9th March
PALL-EX ANNOUNCES EXPANSION WITH NEW MEMBERS

The UK leader in palletised freight is celebrating its network expansion with two new members.

Pall-Ex today (Monday 8 March) announced Oxfordshire haulier DA Clayton Ltd and Suffolk's Karl King Transport Ltd will join its 90-strong member network spanning the length and breadth of the UK.

DA Clayton's established base location provides rapid direct access to the M40 corridor on the M1 and M4 and will enhance Pall-Ex's award-winning service as well as echoing its commitment to excellence in customer service.

Karl King Transport operates in excess of 100,000 sq ft for warehousing at its Suffolk base from which it has evolved as a market leader in the de-vanning storage and delivery of customer goods entering the UK through the Haven ports of Felixstowe, Ipswich and Harwich over the past two decades.

Terry Reynolds at DA Clayton, said: "As a proud new member of Pall-Ex, we will have instant access to the No.1 overnight palletised freight network, providing an unrivalled nationwide express service which will inevitably enhance our service by working in partnership."

Karl King, Managing Director at Karl King Transport Ltd, added: "Pall-Ex is a fast-moving, forward-thinking industry leader which promotes best practice by operating to the highest standards, and we are looking forward to benefiting from its expertise while continuing to maintain our excellent customer service record."

Hilary Devey, managing director of Pall-Ex, said: "Joining the Pall-Ex network aims not only to bring real tangible benefits for new members such as DA Clayton and Karl King Transport across the UK, but it also allows us to remain at the forefront of the industry as one of the most innovative palletised logistics companies in the UK, continuing our expansion in order to combine best practice with an unrivalled service."

Source: Pall-Ex

9th March
APC Overnight has the Mobile POS supply chain in hand for Torex

Wolverhampton, UK, 09 March 2010 – Retail solutions specialist Torex has implemented a nationwide next day courier service from APC Overnight for its mobile computing support division. The Torex Mobile POS Support department supplies Motorola, Intermec and other Mobile POS terminals to a range of customers throughout the UK. Since using the parcel network, Torex has improved its customer service levels and has a clear view of shipping costs. This also enables the company to compile accurately priced new business proposals based on guaranteed next day deliveries.

“We chose APC Overnight because we needed a more flexible, guaranteed next day delivery service that would better suit the needs of our customers. We are a demanding customer because our clients need our products to run various functions with the mobile computers in their stores. Late delivery of new equipment could cause major problems for them. Also, in the event of a mobile computer failure, or when faced with routine repairs, we have to be sure that the exchange equipment is delivered to them when they expect it,” says Helen Slaven, Vice President of Retail, Torex.

Since using the network Torex reports that Torex Mobile POS Support department can now concentrate on the business as they no longer have to waste time chasing late deliveries and lost items.

“We have every confidence in our courier service. APC Nexday Overnight has ensured that when we say we will deliver product, we deliver it. The team has made urgent deliveries in person directly to customers from the Bolton depot. The drivers will also wait patiently for customers who need to return equipment to us, or they will return later on when it is more convenient for the customer. This is exceptional and it upholds our service delivery promises,” says Helen Slaven.

Torex Mobile POS Support utilises the NetDespatch online booking and tracking system, which was installed by the local depot. However, the company has not had to use the system to track shipments as everything runs smoothly and accurately to plan.

“The NetDespatch system speeds up our administration, and allows us to see our shipments as they move through the network. We have not suffered losses or late deliveries to date and don’t expect to, but we have the reassurance that we can quickly locate a parcel should we need to, allowing us to take corrective action,” says Helen Slaven.

Torex is the leading global provider of innovative, integrated technology solutions to the extended retail marketplace. The organisation has 20 years' experience of working in partnership with some of the world's most forward-thinking retail, hospitality, petroleum and convenience brands, providing them with cutting edge integrated software, hardware and services.

Source: APC Overnight

8th March
TNT goes day-definite nationwide in China

Operator's road network covering 26 cities now complete

TNT Hoau, TNT’s road distribution arm in China, has completed its nationwide day-definite road distribution network.

During the past two months, TNT Hoau extended the coverage to Chengdu, Chongquing, Zhengzhou, Xian, Yantai and Xiamen, meaning the the company can now offer guaranteed day-definite ground delivery to 26 of the biggest cities in the country, using 246 day-definite linehauls.

The network covers 800 depots throughout China, with a large concentration in the major economic regions, including the Yangtze River Delta, the Pearl River Delta, and Bohai Bay.

It claimed its day-definite service was a “cost-efficient, yet fast and reliable” alternative to domestic air freight, with door-to-door transport and online track and trace.

For example, a shipment from Guangzhou to Shanghai will take less than two days to be delivered.

In addition to extending coverage, TNT Hoau has completed the purchase of 400 EU 3-compliant trucks and launched a nationwide customer hotline dedicated to the day-definite service.

TNT Hoau introduced its day-definite road service in February last year, with the goal of setting a new quality benchmark in the Chinese road transportation market, and to complement its national less-than-truckload (LTL) operations..

The service has been used by small and medium busineses, as well as Fortune 500 companies, especially from the hi-tech, electronics, automotive and textile sectors.

Overall, TNT Hoau manages a road distribution network of 1,500 depots and 56 domestic hubs, covering more than 600 Chinese cities.

Source: IFW

5th March
Wincanton pushes for safety

Wincanton, along with a committee of industry partners, has produced an official set of industry guidelines on height-associated safety.

The Building Products Delivery Working Group (BPDWG), co-ordinated by Wincanton, created the guidelines following an initiative that examined ways of eliminating or reducing the risks of working at height associated with the loading and unloading of building products such as bricks and blocks.

Members of the BPDWG looked at the equipment and methods available to haulage companies, along with their capacity and limitations so that drivers remain protected during the loading and unloading of vehicles.

The guidelines provide a demonstration of what equipment or methods can best suit a company’s needs based on an assessment of risks to health and safety.

Ben Young, chairman of the BPDWG and regional director for Wincanton, said: “The correct handling of equipment and the safe use of vehicles are paramount to many companies and the members of the BPDWG and we wanted to produce guidelines so that any haulage company can work in a safer environment.”

Geoff Cox, head of the manufacturing sector for the Health and Safety Executive (HSE) added: “The HSE welcomes the publication of this practical and helpful guidance from the BPDWG. The HSE is always keen to see industry taking ownership of its problems, and this is an excellent example of existing users pooling their experience of the products currently available for the benefit of others.”

Source: Logistics Manager

5th March
Black Sheep calls on Norbert

Yorkshire-based brewery Black Sheep has appointed Norbert Dentressangle to handle its national warehousing and distribution.

Norbert Dentressangle is storing around 140,000 bottles of beer at its distribution centre in Buxton.

The 450,000 sq ft bonded facility comprises three levels, two of which are underground, and stores products including beers, wines and spirits at a relatively constant temperature.

Orders are picked and trunked into Norbert Dentressangle’s national shared-user network for onward distribution into retailers’ distribution networks.

Norbert Dentressangle took up the role following the collapse of Black Sheep’s previous service provider, transferring product from a warehouse in Barnsley and starting operations at Buxton within two weeks, maintaining an uninterrupted service to Black Sheep’s customers.

Black Sheep was formed by Paul Theakston following the acquisition of his family’s business, Theakston’s, by Scottish & Newcastle. In addition to the supply of cask ales to pubs, Black Sheep produces a range of five bottled beers sold in off-licence and major supermarkets throughout the UK, including Riggwelter and Golden Sheep ale, as well as the original Black Sheep.

Source: Logistics Manager

4th March
Royal Mail licenses eBay data to bring unique insight to uk advertisers

Royal Mail today launched a new initiative with information from the "eBay market data" programme to bring a new, unique insight to UK advertisers, enabling them to improve their targeting to the postcode areas most likely to buy their products.

The Royal Mail Insight Tool provides access to over 140 million UK transactions through the online auction site, giving advertisers and planners unparalleled insight into the purchasing behaviours of postcode areas across the UK.

The data - which is anonymous and aggregated to a postcode level - provides purchase history, type of products bought and levels of spend, and is refreshed monthly to give continually updated access to the latest information on purchases around the UK.

The launch of the tool builds on Royal Mail’s recent innovative direct mail solutions and underlines its determination to be a true media owner by selling unique, bespoke audience insight as well as providing a communications channel to reach and engage with consumers and enhance their brand through the post.

Antony Miller, Head of Media Development at Royal Mail, said: "This new planning and insight tool marks significant progress for Royal Mail’s evolution into a true media owner, providing unparalleled access and insight to specific audience demographics.

