Tag: TNT

DHL initiative makes it No. 1 courier in China

Since the 1990s, China’s international courier market has gradually been taken over by the four international giants — DHL, TNT, UPS and FedEx, which have been growing by more than 20 percent to 40 percent per annum. EMS, the courier service by China Post, has been declining by 4 percent year-on-year.

The domestic courier market has a lot of potential. According to World Trade Organization (WTO) requirements, the Chinese courier market had to be fully opened up to competition by the end of 2005. But in most regions, especially central cities such as Beijing and Shanghai, private courier companies command 80 percent of market share.

Today, if one calls the customer-service departments of FedEx, UPS, DHL and TNT to courier documents from Guangzhou or Shanghai to Beijing, UPS would respond that it only serves clients with whom it has contracts; FedEx, DHL and TNT would take the business, but the quote would be more than 100 RMB from FedEx and DHL; TNT emphasizes medium-to-high end clients and would actively persuade the customer to sign a long-term contract.

Furthermore, international giants hope to acquire domestic courier companies to quickly fill the gaps of their domestic coverage. But there are not many candidates for acquisition. Large private courier companies are mostly alliances of small franchisees. The headquarters have limited managerial control over franchisees, which fight for their regional turfs. If international giants acquire these franchisees, they have to inject a lot of capital and energy to remedy this situation.

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IPC leads environmental sustainability initiative

The International Post Corporation (IPC) announced today at its bi-annual Board meeting in New York City, its plans to develop a three-tier program to address environmental sustainability among its member posts. The program will focus on developing common sector-wide definitions and measurement systems; conducting stakeholder research and communicating sector-wide advances in environmental sustainability throughout the postal industry.

“Climate change is no longer an issue of debate,” said Jean-Paul Bailly, chairman and CEO of Groupe La Poste in France and chairman of the IPC Board. “Two prominent areas for concern to postal operators and our industry stakeholders are the operation of extensive road and air transport networks and issues related to direct mail, a strategically critical business for posts.”

Mr. Bailly added, “Because of the sector-wide urgency of the issue, the IPC Board will devote its annual conference this May to develop a common environmental sustainability initiative and map the way forward for the postal industry.” The conference, Leadership through Sustainable Development: Postal Industry Challenges and Opportunities will take place on 29 and 30 May, 2008 in La Chapelle en Serval, France. CEOs representing 24 member postal organizations and several selected CEOs from both inside and outside the industry are expected to attend.

Last month, IPC conducted a members’ forum on the subject of environmental sustainability, where it was decided that IPC should take a leadership role in providing the platforms for members to come together to define the way forward for the sector.

IPC has been a leader in providing postal delivery measurement systems for nearly 20 years, we are the natural partner for the postal industry and it makes sense that we are the organization to develop a common system for environmental measurement and research among the posts,” said Herbert-Michael Zapf, CEO and president, IPC.

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Door drops under threat from environmental issues

The Direct Marketing Association has warned that the door drop industry could face strict measures in response to Government and public concerns over the medium’s impact on the environment.

Speaking at a doordrop media conference organised by postal operator TNT Post, Alex Walsh, head of postal affairs and industry development at the DMA, said environmental issues were posing a significant threat to the direct marketing industry.

He added that while legislation would be too complex to set up for the doordrop industry, a door sticker initiative, in use in the Netherlands since the 1990s, could soon be a reality in the UK. The door sticker, which is also in use in France, Germany, Norway and Belgium, allows consumers to opt out of unaddressed mail completely including free newspapers, or to opt out of undressed mail but opt-in to free newspapers only.

Walsh said that serial offenders who continue to deliver unaddressed mail to those who have opted out by using the door sticker, face fines. ‘No junk mail’ stickers exist in the UK, but there is no legal penalty for those who ignore them.

A spokesperson from TNT Post in Holland said that 13 per cent of households in Holland have chosen to opt-out by using the door sticker.

Walsh also hinted at other possible measures that could be imposed on the industry, such as an eco-tax, which exists in France. Suppliers of unsolicited mail are given the choice of supporting local authority recycling schemes or paying for advertising that encourages the public to recycle.

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TNT Germany gets best brand award

TNT Express Germany has won the “best CEP services brand” award in the 2007 “Image Ranking” of the German logistics magazine “LOGISTIK Inside”.

TNT Express improved from fourth position in 2006 to the current number one, and its brand awareness increased from 97 pct to 99 pct within the last 12 months. A total of 14 CEP brands were evaluated in the ranking, TNT Express Germany said in a statement.

The ranking was based on telephone interviews with 300 logistics decision-makers in industry and trade all over Germany carried out by media research company TNS Emnid on behalf of LOGISTIK Inside.

The ranking provides detailed information about image, brand awareness, customer satisfaction, recommendations and trade size of 90 logistics brands. The survey has been carried out every year since 2002 and constitutes a competitive benchmark in the German transport and logistics sector.

The award was presented to Thomas Kraus, CEO of TNT Express Germany and TNT Innight Group, at last week’s German logistics congress in Berlin.

At the congress, Kraus also delivered a speech about value creation through “ stakeholder-focused brand management”, and highlighted how the company measures its brand management. Another highlight of the event was a presentation of the TNT depot at Berlin’s Tegel airport for congress participants.

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Suffering SMEs turn to alternate mail services

Small businesses have been hit hard by the postal strike and are now seeking out private alternatives to Royal Mail, a British Chambers of Commerce survey has revealed.

The snap poll, conducted over the weekend, found that 88pc reported the strikes had “a significant impact” on their business, with cash flow and loss of sales particular problems.

Of those affected, 55pc said they were now more likely to use private delivery companies.

The BCC said the figure reflected the anger felt by small businesses at the impact the postal strike.

The problem for small firms is that their options are limited by the fact that the Royal Mail’s biggest competitors, such as TNT, Business Post and DHL, are at the same time customers.

Only Royal Mail does the ‘final mile’ bit of deliveries meaning small firms, like the rest of the population, are in the words of one business owner, over a barrel.

Mr Frewin says the last 25 years has seen a consistent rise in the volume of mail. Over the last 18 months that figure has declined. “Is it a blip or a sign of long-term decline? Our concern is that what started with a one-day strike and now two-day strikes, will continue. The worry is that the postal industry will be brought to its knees.”

Talk is that TNT might be just the business to give Royal Mail a run for its money when it comes to ‘final mile’ delivery, but the discussion about another provider stepping in to compete isn’t new.

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