Mahajan, executive director at a Mumbai unit of KPMG International. “They would need a consultant to help evaluate different vendors for software applications and other services.”

Senior officials from India’s second largest software company, Infosys Technologies Ltd, have already met the India Post officials for providing application development, maintenance and system integration contract.

1 US Dollar = 39.31500 Indian Rupee

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The state of Third-Party Logistics – 2007

Posted by | Nov 7, 2007 | |

A significant focus of the annual State of Logistics Outsourcing: 2007 Third-Party Logistics report this year is on the opportunity for improved collaboration between 3PL providers and users.

A recent study by consulting firm Capgemini, the Georgia Institute of Technology, DHL and SAP reveals that collaboration between companies and their third-party logistics (3PLs) is one of those areas for which both sides of the equation see benefits — but the application of the idea turns out to be a lot harder than the theory.

For the first six years of the annual State of Logistics Outsourcing report, which is based on a survey of 1,568 logistics executives from 61 countries, about 72 percent of the survey respondents described themselves as users of 3PL services. In the past four years, this number has increased to 78 percent to 80 percent.

The 12th annual 3PL report, released late last month, indicates the third-party logistics (3PL) industry is doing many things right. Most users are satisfied with the relationship, with 85 percent reporting that their logistics outsourcing efforts are successful. However, some users do report chronic problems with 3PL providers and a significant number of users say that 3PL information technology capabilities are insufficient.

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FedEx's AP delivery center to start operation in Guangzhou airport by year end 2008

Posted by | Nov 7, 2007 | |

The U.S.-based logistics giant FedEx plans to start operation of its Asia-Pacific delivery center it is currently building within Guangzhou’s Baiyun Airport by yearend 2008, Guangzhou municipal government sources said.

The FedEx delivery center project, with a total investment of 2.5 billion yuan, takes an area of 2,843 mu and is expected to become a super large delivery center covering over 30 Asia-Pacific countries.

The project is expected to add about 1 million ton/year of cargo turnover for the Baiyun airport within the first year of operation.

FedEx predicts that its AP delivery center will churn out 11 billion US dollars in revenue by 2010 and 65 billion US dollars by 2020.

Construction of the project started in early 2006.

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Iceland Post cares about the environment

Posted by | Nov 7, 2007 | |

It has one of the country’s largest fleets of vehicles, 123 in number, which cover annually about 2,780,000 km, an average of 22,600 km per vehicle. The company is now offsetting the carbon footprint of its entire fleet by financing the planting of 7,613 trees, to be planted with the collaboration of Kolviður in the Geitasandur Forest in the South of Iceland.

Iceland Post has adopted a policy for the environment which informs its procedures. In the Reykjavík area it operates five methane-powered vehicles, and the plan is that around 10 pct of the Post Office’s fleet should be environmentally friendly; more methane-powered vehicles are expected by the end of June.

This year has seen the establishment in Iceland of a fund whose aim is the fixation of carbon in vegetation and soil in order to reduce the concentration of carbon dioxide (CO2) in the atmosphere. By purchasing carbon fixation, Kolviður’s clients can offset the emissions produced by their road and air travel. The fund then finances forestry management such as the planting of trees in zones subject to long-term (90-year) agreements.

Kolviður aims to increase carbon fixation in vegetation and soil in order to reduce the concentration of carbon dioxide (CO2) in the atmosphere. Kolviður is also working towards increasing individual and corporate awareness about the release of greenhouse gases. By enabling people to take responsibility for their own emissions and react in a concrete way, results will be achieved. Kolviður will encourage Icelanders to become the world’s first nation to offset their transport carbon footprint with forestry.

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