Tag: Europe

Homeserve deals Royal Mail another blow

Homeserve, the emergency policy and repair business, has handed TNT Post its mailing contract, signaling another blow to Royal Mail.

The deal, which will see Homeserve move its business from Royal Mail to TNT, is due to competitive prices and TNT’s clearer view of its business delivery service.

The move will cause another blow to Royal Mail – already in the midst of internal turmoil – as Homeserve is just one of the many businesses that has moved its business out of the postal operator in the past year. Royal Mail lost out to TNT for Emap’s GBP 1.6m subscriptions contract in August and BT’s delivery of The Phone Book contract in April.

The repeated loss of business and necessity to keep up with competition is one of the main reasons why Royal Mail wants to modernise its business, which has resulted in weeks of postal strikes recently.

TNT also handles contracts from customers including Centrica, Lloyds TSB, HBOS and Barclays.

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Royal Mail opts for SAP to cut sourcing costs

Royal Mail is aiming to save GBP 300m on procurement costs by 2009 with the help of a hosted e-sourcing application from SAP.

The SAP application went live in June after a relatively short two-phase implementation of just over three months and is being used by more than 100 Royal Mail staff.

The SAP-hosted software will help the procurement team manage £2.3bn of annual expenditure by Royal Mail. It replaces disparate systems and gives staff greater visibility across the contracting process.

Daniel Cameron, Royal Mail procurement director of performance and transformation, told silicon.com: “What’s become very evident is the technology gives us more bandwidth and shortens the procurement process.”

The application being used is from SAP’s 2006 acquisition of Frictionless Commerce.

Cameron said going for the hosted option represented a change in approach by Royal Mail.

Royal Mail is working with SAP on extra functionality for the future, including features such as vendor management.

His advice to other companies is to take a phased, rather than a big-bang, approach and do plenty of road testing to ensure it is fit-for-purpose from day one.

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PalletFORCE sponsors Transport Award

PalletFORCE has sponsored the Transport Policy and Planning Award at the recent CILT Annual Awards for Excellence.

CILT, the Chartered Institute of Logistics and Transport in the UK, is the pre-eminent independent professional body for individuals associated with logistics, supply chains and all transport throughout their careers. The Annual Awards presented to individuals and organisations that can demonstrate achievement in logistics and transport that encourage best practice and the highest standards of excellence in the industry

PalletFORCE selected its chosen category because it chimes with the Network’s commitment to sound transport planning, as Business Development Director Alan Cooke explains. “The whole ethos of a palletised distribution network is to deliver greater efficiencies into the supply chain. The Transport Policy and Planning Award is geared towards rewarding initiatives that demonstrate similar thinking, so it was a natural fit.”

Alan Cooke joined PalletFORCE Shareholder Members and customers at the awards dinner held on the 11th October 2007 at the London Marriott Hotel. He also presented the Award to the winner, PD Ports, for its proposal to develop a new £300m deep sea container terminal on the south side of the River Tees, an ambitious project which will bring significant benefits to the UK economy. The terminal known as The Northern Gateway Container Terminal will provide quicker access to the North and Scotland, reducing lorry miles per container by an average of 70 miles equating to 70 million lorry miles in the UK by 2020.

“This plan represents a comprehensive means of improving the UK’s logistical efficiency and will be a real boon to the transport industry,” comments Alan Cooke. “We are sure that PalletFORCE’s Members will be amongst the many hauliers who will benefit from it.”

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Healthy demand continues across Itella’s businesses

– Net sales in January–September rose by 10 per cent, to EUR 1,230.9 million.
– All business groups showed growth. Net sales increased in Finland by 6 per cent and 24 per cent in other countries. Organic growth accounted for 6 per cent. The share of international operations was 26 per cent.
– In January–September, operating profit grew by 18 per cent, amounting to EUR 79.7 million, accounting for 6.5 per cent of net sales. Profitability increased in Itella Mail Communication and Itella Information.
– A development and investment project concerning mail sorting and delivery in Finland was launched in Itella Mail Communication. Consequently, the decision was taken to build a new post centre in Oulu and to extend those located in Tampere and Kuopio. In Helsinki post centre sorting machines are currently being renewed.
– Itella Logistics acquired PS Logistics AB in Sweden.
– Itella Mail Communication sold the office services business of the Inhouse unit to ISS Palvelut Oy.
– The EU reached a consensus on the schedule for the entry into force of the new Postal Directive. Accordingly, the European postal markets will be opened up to competition, at the latest by 2011–2013. The new directive allows the member states to define more flexibly how basic delivery and other universal services are to be secured and financed. The impact of the directive in Finland will depend on how Finnish legislation governs its implementation.

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Regional British Chambers of Commerce Award Pall-Ex

Premier transport and distribution organisation Pall-Ex has been named Business of the Year regional winner of The Chamber Awards 2007.
Pall-Ex specialises in collections and deliveries of palletised freight across the UK and into Europe. The business operates by continual reinvention, redefining the concepts of service with increasingly innovative solutions. This enables the company to continue to exceed expectations, and has lead to a wide portfolio of blue chip retail and manufacturing customers, and delivery options including am, next day, and timed.
This award was judged upon an ability to demonstrate all-round excellence in business. The judging process focussed upon future objectives, and financial performance. The judges were also considering and impressed by the growth and competitive advantages Pall-Ex held.
Pall-Ex will find out in November at a gala awards ceremony in London if they take home the national Award. This year the Chamber Awards Gala Dinner takes place at the Victoria and Albert Museum in London.

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