"By providing access to eBay market data, the Royal Mail Insight Tool gives advertisers and planners unprecedented levels of nationwide insight into purchase patterns, levels of spend and purchase type down to postcode level. This kind of insight is invaluable to brands, helping them to boost their campaign return on investment by improving planning and reducing wastage through better targeting."

He added: "Other advertising channels like TV can help brands to reach specific target audiences by advising on the best times and platforms to utilise to reach them. Through the Royal Mail Insight Tool, Royal Mail is entering the same space, able to directly identify and link advertisers with the audiences they want to engage, right down to postcode level."

The Royal Mail Insight Tool can provide breakdowns of spending habits regarding new or used purchases, peak purchasing periods, frequency and recency of purchase, age, gender, and the product brands purchased. Categories provided through the service include baby; car parts and vehicles; clothes, shoes and accessories; computing; consumer electronics; health and beauty; home and garden; mobile and home phones; sporting goods and video games, as well as over 200 subcategories.

It provides insight and audiences based on chosen variables of areas around the UK where certain product types are frequently being purchased, items sold and their average price.

It can also be used to isolate trends on seasonality, identify high and low spending regions over time, provide gender and age demographics via brand preference, as well as new and used product preference. The tool is also linked to geodemographic profile insight provided by Callcredit Information Group’s CAMEO classification, to add further depth to postcode-level profiling.

Based on this insight, campaign planners can identify other similar areas in the UK and deliver comparable audience demographics. This information can then be overlaid with Royal Mail data, a brand’s own customer database or a cold list, supplying access to a highly targeted base of prospects.

The Royal Mail Insight Tool was developed with Advanced Ecommerce Research Systems Inc.

President and CEO Fred Speckeen said: "Exhaustive analysis of hundreds of thousands of daily transactions provides definitive answers that support more effective and profitable DM targeting. As the global expert in eBay data analysis and analytics, Advanced is proud to work with Royal Mail to, together, introduce what is nothing less than an exciting, next-generation innovation in market research."

Source: E-CourierNews

3rd March
Palletline Announces 2009 Roll of Honour

Celebrating our Annual Awards in fine style this year, Palletline Plc hosted a glittering Gala Dinner on Saturday, 27th February, attended by more than 300 people from across the Palletline network nationwide.

Designed to reward the organisation's top performing depots, the Palletline Awards were first introduced in 1993. Based on significant achievements made by individual Member Companies each year, the Awards are hotly contested and coveted by Palletline depots as a real measure of achievement and recognition from their peers.

In line with Palletline's focus on quality, the Awards line-up features a commendation for Delivery Depot of the Year, rewarding compliance with network requirements, accuracy and sustained service levels. To ensure depots of all sizes have an opportunity to shine, the Award is divided into three categories reflecting the volumes handled by each Member Company, ranging from Level 1 to Level 3.

Top performers in the Level 1 category were Market Harborough-based Sanderson Transport, with Newport's Alan R Jones & Sons Ltd taking the Level 2 award, reflecting the company's unshakeable position at the top of the weekly KPI tables. Southampton-based Lambert Brothers Haulage Ltd scooped the prize for the Level 3 (higher volume) award.

Reflecting Palletline's proactive approach this year to business development support, the Business Development Award went to Nottingham's Clearway Distribution Ltd, recognising the company's year on year increase in volumes as well as investment in sales resources.

For a full list of the winners and runners-up for 2009, click here.

Source: E-CourierNews

3rd March
Nightfreight gives award winning Mark a contract to deliver

After becoming disabled with a rare form of muscular dystrophy, Mark Livsey began to despair of ever working again.

Out of work for 18 months, he would apply for jobs and get as far as the interview stage, before they started asking questions about his disability. Then he wouldn't hear from them.

So Mark decided to set up his own business. From past experience, working in sales for a parcel delivery business, Mark knew that most big freight companies often sub contract work to smaller local companies.

Mark drew up a business plan and approached Nightfreight. We were so impressed, we gave Mark a contract.
He then approached the Prince''s Trust who offered him a low-cost loan which allowed Mark to get started by hiring a van and recruiting a driver.

That was in 2007. Three years later, Mark''s company ''Parcel Partners'' has a fleet of 20 vans and a string of well-known customers.

The Daily Mirror picked up Marks story. If you would like to read the full story about award winning Mark, please click on the link on the right of the page

Source: E-CourierNews

2nd March
DHL Express sale complete

UK domestic parcel business now in hands of HDN

DHL has completed the sale of its UK domestic parcel business, DHL Express, to Home Delivery Network (HDN).

HDN will take on around 4,700 people, five hubs and 71 service centres across the UK by the end of the first quarter.

DHL Express said it will focus on its core activities of time-definite international and same-day express services.

In a wider preferred-supplier relationship, HDN will continue to use the DHL name for the service in the short term.

Source: IFW

2nd March
Stobart sells £61m of assets and seals Tesco deal

Stobart Group is selling part of its Inland Ports asset to Legal & General Assurance (Pensions Management), for £61 million, rising to £62.5m on the satisfaction of further conditions.

A key part of the sale is a 528,000 sq ft, sustainable distribution centre, developed by Stobart, which was recently introduced as the new northern hub for Tesco’s fresh operations.

The deal goes hand-in-hand with the news that Stobart has been confirmed as Tesco’s transport provider for the North, and will operate from the same hub.

Andrew Tinkler, chief executive of Stobart Group, said: “This asset disposal illustrates a fundamental strategy of our group which is to invest in assets in order to develop existing and new customer relationships and then realise the value of the asset, at a profit, to reinvest elsewhere in the business.

“At Widnes this has enabled us to gain a long-term distribution contract for Tesco and to increase the utilisation and support development of the next phases of the inland port facility.

“The proceeds from this asset sale will allow the group flexibility in securing the optimum debt structure for future asset developments, including the expansion programme at London Southend Airport.”

The disposal value will generate an initial return on investment of some 20 per cent, with the potential for further returns.

The £61m will be paid in cash; of which the majority will be used to repay existing borrowings with RBS and Barclays, and will reduce the core debt in the company balance sheet to some £45m.

This will allow the group flexibility in securing the optimum debt structure for future asset developments, including the commenced capital expenditure programme at London Southend Airport.

Stobart also expects to increase the throughput of the Inland Port terminal (currently only 50 per cent utilised) when the site is fully operational and when the existing Valencia fresh produce rail service is extended to Widnes. This next phase of the Stobart Rail service will enable Tesco to transport its fresh produce from southern Spain to northern England by rail.

In addition to the disposal of the fresh produce distribution centre, the Stobart Ports division has entered into a 25-year sale and leaseback arrangement on the Inland Port terminal.

Following this, the group expects to develop further phases on the remaining 95 acres of the Inland Port in response to customer demand.

Source: Logistics Manager

2nd March
K+N defiant despite drop in EBITDA

Kuehne + Nagel has posted a 13.2 per cent drop in EBITDA to £545.8 million (CHF 885 million) for the year ended 31st December 2009 compared to the previous year. The figure includes £21.6 million (CHF 35 million) related to competition investigations.

However, Tim Scharwath, chief executive of North West Europe, said he does see an improvement, albeit at a low level, in the economic situation for 2010

K+N plans to enhance its product offering by continuing to develop its value added services during the coming year, but it has stopped its home delivery service after losing its main customer, which accounted for 85 per cent of the business.

Despite a difficult year, the company plans to stick to its strategy of market share expansion combined with strict cost management in 2010. It has estimated an increase in market share of five per cent in Contract Logistics, ten per cent for Road and Rail Logistics and Seafreight, and 12 per cent for Airfreight, all of which are double compared to predictions for the market as a whole.

It plans to grow its Contract Logistics, Seafreight and Airfreight sectors organically, while Road and Rail Logistics will be through a combination of acquisitions and organic growth.

Within the Contract Logistics division in 2009, K+N achieved “stable” results despite demand fluctuations, regional variations in warehouse capacity use and increased price pressure. EBITDA margin remained at the previous year’s level of 4.6 per cent, while operational result fell by 6.9 per cent.

The operational result for Road and Rail Logistics improved by 126 per cent, partly thanks to the acquisition of The French Alloin Group, while the EBITDA margin increased from 0.8 to 2.1 per cent.

Looking forward, Scharwath said the group will continue to focus on integrated logistics solutions. He said: “The more we can integrate different parts of the business the better it is for the customer, particularly in difficult times". K+N will also continue to invest in sales with the introduction of a sales management system.

The Seafreight business saw a 4.6 per cent decline in volumes, which the group said was “remarkably moderate” compared to the 12 per cent overall market decline in seafreight volumes. K+N bucked the trend by boosting its value-creating product portfolio, customer-focused IT systems and increased sales activities.

Similarly in the Airfreight sector, K+N saw a 9.2 per cent volume decline, almost three per cent less than the market average. This was put down to an increase in sales activities and promotion of its specialised services for niche segments.

