Tag: Worldwide

FedEx figures mark end to boom times

Posted by | Sep 24, 2007 | |

FedEx’s recently released First Quarter results seem to indicate a clear end to the boom that has driven the parcel carrier forward over the past five years, as the US slips into period of low or no growth.

At the corporate level FedEx reported revenue up year-on-year 8pct at USD 9.20billion. Both operating and net income were up 4pct but operating margin was down 0.4pct at 8.8pct. FedEx’s management attribute this fall in profits to a tougher market for Less than Trailer Load in the US.

The Express business is comparatively buoyant driven by its international business which grew in volume terms by 6pct. US traffic however shrank by 1pct. FedEx Express as a whole had a revenue of USD 5.89 billion in the quarter up 4pct year-on-year, whilst margins and income both strengthened.

The ‘FedEx Ground’ business had a strong quarter fuelled by the continued success of its ‘Home Delivery’ and commercial services. Here revenue jumped 14pct with operating income increasing 19pct to USD 190million. Margins have hit 11.7pct. The only issue in this otherwise strong business is changes to its supplier network in California, which FedEx insist will not affect costs.

The big problem area of this quarter was the LTL business in FedEx Freight. Revenue was strong over the quarter reporting an increase of 22pct, but operating income crashed downwards by 30pct, with operating margin almost halving at 8.5pct down from 14.8pct. This appears to indicate that FedEx is having to cut prices to gain volume in its expanded network, suggesting that it is not just the economy that is responsible for lower profits

The problem of Kinko’s has also not been solved with the senior management indicating that they are determined to hold onto the loss making print shop company despite no sign of a turn around in its fortunes.

Read More

TNT nears end of global SAP roll-out

Posted by | Sep 24, 2007 | |

TNT Express is nearing the end of global roll-out of enterprise resource planning software from SAP.

It said this week it had rolled out SAP systems to 56 countries out of 62, and the program was delivering savings in purchasing and inventory, as well as strengthened reporting processes to ensure compliance with legislation including Sarbanes-Oxley.

It has also improved management of IT by establishing a global customer competence centre, according to Dennis Beard, director of infrastructure services at TNT.

A key to its success is that the company has strong quality and project management principles deeply embedded into the whole organization and these were rigorously enforced during the roll-out, Beard said. The project has also benefited from a high degree of executive buy-in. TNT chief executive Marie Christine Lombard has attended twice-monthly project review meetings over the life of the program.

Svan Lembke, who is in charge of SAP’s Quality Program in Europe and the Middle East, said that to date the roll-out by TNT was exemplary.

“TNT Express have embraced key principles of quality early in their implementation and involved their partner Atos and SAP to achieve a successful global roll-out.”

Read More

Post Office may join payment clearance system in India

Posted by | Sep 22, 2007 | |

One of the oldest deposit taking institutions — the Post Office — may well get to provide seamless fund transfer, with an RBI panel recommending that the Post Office be linked to the clearing system and the National Electronic Fund Transfer (NEFT). The panel has also sought to keep smaller banks with a net worth of less than Rs 50 crore out of the NEFT.

Section 49A of Banking Regulation Act empowers the Centre to notify institutions to accept deposits withdrawable by cheques. Post Office Savings Bank falls under such specific notification issued by the Centre. “Such notified institutions are providing chequeable accounts to their constituents.

In order to facilitate better customer service, such notified institutions should also have access to the clearing system,” said the report on ‘Working Group on Preparing Guidelines for Access to Payment Systems’. At present, banks have an advantage over the Post Office Savings Bank since they can provide fund-transfer facilities to customers. Those with core-banking solutions can extend online fund-transfer facility to their customers through internet banking.

At present, the Post Office is in the process of computerising and networking head post offices. By the end of the year, the Postal Department expects to network 650 of head post offices. Once the various locations are networked and the Post Office itself is plugged into the NEFT system, the POSB (Post Office Savings Bank) would be in a position to offer fund-transfer services similar to banks.

Read More

EU states strike partial mail liberalization deal

Posted by | Sep 19, 2007 | |

European Union states have reached a partial deal on opening the bloc’s 88 billion Euro (USD 123 billion) postal markets to full competition, but starting dates are still unresolved, an EU diplomat said on Wednesday.
The European Commission has proposed stripping away the remaining barriers to competition from 2009 but the measure needs approval from EU member states and the European Parliament.
Envoys from member states agreed to push ahead with the basic text of the measure, a diplomatic source said.
EU ministers meet in Luxembourg on Oct. 1.
Currently the market for letters weighing up to 50 grams is shielded from competition. Mail above that weight is fully liberalized.
States are divided over when full liberalization should start.
“The main issues to be resolved by ministers are the final date and possible list of countries that can delay implementation, as well as the reciprocity clause,” the source said.
Under parliament’s first reading compromise, the 12 mostly eastern European states that joined the EU in 2004 and after will have until 2013 to implement the reform.
Parliament also introduced new criteria for delayed implementation, such as for countries that have many islands, a reference to Greece. Luxembourg was also effectively given a delayed start by parliament.
Parliament has inserted a reciprocity clause in the measure so that a country that is fully liberalized does not have to authorize competitors from states that have yet to open up their own sectors.
Some EU states are opposed to these compromises agreed in parliament.
The sector employs 5.2 million people, who deliver 135 billion items a year to the European Union’s 490 million consumers.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

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