Author: Archive

OMD wins Royal Mail account

Posted by | Apr 2, 2007 | |

OMD UK has won Royal Mail’s GBP 18m media planning and buying following a two-way shoot-out against incumbent Carat. The Omnicom agency will handle all media planning and buying for the Royal Mail for the next four years.

Carat, part of the Aegis network, had held the account for 10 years and was has previously been reported to have retained the account. MediaCom and PHD were knocked out of the pitch at an earlier stage.

Royal Mail has also retained Proximity to handle its direct marketing and added data planning to its responsibilities. Both OMD and Proximity will work with its advertising agency, Abbott Mead Vickers.BBDO.

A review was expected to be called in 2005 but Royal Mail extended Carat’s contract by a year. It then called a statutory review through the Official Journal of the European Union (OJEU) late last year.

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United Airlines signs new postal contract

Posted by | Apr 2, 2007 | |

United Airlines today announced it has signed a long-term contract with the U.S. Postal Service (USPS) for the carriage of domestic mail. United is scheduled to begin carrying domestic mail April 28, 2007. The agreement extends through Sept. 30, 2011, and is potentially worth up to USD400 million in revenue to United over the life of the contract. The new contract is in addition to United’s current position as the number-one carrier of international mail for the USPS among passenger carriers.

United has carried mail for the U.S. Postal Service since the airline’s founding more than 80 years ago. United continued carrying international mail for the USPS after the carrier’s previous domestic mail contract ended in June 2006.

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Royal Mail plans London surcharge

Posted by | Apr 1, 2007 | |

Royal Mail is planning to charge businesses more to deliver post in London than in other parts of the country.
According to proposals submitted to industry regulator Postcomm, business mail, including bulk deliveries such as bills, statements, and mailshots, will attract a surcharge if delivered to London and low-density rural areas.

The plans have caused surprise at Postcomm and angered business users because it was assumed delivery to urban centres would be cheaper than to rural areas, where costs were higher.

However, in its application for the introduction of ‘zonal pricing’ on business post, Royal Mail, led by chief executive Adam Crozier, indicates that it wishes to make a surcharge of 2.5 per cent over current prices for delivery in London and 4.8 per cent for ‘low-density’ rural areas. It claims the move will reflect the higher costs of delivery to these areas. Factors including ‘London weighting’ and congestion charging are behind the increases in the capital.
In ‘high-density’ areas other than London, Royal Mail is planning price cuts between 4.9 per cent and 1.7 per cent.

Postcomm is expected to launch a nine-month consultation on the proposals this week, and will examine Royal Mail’s claims regarding London closely.

Businesses and competitors are highly critical of Royal Mail’s plans, fearing the rise in London will significantly increase their bills and that price reductions elsewhere will undercut potential rivals.

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China Postal Savings Bank gets official blessing

Posted by | Apr 1, 2007 | |

The China Banking Regulatory Commission has officially approved the establishment of the China Postal Savings Bank.

The major shareholder will be the China Post Group, formerly known as the State Post Bureau, which will provide the postal savings business through its 36,000 outlets nationwide.

By transferring the group’s vast network of savings accounts into CPSB, the bank will become the mainland’s fifth-largest bank by deposits, trailing only the four state- owned lenders _ Industrial and Commercial Bank of China (1398), Bank of China (3988), China Construction Bank (0939) and Agricultural Bank of China.

As at the end of June 2005, the total balance of postal savings in China reached nearly 1.3 trillion yuan (HK$1.29 trillion ), representing a 9.25 percent share of the mainland’s savings market.

The regulatory commission’s vice chairman Cai Esheng said earlier that CPSB will make use of its vast network of savings accounts to provide financial services for both urban and rural residents.

The central government has indicated that improving financial services in the countryside would be a priority in the future.

CPSB said it would focus on retail banking and intermediary services and adopt high standards of internal control and risk management.

“The ultimate goal is to build the bank into a competitive and safe modern bank with adequate capital and strong internal controls,” CBRC said.

Previously, postal savings were transferred to the accounts of the People’s Bank of China. Since August 1, 2003, the deposits were transferred to, and consequently managed by, the State Post Bureau. Deposits made before that date remained with the Chinese central bank which paid 4.131 percent in interest.

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DHL Express Poland plans call centre in Lodz

Posted by | Apr 1, 2007 | |

DHL Express logistics and transport services provider has chosen Lodz as the location for its next investment. The company will launch a call centre creating 400 jobs. Recruitment will commence soon. By the end of the year, DHL wants to employ 160 people. It is presently renting a 1,500 sq m office. The centre is to service the Polish market, with 70 percent of employees engaged in that activity. It has taken the firm 18 months to decide on the location for its investment; Wroclaw was also in the running. DHL had previously chosen Lodz as the site for a terminal worth EUR4.5m, servicing up to 22,000 packages per day. The terminal employs 64 people and 76 dispatch riders. The firm also has sorting stations near Poznan, in Zabrze and in Warsaw.

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UPN Strengthens the Network

Posted by | Apr 1, 2007 | |

UPN welcomes H & B Logistics to the Network covering the M, SK, OL and BL postcodes.

H & B Logistics was established in 1989 and relocated in 1995 to a 15,000 sq ft distribution centre based in Denton,

Manchester to provide a faster and more efficient service for its customers. The company has a fleet of vehicles ranging from 17 tons vehicles, 7.5 tons vehicles, 35CWT vehicles, tractor units, double deck trailers and single deck trailers.

Since joining UPN, they have already begun to see the benefits of membership with a 20 pct growth in business so far.

H & B Logistics chose to join the UPN network in order to develop their distribution centre further and to provide a valuable extra service to its existing customers by being part of a leading pallet distribution network.

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