Regionally, Europe accounted for the largest contribution at £357.1 million (CHF 579 million), down 1.3 per cent on 2008. The Asia Pacific region accounted for £86.3 million (CHF 140 million), the Americas £79 million (CHF 128 million) and the Middle East, Central Asia and Africa £23.4 million (CHF 38 million).

By aligning cost structures with transport volumes, increasing productivity and optimising processes, K+N increased its EBITDA margin from 4.7 to 5.1 per cent for the year.

Additionally, the "culture of continuous improvement" outlined in the company's Six Sigma approach, which began in the Contract Logistics division, will be continued in the Road and Rail Logistics, Airfreight and Seafreight sectors in 2010

Source: Logistics Manager

1st March
Fujifilm snaps up K+N deal in Poland

Fujifilm, the Japanese manufacturer of cameras and photographic processing, has outsourced its contract logistics to Kuehne + Nagel in Poland in order to consolidate the inventories of its three warehouses in Poland, the Czech Republic and Slovakia.

Under the agreement, the warehousing will be merged in K+N’s 10,000 sq m facility in Chorzow, which is equipped to support inbound, put-away, pick and pack, outbound and inventory management.

K+N will also be responsible for warehouse management, customs brokerage and value-added services such as sticking, labelling and plate cutting.

A dedicated 300 sq m cold room area has also been built for high value good and hazardous substances.

Additionally, K+N has implemented interfaces to its global warehouse management system in order to communicate with Fujifilm’s It systems.

Source: Logistics Manager

1st March
Parcelforce invests in eco Mercedes fleet

Parcelforce Worldwide has invested in a fleet 1,106 Mercedes-Benz Sprinter vans fitted with ECO-start technology, designed to save fuel and reduce emissions.

The Sprinters have replaced a large proportion of the Parcelforce Worldwide van fleet and will be based at depots across the UK.

The ECO-Start system, which automatically cuts the engine whenever the vehicle is stationary for two seconds and starts it again as the driver depresses the clutch, was a major factor in Parcelforce Worldwide’s choice.

Michael Anderson, Parcelforce Worldwide’s head of innovation, said: “The Sprinter ECO-Start supports Parcelforce Worldwide’s environmental policy. We’re looking for these vehicles to deliver something in the region of a five per cent fuel saving.”

The Sprinters were also chosen for driver comfort, cornering, handling and driving performance.

Source: Parcelforce

1st March
Royal Mail quality of service

Royal Mail’s First Class quality of service performance fell below target in the autumn of 2009-2010, a period marked by repeated national industrial action.

The third quarter report on quality of service showed that nearly eight in 10 First Class stamped letters (78.8%) arrived the next working day after posting, below the 93.0% target, while 93.3% of Second Class letters arrived on time within three working days after posting, below the 98.5% per cent target.

Business bulk mail services were also below target during the autumn quarter. However, targets for European international delivery mail were exceeded by 7.5 percentage points.

Mark Higson, Managing Director of Royal Mail Letters, said: "We are clearly concerned that customer service was disrupted by industrial action, but strike action ended with the interim agreement reached with the union in early November and we are now completely focused on restoring quality of service to the record ’above target’ level we achieved in the spring of 2009, prior to the strikes."

Source: Royal Mail

1st March
City Link Raises Almost £17,000 For Make-a-Wish

Kind hearted Employees at City Link raised almost £17,000 for children with life-threatening illnesses.

The cash was raised through ticket sales, a raffle and auction at the Company’s annual ball which has greatly contributed to the City Link’s annual target of £40,000 for the charity.

The money was presented to Make-A-Wish Foundation® Chief Executive Neil Jones (left) and Patron Keith Chegwin by Stuart Godman, Managing Director of City Link(see picture attached).

Stuart Godman said: “We’ve had an excellent year of fundraising for Make-A-Wish. We had a lot of support not just from Colleagues throughout the company but also from our Customers and suppliers who felt as passionate and dedicated to the cause as we did.

“We cannot thank them enough for their generosity as we could not have raised this fantastic amount l without their help.”

Speaking at the Company’s management conference at its Camberley Head Office Neil Jones thanked City Link for their fundraising efforts.

He said: “We are very grateful to City Link and its suppliers and Customers for all the support we have received. Every year we have about 1,000 children or young people who come to us in the hope of having their special wish granted. And whether it’s spending the day as a pop star, meeting their favourite celebrity or going on holiday to Disneyland we do our very best to make their dreams come true and give them the experience of a lifetime.

“Every year we aim to raise £5 million so we can continue granting these wishes. The money raised by City Link is of tremendous help to us and on behalf of the wonderful children who come to us for help we would like to say a massive thank you to the Company.”

Keith Chegwin added: “I have been involved with Make-A-Wish for 21 years now and they are the most unbelievable charity. We would like to say a huge thank you to everyone at City Link as it is tough for charities right now and it is getting even harder.

“The money raised through the City Link Ball has will help make a real difference to some of the UK’s most deserving youngsters.”

Source: City Link

1st March
CITYSPRINT ACQUIRES COVENTRY BASED GOLDSTAR COURIERS

The UK’s leading SameDay courier company further strengthens its position in the Midlands with fourth acquisition in the region –

CitySprint, the UK’s largest privately owned SameDay Courier network, has acquired Coventry based Goldstar Couriers for an undisclosed sum. The deal further strengthens CitySprint’s position in the Midlands following a series of three strategic acquisitions in the region in the last sixteen months. CitySprint already has an established presence with major ServiceCentres in Warwick, Birmingham, Telford and Nottingham

Goldstar Couriers, a family run business, was established in Coventry over 25 years ago and is one of the oldest established courier companies based there. It boasts an impressive number of local customers across all sectors. From Monday 1st March 2010 Goldstar will trade as CitySprint, operating from CitySprint’s MidlandsCentre in Warwick. Caroline Davey, current owner of Goldstar Couriers, will remain at CitySprint and several Goldstar Couriers will also be joining the CitySprint team to ensure continuity of service for customers.

Caroline explains “My family and I have worked hard over the last 25 years to build Goldstar Couriers into an established and reliable local courier company and we have a loyal customer base, some of whom we have been providing services to for over 20 years. In the current economic climate it has been a struggle for small businesses like us, joining forces with CitySprint enables us to offer our customers an enhanced service and access to leading edge technologies and a national network of over 1500 couriers – something that we simply could not offer on our own. Our customers have always been our main concern and we have chosen to join forces with CitySprint as we are 100% confident that they will look after our customers and continue to provide them with an excellent service as we have done for the last 25 years”.

Goldstar customers will now benefit from the opportunity for improved collection and delivery times made possible by CitySprint’s unique national network of 30+ ServiceCentres. They will also have increased visibility over their bookings via CitySprint’s sector leading OnLine services. CitySprint operates the largest GPS enabled SameDay fleet in Europe which allows its customers to benefit from real-time information at the touch of a button. Via the CitySprint website www.citysprint.co.uk customers can not only obtain quotes and book jobs but they can also track the dedicated courier assigned to their job from the point of collection through to delivery. Unlike many other systems offered by competitors CitySprint's solution offers complete transparency by providing a real-time, live, map location of the courier undertaking each job, enabling customers to track the journey from beginning to end. In addition customers automatically receive a time stamped audit trail by email as well as the recipient's signature which can then be forwarded on as a hyperlink or PDF.

Commenting on the deal, Ben Haynes, Managing Director for the Regions, said: “The Midlands is an area of strategic commercial importance and over the past 16 months we have been able to significantly enhance our service coverage here which is a vital element in ensuring we are able to professionally support our national and local customers alike. Goldstar Couriers has a longstanding and justified reputation for service excellence and I am therefore delighted that they are joining forces with ourselves. We have further acquisitions planned for 2010 to further establish ourselves as the market leader for SameDay Courier services in the UK”

Source: Citysprint

26th February
City Link Employees Raise £1,450 To Help Make Dreams Come True For Sick Children

Nick Long and Nat McDowell before the skydiveEmployees at the Norwich and Ipswich Depots of the UK’s premium express delivery Company have raised £1,450 for children with life-threatening illnesses after braving the skies in a 10,000ft skydive.

The money raised by the team at City Link, on Broadlands Business Park, will go to the Make A Wish Foundation® which every year arranges to fulfil the wishes of hundreds of children fighting life-threatening illnesses. It is City Link’s adopted charity for which the Company has pledged to raise £40,000 over 12 months.

Nick Long, General Manager of the Norwich Depot, teamed up with Nat McDowell, Operations Manager at the Company’s Ipswich Depot, to complete the skydive in aid of Make-A-Wish, raising £1,450 with the help of family, friends and colleagues.

Nick said: “We decided to do something for Make-A-Wish following a City Link conference where we were all asked for our help in raising funds.

