General Logistics Systems Amsterdam (GLS), will put its new European computer centre in Neuenstein (Germany) into operation in March. The parcel and express service provider, operating in 34 different countries, has invested two million euros in a building that meets the highest security standards. Approximately 20 million data records from all over Europe are processed in the new computer centre daily.
Read MoreBritish mail delivery company DX Services PLC said it is to cut costs by scrapping less profitable areas of its business after first-half profit declined 8 pct, hurt by a depressed housing market. DX Services, which each day delivers over one million items via a network of 4,500 mail exchanges, said it is to bring in new low-cost technology platforms to help it identify potentially more lucrative customers. ‘We’re not going to go out to fields with a box of materials for a farmer who’s way off the network. We’ve been looking at the top line. We’re going to re-incentivise our staff to look for profitable revenue,’ chief executive Paul Kehoe told AFX News. The company is facing the threat of increased competition as rivals vie for a slice of Royal Mail’s near monopoly by poaching its biggest corporate customers ahead of impending market deregulation. Germany’s Deutsche Post AG last year paid 5.5 bln eur (3.7 bln stg) for logistics group Exel, to gain a foothold in Britain, although Kehoe said there had as yet be no noticeable competitive impact from that deal.
He was speaking after DX Services revealed pre-tax profit fell to 10.2 mln stg in the six months to Dec 31 2005 from 11.1 mln. Sales declined 3 pct to 64.6 mln.
Royal Mail has been accused by Potwatch of “gamesmanship” by threatening to reject proposed postal price controls if the government refuses its application for Pounds 2bn of investment. Postwatch, the consumer body, said it was “ridiculous that customers, particularly large business customers, were not told months ago what the pricing structure from April will be”. The uncertainty stems from complex negotiations between Royal Mail and both its regulator, Postcomm, and its sole shareholder, the government. Yesterday marked the deadline for comments on Postcomm’s proposed price controls to 2010, which will come into effect next month unless Royal Mail forces a referral to the Competition Commission. Royal Mail said it was “not in a position to say yes or no to the price control . . . because we have not had the final proposals from Postcomm”. Postwatch accused Royal Mail of threatening to reject the price control “beyond the eleventh hour” and said such “gamesmanship” was unfair to customers.
Read MorePrivate equity firm 3i is poised to acquire niche logistics company Marken from Deutsche Post for about pounds 210m. Sources said 3i is now in exclusive talks with Deutsche Post advisers UBS to buy Marken, part of Exel, after submitting a higher bid than rival contenders. The other private equity firms thought to have been looking at the company include PPM, Phoenix Private Equity and Bridgepoint. Deutsche Post put Marken on the block last month, though it is not clear why it has decided sell. Analysts think that, after acquiring Exel last year, Deutsche might have some overlaps.
Read MoreBetween them, Bibby Distribution UK, Azkar Spain and Portugal, Bartolini Italy, MGF Logistique France and the Rhenus group Germany have 24,800 employees and annual sales of €2.4bn. “We can serve customers from 500 sites in Europe and Asia and collectively can use over 2.5m m² of storage space”, says Hans-Peter Schneider who will head the World Alliance as Managing Director. The companies involved have a combined fleet of 10,000 vehicles – from bulk carrying trucks to messenger cars for parcel delivery. The European Office of the Alliance is at Rhenus headquarters in Holzwickede/Germany.
This World Alliance offers clients a complete range of high-grade contract logistics – from storage and handling to a variety of value-added services such as quality monitoring, repairs, and recycling. Geographically, the
focus is on Europe; for intercontinental supply chains the Alliance works with proven partners in Asia, etc.
Unlike other groups of companies, the Alliance practices a “One Face to the Customer“ approach where a client, instead of making separate agreements with each of the partners, determines conditions and services for all logistics firms involved through his contact. “Such an arrangement can only function with hand-picked partners who set high standards for themselves and their work. This is why we selected the founding members and cooperation partners very carefully“, commented Miguel Ambielle, Deputy General Manager for Azkar.
Cross-border integration of individual logistics solutions is supported by advanced approaches such as the Business Networking Platform. Developed by Rhenus, this system combines Internet techniques with functions derived from Enterprise Resource Planning. For example, an overseas customer can use the platform to monitor processes in individual European markets and to follow the development of previously defined indices.
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