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DPD targets express, B2C and international growth

Hans Fluri DPD is aiming to grow faster than the overall German CEP market with new express, international and B2C services, joint CEO Hans Fluri said today. The intercontinental network will be developed in stages.

DPD wanted to expand into new parcel segments using the strengths of its German domestic parcel business but without risking this core business, he told journalists at the Transport Logistic trade fair in Munich. “We have a clear growth strategy,” he said. DPD is the domestic B2B deferred parcel market leader.

The new domestic Express service, offering next-day delivery by 08:30, 10:00, 12:00 or 18:00, had increased the German operator’s express volumes by 40% compared to last year since its launch in April, Fluri said. The company is initially actively targeting 1,000 of its 70,000 German customers for express shipments, he noted.

DPD, currently number two in the German international deferred parcel segment, wants to grow its overall international business, which increased by about 18% in 2006, by about 10% a year over the next 4-5 years, Fluri told the press briefing. The EU would be the “top priority”.

The Intercontinental service would focus on reliable deferred delivery through the growing DPD network of subsidiaries, ventures and franchisees in 38 countries and other delivery partners.

DPD also wants to target the fast-growing German B2C market by building up a network of about 2,000 Parcel Shops to be used as delivery points. But there are no short-terms plans for any final-mile delivery service or use of automated parcel collection points, he pointed out.

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TNT flies in to help charity auction showpiece

A three-year crusade to create a unique memento of rugby history and raise thousands of pounds for one of Britain’s best-loved charities was facing disaster before express delivery giants TNT stepped in.

Champion fundraiser Russell Burton spent three painstaking years collecting all but two of the signatures of all the players and coaching staff involved in the 2003 Rugby World Cup Final.

Each member of the English and Australian squads had signed the matchday programme so that he could auction it on behalf of Mencap – the UK’s leading learning disability charity.

With the deadline for the London auction looming, Russell still required two Aussie names to complete the precious programme. It was despatched to the other side of the world but then it became snagged in bureaucratic red tape in Japan. At that point Russell, from Basingstoke, Hants, called TNT to try and get the one-off souvenir back in time to go under the auctioneer’s hammer.

TNT flew the programme free of charge, back to the UK just in time for TV chat show host, Michael Parkinson, to successfully bid for the item at London’s Whitehall Palace.

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Royal Mail commenting on the statement from the CWU

On 6 March, the CWU wrote to Royal Mail setting out a series of demands which included an increase in basic pay from £323 a week to £395 in 2007, and a reduction in the working week. The demands in aggregate were equivalent to a cost to the company of just over £1 billion, equivalent to a 27% increase in basic pay.

Royal Mail today set out its position in a letter to MPs and peers, a copy of which is available in the Royal Mail Website.

Commenting on the statement from the CWU, a Royal Mail spokesman said:
“The company’s position is very simple – Royal Mail has absolutely no option but to change and modernise the business, urgently. That involves a £1.2 billion investment in the business – the opposite of the ’cost-cutting frenzy’ the union talks about and it is designed to ensure Royal Mail can compete successfully in an increasingly tough market. “We wrote to the union last week after the ballot result was announced offering to meet at any time to explain the company’s position – and we remain very willing to meet the union at any time to do so.”

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A. Salvatori and Son Join Pall-Ex

Based in Preston, Kent, this 80 year old family business A. Salvatori and Son join Pall-Ex to cover the Canterbury and Tunbridge Wells post codes.

This depot operates from a 10-acre site in Preston, near Canterbury and has a second site in Europe. The company echoes the Pall-Ex principle of a comprehensive distribution service has extensive storage facilities including a capacity of 5000 tonnes controlled temperature storage.

A company representative commented “We have recognised the advantages of Pall-Ex membership, and decided to join based on Hilary’s team’s extensive experience. We believe to have found a quality union in Pall-Ex. Customer service is of uppermost importance to us and we know we will be able to maintain high standards by working in partnership with Pall-Ex.”

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Benchmark your online retail strategy

Free for retailers to attend – A one day conference from The Retail Bulletin – Marriot Grosvenor Square 10th September 2007.

This information-packed event will focus on six key areas to help you develop or benchmark your current online strategy including retailer case studies, legal briefings which will focus on online brand protection and the latest DDA regulations.

Insights into the shopper habits of your customers, how to retain them as loyal customers and not just transient ones, Shopping online can reveal useful habit trails from your customers browsing patterns but how can you make the most of the data and use it accurately for effective marketing

Effective search engine optimisation and search marketing. A recent Forrester Research report shows that at least 81% of Internet consumers are finding products via search engines. And a recent study revealed that, due to a lack of optimisation only 7% of all websites are on the search engines’ respective radars. So a large number of companies attempting to sell online are missing out. Is your site one of them?