“We decided we really wanted to do something and that’s when we came up with the idea of the skydive.

“We’re delighted with how much we raised and would like to say a massive thank you to everyone who supported us and helped us raise a fantastic sum for such a worthwhile cause.”

Source: E-CourierNews

26th February
Pall-Ex Appoints Two New Graduates

Matthieu Charpy, Beatriz Cano and Karolina StepniakLeading pallet distribution network Pall-Ex has appointed two new graduate trainees

Beatriz Cano and Matthieu Charpy have joined the projects department of the UK’s number one network for distribution of palletised freight

Beatriz, 27, moved to the UK from Mexico in September 2008 to study for a Master’s Degree in International Management at the University of Strathclyde in Glasgow.

She previously spent four years with Banorte Financial Group in Monterrey, Mexico, where she held the position of project manager.

Beatriz will be initially charged with achieving the Investors in People standard which will bring Pall-Ex considerable commercial benefits including financial performance improvement and increment of profitability

Matthieu, 25, has a Master’s Degree in Strategic Management and Innovation from the Toulouse University Graduate School of Management.

He previously worked as an assistant product manager at Philips Healthcare in Paris and will support the Pall-Ex projects team in delivering the company’s European expansion strategy.

The projects team is headed by Anand Assi who joined Pall-Ex in 2001 and is currently studying for his DBA doctorate.

He said: “I am very happy to welcome both Beatriz and Matthieu to Pall-Ex.

Each of them bring considerable educational and commercial experience and will support the continued expansion and development of the Pall-Ex network throughout the UK and Europe.”

Source: E-CourierNews

25th February
Superbrand success for Stobart

Eddie Stobart has beaten DHL and UPS to come 32nd in the 2010 list of Superbrands. Only parcel giant FedEx Express, at 24th, came higher among transport and logistics companies.

It is the fifth year that Stobart has made the list which is compiled by the Superbrands organisation.

The company is well known for its Members Club and Eddie Stobart spotters have demonstrated a strong allegiance to the company’s brand. Eddie Stobart is celebrating its ruby (40th) anniversary this year and expects the ranks of the Members Club are expected to swell .

In addition, the company has embraced social networking platforms such as Facebook and Twitter to consolidate and grow its brand and to keep the public, its clients and shareholders informed and up-to-date with its activities.

It has also achieved brand exposure through its sponsorship of sporting activities including world rallying, football, rugby and polo.

Thousands of brands initially considered for the Superbrands listing but only the top 500 are deemed to be Business Superbrands. Stephen Cheliotis, chairman of the expert council and chief executive of The Centre for Brand Analysis, said: “Congratulations to Eddie Stobart on achieving Business Superbrands status. In this economic climate a powerful brand is more important than ever. It can be a key driver of new and repeat business and have a positive influence on stakeholders. Being highly rated in this survey is an indicator of their business’s ability to grow through a brand that stakeholders trust, want and believe in.”

Stobart Group’s chief executive Andrew Tinkler said: “It’s fantastic for Eddie Stobart to achieve Business Superbrand status for the fifth year. We are extremely proud of our brand which has been built on solid and traditional core business beliefs. This accolade is testament to our hard-working employees and our loyal fans in the Stobart Members Club and we are continuing with our plans to push the brand even further with Stobart Group’s multimodal transport and carbon reduction solutions pioneering the logistics industry.”

Source: Logistics Manager

25th February
Geodis Wilson names executive vice president

Geodis Wilson has appointed Phillippe Gilbert executive vice president.

Following a merger of the networks the division was previously co-run by Peter Nevhagen, who remains on the board and has taken up the role of chief operating officer.

Jean-Louis Demeulenaere, deputy chief executive of Geodis Group said: “During the recent phase following the merger of the networks, a co-headed management system was entirely legitimate. Now, in the context of strong future growth ambitions of Geodis Wilson and Geodis Group it is necessary to revert to a classical management structure.”

Source: Logistics Manager

24th February
Online shopping growth slips back in January

Online shopping growth slips back in JanuaryOnline retail sales rose by five per cent on a like-for-like January 2009 to January 2010, according to the IMRG Capgemini e-Retail Sales Index - the lowest annual growth rate in the history of the Index.

UK shoppers spending £4.3 billion online in the month. The figures reflect the fact that sales were strong in December 2009 resulting in weaker annual growth for January.

Monthly growth fell by 22 per cent from December 2009 to January 2010. This is in line with the usual seasonal trend of sales falling after the Christmas surge, but the decline is greater than in recent years.

Chris Webster, Vice president, retail consulting and technology at Capgemini, said: “While annual growth for e-retail was slow in January, we should factor in the fact that December was a very strong month for the industry. Last January, e-retailers’ sales were buoyed up by heavy discounting and promotions that were necessary to sell stock left over from poor Christmas trading resulting from the impact of the recent move into recession”.

And Tina Spooner, director of information at IMRG, said: “December 26th and 27th saw the highest sales for all of 2009. Less retailer discounting due to well planned stock levels and the increase in VAT equally appear to have had an impact on the online retail sector during January.”

Source: Logistics Manager

23rd February
Royal Mail to sell and leaseback sorting offices?

Royal Mail is attempting to raise funds by the ‘sale and leaseback’ of three sorting centres, according to media reports.

The Financial Times said that property agent King Sturge has been asked to sell three centres in Northampton, Manchester and Warrington.

The sales could raise £50m, with Royal Mail leasing them back for 20 years.

Source: Financial Times

23rd February
DHL wins £30m Petroplus contract

Bitumen supplier Petroplus has extended its relationship with DHL Supply Chain for five years in a deal worth £30m.

DHL will handle order management, customer services and movements of bitumen at elevated temperatures, to quarries and asphalt manufacturing plants throughout the UK.

The contract was awarded to DHL following a nine year relationship, formerly with BP Bitumen for seven years; then with Petroplus Bitumen since its acquisition of BP Bitumen two years ago.

DHL expects to cut fuel costs by £90,000 a year as well as improving sustainability. Initiatives include governing vehicles to 53mph (85kph) with gear and valve resetting to match top speed. There will also be driving and vehicle examination training as well as plans to maximise load size to enable fewer deliveries.

Peter Clement, UK logistics and supply chain manager for Petroplus, said: “DHL’s proposed combination of technical innovation and behavioural change is exactly what we were looking for from a partner.”

Source: Logistics Manager

23rd February
APC Overnight captures sashimi fish deliveries

UK-wide next day deliveries of fresh produce by APC Overnight are a key to the success of Cornish fish producer, Kernowsashimi. The specialist supplier of fresh locally caught fish, including sashimi-grade produce for Japanese restaurants, based on the Slow Food principles, works closely with the local APC Overnight depot to ensure that its produce gets to customers in pristine condition by 12 noon each day, regardless of their location.

APC Carn Logistics in Redruth plays an important part in Kernowsashimi’s rapid delivery supply chain. The depot provides the flexibility needed by Kernowsashimi to supply its customers with a range of fish, such as fresh hand-picked crab meat - including spider crab - red mullet, monkfish, pollack, sole, plaice and turbot.

“We have provisional order lists for each of our customers, but until we have actually landed the fish we don’t have a full view of our available stocks. To ensure that our produce is of the highest quality and freshness, we have to work quickly. As soon as we know the day’s catch, we contact our customers to confirm their orders and pack and despatch each consignment. These are collected by APC Carn Logistics and then fed into the APC Overnight network for morning delivery. Speedy delivery works extremely well for us and ensures freshness,” says Dylan Bean, co-owner, Kernowsashimi.

Kernowsashimi is family-owned and managed by the Bean family, which has been in the business for more than 35 years. The Kernowsashimi brand is five years old and APC Overnight has supplied its services to the company since its early beginnings.

“APC Overnight has been with us since the start of Kernowsashimi. The flexibility of its late collections is important to us, particularly if we are running late ourselves. We can even deliver the parcels ourselves to the local depot if we need to, which at times can be a big help,” says Dylan Bean.

Kernowsashimi is a member of Slow Food UK, a movement that campaigns for "good, clean and fair" food. Slow Food UK aims to protect and preserve the traditional foods of the United Kingdom, defend biodiversity and promote food education. It is a non-profit, member-supported organisation that was founded in 1989 to counteract fast food and fast life, the disappearance of local food traditions and people’s dwindling interest in the food they eat, where it comes from, how it tastes and how food choices affect the rest of the world.

Source: APC Overnight

22nd February
Bibby wins £50m First Milk contract

Farmers’ co-operative First Milk has signed a contract with Bibby Distribution worth £50 million to provide a farm collection service in west Wales, as well as retaining a similar contract in Scotland and north Cumbria.

