Tag: Itella

Finland: Postal services disappearing from remote areas

Postal services of small rural communities are disappearing, as increasing numbers of shopkeepers decide that doubling as a post office is not worth the bother.

Many say that the compensation paid by Itella Corporation (formerly Finland Post), which is responsible for postal services in Finland, is insufficient.

The compensation paid by Itella to private businesses for providing postal services largely depends on how many packages and other deliveries customers pick up from the office.

Itella’s Ritva Vuorenmaa says that cooperation with business owners is functioning well.

“Most of the entrepreneurs are very satisfied with the cooperation”, she says. “They have calculated that they get benefits from increased customer and cash flow, in addition to what we pay them.”

In recent years the outsourcing programme has led to a situation where in June 2008 Itella administered directly only around one in six post offices, with roughly 1,000 of Finland’s 1,200 post office service points in private businesses such as shops or kiosks.

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Itella Logistics expands its consumer parcel operations in Estonia

Itella Logistics uses SmartPost’s parcel automates as drop off points for consumers in Estonia

Itella has signed an agreement with SmartPost to use their automated parcel terminal network of 20 machines in Estonia as drop-off points to consumer parcels. Itella will be responsible for parcel handling, sorting and transportation to machines by using its own couriers. Co-operation starts in November with selected distance selling customers.

– Our automated parcel terminals provide convenient and fast way for consumers to pick-up their parcels. SmartPost has established its delivery network and we are ready to provide this service for Itella, says Indrek Oolup, Managing Director of SmartPost Ou.

– For Itella as service logistics provider it is important that we are able to provide alternatives for consumers. We achieved excellent results from our automated parcel terminal trial held in Tallinn and Helsinki. Based on that we believe that this new way of delivering parcels is interesting for our corporate clients and improves the service for Estonian consumers, says Aku Happo, Itella Express and Parcel Business Director.

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