The European Mail Manifesto
The European Mail Manifesto
Read MoreTag: Europe
Direct marketers angry at loss of Postwatch voice
The consumer champion’s success in defending postal users’ interests against Royal Mail’s market dominance has made it popular with direct mailers. One of the direct marketing industry’s leading voices, Edward Mutton, director-general of the Institute of Sales Promotion, has accused the Government of plotting to gag the watchdog.
He points out that promotional marketers are “very big spenders on mail”.
In October, consumer minister Ian McCartney announced plans to provide consumers with a single point of contact for a range of consumer issues. Consumer Voice, he said, would pull together the National Consumer Council, Energywatch and Postwatch into a single body which would be a “powerful and effective advocate” for consumers. It will also save money, the DTI argues – around GBP10.5m a year.
However, the direct marketing industry believes that Postwatch has done an excellent job for businesses, the biggest mail users in the UK. Royal Mail’s top 100 customers produce approximately one-third of its GBP6bn annual revenue.
Alex Walsh, head of postal affairs at the Direct Marketing Association (UK), says that the future of Postwatch will be on the agenda for this week’s meeting of Postwatch’s trade association forum. He accepts that the UK’s big business-mail users could form their own lobby group, but says any such body would be unlikely to have the same weight and visibility that Postwatch has.
Key steps to DM/postal services: Time to deliver
Although Royal Mail still dominates the UK’s postal services market, deregulation has triggered strong growth in competition. Private operators have signed access agreements to allow mail they have collected and sorted to be fed into Royal Mail’s network for delivery.
Royal Mail made 1.2 billion access deliveries in the past year, compared to just 87 million the year before. In the five months to August 2006, access volumes continued to swell, and the latest figures from regulator Postcomm show that access deliveries now account for 10.5 per cent of Royal Mail’s total letters volume.
Royal Mail’s launch on 21 August of its Pricing in Proportion charging structure, reflecting that size and not just weight will determine a mailing’s delivery costs, has given companies further food for thought. For those considering a switch from Royal Mail to a rival access operator, there are now many more issues to consider. And there is certainly some confusion.
“In my experience, the big mailers aren’t confused because they have experts in their business who understand it, and can look at a new player when it comes along,” says Triangle Management Services’ associate director of mail Geoff Lambert. “But once you come down below the top 100 or 200 mailers, it’s true that people haven’t quite been able to understand what’s going on because they don’t have the expertise in-house.”
Pall-ex signs up new Northern Ireland member to its network
Pall-Ex is set to strengthen its network further in Northern Ireland following the appointment of new member Reid Transport. Based in County Antrim, Reid Transport is one of Northern Ireland’s leading logistics companies.
Established in 1980, it recently re-located to a 75,000 sq ft purpose built logistics centre outside Ballymena to provide a faster and more efficient service to its customers. The company has an impressive fleet of over 60 vehicles ranging from Sliding Roof Euroliners and Refrigerated Trailers to Low-loaders.
It was specifically chosen to become the latest member of Pall-Ex – the UK’s leading “hub and spoke” palletized freight operator – because of its location close to Northern Ireland’s motorway network and its reputation for quality.
Adds Stephen Wallace, Group Sales Manager at Reid Transport: “We have been looking for some time to give our customers total UK coverage with their consignments and after meeting with Pall-Ex quickly realised that their network offered the most effective solution possible to our requirements.
Read MoreGLS buys market leader ABX Belgium
GLS Group is taking over ABX Belgium Distribution NV/SA. This makes GLS number 1 on the Belgian B2B parcel market. Today, the Belgian railroad company, SNCB/NMBS – the mother company of ABX Belgium Distribution – and GLS signed the agreements.
GLS is taking over the parcel and general cargo business of ABX Belgium Distribution, which generates revenues of approximately 90 million euros per year (Financial year 2005). Parcel business accounts for about two-thirds of the revenues. More than 650 employees work for ABX Belgium at a total of nine locations (including a hub in Brussels), providing service for approximately 8,000 customers – to service them, 560 vehicles are in use.
While ABX Belgium Distribution mostly handles shipments in the Benelux region, with only a small percentage of exports, GLS is positioned as a parcel service provider that operates throughout Europe. “Today’s transaction means we will be able to combine GLS’ European competence with ABX Belgium Distribution’s regional strength”, explains Rico Back, CEO of GLS B.V., Amsterdam. “For GLS, attaining market leadership in Belgium means that the network in central Europe is being decisively strengthened. For ABX Belgium Distribution, the link to the GLS European network will result in new growth opportunities.”
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