Author: Archive

Italy shows how to make a profit from post offices

Posted by | Mar 27, 2007 | |

Royal Mail could learn something from the humble Italian postie.
Massimo Sarmi, 60, took over Poste Italiane in 2002. Today, he will declare the fifth consecutive year of profits for the company, after more than five decades of losses.
In the first half of last year, the group’s net profits rose by 72.6pc to euro 378m (GBP 257m). By comparison, Royal Mail said last month that its first half profits last year sunk by 86pc to just GBP 22m, although the fall was largely because of a steep rise in the costs of servicing the GBP 6.6bn deficit in its pension fund. Royal Mail has threatened to close half of its 14,000 post offices, which it says are losing it GBP 4m a week. The move would leave many people stranded without a post office for miles.
But while Poste Italiane’s network of post offices is also losing money, it now provides the backbone of a company which has diversified into retail banking, insurance and even selling vacuum cleaners, all of which produce bumper profits for the company.
Consequently, he based his strategy on the fact that he can reach almost every Italian and installed IT systems so that rural post offices could connect to the main office and start happily selling mortgages, bank accounts, and insurance.
Mr Sarmi said Royal Mail should do the same, if it wants to survive.

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MICA Launches Public Consultation on Draft Postal Services (Amendment) Bill

Posted by | Mar 27, 2007 | |

The Ministry of Information, Communications & the Arts (MICA) is embarking on a public consultation to seek feedback from the industry and members of the public on the draft Postal Services (Amendment) Bill, which will effect amendments to the existing Postal Services Act.

2 The Postal Services will be fully liberalised when Singapore Post Ltd (SingPost)’s monopoly license for Basic Mail Services expires on 31 March 2007 . The Postal Services (Amendment) Bill will provide the legislative framework for liberalising Basic Mail Services.

3 MICA and the Infocomm Development Authority (IDA) are working together to develop updated legislative and regulatory frameworks for the postal services sector. MICA will take into account the comments provided during this public consultation when finalising the draft Postal Services (Amendment) Bill in preparation for its consideration in Parliament.

4 The revised legislative and regulatory frameworks for this sector are expected to be fully implemented within this year. Upon implementation of the revised regime, interested industry players will be able to apply for licenses to operate in the basic mail services market.

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Sri Lankan government urged to solve postal employees' problems

Posted by | Mar 27, 2007 | |

Lanka Postal Union President Vivekanandalingam said the government’s mediation is essential to settle the Postal Department employees’ problems.

Vivekanandalingam addressing the media at the Sri Lanka Postal Union Office said all Department employees would go on sick leave today (27) demanding the authorities to modify and introduce new postal systems without reducing their service period and benefits.

He said the Department which is running at a loss cannot be converted into a profitable organisation by cutting down employees’ benefits and working hours. He said it could be achieved only by introducing new methods in the Postal Department suitable to postal sector.

He said thirteen trade unions would join in the agitation. “No action has been taken to uplift the Postal Department though the Department is running at a loss.

“The Treasury says that by cutting down the facilities and service of the employees and by reducing the working hours the Department could be converted into a profitable institution.

“However, several projects started to uplift the Postal Department ended in failure,” he observed.

Postal and Telecommunication Officials Union President H.M. Navaratna Bandara stressed the postal service was a people’s service and that they were striving to protect the service on behalf of the public.

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Canada Post enhances unaddressed admail

Posted by | Mar 27, 2007 | |

The National Association of Major Mail Users (NAMMU) has reported that “Canada Post is introducing enhancements to the Unaddressed Admail order creation process based on customer feedback, effective April 16. Designed to enhance flexibility, these changes include the ability to create a new mailing plan from a previous order; access improved functionality to import and export mailing information from one system to another; print Admail Delivery Slips and Container Labels before the order is transmitted to Canada Post. Full descriptions of changes and enhancements are in a brochure mailed to clients this month.”

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Communication is key in new postal environment

Posted by | Mar 27, 2007 | |

Dialog between mailers and the U.S. Postal Service is key if the mailing industry is going to successfully navigate new roads that have barely been mapped.

This was a key message from Postmaster General John E. Potter in his keynote address at the National Postal Forum yesterday. Mr. Potter was referring to the new postal law that took effect on Dec. 20 that changes the role of the agency and the Postal Regulatory Commission. Under the law, the PRC must write a new set of rules on how to establish mail rates; ensure compliance with the new rules; act on complaints about postal rates and poor mail delivery; review whether mail delivery is meeting the needs of the nation; and, if necessary, use subpoena power to get information from the Postal Service.

Mr. Potter also discussed how mailers and the USPS have to work together to mitigate some of the larger rate increases that they face. Rate increases go into effect May 14 for most mailers.

Mr. Potter also addressed the do-not mail legislation that has popped up in more than a dozen states.

“The postal service, obviously opposes these legislative efforts,” he said. “[Despite the withdrawal of bills in four states,] you can never be sure how the legislative process is going to play out. So, we need to focus on the issues spurring these legislative initiatives. Mail that reaches a home where it’s not welcome is not a good use of anybody’s time or resources. And it can turn the recipient off mail.”

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Where winners are fast rather than large

Posted by | Mar 27, 2007 | |

Few industries are more exposed to the forces of globalisation than logistics. As supply chains are stretched across oceans and continents, manufacturers and retailers are increasingly looking for logistics partners with international capabilities.

By far the biggest deal was Deutsche Post’s GBP3.7bn takeover of Exel, the UK-based logistics group, in 2005. Others included the USD1.1bn merger of Deutsche Bahn, the German rail operator, and Bax Global, the logistics arm of US-based Brink’s. Another was the EUR490m acquisition of Paris-based ACR Logistics by Kuhne & Nagel of Switzerland.

John Allan, chief executive of DHL Logistics says consolidation is likely to continue. He points out that the world’s top 10 freight forwarding companies command less than 40 per cent of the global market.

Deutsche Post’s takeover of Exel accelerated its transformation from a German mail and express delivery group into a global freight and logistics giant.
Mr Allan says DHL is already reaping the rewards of the increased scale and capabilities provided by Exel.

DHL is not the only express delivery group expanding into other supply chain services. UPS has invested more than USD2bn in about 30 acquisitions over recent years – most of them involving freight and logistics businesses.

FedEx, UPS’s biggest US rival, has a large road freight operation and is keen to expand its ocean freight-forwarding capabilities.

The most decisive rejection of diversification has come from TNT of the Netherlands, which sold its logistics and freight forwarding operations last year to refocus on mail and express delivery.

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Alternate fuel vehicles for USPS

Posted by | Mar 27, 2007 | |

The U.S. Postal Service has acquired the nation’s largest fleet of alternate-fuel vehicles — some 38,000 cars, trucks and minivans — powered by electricity, compressed natural gas, liquid propane gas, ethanol (E85), biodiesel fuel, and hydrogen fuel cells.

To help promote the development of alternate-fuel technologies as well as to encourage the availability of alternate fuels, the Postal Service participated in a White House event today, demonstrating the technology behind a hydrogen fuel-cell minivan and an electric two-ton truck — both zero-emissions mail-delivery vehicles.

“With 289,000 vehicles driving 1.2 billion miles each year, the Postal Service is in a unique position to help generate demand for alternate fuels as well as to help reshape the nation’s refueling infrastructure,” said Postmaster General and CEO John E. Potter.

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