APC looks for mini-hubs
APC looks for mini-hubs
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Royal Mail picks print manager shortlist for GBP 400m contract
Royal Mail Group has decided on shortlists for the various lots in the massive GBP 400m print management tender it launched at the end of December.
Almost 40 companies have been informed that they are on the shortlists of bidders invited to submit detailed tenders for four lots worth up to GBP 100m per year.
Bidders are now working on submitting full price tenders for the work either individually or as part of consortia before a deadline understood to be around 25 April. The tender process is expected to be completed in the summer.
Royal Mail declined to reveal the names of companies involved, although it said that more than 100 companies submitted expressions of interest in the initial stages.
Top print management firms who are understood to have bid for major parts of the contract include Communisis, Adare, HH Associates, Xerox, RR Donnelley Global Document Services (formerly Astron), AccessPlus and TPF Group. It is so far uncertain which of these have been invited to submit detailed tenders.
One notable exception from the bidders is Williams Lea, which is understood not to be involved in the process, due to the potential conflict of interest between its owner, German postal operator Deutsche Post World Net, and Royal Mail.
Ray Huntzinger, Royal Mail’s director of strategy programmes, is leading the tender process and set up a unit of 25 staff, under the name Royal Mail Document Management Services.
Xerox is seen by some as a front-runner after it won a GBP 400m contract for the Department of Work and Pensions in February.
Read MoreParcelforce workers pave the way forward at nature area
Work colleagues from Leeds and Wakefield spent their free time paving the way for people to enjoy some of the region’s natural attractions.
Eight workers from Parcelforce Worldwide’s depot in Stourton re-laid a path with limestone chippings at the Engine Fields Nature Area at Yeadon, while 19 helpers from the company’s customer service centre in Wakefield created a garden and seating area at the Phyllis Harvey Horse and Donkey Trust in Weetwood, Leeds.
Their efforts were part of Parcelforce Worldwide’s National Community Team Challenge Day’s activities where more than 250 people from the firm gave up their Saturday to help people in their communities.
Steve Clavering, countryside ranger, said: “Engine Fields is a wonderful wildlife site and we’re very grateful to Parcelforce Worldwide for helping to improve the footpaths so that the local community will be able to enjoy its tranquil atmosphere.” The aim of the community day was to encourage colleagues to work more closely as teams and as most are shift-workers it gave them a rare chance to get together.
Parcelforce Worldwide gave each team GBP500 for costs and preparation.
Read MoreWhere winners are fast rather than large
Few industries are more exposed to the forces of globalisation than logistics. As supply chains are stretched across oceans and continents, manufacturers and retailers are increasingly looking for logistics partners with international capabilities.
By far the biggest deal was Deutsche Post’s GBP3.7bn takeover of Exel, the UK-based logistics group, in 2005. Others included the USD1.1bn merger of Deutsche Bahn, the German rail operator, and Bax Global, the logistics arm of US-based Brink’s. Another was the EUR490m acquisition of Paris-based ACR Logistics by Kuhne & Nagel of Switzerland.
John Allan, chief executive of DHL Logistics says consolidation is likely to continue. He points out that the world’s top 10 freight forwarding companies command less than 40 per cent of the global market.
Deutsche Post’s takeover of Exel accelerated its transformation from a German mail and express delivery group into a global freight and logistics giant.
Mr Allan says DHL is already reaping the rewards of the increased scale and capabilities provided by Exel.
DHL is not the only express delivery group expanding into other supply chain services. UPS has invested more than USD2bn in about 30 acquisitions over recent years – most of them involving freight and logistics businesses.
FedEx, UPS’s biggest US rival, has a large road freight operation and is keen to expand its ocean freight-forwarding capabilities.
The most decisive rejection of diversification has come from TNT of the Netherlands, which sold its logistics and freight forwarding operations last year to refocus on mail and express delivery.
Read MorePostcomm guidance on Royal Mail participation in competitive tendering
Postcomm has today published guidance on Royal Mail’s participation in competitive tendering, following a consultation on the subject last year.
Competitive tendering – which was non-existent in the former mail monopoly market – has become accepted practice now the market is fully competitive.
Postcomm does not wish to preclude Royal Mail from winning or retaining business awarded by competitive tenders, but it is important that the market has confidence that it is not acting anti-competitively or taking unfair advantage of its size and dominance of the market to gain business.
Royal Mail’s licence requires it to:
* publish its prices after it has won a contract
* refrain from anti-competitive practices
* offer prices which are within the limits of its 2006/10 price control.
The guidance sets out the detail of these arrangements so that other operators in the market can ensure Royal Mail is complying with its licence.
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