Tag: Courier/Express/Parcels

Wincanton strengthens its home delivery offering with the acquisition of Lane Group plc

Building on its existing logistics and home delivery capabilities, leading European supply chain provider Wincanton has today announced the acquisition of Lane Group plc, a UK market leader in home delivery.

The acquisition allows Wincanton to strengthen its position within the growing home delivery market and apply its supply chain management expertise to this sector, improving efficiencies and responding to consumer demands for higher service levels.

Wincanton’s existing home delivery customers such as B&Q and Comet will be joined by Lane’s customer base including brands and retailers Homebase, Magnet, Electrolux and Bosch. Wincanton’s management knowledge and expertise will be integrated with Lane’s existing infrastructure and transport network to support these customers, providing enhanced capabilities and driving best practice.

Martin Taylor, Managing Director of Retail, Wincanton, says: “The opportunities available to Wincanton as a result of the acquisition of Lane are significant and the company’s operation provides a good strategic fit.

“The home delivery market is a growing one, estimated to be worth GBP37.1bn during 2005, driven by the growth in internet shopping and multi-channel retailing. However, this is a sector that is ripe for improvement as the demands on home delivery operations become increasingly complex and smaller companies find it difficult to respond.

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GO! expands its European network to Switzerland

Swiss express carrier NES has joined the GO! European network and will represent the brand throughout the Alpine country as GO! Switzerland.

The German express and logistics group, whose full name is GO! General Overnight Service GmbH, said it would be using Niederbipp-based NES’s 160 vehicles, 10 depots nationwide and 50 employees to transport national and interantional parcels.

“As one of the leading and most important express services, NES AG is an ideal partner for us,” explained Ralf-Hans Dierks, CEO of GO! Germany.

“Using the same high quality standards and product range, we will expand the national and European express and document despatch and be able to multiply our parcel volume.”

Dierk said Switzerland bore “enormous potential” for GO! and its European network and that the company was planning to expand further its international product range.

“We will not only extend our European system, but also strengthen our position among the leaders on the express market”, he added.

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DHL to start negotiations to buy Colombian Servientrega

The global express and logistics company DHL is expected to start negotiations to acquire Colombian package delivery company Servientrega, the newspaper Portafolio said on October 4, 2006.
Representatives of DHL have already arrived in the Latin American country in order to start the talks.
Servientrega has been operating on the Colombian market for the last 24 years. DHL is a unit of German postal services group Deutsche Post AG.
The interest of DHL in Servientrega comes only days after the Colombian company announced investments of USD5.2 mln (4.09 mln euro) in order to start operations in Panama, Peru and Spain.
DHL is the leader on the Colombian package delivery market with a share of 60 pct.
Currently Servientrega (www.servientrega.com) has operations in Ecuador, Venezuela and the United States. The expected signing of a free trade agreement (FTA) between Colombia and Venezuela is seen to strongly boost the operations of the Colombian company.

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Business Post says parcel revenues down 3.4 pct, sees 3 mln stg charges

Parcel and mail delivery firm Business Post Group PLC revealed a 3.4 pct fall in revenues from parcel services and said higher-than-expected debt and one-off charges from struggling franchises in the division would cost it 3 mln stg.

Business Post said revenues in parcel services had dropped to 94 mln stg in the first half, although part of the decline was due to a change in the number of trading days in the period against last time, a spokesman said.

The group, which underwent a management shake-up earlier this year, said it would have to set aside an extra 1.5 mln stg in the first half after it recovered less debt than expected from its franchise operations during the period.

‘Separately, we have identified a number of specific one-off charges amounting to some 1.5 mln stg, relating to prior years. This amount will be adjusted for in the interim results,’ the group added in a trading statement.

Business Post had already told analysts that losses in the franchise operation would reduce operating profits by about 3 mln stg this year.

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Pre-close trading update

Business Post Group plc, the leading parcel and mail delivery group, provides the following pre-close update for the six months to 30 September 2006.
Trading in the first half of the current financial year has been satisfactory with Group revenue up 15% to GBP153m. Progress continues to be made with the performance improvement initiatives previously announced.

Revenues in Parcel Services, (comprising the Group’s overnight business-to-business, business-to-consumer, and cross-border parcel delivery activities) were down 3.4% to GBP94m. We continue to make progress with our initiatives to strengthen this business, with a focus on further improving our customer service and improving our operational efficiency. Parcels volumes are now showing growth and our customer service levels we believe remain amongst the highest in our industry.

We have made further progress in improving the performance of the franchise network. Eight franchises have been brought back into corporate ownership in the period, bringing the total transferred since the beginning of the calendar year to 14. Overall these operations make a significant trading loss. Our plan is to reduce the run-rate of these losses such that they are eliminated by the start of the new financial year. However, as previously advised, these losses will impact our operating profit by some GBP3m for the current financial year, weighted toward the first half. In addition we have incurred some GBP1m of costs on the transfer of franchisees to corporate ownership. These costs will be included within the operating profit.

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