The family-owned company has also secured a contract for the nationwide management of First Milk’s secondary distribution operation, which is scheduled to start in the summer.

Bibby Distribution will be responsible for collecting around 3.5 million litres of milk from farmers every day, delivering it directly to First Milk creameries and First Milk customers under the national secondary deal.

Using innovation and technological advances Bibby aims to reduce logistics costs.

On the national secondary operation Bibby will work alongside Lloyd Fraser, which will provide the farm collection service for First Milk in central England and east Wales.

Bibby Distribution divisional director Ian Firth said: “We have been working with First Milk since the mid-nineties and it has always been part of our strategy to grow our presence in this valued sector.”

Source: Logistics Manager

22nd February
City Link returns to profit in Q4

Rentokil Initial’s UK delivery arm City Link made a profit of £2.7m in Q4 2009.

Its financial results for 2009 showed that City Link’s operating loss of £5.6m overall is £37.9m better than the corresponding loss in 2008, despite a £28.8m reduction in reported revenue to £353.1m.

The business returned to profitability in Q4 2009 posting a profit of £2.7m - £6.7m better than the corresponding period in 2008. Revenue declined by 7.5%, impacted by difficult economic conditions, pricing competition and the full year effect of poor service in 2008. Q4 revenue was £15.8m (19%) higher than Q3 reflecting the seasonal sales uplift, and £3.7m (3.8%) ahead of Q4 2008, with particularly strong growth in the B2C business.

Volumes were down 3.1% on 2008 and revenue per consignment (RPC), weakened by 4.5% on the prior year.

City Link’s customer base has been broadly consistent throughout the year although many are trading at lower levels. The market has been extremely competitive during 2009 with severe price cutting by competitors in order to drive volumes through their networks, the company said.

City Link’s improved loss performance has been driven by cost savings of £54m in 2009. This was achieved through depot closures (97 to 84 by year end) and reductions in vehicles and headcount. Vehicle fleet numbers are a third lower than this time last year and total employee numbers have fallen below 5,500, a 16% reduction since December 2008. Plans to migrate from two Hubs to one will be implemented by the end of H1 2010.

Apart from periods of heavy snow in early February and early December 2009, customer service remained above the 98.5% target. The restoration of customer call handling at depots was completed early in the year and has been met with very positive customer feedback.

“The roll-out of new hand-held scanners and an upgraded route scheduling tool has underpinned improved productivity and customer service. The functionality of the new scanners has been expanded to allow delivery drivers to capture real-time customers’ door and parcel images. This latter feature will further aid electronic, real-time proof of delivery. Additional improvements include the recently re-launched City Link web site which has been very positively received by customers,” said City Link in a statement.

Source: City Link

22nd February
TNT hurt by 146m-euro writedown

TNT says it is focusing on 'cash and cost'
Europe's second-biggest mail delivery firm TNT has reported a 58% drop in profit after writing down the value of its regular mail arm.

Net profit fell to 25m euros (£22m) in the fourth quarter of 2009, from 59m euros a year earlier. Sales fell 0.5% to 2.95m euros.

TNT wrote 146m euros off the value of its mail operations after a review.

However, its express business performed better in the last three months of 2009 than in the same period in 2008.

Operating income in the division rose to 81m euros - more than four times more than the 18m euros it made a year ago.

Like larger rival Deutsche Post, TNT has struggled to cope with falling consumer demand, but has begun to focus on its restructuring efforts.

"The first weeks of 2010 make me somewhat optimistic on improving economic conditions," chief executive Peter Bakker said.

"However, we will continue to manage our group from cautious assumptions, leading to continued strong focus on cash and cost."

Source: BBC

19th February
TM Logistics seals £18m deal

TM Logistics has won an £18 million contract extension with consumer packaging company Rexam Beverage Can Europe.

The extension will add another five years to the existing ten-year partnership. The logistics provider will continue to manage all Rexam’s can and packaging storage movements nationwide, including just-in-time deliveries from their two UK sites in Milton Keynes and Wakefield.

TML has introduced a number of innovative tactics to improve its service to the company. This has included bringing in alternative fuels to help reduce environmental impact, and using a range of different in-cab technologies and vehicle tracking systems to improve customer visibility and efficiency.

Hugh Gallacher, European logistics director at Rexam, said: “TML align with our supply chain philosophy of cost, quality and supply and have consistently exceeded our expectations in terms of service, delivery and quality. They’re always looking to the future, trying to find innovative new ways of working that increase overall efficiency and boost our bottom line. That’s why we extended their contract.”

Source: Logistics Manager

18th February
Ceva wins furniture contract

Ceva Logistics has won a three-year contract to provide a home delivery service to Multiyork, a manufacturer and retailer of high-quality upholstery and cabinet furniture.

The operator will transfer manufactured items to a dedicated 3,000sq metre warehouse at Mendlesham, Suffolk, then contact customers to arrange delivery.

The projected 16,000 home deliveries a year will be carried out by a combination of Ceva’s shared-user home delivery network, Ceva Home, and six core delivery vehicles.

Ceva’s White Glove service includes placing the furniture in the customer’s room of choice, assembly if required, and the removal and recycling of packaging.

Source: IFW

18th February
Post Office to set up in council building

A post office in the Borders is to become the first in Scotland to be run from a local authority building, reports the BBC.

The Newtown St Boswells branch is to be relocated into Scottish Borders Council headquarters in the town.

The hosted service will operate from the main reception in the building three days a week.

Council leader David Parker said the move would benefit everyone in the area and he was sure it would be a “resounding success”.

The Post Office said it believed the move was the best way to safeguard the future of the service in the town.

Network development manager Sally Buchanan said it was a “vital asset” for the area.

“This is the first time in Scotland that we have established an outreach service within council headquarter premises, which has allowed us to reopen the service quickly,” she said.

“The council’s forward thinking decision should be congratulated and by working together we can continue to provide a service in Newtown St Boswells.”

Source: BBC

18th February
FedEx expands forwarding operation

FedEx Trade Networks, the ocean and air freight forwarder, has opened offices in London, Manchester and Brussels as part of a global expansion plan.

In total it is opening six new offices in its Europe, the Middle East and Africa region and its Latin America region.

In India it is opening offices in Mumbai and Chennai. In Latin America, the company has opened an office in Mexico City.

President and chief executive Fred Schardt said: “With our global expansion efforts, shippers can get the flexible and reliable freight forwarding solutions they need from a name they trust—FedEx.”

In 2008, FedEx Trade Networks opened freight forwarding operations in Hong Kong and Shanghai

This was followed last year by offices in Brazil, Singapore, Taiwan, The Netherlands, France, and the Chinese cities of Beijing, Guangzhou, Shenzhen, Qingdao, Tianjin, Xiamen, Dalian, and Ningbo.

Source: Fedex

17th February
Hermes has secured a new 8-year contract with Next in the biggest ever home delivery deal within the UK.

Under the new agreement, Hermes will continue to handle the delivery requirements for Next Directory which has turnover of over £800 million and over 2.2 million active customers. It will also launch a range of service enhancements to ensure the retailer remains at the forefront of the home delivery market.

Hermes secured the exclusive contract following a review of the UK home delivery market. Hermes and Next have been working in partnership since 1988 to provide a home delivery solution that not only offers value for money but continues to lead the way in their next-day delivery offer.

Consignments are collected on a daily basis from Next’s distribution centres and dispatched overnight to Hermes regional depot network. From there, orders will be distributed to more than 7,500 lifestyle couriers for delivery to households across the UK.

Carole Woodhead, CEO of Hermes in the UK said: "By extending this contract until 2018, Next have shown the high level of faith they have in Hermes and our ability to continue to provide them with a market leading service which provides excellent value for money. We will be working together with Next to launch a new suite of services over the next 12 months that will ensure that Next remains the standard bearer in the UK home delivery market - a position they have held since the launch of the Next Directory in 1988.

17th February
DX Group targets Royal Mail Special Delivery business customers with improved SecureDX service

DX Group, the only UK-wide postal company to have its own end-to-end operation that is not reliant on Royal Mail, has today unveiled changes to its next day service, SecureDX. Important items can be sent to any UK postcode address for up to 30 per cent less than Royal Mail Special Delivery (RMSD).
The service, which is a genuine alternative to RMSD, is accessible to business and public sector customers through DX’s network of 4,500 private mail rooms and sorting offices.

Launched in 2006, SecureDX offers the ability to fully ‘track and trace’ letters, packets and parcels, with a signature always being obtained on delivery. Improvements to the service include a guaranteed pre-1pm delivery and the introduction of a new weight allowance of up to 2kg.

Customers simply buy 20 or more labels and pouches and then either drop their item at a DX location or, where there are large volumes of mail, arrange for a collection from their premises.

