Tag: UK

Industry backs rethink of zonal pricing

Celebrations over the rejection of Royal Mail’s zonal pricing plan were shortlived, with most people agreeing the scheme will be implemented eventually. But at least now it will not be rushed in

When Royal Mail first mooted the introduction of zonal pricing (PM July 14 2006) it was intended as a pre-emptive strike to prevent competitors from cherry-picking major business clients, by bringing in a pricing structure that offered major discounts for city deliveries.

Designed to charge more for delivering to outlying areas, it was part of the postal operator’s strategy to introduce cost-reflective pricing, affecting all mail sent through Mailsort 3 – the most popular service for direct mail – and magazine-delivery scheme Presstream.

But the benefits evaporated almost overnight when Royal Mail revealed that deliveries inside the M25 were also to incur a surcharge.

One of the main voices of discontent was the Periodical Publishers Association (PPA), which condemned Royal Mail’s zonal pricing plans, as “benefiting no one but Royal Mail and being hugely damaging to the magazine industry”.

Only last week the PPA was claiming that pressure from its members had led to Royal Mail revising its application.

Seven days on and the scheme is doomed, following Postcomm’s decision to force Royal Mail back to the drawing board once more.

A PPA spokeswoman comments: “It is in everyone’s interest that we have a healthy Royal Mail but the impact of these proposals would have led to a reduction in all mailing volumes, including those of magazines. We don’t dispute price-reflectivity but it is not easy to implement without competition in the market.”

Meanwhile WWAV Rapp Collins Group chief executive Marco Scognamiglio says: “While we believe that Royal Mail should have greater flexibility when dealing with business customers – to compete effectively with rival operat- ors and with other media channels – this zonal pricing proposal was clearly not the way forward.

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DHL in drug distribution deal

DHL Global Forwarding is to distribute albendazole, a drug used in the prevention of Lymphatic Filariasis also known as elephantiasis, for GlaxoSmithKline on a not for profit agreement basis.

As part of a commitment to eliminate LF, GSK has opened a GBP 1.5m manufacturing facility in Cape Town, South Africa to produce albendazole. GSK is partnering with DHL Global Forwarding to manage global distribution. The operation is based at its Cape Town distribution centre.

GSK has donated more than 600 million treatments free of charge to stop the transmission of this disease.

Over the past three and a half years, DHL Global Forwarding has worked with GSK to distribute albendazole to 36 countries.

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IMRG launches go green, go online campaign

IMRG has launched a Go Green, Go Online campaign to raise awareness of the environmental advantage of shopping online. It has also awarded its first green awards – the OnLine Green Awards (OLGAs).

James Roper, CEO of IMRG says: “A growing body of research from around the world is proving that internet shopping can be green, and that its overall effect is green. The GO GREEN, GO ONLINE campaign aims to serve as a lightning-conductor for interest in this subject, to focus research, and raise awareness of the huge potential that the internet-enabled marketplace presents for further increasing efficiency and reducing waste.”

IMRG’s press release says: Shopping online can be very green by being efficient, easing congestion on the road network, and reducing emissions and fossil fuel consumption. Internet companies hold the secret to drastically reducing carbon footprints because they can monitor and measure everything they do and thus make real headway.

An important focus is the ‘Green Comparison’ of CO2 emissions between internet shopping and other retail distribution models: IMRG is a partner in the Government funded Green Logistics research consortium, whereby six leading universities will be conducting retail distribution research over the next four years.

The OLGAs were awarded as follows:

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Royal Mail to sponsor Green Awards direct category

Royal Mail is to sponsor the direct mail category of this year’s Green Awards, as part of its endorsement of environmentally friendly methods of marketing.

The Green Awards, which take place on October 26 in London, were held for the first time last year to recognize businesses that make an outstanding contribution to sustainable development, recycling, resource efficiency and waste awareness in the marketing industry.
Royal Mail said its endorsement of the Green Awards’ Best Green Direct Mail category was part of its commitment to environmentally friendly practices, which include its carbon neutral door to door scheme, corporate social responsibility, and responsible mail programmes.
Other award categories include Best Green Press; Best Green Integrated Campaign; Best Green Packaging Design, sponsored by Asda; Best Green PR Campaign; and Best Green Outdoor, which is being sponsored by Clear Channel.
Matthew Neilson, head of media solutions at Royal Mail, said: “Royal Mail firmly believes that a high quality direct mail campaign can still exist, and the key to this is careful targeting and sensitive use of materials, to avoid pollution and excess waste.”

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