Tag: Courier/Express/Parcels

Deutsche Post World Net presents capital markets program

Deutsche Post World Net today presented its “Roadmap to Value,” a far-reaching capital markets program to use the company’s excellent market position to generate more value for its shareholders. The program is aimed at making Deutsche Post World Net the most attractive investment in the logistics industry in addition to being the No. 1 choice for customers and employees.

The capital markets program “Roadmap to Value” is aimed at making the group the most attractive investment in the logistics industry.

With a comprehensive profit improvement program affecting all units and divisions, Deutsche Post World Net plans to generate 1 billion euros to underpin EBIT growth through 2009. In order to boost cash, the Group aims to reduce net working capital by 700 million euros and raise at least 1 billion euros in proceeds from the disposal of real-estate and other non-strategic assets over the next two years. The management board will also propose to raise the 2007 dividend by 20 percent to 90 cents per share compared with 75 cents per share for 2006. To help increase transparency, Deutsche Post World Net will unbundle its SERVICES division and in principle has committed itself to a stable reporting structure in the future.

In order to establish the value-based approach throughout the Group, Deutsche Post World Net will introduce a new performance metric. The metric, EBIT after Asset Charge, is aimed at motivating managers to generate more value from their day-to-day businesses. Chief Financial Officer John Allan: “The new metric will help us leverage our strengths and attack our weaknesses in order to raise returns for investors and to serve customers even better. We have highly motivated, best-in-class managers and employees around the globe and I am very confident that they are going to rise to this challenge.”

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DPD opens parcel shops at Staples stores

DPD has opened parcel shops at 56 stores of the office supply chain Staples in Germany to further develop its B2C business and broaden its product portfolio. Staples previously cooperated with GLS.

Staples expects to enhance its product portfolio with the new parcel shops, the DVZ transport newspaper reported. Managing director Sönke Feuerherm said Staples could offer customers nationwide parcel deliveries at attractive prices. The price is based on the box size rather than on weight.

“The Staples stores provide first-class locations, good service quality and high customer orientation”, DPD CEO Hans Fluri was cited as saying. The parcel company expected to increase its competitiveness with the new cooperation.

According to the DVZ, DPD agreed a deal with Staples for lower prices than had previously been the case with GLS.

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Quelle Reduces Volume of Parcels Delivered by Austrian Post, Remains Important Customer for Catalogues and Direct Mailings

Quelle Austria has informed Austrian Post of its decision to primarily rely on the parcel delivery services of an alternative postal service provider. Austrian Post will continue to be responsible for the delivery of all Quelle catalogues and printed documents produced by its subsidiary meiller direct, and for the return parcel service customers have the opportunity to take advantage of. Accordingly, Quelle will remain an important customer of Austrian Post.

Austrian Post has to accept this decision of the free market, and will thus continue striving to win back any lost parcel volume on the basis of its outstanding delivery quality. Austrian Post offers an exceptional portfolio of services. 97pct of all parcels are delivered on the second working day, and its extensive branch network of over 1,300 company-owned branches, more than 600 external postal partners and 183 OMV petrol stations with VIVA shops that accept parcels, and the Post.24 stations with about 5,000 rural delivery staff who also take back returned parcels ensures nationwide coverage.

The measures announced by Quelle as of 2008 will have a negative effect on the revenue and earnings of Austrian Post. Quelle’s planned reduction in parcel volume by about 7 million parcels annually and the resulting changes in the market environment are expected to negatively impact Austrian Post’s operating income by approximately EUR 20m.

Austrian Post will more intensively adapt its product portfolio to proactively respond to the market trend favouring specialised postal service providers.

Austrian Post is continually improving the services provided to all mail-order companies. Furthermore, Austrian Post will continue to deliver mail every day to every doorstep, making postal services available to its customers throughout the country. In this regard, there is no level playing field in terms of the universal service obligation to provide universal postal services. Alternative providers are completely free to choose delivery speed, determine the regions in which they provide services and terms under which they conclude employment contracts.

Austrian Post remains committed to promoting its business operations in the B2B (business to business) segment, on the basis of which it is strategically positioning itself as a strong, reliable partner in the direct mail and parcels segments, in Western Europe as well as in Eastern and South East Europe.

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Logistics giant Deutsche Post to unload property worth 1.5 bln euros

Deutsche Post plans to sell property worth up to 1.5 billion euros (USD 2.17 billion) to generate cash and boost its shares, a press report said yesterday.

Deutsche Post said it had hired U.S. bank Morgan Stanley to organize the sale of real estate it was no longer using or which will be emptied soon, the Financial Times Deutschland said, citing industry sources.
Deutsche Post, which owns the logistics company DHL, wants to boost its profitability in the face of disgruntled investors who have seen their shares fall below the level they were listed at in November 2000.

The property reportedly includes offices, warehouses and distribution centers, including 50 sites outside Germany, which had potential annual rental income of around 90 million euros, the report said.

A spokesman for Deutsche Post declined to comment.

Deutsche Post’s chief executive Klaus Zumwinkel and chief financial officer John Allan were set to present a new capital market strategy Thursday when the group releases its third-quarter earnings.

In its 2006 annual report, Deutsche Post said it owned real estate worth 5.22 billion euros.

The news boosted Deutsche Post shares, which gained 1.29 percent to 20.34 euros in morning trading on the Frankfurt stock exchange, where the DAX index of leading shares was 0.36 percent higher overall. Deutsche Post shares had traded at 21.4 euros in November 2000.

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The state of Third-Party Logistics – 2007

A significant focus of the annual State of Logistics Outsourcing: 2007 Third-Party Logistics report this year is on the opportunity for improved collaboration between 3PL providers and users.

A recent study by consulting firm Capgemini, the Georgia Institute of Technology, DHL and SAP reveals that collaboration between companies and their third-party logistics (3PLs) is one of those areas for which both sides of the equation see benefits — but the application of the idea turns out to be a lot harder than the theory.

For the first six years of the annual State of Logistics Outsourcing report, which is based on a survey of 1,568 logistics executives from 61 countries, about 72 percent of the survey respondents described themselves as users of 3PL services. In the past four years, this number has increased to 78 percent to 80 percent.

The 12th annual 3PL report, released late last month, indicates the third-party logistics (3PL) industry is doing many things right. Most users are satisfied with the relationship, with 85 percent reporting that their logistics outsourcing efforts are successful. However, some users do report chronic problems with 3PL providers and a significant number of users say that 3PL information technology capabilities are insufficient.

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