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Swiss Kuehne & Nagel To Carry Out UK House of Fraser Home Delivery Services

Swiss logistics company Kuehne & Nagel International AG started to carry out the home delivery services for made-to-order furniture of UK department stores operator House of Fraser as of the beginning of February 2007, Kuehne & Nagel reported on February 8, 2007.

The financial terms of the deal were not disclosed.

Under the terms of the contract, Kuehne & Nagel will be responsible for the warehousing and for some 30,000 deliveries annually to customers across UK and Ireland. House of Fraser will make cost savings through reduced inventory by a closer alignment of order to delivery time and through the support of Kuehne & Nagel’s information technology (IT) and booking processes. The logistics company will integrate House of Fraser business into its furniture distribution

network which is used by other unnamed UK furniture retailers for more than 175,000 deliveries annually.

Kuehne & Nagel (www.kuehne-nagel.com) employs 45,000 at 830 locations in more than 100 countries worldwide. The company provides seafreight, airfreight, contract logistics and overland businesses and IT-based supply chain

management services. Its UK and Ireland organisation operates at 80 locations and employs more than 10,000.

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USPS launches intelligent mail

The U.S. Postal Service launched a new, proprietary service that will allow businesses to track mail and speed service to customers. Called “Intelligent Mail,” it’s like having a global positioning system (GPS) for mail, says Postmaster General John Potter, noting that the technology’s centerpiece is a standardized barcode for use on letters and large envelopes as well as each mail container.

Intelligent Mail is being tested by three companies and is expected to be fully operational by 2009. One large mailer improved its “scan rate” (automated reading) to 99%, ensuring 140,000 pieces a day were processed by postal equipment instead of manually.

The agency said the system also provides real-time data to improve service measurement, enabling the Postal Service to pinpoint problems immediately. The USPS won a 2004 PIA/GATF InterTech Technology Award for its barcode-scanning Confirm Service, a mail-tracking program that has allowed many printers offering fulfillment to quantify proof of mailing. www.usps.com, www.gain.net

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Palletways acquires Italian operation

Palletways Europe, parent company of Palletways UK, has acquired the Italian operation it licensed out in 2002.

Palletways Italia has more than 60 depots and two hub facilities in Bologna and Naples.

As part of the acquisition, Palletways has purchased land near the Bologna facility in order to construct a new 15,000 m2 hub to accommodate future volume growth. Excected to be fully operational by early-2008, the new hub facility will handle express deliveries across Italy and to other parts of Europe served by Palletways.

The acquisition forms part of Palletways’ strategy to provide a dedicated and integrated pan-European network for the express delivery of small consignments of palletised freight.

Palletways now controls all its networks in the UK and mainland Europe, which today comprise more than 250 depots and eight hub facilities, handling around 20,000 pallets a day.

According to Palletways chief executive James Wilson, the company is also in the process of linking the Palletways Italia operation with the company’s other networks covering the Benelux region, Denmark, France, Germany, Switzerland, the UK, and, later, Spain, to enable cross-border deliveries between all these countries.

Palletways Europe has appointed Roberto Rossi (ex-TNT Logistics) as chairman of Palletways Italia, Bernardo Cammarata (ex-TNT and DHL) as general manager, and Dr Antonio Giambrone as director of finance.

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Take Canada Post private

The federal government should end Canada Post’s monopoly on the postal market and follow the leads of Germany and the Netherlands in introducing competition to the sector, says the C.D. Howe Institute.
“We believe the case for demonopolizing the Canadian postal sector and moving to some substantial degree of private ownership is compelling and consistent with developments in jurisdictions beyond Canada,” the think-tank said yesterday in a report. “Failure to rethink the role and mandate of Canada Post, given the dramatic technological transformation that is occurring in the communications sector, would be to acquiesce in a slow-motion train wreck.”
Canada Post has a monopoly over the domestic letter mail market, and is obligated to provide service at uniform rates across the country. For the 2005 fiscal year — the last for which numbers are available — the Crown corporation posted profit of $199-million on revenue of $6.9-billion. Canada Post has earned a profit in each of the past 11 years.
Despite this streak, the C.D. Howe study said the Crown corporation faces major structural challenges. Mail volumes are decreasing even though the number of addresses continues to grow, by roughly 250,000 a year. This is due in large part to business and residential customers favouring electronic forms of communication.
Moreover, Canada Post faces increased competition in international shipping and delivery.

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Postcodes signal opportunities for tech firms

Minister for Communications, Marine & Natural resources, Noel Dempsey, has tabled plans to introduce some form of standard postcodes by 2008. Recommendations due soon from the National Postcode Project Board (NPPB) are expected to set out the format of the proposed codes which are being designed to improve efficiencies in sorting mail, and are also seen as facilitating the entry of new players into the Irish postal market if it is liberalised in the future.

