Tag: Europe

Eastern Europe loses its luster as companies reverse investment strategies

Posted by | Nov 29, 2007 | |

Migration of manufacturing from Western Europe to Central and Eastern Europe (CEE) has been considered by many to be an irreversible trend. However, a recent survey has found that many companies are pulling back from the region, troubled by rising costs, lack of quality and production issues. This could have major implications for express and logistics companies which have invested in the region.

Since the first wave of countries from CEE became candidates to join the European Union in 2004 it has become generally accepted that there would be a wave of investment in the region, resulting in the migration of production from Western Europe.

There were some very good reasons for that assumption. German manufacturers in particular were attracted by the much lower labour costs and the lack of regulation and bureaucracy compared to their home market. Improving transport infrastructure would mean that they could – in theory – serve their customers just as efficiently from new facilities in countries such as Poland, Czech Republic and Slovakia.

At one stage, a study by consultancy Roland Berger established that around 80 pct of German companies were moving eastwards, with Poland and the Czech Republic being the most favoured locations. By 2004, it was estimated that German subsidiaries employed around 750,000 staff in CEE.

However, the reality of manufacturing in that region seems not to have lived up to expectations. Wage costs have risen significantly and many producers have complained of quality issues, missed delivery deadlines and lack of flexibility. According to the German Fraunhofer Institute, of 6,500 firms which relocated to Eastern Europe, 1,200 have reduced their investment or pulled out completely.

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EU approves Government funding of Post Office in the UK

Posted by | Nov 29, 2007 | |

Government funding to the Post Office worth more than GBP 600 million was approved by the European Commission today.

Brussels has the power to block state aid it considers breaches EU rules on fair competition.

But EU Competition Commissioner Neelie Kroes said the UK government’s cash backing for the UK post office network satisfied the rules for aid to support national public services.

“I am very aware of the importance of the post office network and of the services it provides” she said this afternoon.

“This aid will enable the network to continue to provide those services under the new terms defined by the UK Government”.

The Post Office, now a subsidiary of the Royal Mail, runs about 14,000 post offices throughout the UK, the majority separate businesses contracted out to sub-postmasters.

Last July the Government announced funding over three years starting next April of GBP 634 million, to help cover the cost of loss-making parts of the service.

And although the funding has been approved today, the Commission is still conducting an inquiry launched last February into wider Government funding arrangements for Royal Mail totalling more than GBP 2.5 billion.

“The measures authorised today are separate and concern only the compensation of costs specifically incurred by Post Office Limited,” said a Commission statement.

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Post Office (UK) confirms branch closure decision making approach

Posted by | Nov 28, 2007 | |

Post Office Ltd confirmed the approach it will take to finalising decisions regarding branch closures and other changes to existing branches following the Local Public Consultation process which is now underway in some parts of the UK.

During each public consultation significant correspondence is received from stakeholders and information arising from this correspondence is carefully considered against prescribed Government criteria and factors when final decisions are made. Additionally, Post Office Ltd has set up with Postwatch, the consumer body representing customers, a three stage review process for these decisions, with increasing seniority of the respective management teams participating in each stage, culminating in a member of Post Office Ltd’s board and the Postwatch Chair (or their appointed deputy).

Furthermore, after stage 3, Allan Leighton, Chairman of Royal Mail Group, will review any unresolved cases at the request of Postwatch.

Allan Leighton said, “Taking the decision to close any Post Office branch is always exceptionally difficult. I know it will always cause concern to many of our customers. We are absolutely committed to examining the most difficult decisions at the highest level, to make sure that all the information available has been considered and that the criteria set by the Government have been met.”

Pat McFadden, Minister of State for Employment Relations and Postal Affairs, commented, “I welcome this development to Post Office Ltd’s consultation review process. Allan Leighton, as chair of the Royal Mail Group and the most senior voice in the Company, will now act as final arbiter in the case of particularly controversial and contested closure decisions which Post Office and Postwatch cannot resolve bilaterally.

This demonstrates how serious the Company is about the proper handling of what is necessarily a difficult process.”

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trans-o-flex starts service campaign

Posted by | Nov 28, 2007 | |

trans-o-flex Schnell-Lieferdienst has developed a modular system of services that enables its customers to completely meet the tightened legal provisions made on the pharmaceutical industry. The Weinheim-based specialist for business solutions announces the introduction of another innovation in the world of transportation and logistics: in January 2008, the company will present an active temperature control system for high-quality and extremely sensitive goods that covers the range of between 8 and 25°C.

The development of the new service was driven by the tightened provisions made on the transportation and storage of pharmaceuticals. In accordance with the German Ordinance on the Production of Pharmaceuticals and Active Substances (AMWHV), critical parameters, such as temperature and air humidity, have to be measured and documented not only during production and storage but also over the entire supply chain. To this end, trans-o-flex, within the scope of a service campaign, has now developed a modular system that enables customers to select the individual components relevant for them.

Currently, trans-o-flex already takes over the transportation of goods that have to be stored at temperatures ranging from between plus 2° and 8°C. This special service is offered by trans-o-flex’s ThermoMed subsidiary. “Due to the separate handling of the temperature ranges from 2° to 8°C and from 8° to 25°C in two different networks, we can guarantee our customers maximum quality with respect to maintaining the temperature ranges”, explains Mohorn.

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Austrian Post Wants to Invest in Bulgaria

Posted by | Nov 28, 2007 | |

Austrian postal operator ‘Oesterreichische Post’ wants to get into Romanian, Bulgarian and Bosnian market in the coming 15 months, Reuters informed, cited by money.bg.
We want to set up a network in the fragmented South-Eastern European market, company’s Chief Financial Officer Rudolf Jettmar said on Tuesday.

We want to fill in our blank spots in Bosnia, Bulgaria and Romania, Jettmar added.

He also specified that the postal operator is aiming to take over private operators working in parcel delivery or distribution of advertising.

‘Oesterreichische Post’ has spent 210 million EUR on takeovers in the first 3 quarters of 2007. The Austrian Post is already present in Slovakia, Croatia, Hungary and Serbia.

Osterreichische Post AG was founded on March 3, 1999 as a subsidiary of Post and Telekom Austria. Its core business activities are provision of postal and parcel services as well as handling of financial business in cooperation with BAWAG P.S.K., a partner of many years.

The Austrian Post has a sales network that is unique in Austria. With comprehensive investments in modernization of post offices and the entire logistics, the business will continue to focus on customer needs and consistently move forward on its way from a public agency to a modern service company.

New products and services will not only help ensure national market leadership in future, but shall also pave the way to international activities.

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