Tag: International

Austrian Post to lose Neckermann Oesterreich delivery contract from mid 2008

Austrian Post will lose its delivery contract with the Austrian arm of the mail-order company Neckermann from the middle of next year to the German logistics company Hermes, according to the Austrian daily WirtschaftsBlatt.

‘What is certain is that we are going to switch (to Hermes) in the first half of 2008,’ Bernd Kupfer the head of Neckerman Oesterreich told WirtschaftsBlatt.

Neckermann Oesterreich sends between 3-4 mln packages a year in Austria and is 49 pct-owned by Germany’s Acandor AG.

Yesterday, Austrian Post said Quelle Oesterreich, also a unit of Acandor, had decided to use alternative postal services providers to deliver its 7 mln packages in Austria as of Jan 1.

Post said it expects to see its operating results lowered by around 20 mln eur from 2008; as a result the share plummeted over 14 pct to 24 eur.

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DPD opens parcel shops at Staples stores

DPD has opened parcel shops at 56 stores of the office supply chain Staples in Germany to further develop its B2C business and broaden its product portfolio. Staples previously cooperated with GLS.

Staples expects to enhance its product portfolio with the new parcel shops, the DVZ transport newspaper reported. Managing director Sönke Feuerherm said Staples could offer customers nationwide parcel deliveries at attractive prices. The price is based on the box size rather than on weight.

“The Staples stores provide first-class locations, good service quality and high customer orientation”, DPD CEO Hans Fluri was cited as saying. The parcel company expected to increase its competitiveness with the new cooperation.

According to the DVZ, DPD agreed a deal with Staples for lower prices than had previously been the case with GLS.

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Quelle Reduces Volume of Parcels Delivered by Austrian Post, Remains Important Customer for Catalogues and Direct Mailings

Quelle Austria has informed Austrian Post of its decision to primarily rely on the parcel delivery services of an alternative postal service provider. Austrian Post will continue to be responsible for the delivery of all Quelle catalogues and printed documents produced by its subsidiary meiller direct, and for the return parcel service customers have the opportunity to take advantage of. Accordingly, Quelle will remain an important customer of Austrian Post.

Austrian Post has to accept this decision of the free market, and will thus continue striving to win back any lost parcel volume on the basis of its outstanding delivery quality. Austrian Post offers an exceptional portfolio of services. 97pct of all parcels are delivered on the second working day, and its extensive branch network of over 1,300 company-owned branches, more than 600 external postal partners and 183 OMV petrol stations with VIVA shops that accept parcels, and the Post.24 stations with about 5,000 rural delivery staff who also take back returned parcels ensures nationwide coverage.

The measures announced by Quelle as of 2008 will have a negative effect on the revenue and earnings of Austrian Post. Quelle’s planned reduction in parcel volume by about 7 million parcels annually and the resulting changes in the market environment are expected to negatively impact Austrian Post’s operating income by approximately EUR 20m.

Austrian Post will more intensively adapt its product portfolio to proactively respond to the market trend favouring specialised postal service providers.

Austrian Post is continually improving the services provided to all mail-order companies. Furthermore, Austrian Post will continue to deliver mail every day to every doorstep, making postal services available to its customers throughout the country. In this regard, there is no level playing field in terms of the universal service obligation to provide universal postal services. Alternative providers are completely free to choose delivery speed, determine the regions in which they provide services and terms under which they conclude employment contracts.

Austrian Post remains committed to promoting its business operations in the B2B (business to business) segment, on the basis of which it is strategically positioning itself as a strong, reliable partner in the direct mail and parcels segments, in Western Europe as well as in Eastern and South East Europe.

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The state of Third-Party Logistics – 2007

A significant focus of the annual State of Logistics Outsourcing: 2007 Third-Party Logistics report this year is on the opportunity for improved collaboration between 3PL providers and users.

A recent study by consulting firm Capgemini, the Georgia Institute of Technology, DHL and SAP reveals that collaboration between companies and their third-party logistics (3PLs) is one of those areas for which both sides of the equation see benefits — but the application of the idea turns out to be a lot harder than the theory.

For the first six years of the annual State of Logistics Outsourcing report, which is based on a survey of 1,568 logistics executives from 61 countries, about 72 percent of the survey respondents described themselves as users of 3PL services. In the past four years, this number has increased to 78 percent to 80 percent.

The 12th annual 3PL report, released late last month, indicates the third-party logistics (3PL) industry is doing many things right. Most users are satisfied with the relationship, with 85 percent reporting that their logistics outsourcing efforts are successful. However, some users do report chronic problems with 3PL providers and a significant number of users say that 3PL information technology capabilities are insufficient.

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FedEx's AP delivery center to start operation in Guangzhou airport by year end 2008

The U.S.-based logistics giant FedEx plans to start operation of its Asia-Pacific delivery center it is currently building within Guangzhou’s Baiyun Airport by yearend 2008, Guangzhou municipal government sources said.

The FedEx delivery center project, with a total investment of 2.5 billion yuan, takes an area of 2,843 mu and is expected to become a super large delivery center covering over 30 Asia-Pacific countries.

The project is expected to add about 1 million ton/year of cargo turnover for the Baiyun airport within the first year of operation.

FedEx predicts that its AP delivery center will churn out 11 billion US dollars in revenue by 2010 and 65 billion US dollars by 2020.

Construction of the project started in early 2006.

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