Tag: TNT

TNT Logistics UK To Manage Home Delivery Services for Tesco Direct

TNT Logistics UK, a unit of Dutch mail and express deliveries group TNT NV, will manage the home delivery services of the recently launched Tesco Direct business of UK retailer Tesco Plc., TNT said on September 5, 2006.

Financial aspects of the deal were not disclosed.

Under the five-year contract between the two companies, TNT will run Tesco’s logistics operations from the new National Distribution Centre in Crewe, in the UK. TNT will also use six home delivery platforms between Glasgow and Exeter.

A total of 200 employees of TNT will be responsible for Tesco Direct home delivery.

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TNT Post moves closer to 'final mile' delivery service

TNT Post’s development of a final mile delivery service is one step nearer after Postcomm’s decision last month to open a consultation into mail-redirection services for the competitive postal market.

The aim of Postcomm’s consultation is to pre-empt any problems if Royal Mail’s rivals introduce mail redirection. Issues will include data protection, and the logistics and financial implications of sharing data.

TNT confirmed developments had been made regarding the launch of a final mile service in Scotland and Manchester, with local offices opening there.

“We welcome Postcomm’s consultation and it is important for us, as new operators, that we can operate on a level playing field,” said David Higham, divisional MD for TNT Post’s access business. “Our customers expect us to be able to redirect their customer’s mail, particularly if we offer end-to-end services.”

While Royal Mail welcomed the consultation, a spokesman said its main priority was the protection of customer data.

According to Bill Wallis, marketing manager at Business Post, parent company of UK Mail, the consultation will have little affect on businesses not planning to offer an end-to-end service. “We have no plans at this stage, and none foreseeable in future, to become an end-to-end operator. For the time being, Royal Mail’s redirection service works for us.”

Postcomm estimates that 1.3 million homes and firms use Royal Mail redirection.

The consultation closes on 31 October.

Last month, Postcomm announced a strategy review on whether Royal Mail meets the needs of customers, which is due to close on 6 November.

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Pressure on government over postal cuts

Deputy Prime Minister John Prescott is facing calls to look again at controversial plans to cut subsidies to the post office network.

A cross party coalition of Norfolk county councillors from all four political groups is today set to lobby central government on the issue amid fears about the survival prospects of the rural network if the so-called Social Network Subsidy is cut.

Councillors believe that a string of decisions including withdrawing the Post Office Account card, TV savings stamps coupled with closures and the possible increase in business postage charges in rural areas raise “serious uncertainties” about the future of the service and its funding.

Ironically, it comes as the county council switches its postal deliveries from Royal Mail to TNT in a deal which will save the authority GBP 200,000 a year.

The deal was secured during an online auction and could pave the way for similar saving by other councils.

The county council sends around four million letters a year and its corporate procurement unit will be working closely with TNT to ensure a smooth transition over the next couple of months as the contract gets up and running.

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TNT delivers on promises: Dave Kulik, managing director of TNT's logistics group, shares his strategy following the sale of the company to Apollo Management.(TNT Network Logistics)

Things couldn’t look more different between the two largest express/mail companies in terms of their attitude towards logistics. Where Deutsche Post acquired Exel to build a stronger logistics capability within its network of services, TNT NV of Amsterdam has announced the sale of its logistics division to the private equity firm Apollo Management LP for 1.48 billion (euro) (USD1.89 billion).
In making the announcement TNT’s Peter Bakker pointed out the company had now delivered on two of the three promises it made in December 2005 when it announced it would exit logistics.

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TNT acquires Speedage to build leading position in domestic express market in India

TNT N.V. today announced the acquisition of ARC India Limited which operates under the trade name Speedage Express Cargo Services, one of the leading road express companies in India.

This acquisition is a key component of TNT’s Focus on Networks strategy as announced in December 2005. Acquiring Speedage is in line with TNT’s strategic objective to become the leading provider of express deliveries in the emerging markets in Asia, specifically India. Combining Speedage’s strong domestic road network with TNT’s international and domestic networks will form a powerful platform for further expansion in the fast growing Indian express market.

TNT will gain a top 3 position in the fast growing Indian domestic road express market with the acquisition of Speedage. The combined revenues for TNT in India after this acquisition will be approaching Euro 100 million in 2007.

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