DX Marketing Director, Andrew Raisbeck, said: “Over the past four years we’ve developed our sorting and delivery capabilities to the extent that we can now make SecureDX widely available and provide a guarantee that the item will arrive by 1pm the following day.

“SecureDX is just one example of where we are able to compete very efficiently and cost effectively in a sector where Royal Mail dominates.”

Source: E-CourierNews

17th February
City Link Wins £300K Contract

Raj Guhman, Commercial Office Manager, Fuel Parts UK Ltd, with Denise Wigley, General Manager of City Link’s Kidderminster, Depot.Employees at the Kidderminster Depot of City Link are celebrating after landing a contract worth £300,000 a year.

The Company will oversee all distribution needs for Bromsgrove based vehicle components supplier Fuel Parts UK Ltd.

Denise Wigley, General Manager of City Link’s Kidderminster Depot, said: “We are delighted to be working in partnership with Fuel Parts UK Ltd.

“The contract started off on a trial basis but after three days Fuel Parts UK said they were delighted with how things were going and took us on permanently.

“The company has an excellent reputation in the industry and we are delighted to be a part of it.”

The City Link Kidderminster Depot employs a team of 60 which takes care of 163 Customers across the Worcestershire area.

Source: E-CourierNews

17th February
OFT clears Home Delivery Network's purchase of DHL Express

The Office of Fair Trading has cleared Home Delivery Network's acquisition of DHL Express (UK)'s domestic business-to-business and business-to-consumer packet and parcel delivery business.

The purchase, via HDN's wholly-owned subsidiary, Parcelpoint Limited, was announced on January 6.

HDN, which has a major operation in Oldham, said the deal would create a group delivering more than 180 million parcels a year and with sales of more than £600m. The purchase price was not disclosed.

HDN, which was split off from sister company Shop Direct last year by owners Sir David and Sir Frederick Barclay, is based in Whiston on Merseyside but its national sortation centre employs 210 people at Shaw. It also has depots in Little Hulton, Bolton and Woolston near Warrington.

HDN said there would be job losses among the 4,700 staff employed by DHL Domestic, which has 71 service centres, a headquarters in Heathrow and five hubs in Manchester, Bristol, Leeds, Hatfield and the Midlands.

HDN's clients list includes Argos, Tesco, Sainsbury's and Marks & Spencer and it claims to deliver more than 300,000 small items every day, from fresh flowers and wine to clothing and small electrical items.

DHL Domestic, whose customers are mostly in the business-to-business sector, was bought by DHL five years ago from Securicor but has struggled to catch up with bigger players. The combined business will create a much tougher competitor for the Royal Mail's parcels business.

HDN has been owned by the Barclays since they acquired the Littlewoods and Greater Unversal Stores mail order businesses in the late 1990s.

Source: manchesternews@crain.com

16th February
MULTIMODAL 2010 SEMINARS FOCUS ON COLLABORATION BENEFITS

Optimising logistics and maximising efficiency through collaboration will be the theme of a series of seminars to be given by The Shippers' Voice at this year's Multimodal 2010. Taking place at Birmingham's NEC from 27th to 29th April, this is "The UK's only event dedicated to more efficient supply chain, logistics and freight management".

This series of interactive seminars will feature panel discussions and case study presentations from industry experts including shippers and suppliers. After each seminar, there will be one-to-one surgeries in the VIP area.

Day one of the seminar covers "Supply chain Intelligence", including discussions on the economic climate, Customs' issues including changes to trade under the new Mondernised Customs' Code, and regulatory changes and will feature Mike Garratt, MDS Transmodal, Ben Hackett, Hackett Associates; and Philip Damas, Director Drewry Shipping; as well as Nigel Kotani, Partner, LLC Law and Peter MacSwiney, Chairman, ASM.

The second day will examine various ways in which collaboration between operators in the supply chain can enhance the shipping process, which will include a presentation on the results of a recent survey on collaboration by John Manners-Bell, CEO, Transport Intelligence, and Dr Andrew Traill, The Shippers' Voice. Other topics will include Expanding Viable Multimodal Options Through Supply Chain Collaboration; Collaboration for Business Benefit and Sustainability - Practical Examples; and Techniques for Collaboration.

The seminar on the last day will be a 'Collaboration Shop Window', with presentations on Rail Interoperability: Collaboration in the Great Rail Freight Axis by M. Amorós, Secretary General, Ferrmed; and Staff Outsourcing - a Route to Competitive Advantage by Andy Howard, Director, The Logistics Network.

Dr Andrew Traill, director of The Shippers' Voice, who has organised the seminars, explained the rationale behind them: "Combining elements of one's supply chain with those of others can bring greater efficiencies, cost savings and more opportunities for using alternative logistics solutions. But how willing and able are shippers and supply chain managers to explore such opportunities? And what lessons have we already learnt? These seminars at Multimodal will explore the benefits of collaboration and what it can do for the shipping industry."

Source: Multimodal

15th February
Multimodal Once Again at NEC to Build on 2009 Success

Multimodal 2010 - the UK's leading Transport & Logistics fair - will take place in Hall 4 of Birmingham's National Exhibition Centre (NEC) on 27-29 April.

Last year's highly successful Multimodal 2009 attracted a host of innovative and enthusiastic logistics companies. Over 130 organisations exhibited at the show, nearly 50% up on the previous year, while visitor numbers increased by 66%. Despite the economic background, there was no lack of new ideas, progressive thinking and major infrastructure developments on show.

"The Shippers' Voice" seminars will once again run alongside the exhibition at Multimodal 2010, attracting speakers from a wide range of transport and logistics operating companies, academic institutions, and trade and professional bodies. There will also be a series of one-to-one surgeries on the theme 'how to be a better shipper'. Each will provide an hour-long, interactive 'snapshot' of current best practice.

Multimodal provides one of the best opportunities for industry professionals to network, exchange views, and to source new products and services. Exhibitors range from ports, shipping lines, rail operators, airlines, road hauliers, and logistics providers through to equipment suppliers, technical and IT support providers, academic institutions, trade associations and government bodies. Visitors are drawn from the ranks of major shippers, retailers and industry.

Returning and new exhibitors at Multimodal 2010 include leading names such as Associated British Ports, Dachser Ltd, DB Schenker, DSV, Ewals Cargo Care, PD Ports, The Malcolm Group, Transport Exchange Group, Woodland International Transport, Corporate Solutions Ltd and OOCL to name but a few.

Event Director Robert Jervis commented, "Multimodal is a great opportunity for shippers to go 'shopping' to find better ways of moving cargo and to reduce their supply chain costs. It's clear that the transport logistics industry is still brimming with innovative ideas and can find inventive ways of beating the recession. I was very please that Multimodal 2009 was instrumental in encouraging new thinking in logistics and transport, and I believe Multimodal 2010 will build on that success".

Source: Multimodal

12th February
Big brands sign up for supply chain competition

Global brands Heinz, Kimberly Clark and Kraft Foods along with third party logistics giant Wincanton, have become the latest companies to sign up to The Fresh Connection, the UK’s first supply chain competition.

Launched by leading supply chain consultancy, SCALA, The Fresh Connection is an internet-based, role-playing simulation built around a virtual fruit juice producer. The challenge is to save the ailing company from closure and develop it into a successful organisation.

The competition starts on 12 April, and will see teams of four work together from crisis management through various developing business changes, with the aim of being named ‘Supply Chain Champion.’

Joining Kimberly Clark, Heinz, Kraft and Wincanton is a diverse range of organisations including, Bernard Matthews and Cadbury.

Keith Newton, customer logistics director for Cadbury’s plc GB & Ireland, said: "The Fresh Connection provides us with an excellent opportunity to enable some of our talented people from across our supply chain teams to practice working and learning together in an integrated and collaborative way and in a competitive environment with other peer businesses."

The competition lasts seven weeks with each of the seven rounds lasting a couple of hours. Each team will manage and make tactical and strategic decisions on procurement, operations, sales and the supply chain. Each decision has an impact on the business and shows the importance of different disciplines working together to create an efficient supply chain.

The competition will culminate in a live final and a conference at the stunning location of Wroxall Abbey in July. The winning team will receive four ‘Platinum’ tickets to The British Grand Prix at Silverstone and players will have the opportunity to see how their team measures up against the rest of the competition with a detailed performance evaluation report once the competition is over.

John Perry, Managing Director of SCALA, said: “We are delighted to welcome Kraft, Heinz and Kimberly Clark to the competition. The race for the title of Supply Chain Champion of the Year is certainly hotting up, but companies do still have time to sign up if they visit the website.

“The Fresh Connection is not only competitive, but becomes a fantastic training and development tool, at a time when creating efficiencies in the supply chain could not be more relevant.”

Logistics Manager and Supply Chain Standard are sponsoring the competition along with AEB International, BiS Henderson and The Chartered Institute of Logistics and Transport.