Avoid fraud:Card not present (CNP) fraud is a threat all e-Commerce sites face. CNP fraud cost the UK, GBP 212.6 million in 2006, a 16 per cent rise compared to 2005 according to report by the UK Payments Association. Hear strategies on how to protect your business against this growing threat.

Add to basket – Convert your surfers into buyers. Many online shoppers fail to complete their transaction at the checkout stages. How to make the whole shopping experience seamless. How to avoid negative user generated content and its subsequent damage to your brand.

Delivery and fulfillment – A seamless shopping experience can fail here for the customer, sales and promotions can cause ‘flash crowds’ overloading your supply chain structure. Hear real case studies on how to improve your delivery and fulfilment strategy.

Customer service online. A recent report highlighted that some customers can wait up to two weeks for a response via email regarding problems or queries. But systems are available to stop this. You will hear from a retailer who has improved customer service dramatically and as a result generated more sales.

The afternoon sessions will also focus on the legal issues around protecting your brands online, ensuring your site complies with the latest Disability Discrimination Act regulations. You will have the opportunity to discuss legal issues with leading experts from leading law firms.

Retail Bulletin Conferences are free to attend for retailers only. Places are limited. There will be a small exhibition area of specially selected companies with products and services relevant to the agenda.

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UPS Franchisees file a complaint

More than 200 owners of UPS Stores across the country have filed a complaint against UPS and its franchiser, Mail Boxes Etc.

The franchise owners said in a filing in U.S. District Court in Los Angeles that they haven’t been able to make money because UPS undermined them by using the branded stores as drop-off points for prepaid packages and forcing the owners to focus on providing document and printing services.

The complaint, filed in April, claims the business model of the UPS Stores has been disastrous to franchisees’ bottom lines.

UPS bought Mail Boxes Etc. in 2001, and many franchises converted to UPS Stores about two years later.

The UPS Web site permits customers to print out their own shipping labels and pay online for delivery. Then they can drop the packages — for free — at a UPS Store.

Those formerly profitable customers no longer paid the stores directly for shipping, so the stores depended on payments from UPS for those packages, a development the franchisees in the suit said has “drastically reduced” the stores’ profitability.

It can take months, and sometimes years, for a complaint to be certified as a class-action suit, and for the lawsuits to be resolved.

A separate complaint filed May 2 in U.S. District Court in San Francisco accuses UPS of overbilling its franchise owners for shipping rates.

The former franchise owners aren’t so sure that document services can make up their losses.

The UPS Store franchise owners say they are just hoping to get back some of the money from their initial investments, which for some was more than USD 150,000.

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United Parcel Service Ranks No. 43 on the 2007 Fortune 500

United Parcel Service ranks no. 43 on FORTUNE’s list of America’s largest corporations.

UPS was ranked No. 44 on the 2006 list. Its 2006 revenues were up 11.7 percent from the previous year; profits were up 8.6 percent from the previous year.

Other companies in the Mail, Package, Freight Delivery sector on this year’s Fortune 500 include: FedEx ranked No. 68.

Last year, Fortune 500 firms, which cover a large swath of the U.S. economy including 31 non-public companies, earned a record USD 785 billion, up 29 percent from 2005. “Put simply, American companies are enjoying the most sumptuously profitable period in the 500’s 53-year history,” said Shawn Tully, Fortune’s editor at large. “Virtually every conceivable force, from mild labor costs to a falling dollar to soaring productivity, has favored big companies.”

The Fortune 500 ranks companies based on revenues. New York boasts the most Fortune 500 firms this year with 57 companies, while Texas and California took the No. 2 and 3 spots, with 45 and 22 headquarters respectively.

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Deutsche Post downgraded to 'A'; outlook stable

Fitch Ratings said it has downgraded Deutsche Post AG’s issuer default and senior unsecured ratings to ‘A’ from ‘A+’, following which the outlook on the rating is now ‘stable’.

The short-term issuer default rating was affirmed at ‘F1’, Fitch said.

The ratings agency said the downgrade reflects the delays in Deutsche Post’s profit improvement and debt reduction. However, Fitch also said the fundamental business of the group is doing well, albeit with localised problems in France and the US express division which is the main area of concern. Many of the group’s activities have leading market positions, Fitch added.

The US operation’s improvement is expected to be slow with break-even targeted for 2009, Fitch said. The express operations in Europe, Asia, and the smaller emerging market portion are showing greater than double-digit operating profit margins, it added.

The ratings of Deutsche Post do not take into account the performance of Deutsche Postbank, Fitch said.

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