Tag: Worldwide

TNT Logistics' position in pecking order may soon be challenged

Posted by | Aug 24, 2006 | |

TNT has announced that it is to sell its logistics division to affiliates of Apollo Management, a US private equity firm, for E1.48 billion. While the sale of the business unit has been on the cards since 2005, Datamonitor’s Chris Morgan questions whether the new TNT Logistics will be able to take part in further market consolidation which is no doubt inevitable in the short term.

In December 2005, Dutch postal group TNT made known its intention to divest its logistics division in order to focus on its core competency of express parcels and mail delivery. TNT Logistics is the second-largest player in the global contract logistics market, although Datamonitor research shows the company had a market share of just under 2% in 2005 – indicative of how highly fragmented the industry is.

Even after the recent wave of merger and acquisition activity, market leader DHL-Exel held a market share of just over 5% last year, and the current market environment makes further consolidation inevitable. While the global logistics market holds a great deal of potential for major players, without the backing of its parent company, one must question whether TNT will have the financial clout to take part in any significant merger activity in the short term.

Selling the unit to a private equity firm rather than a logistics company had been on the cards for some time. Deutsche Post World Net has only recently acquired Exel in a multi-billion euro deal, and this will take some time to fully integrate. Meanwhile, UPS’ European logistics strategy is unclear, as the purchase price would use up vital funds that could be better directed towards expansion in the less mature, higher-growth markets in the Asia-Pacific region.

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Four Soft tool for DHL Global Mail

Posted by | Aug 24, 2006 | |

DHL Global Mail, a business unit of Deutsche Post World Net, has selected Four Soft’s 4S iLogistics product suite that would serve as a platform to manage their day-to-day logistical operations.

iLogistics has been designed as a fully multinational system, having all the features required to be capable of being implemented in global enterprises with multi-company, multi-currency and multi-language features.

The 4S iLogistics suite will help DHL Global Mail to streamline its operational systems by helping their business to define data to be analysed for advanced planning and improved enterprise visibility for efficient operations and enhanced analysis.

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Mailers Council Asks USPS for a Standard Rate Implementation Period

Posted by | Aug 24, 2006 | |

The Mailers Council, the largest coalition of mailers and mailing associations, has released a new research paper outlining the benefits of a standard implementation period of at least 90 days, longer in more complicated cases, when the Postal Service raises postage rates.

Currently there is no law or postal regulation mandating the minimum number of days between completion of a rate case and the date when the Postal Service implements new rates. Historically, implementation periods have ranged from 30 to 60 days. As the paper explains in detail, having sufficient time to plan for new rates is important to both mailers and postal employees, especially in cases like the current one that include substantial rules changes so they can update their systems.

Inadequate implementation time exposes mailers and the Postal Service to additional costs from accumulated overtime. It raises the risk of errors and system flaws that add millions of dollars in administrative costs for both mailers and the Postal Service. Exceptions may help avoid postage costs, but most mailers believe the system is inherently unfair, and it generates hundreds of hours of administrative work. The cost to the Postal Service in terms of its customer relations is needlessly high.

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DHL Global Mail to implement Four Soft´s iLogistics Product suite

Posted by | Aug 23, 2006 | |

Four Soft Ltd has announced that DHL Global Mail, a business unit of Deutsche Post World Net, has selected the Companys iLogistics product suite as the platform to manage their day to day logistical operations. iLogistics has been designed as a fully multinational system, having all the features required to be capable of being implemented in global organizations on a worldwide basis. This includes multi-Company, multi-currency and multi-language features.

The Companys iLogistics will help DHL Global Mail to streamline its operational systems by helping their business to define data to be analyzed for advanced planning and improved enterprise visibility for efficient operations and enhanced analysis.

“With Our best-in-class high performance solution having advanced ERP capabilities designed to perform the complex Supply chain operations we look forward to work with DHL on their worldwide rollout and helping them to achieve maximum return on their investment.” said Dr. Kalyan Gangavarapu, COO, of the Company.

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TNT N.V. expects to reach an agreement shortly about the sale of the Logistics division.

Posted by | Aug 23, 2006 | |

TNT N.V. provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs over 128,000 people. In the first half of 2006, TNT reported euro 5.3 billion in revenues and 671 million EBIT from continuing operations. TNT N.V. is publicly listed on the stock exchanges of Amsterdam and New York. TNT recognizes its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environmental Programme to fight hunger and pollution in the world.

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