Tag: Royal Mail

Direct marketers angry at loss of Postwatch voice

Posted by | Dec 7, 2006 | |

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.

Read More

Key steps to DM/postal services: Time to deliver

Posted by | Dec 7, 2006 | |

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.”

Read More

GLS buys market leader ABX Belgium

Posted by | Dec 7, 2006 | |

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.”

Read More

Postal strike called off

Posted by | Dec 4, 2006 | |

A 24-hour strike by hundreds of Royal Mail sorting staff in Exeter has been called off just hours before the walk-out.

Around 400 members of the Communication Workers Union were due to stop work at the mail centre in Exeter Devon at 2pm on Monday.

Royal Mail was bringing in 450 managers to help maintain the service.

But a Royal Mail spokesman said they had been told the dispute was now off.

The stoppage was due to take place over a dispute over working practices at Exeter.

CWU spokesman Phil Chadwick said although the action had been called off, it could be on again next Monday if agreement was not reached at talks with the Royal Mail.

But he said good positive progress had been made in talks with the Royal Mail.

Read More

British CEP market consolidates further

Posted by | Dec 1, 2006 | |

The fragmented British courier, express and parcels market looks set for a new wave of consolidation following this week’s GBP 210 million acquisition of independent parcels carrier Target Express by Rentokil Initial, parent holding of leading player City Link. The deal makes City Link into a top competitor to DHL, TNT and UPS in the domestic next-day parcels market.

Growth in Europe’s second-largest express and parcels market has slowed over the last year, especially in the domestic sector. The market is forecast to grow only moderately at about 3% over the next few years. At the same time, the traditionally fierce price-based competition in Britain and higher operating costs, especially fuel costs, have combined to put pressure on profit margins. These factors have hit smaller, domestically-focused companies in particular, and opened up new opportunities for mergers and acquisitions.

There have already been several important transactions in the UK in recent years. UPS improved its domestic market position with the acquisition of Lynx Express last year, while Amtrak Express Parcels broadened its portfolio through the takeover of Nightspeed. DHL had earlier jumped to become market leader with the acquisition of the Securicor Omega Express business, while GeoPost had acquired Parceline and Interlink Express.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

How ready do you feel for the de minimis changes coming in July?

Thank you for voting
You have already voted on this poll!
Please select an option!




View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest