Postal and small freight delivery statistics 2005
Postal and small freight delivery statistics 2005
Read MoreTag: Europe
UK Mail Award winners announced
A packed audience of 300 postal industry leaders was on hand at the annual Gala Dinner on Tuesday evening (31 October) to see the 2006 UK Mail Awards presented. London-based direct marketing specialists WDMP Communications walked away with three awards, including those for both the best Domestic and International Marketing Campaigns of the Year for Carphone Warehouse and Chelsea FC respectively. Other winners on the night included Marketscan (Database Management), Neopost (Technology) and UK Mail, who were named best Downstream Access Supplier. Royal Mail’s Tonbridge Mail Centre was Mail Centre of the Year, while Royal Mail themselves went away with the Innovation award.
Read MoreThe Profitability of The Mail Division of Deutsche Post: A Final Report
The Profitability of The Mail Division of Deutsche Post: A Final Report
By Dr. Richard Hern, Tomas Haug, Phillippa Lowe, Marco Schönborn, and Yves Gueron
In this report, a NERA team led by Associate Director Dr. Richard Hern and Analyst Marco Schönborn assesses the profitability of DP’s mail division and updates conclusions presented in two earlier NERA reports from 2003 and 2005.
Using the most recent available data from DP’s Annual Reports, the team considers estimates of profitability for 2005 and over a longer period dating back to 1998. Their estimates are based on calculations of the return on capital employed (ROCE) of the mail segment, which they compare to the cost of capital for DP’s mail segment. By comparing ROCE and the cost of capital over a period of time, it is possible to assess whether investment in the company is appropriately rewarded, under-rewarded, or over-rewarded. The team concludes that while DP has faced competition in other segments, it was able to generate substantial profits in the mail division. NERA’s results, which are in line with the findings of the 2003 and 2005 reports, demonstrate that DP’s profits in the mail division are significantly higher than in other divisions and have been so over the whole period under investigation.
Read MoreTNT chief prefers to work within regions
In an industry over-staffed with apostles of globalisation, Peter Bakker, chief executive of TNT, the Dutch express delivery group, is a heretic. While competitors evangelise about how global networks are transforming the world of commerce, Mr Bakker enjoys debunking their myths.
“Only 5 per cent of volumes being shipped in express delivery networks move between continents,” he said. “Our belief is this is mainly a regional game.”
TNT is the smallest of the “big four” express delivery groups, behind UPS, FedEx and DHL, and the only one without a significant presence in the US. Instead of seeking to match its rivals’ geographic breadth, the group has focused on a patchwork of domestic markets in Europe and Asia.
The strategy rests on Mr Bakker’s argument that, even in an era of globalisation, what matters most is local and regional strength.
More than 80 per cent of TNT’s business is in Europe, where it vies for market leadership with German-owned DHL.
Because most of its volume stays within Europe, Mr Bakker says TNT can be selective about which other markets it enters. In the US, for example, he says the cost of challenging UPS and FedEx on home soil would outweigh the returns.
Read MoreBusinesses benefit from postal competition
Competition in the postal market is showing “great promise” as businesses benefit from lower mail prices and a better service, the industry regulator said today.
Postcomm said its latest Business Customer Survey showed a competitive market had delivered early benefits, although more progress was still needed.
One fifth of the 1,213 firms quizzed said mail prices had reduced significantly, while 34% thought the quality of Royal Mail’s service had improved and 38% believed the choice of operator had improved.
Sarah Chambers, chief executive at Postcomm, said: “The results of the survey show there is great promise for the further development of competition in the UK mail market, but it is clear there is much still to be done.
“Although Royal Mail remains by far the largest operator in the market, competition has encouraged it to raise its game, especially on quality of service.”
Postcomm said twice as many businesses had switched to major competitors such as TNT, DX and DHL than in the previous year.
Read MorePost & Parcel Magazine
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