Source: Logistics Manager

11th February
APC Overnight next day deliveries hit the right note for Electro Music

Electro Music is planning rapid expansion of its burgeoning online business thanks to new web technology linked to a nationwide parcel delivery network operated by APC Overnight. The Doncaster-based music store was established in 1982 and has been operating online shopping since 2000. With thousands of items shipped nationwide each year, the company has launched a new website with integrated booking and tracking to boost customer service.

The combination of reliable rapid parcel collection by APC Overnight’s local depot APC Direct Logistics from Electro Music’s warehouse for overnight delivery and innovative web-based technology from NetDespatch underpins Electro Music’s emphasis on “good old fashioned customer service,” says Mark Taylor, the company’s website manager.

“We are acutely aware that many people now like to browse and shop online at all hours of the day and night. Musicians especially can be night owls! Electro Music’s sales are increasingly moving in that direction. Having the option of next day delivery to anywhere in the UK through APC Overnight is a big plus for our business,” says Mark Taylor.

“We value the flexibility to add items right up to collection time if needs be. We also like the ability to pickup and collect in one go. For example, we can arrange for replacement items to be shipped and delivered with the unwanted goods being picked up in one move, which is great for customer relations,” he adds.

APC Direct Logistics provided the NetDespatch on-demand booking and tracking system to streamline Electro Music’s distribution and administration. Orders placed before 2pm each day are quickly processed with the web-based system building manifests and generating the parcel shipping labels automatically. The system also provides detailed end-to-end traceability of all parcels going through the system.

“We cannot stress enough how vital the NetDespatch system is to managing our deliveries. Our warehouse manager has the system open all day to get instant status reports of en-route deliveries or to check on completed orders. The system contains vital information, from precise booking and pickup times, the arrival of our parcels at distribution depots and proof-of-delivery at the final destination. We can even view the signature of the customer on receipt. It’s a very fast and easy system to use,” says Mark Taylor.

Electro Music - www.electromusic.co.uk – is run by musicians for musicians of all levels and experience. Whether it's drums, guitars, keyboards or PA systems the company stocks and supplies a wide range of leading brands including Fender, Gibson, ESP, Epiphone, Ernie Ball, Pearl, Tama, Gretsch, Yamaha, Roland, Boss, Fostex, Tascam, Zoom, Line 6, Vox, as well as a service and repair facility.

Source: APC

10th February
JD WILLIAMS CREATES CUSTOMER VALUE THROUGH NIGHTFREIGHT’S SUPPLIER DIRECT HOME DELIVERY OPERATION

JD Williams, the leading direct home shopping retailer in the UK, has awarded a three-year contract to Nightfreight for the provision of a two-man home delivery solution for direct supplier orders. Nightfreight was appointed by JD Williams after developing an innovative IT solution that would provide the retailer with total visibility and tracking of all orders from fifteen manufacturers via its own in-house customer service system.

Under the agreement, Nightfreight will handle the collection and delivery of a diverse range of items such as white goods, home electronics, furniture and upholstery, including made to order products. The solution will use Nightfreight’s Deliver2Home national two-man home delivery service, handling around 200 deliveries per week to addresses across the UK.

Nightfreight’s IT system will provide the required visibility of all orders delivered direct to JD Williams’ customers from the manufacturer. This is a particularly important requirement for larger products requiring two-man home delivery with differing supply lead times.

Once a customer order is received by JD Williams, Nightfreight will automatically receive purchase details, which are held pending stock availability from the supplier. Each supplier will have access to the software solution, enabling labelling and despatch of products, so Nightfreight can liaise directly with the consumer to agree a suitable delivery date as soon as the purchased product becomes available.

All activity and consumer communication is logged in Nightfreight’s system and sent to JD Williams, providing full tracking and status visibility to the retailer’s customer service team. As orders enter the delivery process each tracking point becomes transparent, including the final scanned image of the proof of delivery.

John Cuisick, Commercial Manager – Distribution at JD Williams commented: “The Nightfreight system will allow our call centre to provide accurate details regarding the whereabouts and progress of orders to transform the overall customer experience. Nightfrieght has developed an innovative solution that will enable us to overcome the complex issues of direct from supplier deliveries.”

Paul Tyson, Director of Nightfreight Deliver2Home said: “We are committed to working closely with our customers to develop supply chain solutions that meet their precise needs and enhance the service provided to the consumer. With JD Williams, the clever use of our IT systems helped us to add significant value to their customer’s home delivery experience.”

Source: The Delivery Magazine

10th February
DHL starts cross-border services in south-east Asia

Trucking services will link Singapore, Malaysia and Thailand

DHL has introduced cross-border bonded truck services linking Singapore, Malaysia and Thailand from a wider range of hubs.

As first reported in IFW, bonded trucking links to and from Thailand were launched last year, following trials with Thai customs authorities.

DHL is now offering direct pick-up and delivery, as well as insurance, customs clearance and handling of import, export and transit documentation from its hubs in Bangkok, Kuala Lumpur, Penang, Sadao and Singapore.

A DHL spokesman told IFW that Vietnam and Laos were also being considered as potential destinations for bonded services.

Sam Ang, CEO for south-east Asia at DHL Global Forwarding, said: “The service has the potential to turn this part of south-east Asia into a more integrated market.”

Source: IFW

9th February
TNT acquires TopPak

TNT is expanding its e-commerce activities with the acquisition of e-fulfillment company TopPak.

The parties signed an agreement to this effect today. With this acquisition, through its Parcel Service business, TNT is strengthening its position in the distribution market and adding a link to its e-fulfillment service chain.

TopPak has revenues of approximately €10m, handles some 6m packages per year and has growth potential

TNT say that the acquisition of TopPak is in line its Vision 2015 strategy on Parcels and Special Delivery Solutions (SDS) as announced on 3 December 2009. “TNT aims to develop focused multi-customer network solutions, that provide service quality while improving the economics of the TNT delivery networks,” the company said.

The financial details were not disclosed.

Source: TNT

9th February
Dobbies chooses NYK

Dobbies Garden Centres has appointed NYK Logistics to support its seasonal operations and its e-commerce business.

Dobbies required a flexible service that could cope with volume stock build as well as rapid dispatch of the ranges it sells at different times of year.

The agreement will see NYK providing end-to-end supply chain from Dobbies’ suppliers in the Far East to stores in the UK.

NYK is also managing home delivery to individual customers and stock intake, storage, order picking and delivery in a bid to improve Dobbies geographic reach and stockholding, while improving IT benefits.

Dobbies hope to see improved stock integrity, visibility throughout its seasonal supply chain, improvement to management information and reduced damages.

The NYK operation is based at its Glasgow distribution centre. Dobbies’ original base was in Scotland and it now also has outlets as far south as Shepton Mallet and Milton Keynes.

Source: Logistics Manager

9th February
Spicers signs £38m contract with DHL

Spicers has signed a contract with DHL Supply Chain to handle UK distribution for the office products wholesaler in a deal worth £38 million across five years.

DHL will manage distribution across Spicers’ supply chain network from regional distribution centres located in Greenwich, Chessington, Bristol, Birmingham, Heywood and Glasgow to dealers and customers.

It will mange a dedicated fleet of 98 vehicles and has been tasked with enhancing efficiency and reducing costs across the supply chain.

DHL will be able to monitor fuel usage and better understand how the vehicle is being driven through the deployment of vehicle telematic systems and it will use the information generated to train and manage drivers and minimise fuel consumption.

Implementation of tracking systems will also allow DHL to oversee route planning, understand the need for variances and enable future planning across the network.

This is designed to increase transport efficiency and help improve the security of vehicles by enabling any stolen lorries to be traced.

In addition, the introduction of tear-drop trailers will help to boost fuel efficiency and improve fuel consumption by approximately eight per cent.

All 180 employees from the previous contractor have been retained by DHL. This includes co-ordinating a series of improvement workshops to encourage collaboration within teams and to build on the existing expertise within Spicers’ supply chain.

Source: Logistics Manager

9th February
Sunnflair starts camping with Norbert

Camping specialist Sunnflair has appointed Norbert Dentressangle Transport Services as its primary transport provider.

Prior to the arrangement Sunnflair was using several external carriers to collect and distribute products, which led to unsatisfactory service and cost issues.

Through Norbert Dentressangle, Sunnflair is also now able to offer a next day service to stockists, including the safe delivery of hazardous gas products which are subject to strict ADR (Accord Dangereux Routier) carriage requirements.

The third party logistics company makes up to 15 collections a day from Sunnflair premises at Chelmsford and Ipswich.

Next day deliveries are then made to the company’s 2,800 retail stockists across the country as required.

The distribution network also has the flexibility to accommodate rising volumes prior to and during the peak trading spring and summer months.

