Year: 2005

French La Poste enters agreement to provide support for post offices

The French post office, La Poste, has entered into a framework agreement to provide financial support for the 1,800 post offices in France which are operated by local authorities. The deal, which has been concluded after more than a decade of talks, doubles the amount paid to municipalities (900 euros) to run post offices in what are termed sensitive rural or urban areas and offices under the control of more than one local authority. In return, the post office in question must be open for 60hrs a month.

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SPECIAL REPORT – FULFILMENT: Receiving end

The tenet that the customer is always right does not seem to have permeated the home delivery sphere, with many packages turning up at unspecified, inconvenient times. But with new entrants raising standards, the old school may be forced to mend its ways.

Home shopping may be big business, but it is no longer the sole domain of big businesses, with everyone from Amazon to the local corner shop now offering an online or catalogue shopping experience. But while the rest of the retail world has been moving speedily towards home shopping solutions, it would seem that most delivery companies have been standing still.

Home shopping exists to cater for consumers who are too busy to visit the high street, so it should come as no surprise that they may not be able to wait at home all day to receive a package.

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Cuts still on agenda at An Post despite EUR7m profit

An Post is still seeking up to 1,500 redundancies, a price rise of 25 per cent and further work practice changes despite announcing a pretax profit for 2004 of EUR7 million yesterday.

Donal Curtin, the company’s chief executive, said An Post was “not out of the woods yet”. He said an increase in the price of a stamp from 48 to 60 cent would help the company to complete its rescue plan.

“Despite the success of strict control measures, the An Post cost base remains too high and substantial cuts are essential through headcount reductions, efficiencies, work practice changes and the implementation of the automation agreement,” he said.

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GeoPost/DPD – multi million investments

The French mall service provider La Poste wants to invest up to EUR 1 billion in the global expansion of its parcel subsidiary GeoPost, which operates under the brand name DPD. A competitive global network for international parcel services is to be created by take-overs, joint ventures and cooperations. The man is forcing the pace. Claude Béglé, CEO of GeoPost International Management & Development GmbH, lists the targets for GeoPost and DPD for 2005 in one quick breath. The most important ones are: to promote strong growth of sales and earnings, the introduction of a new core product for Europe, the expansion of warehouse capacities in the hub and above all the rapid intercontinental enhancement of the DPD network. The bill for the additional expansion in Europe and the remainder of the world could cost as much as EUR 1 billion in the coming years, said the Swiss national at a press conference in Frankfurt am Main (Germany).

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German Deutsche Post may reduce number of closures

German post operator Deutsche Post plans to halve to 500 the number of small branches it previously marked for closure, company’s spokesman Juergen Blohm said.

Previously, Deutsche Post intended to reduce the number of its branches, operated either by the company or through agencies, to 12,000 from currently 13,000. After protests from the affected parties, however, the company reconsidered and halved the number of the planned closures.

The Association of Post Agencies, Pagd, accused Deutsche Post of working with the 7,500 post agencies in an authoritarian manner, saying that it has reduced the wages of part-time employees in the post agencies to 300 euro (USD390), below the negotiated monthly sum, despite the registered 10 pct turnover growth.

Furthermore, Pagd’s chairman Torsten Modery said Deutsche Post has provided misleading information regarding the number of its customers to the agencies operating post offices, and thus compromised their economic efficiency evaluations.

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Courier grows with networks

Courier Logistics says offering a full complement of express services through the APC parcel and Pallet-Track networks has helped it increase its annual turnover by 43% from £2.8m to £4m. Managing Director Paul Johnson says: ‘We are finding it easier now we are selling the complete service, parcels and pallets, and that APC customers are now using the Pallet-Track service. We are now able to compete with the likes of TNT.’

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Pallet-Track set to launch sales forum

Pallet-Track is aiming to increase sales by 20% with the launch of sales forums for its members. The network has invested £30,000 in the initiative which will be headed up by sales and marketing director Andrew Spencer and also by a specialist consultant.

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Japan Government submits Postal Privatisation bills to Parliament

The government of Japanese Prime Minister Junichiro Koizumi on Wednesday night submitted a set of postal privatisation bills to parliament, after making significant concessions in the face of persistent resistance within his own party.

The government adopted the six bills at an extraordinary cabinet meeting earlier in the day after the ruling Liberal Democratic Party’s decision-making General Council approved submission of the bills.

Privatisation of the state-run postal business is Koizumi’s pet project in his structural reform drive.

Koizumi told reporters that the government will make utmost efforts to have the bills enacted during the ongoing parliamentary session ending June 19. He added that he has no plan to extend the session.

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