Tag: Networks

Malaysian express firm targets strong growth under new management

Malaysian parcels company GD Express (GDEX), one of the largest independent players in the country’s expanding express market, is targeting strong growth in 2008 under a new CEO.

With effect from January 1, Teong Teck Lean resigned as chief executive officer, paving the way for his former deputy chief executive Leong Chee Tong to assume the position. This was part of the company’s succession plan, GDEX said in a statement. Teong will remain deputy chairman and oversee group strategy.

GDEX will expand parcel handling capacity at its head office substantially later this year with the implementation of a new integrated hub management system (IHMS) that will take daily capacity to 60,000 items from 25,000 at present, the locally-based newspaper The Edge reported. The company will also add 30 more vehicles.

Leong was cited as saying that GDEX aims to broaden its services into logistics as companies started to outsource more operations.

Outgoing CEO Teong noted that competition was intensifying due to price competition, rising costs and higher customer expectations. GDEX did not exclude acquisitions in order to grow its business as the industry consolidated, he added.

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PostNet becomes Canada Post authorized business centre

Canada Post and PostNet announce their channel partnership to provide better service to the Canadian small business market. Effective January 21, 2008 authorized business centers will be established in PostNet stores offering a complete selection of Canada Post’s shipping services.

“Resources that were previously available only to large corporations are now available to small businesses through their local PostNet,” said Rob Anderson, President of PostNet Canada. “This relationship enables PostNet to offer its complete selection of printing services, complemented by Canada Post’s shipping services.”

In a CAD 5.6 billion (USD 5.5 billion) market for shipping and courier services, increased through the rise of online shopping, PostNet provides a complete printing and shipping service to the small- and medium-sized business owner. PostNet’s end-to-end services include: in-house graphic design, digital printing, copying, packaging, and courier service, and with the addition of the Canada Post relationship now has vast mailing and shipping methods at its disposal. PostNet Canada plans to expand to more than 300 franchises across the country.

“Canada Post’s selection of PostNet to create this relationship signifies the confidence Canada Post has in PostNet’s small business value proposition. It confirms Canada Post’s commitment to work together with PostNet, leveraging our strengths, for the purpose of better serving our mutual and new small business customers,” said Louis O’Brien, Senior Vice-President, Canada Post Parcels. “Canada Post believes the result will be significant new revenue growth for both companies, a stronger presence in the small business market and most importantly, better served Canadian small business customers.”

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TNT posties set to explode monopoly (UK)

TNT postmen will soon take on the Royal Mail on the streets of Scotland, the boss of the private postal operator has hinted.

Nick Wells, Chief Executive of TNT Post, told Scotland on Sunday that the company was gearing up to launch trials of its first “end-to-end” service, where items are picked up, sorted and delivered by TNT staff without any involvement from the Royal Mail.

He gave his clearest indication yet that some of the locations, which the company has so far refused to confirm, are likely to be in Scotland.

Although a number of private operators have entered the UK postal market since it was opened up to full competition in February 2006, Royal Mail continues to dominate what is referred to in the trade as the “final mile” – the actual delivery of letters and parcels to individual addresses by postmen.

Since its launch in Britain in 2003, Dutch company TNT Post has seized a 9% share of the market, yet it still has to rely on Royal Mail for the final leg of deliveries, effectively handing business back to its competitor.

Wells said: “Last year we handled over 1.8 billion items, but we give all of that back to Royal Mail. Royal Mail still do the end-to-end. We’re Royal Mail’s biggest client.”

It is understood that TNT Post is planning to launch its own end-to-end service early this year in order to reduce the amount of business it hands back to its rival.

Although Wells refused to disclose locations and timings of the end-to-end pilots for competitive reasons, he said TNT Post has been building up a sizeable business in Coatbridge, Glasgow, over the past 18 months.

However, Wells said the company had no plans to support the struggling Post Office network in Scotland, which will see up to 30 branches closed or downgraded this year.

Postcomm, the postal services regulator, recently urged private companies such as TNT Post, DHL and UPS to strike deals with the Post Office network over undelivered mail.

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Consultation Starts On Changes To Post Office Network – Post Office Ltd announces plans for Newport and Gwent Valleys

Post Office Ltd opened a six-week local public consultation on its Area Plan for the Newport and Gwent Valleys area. In line with the criteria and factors set by the UK Government in its Response Document (DTI The Post Office Network, Government response to public consultation May 2007, the Area Plan proposes future provision of Post Office services through a network of 126 Post Office® branches across the Newport and Gwent Valleys area, including establishing three new innovative Outreach service points, but to close 25 existing branches. (See full list below).

Under the proposals, more than 99.6 pct of the area’s population will either see no change, or will remain within one mile (by road distance) of an alternative branch.

Post Office Ltd is now seeking views on the proposed future service provision in the area, in particular views on access to Post Office services, the accessibility of alternative branches to those proposed for closure. Consultation is due to end on February 25, 2008.

The UK Government has already undertaken a 12-week national consultation before reaching a decision to reduce the UK-wide network of Post Office branches by up to 2,500 from its current level of over 14,000, while continuing to provide funding (subject to EU state-aid clearance) to support a more sustainable network in the future. The proposals now published support the national accessibility criteria introduced by the UK Government.

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DHL Express expands Swedish consumer parcel network

DHL Express Sweden has expanded its recently-created network of 1,100 Servicepoints for consumer parcel services through an agreement with Scandinavian retail group Reitan Servicehandel. The expanded service is a key part of DHL Express Nordic’s strategy for 2008.

Under the deal, Swedish consumers and SMEs will be able to drop off or pick up their parcels at DHL Servicepoints within 7-Eleven stores and Pressbyran newspaper kiosks and shops located across the country, DHL Express Sweden said in a statement.

Reitan Servicehandel operates 72 7-Eleven shops in Sweden in Stockholm, Gothenburg, Helsingborg and Malmo, while there are 318 Pressbyran outlets across the country attracting some 1.4 million customer visits a week, according to the group’s website.

DHL Express already has a network of 1,100 Servicepoints in Sweden operated as shop-in-shop services under contracts with a wide range of retailers. Private customers can hand in or collect their parcels at the Servicepoints.

Consumers sending parcels can book the shipment with DHL online and receive a shipment number to attach to the parcel. Payment is made directly to the retailer. Customers receiving parcels are informed by SMS or e-mail that their item is ready for collection.

The expanded service is a key part of DHL Express Nordic’s strategy for 2008 to strengthen its leading position in the region, said Martin Södergård, managing director of DHL Express Nordic.

The key aims were to intensify customer dialogue and make DHL Express more attractive as a potential partner by investing in service and improving access to products. “For me the Nordic region is a very exciting region because we have the chance to offer our customers a comprehensive product portfolio,” he commented. DHL Express Nordic, with 6,000 employees, covers Denmark, Norway, Sweden, Finland and the three Baltic states.

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