Lynch is aiming to publicise bespoke address management software called Quick Address-Pro from Experian subsidiary QAS. He belives the nature of Irish postal communications — whereby companies often use a separate address from their ‘official’ one — could cause mayhem during the changeover expected next year.

“When postcodes are introduced in Ireland, a standardised postal address will be provided to every building in the state. However in Ireland, many people tend to use a ‘preferred’ address rather than their official address, particularly where it is perceived to have an impact on property values. While postcoding should deliver a more efficient mail service by establishing a national standardised address system, its immediate introduction may lead to confusion and delays in matching a customer’s previous or preferred address to their new standardised address,” he explained.

Experian is pushing its Quick Address-Pro package as a solution as it is designed to overcome this problem by taking an address and comparing it against a GeoDirectory file, jointly developed by An Post, the Ordnance Survey and Experian’s own PostAim data. The file should return both the official postal address and the ‘resident preferred’ address.

James Kennedy is a director of CRM Ireland which offers consultancy on customer relationship management (CRM) software. Speaking with ENN, Kennedy said the possible introduction of postcodes was a “massive opportunity” for software makers and vendors who specialise in customer contact solutions.

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Postal Service seeks Bank of America NSA

The U.S. Postal Service has filed a negotiated service agreement request for Bank of America with the Postal Regulatory Commission, the first NSA request based purely on cost savings rather than requiring a volume threshold for the incentives. NSAs are special service and rate arrangements between the USPS and a mailer or group of mailers. Proponents say NSAs encourage greater volume by rewarding postal customers with discounts and premium services.

“We intend for this NSA to produce cost savings for both the postal service and Bank of America,” said Mike Plunkett, USPS acting vice president for pricing and classification.

The Feb. 7 filing said this NSA aims to provide incentives that will encourage an individual mailer to engage in voluntary changes in mail preparation that will reduce the costs to the postal service of handling the mailer’s mail.

The NSA would encourage Bank of America, one of the world’s largest financial institutions, to undertake certain activities to reduce the cost to the USPS of processing its First Class and Standard mail, including mail that is entered into the mail stream by or on behalf of a Bank of America subsidiary or affiliate.

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Pitney Bowes’ Group 1 Software introduces Address Quality Hub™ for U.S. businesses

Group 1 Software, Inc., a Pitney Bowes Company, today announced the launch of the Address Quality Hub™, a new address cleansing software platform that improves mail deliverability and maximizes postal discounts for users of CODE-1 Plus® and Finalist® CASS™ software.

The new platform is beneficial for all businesses that utilize the mailstream for customer communication, as they face increases in postage costs in August 2007 when the U.S. Postal Service® implements more stringent postage discount rules designed to reduce undeliverable-as-addressed (UAA) mail.

The Address Quality Hub from Group 1 Software enables mailers to address this issue in two ways. First, the Address Quality Hub’s Coding Uplift Module employs advanced algorithms and programming logic to enable existing CODE-1 Plus and Finalist CASS solutions to cleanse and code up to 35 percent of address records that would have previously been rejected during CASS processing – resulting in higher postal discounts and a reduction in UAA mail.

Second, the Address Quality Hub’s Delivery Point Correction Module provides the industry’s first solution to correct the primary house number required for automation discounts by automatically matching name against street address, and correcting bad addresses. This patent-pending address correction and validation technology allows mailers to verify that U.S. street addresses actually exist and are truly confirmed delivery points for mailing, enabling mailers to reduce UAA mail and maximize postal savings, while meeting the new USPS CASS requirement.

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Web households heaviest senders of mail

Research released by An Post shows that households with internet access are the heaviest senders and receivers of mail in Ireland.

A total of 61pc of households that regularly send mail have internet access, and of those that send the heaviest volumes, six or more items each week, 64pc have internet access.
The findings are part of a survey on over 600 households’ daily experience of correspondence sent and received, and direct mail. The research was carried out by tns mrbi on behalf of An Post, and participants were questioned about their access to the internet and email, frequency and quantity of mail received and sent, methods of posting and destination of sent mail.

In terms of households that receive addressed mail – which was practically all of them, 59pc have internet access, with that figure rising to 74pc for households that receive more than six items per week. The survey showed that those with access to email are also heavier receivers of addressed mail, with 58pc of households that receive six or more items a week having access.

With regard to social-economic class, ABC1s are the heaviest receivers of both addressed and unaddressed mail. 47 per cent of households that receive six or more addressed items a week are ABC1s, as are the same percentage of those receiving four or more unaddressed items per week.

Over one third of all addressed mail now contains some marketing content, and, of direct mail, 86 per cent is read by the recipient, with over a third kept for future reference.

Liam Sheehan, An Post director of sales and marketing, said, “The survey shows there is a direct connection between internet access and sending and receiving mail – those with access do more of both, which is perhaps surprising given the common perception that use of the internet and email discourages use of the postal system. A challenge for the industry is the finding that just over half of direct mail was described as relevant, but its potential as a powerful marketing communications tool is evident from the amount that is kept for future reference.”

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