Year: 2005

Deutsche Post chief backs opposition’s VAT proposal

Germany’s opposition Christian Democratic Union, the favourites to win federal elections expected in September, have won the powerful support of one of the most prominent German businessmen for an increase in value added tax to help offset the country’s high labour costs. Klaus Zumwinkel, chief executive of Deutsche Post, Europe’s biggest postal group, called for an increase in VAT from 16 to 20 per cent in order to finance the country’s creaking social security system, which is funded by levies on employees and employers.
Non-wage labour costs are widely regarded as the biggest obstacle to cutting unemployment from a post-war high of almost 5m. In an interview with the Financial Times, Mr Zumwinkel said that Germany’s cradle-to-grave welfare system, dating from the time of Bismarck in the 19th century, “has to be dramatically changed. . . The only solution is an increase in VAT. It has to go to 20 per cent”.

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Record quality performance by UK Royal Mail

Royal Mail’s postmen and women have delivered to customers a record performance during April to June with a target-beating 93.4% of First Class letters arriving the day after posting, it was announced today. The performance for the spring quarter is the best in a decade and shows an improvement on the record performance during the January to March period, according to the early results from independent research into the letter service across the UK’s 121 postcode areas. Adam Crozier, Royal Mail’s Chief Executive, said: “Royal Mail is determined to do even better than the record quality of service our postmen and women are delivering. “Independent research is showing our performance running at a world-class level but Royal Mail wants to be demonstrably the very best and most trusted postal service in the world.”

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Swiss Parcels Market

Meanwhile, the liberalisation of the swiss parcels market last year has driven competition to the heart of the business ultimately leading to a 2% decrease in parcels volumes for swisspost last year, according to Daniel Baettig chief financial officer.

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Minor Pallet Networks will ‘collapse’

Weaker and smaller pallet networks will eventually go to the wall, according to Jim Scanlan MD of The Hazchem Network who previoulsy founded fortecand the Pallet Network.
The model would evolve as the larger privately owned membership networks bgun opening their own corporate depots, especially in metropolitan areas. No merges between networks were likely, however, as member hauliers would then have overlapping postcodes.

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Retaliers and carriers diverge on service/cost prioritisation

A curious discrepancy was highlighted by Alan Jones, the former MD or TNT Express who now chairs Metapack. Apparently, 70% of retailers say they put service first when looking for a parcel service, yet 90% of carriers say retailers put cost first.
Brian Templar, chairman of consultant Davies & Robson Logistics, confirmed that price came fifth or sixth in the list of why shippers changed their carrier.

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Home shopping lacks channels

James Roper, chief executive of International Media in retail group, hailed deliverance, a home delivery charter for electronic shoppers launched at the conference, as ¡§the biggestdevelopment in our industry in years¡¨.

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Retailers and carriers diverge on service/cost prioritisation

A curious discrepancy was highlighted by Alan Jones, the former MD of TNT Express who now chairs Metapack. Apparently, 70% of retailers say they put service first when looking for a parcel service, yet 90% of carriers say retailers put cost first. Brian Templar, chairman of consultant Davies & Robson Logistics, confirmed that price came fifth or sixth in the list of why shippers changed their carrier.
Whatever the truth, there is no arguing that prices have shrunk.

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Italy Trenitalia, DHL launch Easybag service

Italian railway operator Trenitalia, in collaboration with DHL, the logistics and express delivery business of Germany’s Deutsche Post AG, will launch a new service called Easybag, which will allow its clients to travel comfortably without heavy luggage, it was reported on July 11, 2005. With the new service it will be possible to send the luggage separately beforehand and to take it back once the final destination is reached.

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