Sunnflair is also able to access to the bespoke SHARP (shipment handling and reporting program) technology provided by Norbert Dentressangle, which allows it to track and trace orders and respond to customer enquiries.

The online system enables Sunnflair to place multiple delivery orders at its head office in Chelmsford, which are transmitted electronically to Norbert Dentressangle before being distributed to vehicles across its shared-user network.

Source: Logistics Manager

9th February
Palletforce is ‘top of the league’ for industry standards

Palletforce is powering its way into 2010 in style after clinching the ‘treble’ with three international standard awards.

The palletised distribution network has achieved accreditations for quality, safety and environmental excellence – by gaining the internationally recognised standards ISO 9001, OHSAS 18001 and ISO 14001.

“Palletforce leads the way in setting new industry standards and these accreditations show our commitment to driving excellence throughout our whole operation,” said Palletforce CEO Michael Conroy.

“Our strapline is ‘Work with the best’ and we believe there is no better network in terms of service and quality – these are the things that really count to customers who use Palletforce.”

Over the next year more companies than ever will be scrutinising the way they transport goods from place to place – in an effort to reduce their impact on the environment.

By its very nature, Palletforce helps cut unnecessary vehicle movements and has the flexibility to transport smaller consignments so can help to drastically reduce business costs and environmental impact.

Dave Holland, Palletforce Sales and Marketing Director, said the business has an exciting story to tell that is attracting new customers and members.

“In the current trading conditions, businesses are looking to save and many have been assessing their transport costs and systems.

“Palletforce’s shared user network offers a cost effective and flexible solution that is particularly attractive to environmentally responsible businesses – so it’s a win-win situation.”

Dave added: “We have seen a big increase in the number of retailers and manufacturers looking at this flexible palletised method of transport. We can offer them the flexibility of smaller consignments while still harnessing the economies of scale of a large distribution network.”

Palletforce takes its own Corporate Social Responsibility extremely seriously and, as well as achieving ISO standards, the network has helped to raise over £40,000 for the learning disability charity Mencap, over the last few months.

The money was raised by Palletforce CEO Michael Conroy and his good friend Allan Blakeley, from FedEx UK, who took part in a 463-mile walk from Newcastle-upon-Tyne to Launceston.

The money was topped up by an extra £10,000 during a charity auction at the Palletforce Annual General Meeting in January.

Mencap Regional Fundraising Manager Kelly Railton said: “We are absolutely delighted with the amount of money raised for Mencap and can’t thank Allan and Michael enough for their efforts and the support of Palletforce and FedEx.”

Innovation has also been at the forefront of the business and the network is particularly proud of its 400,000sq ft state-of-the-art Hub which celebrates its first anniversary in January 2010.

This really is the jewel in the crown of palletised distribution centres and its place as one of the finest in Europe was underlined when HRH The Princess Royal gave it her royal seal of approval by visiting in September.

The new facilities have been accompanied by innovation and the network is especially proud of its collaboration with Wilson Trailers to be the first in the distribution sector to use ‘Curtainclear®’.

This is the UK’s first step frame double deck giving unrestricted loading access. It allows curtains to fully clear the sides of the trailer all the way to the rear, giving operators and drivers full side access to both top and bottom decks to reduce health and safety issues, achieve full pay load and improve speed of access.

Palletforce plans to continue its innovation and growth in the future as more businesses understand the huge benefits palletised networks can bring.

With a clutch of industry awards, the best Hub operational facilities in the UK and the treble ISO accreditation, the network is ‘one to watch’ in 2010.

Source: E-CourierNews

8th February
DX lays down the law

DX Group has entered into a strategic agreement with Bar Select Ltd.

The deal will see the further promotion of www.barselect.co.uk, a barrister comparison web site which is designed for use by legal professionals.

The Bar Select service, brainchild of veteran lawyer Peter Rouse, founder of the Rouse IP firm, will be offered to DX members and other legal professionals.

DX, established by the legal community in response to the postal strikes of the 1970s, counts 97 of the top 100 law firms as clients.

In anticipation of regulatory changes allowing greater practice freedoms to barristers, Bar Select was established in July 2009.

Not only does Bar Select provide a comparison service to the legal profession, it also offers the ability to book barristers that are available.

Andrew Raisbeck, marketing director of DX, said: “As a long-term proponent of the legal services sector we take a close interest in its evolution. We believe Bar Select will be of great value to our members and that we can help the whole sector by further promoting it.”

Peter Rouse, director of Bar Select, said: “Bar Select aims to become part of the infrastructure of the present and emerging legal services market and our agreement with DX brings that aspiration closer to realisation.”

Source: DX

8th February
UK postal workers equipped with dog device

Postal workers are being armed with a new weapon which could hand them a crucial advantage in their perennial battle with dogs, reports The Daily Telegraph.

Royal Mail delivery staff are being equipped with a device which releases compressed air and makes a hissing sound designed to scare off dogs.

It comes as new figures reveal the number of postal workers attacked by dogs while on their rounds increased by almost 20% last year.

In 2008/09, there were 4,810 attacks on staff - a rate of 92 per week - compared with 4,067 the previous year.

The statistics have been released by the Royal Mail along with copies of guidance given to staff on how to protect themselves.

This includes the instruction: “Never enter premises where a dog is loose. Even the most friendly dog is likely to view your approach as a possible threat.”

When postmen do find themselves confronted by a dog, they are told to position their bag between themselves and the animal to fend off any attack.

They are told to back away slowly, but not to turn and run, as this could trigger a chase response in the animal. Staff are also urged not to stare at the dog.

Many postal staff already carry peppermint spray, which releases a cloud of gas intended to distract and disorientate dogs for up to 20 minutes.

It can be requested by any concerned employee, but postal workers have said it is difficult to use when being attacked.

The new spray works in a different way. A Royal Mail spokesman said: “The device releases air at speed, creating a hissing noise which is designed to pull the dog up and stop its progress.”

It is being trialled by staff in south-east England and could be rolled out nationwide if it produces good results.

The spokesman added: “This is something we take extremely seriously, and we give training to staff about ways to deal with dogs.”

The Royal Mail is at a loss to explain the recent increase in dog attacks, but it comes at a time when animal welfare organisations have warned about the rise in the numbers of “weapon dogs”, or aggressive animals used as status symbols.

Each attack on a postal worker is logged and owners of aggressive animals are contacted by Royal Mail. Injured staff are eligible for compensation under a Dog Attacks Compensation Scheme for any overtime or shift allowances which they miss as a result.

Some staff have been seriously wounded. In 2008, Keith Davies had to undergo a six-hour operation after being attacked by two rottweilers while delivering post in Cambridge.

A spokeswoman for the Communication Workers Union, said: “It is one of the biggest health and safety issues that delivery staff face. We’re well aware that it got worse last year.

“It can be very traumatising for workers not knowing what is behind the garden gate or the letter box.”

The union has launched the “Bite-Back” Campaign, calling for changes in the law on dangerous dogs to give postal workers greater protection while on private property.

Source: The Daily Telegraph

5th February
Air France to sell freighters to FedEx

Air France-KLM has agreed to sell two new 777 freighters to FedEx

The sale comes as the company looks to downsize its all-cargo operation.

“This sale is in line with the current slump within the global air cargo industry,” the Franco-Dutch carrier said.

Air France Cargo said that the move will not alter the frequency of flights undertaken by the airline.

The sale figure remains undisclosed, but is expected to be around the $250m mark.

“Air France Cargo currently operates five aircraft — two 777-200 extended range freighters and three 747-400 extended range freighters. It has leased two 747-400s to Russian carrier Air Bridge and a third is due to be chartered out in March,” reported the Journal of Commerce.

“Air France-KLM owns Europe’s largest all-cargo fleet of 29 freighters but plans to significantly reduce its exposure to the sector by transferring some aircraft to its Amsterdam-based subsidiary Martinair and selling others to rival carriers,” the news agency continued.

Source: Journal of Commerce

4th February
Royal Mail announces 100 millionth Sustainable® Mail delivery

Royal Mail today revealed that mailings delivered under its Sustainable® Mail service have reached the 100 million mark nine months after its launch.

Some 75 customers have signed up to the bulk mail service, rolled out last April, which encourages responsible behaviour by offering a lower price tariff for direct mail that meets newly developed environmental standards.

Companies can join up to the Sustainable® Mail service if they meet the criteria based on three key environmental needs - improved sustainability, minimised waste and increased recyclability. They can also now benefit from Royal Mail’s ‘DM Sale’, offering a discount of 20 per cent on new or additional mailings in March and April this year. This offer is available through both Sustainable® Mail and Mailsort® services.

Matthew Neilson, Head of Environmental Solutions at Royal Mail, said: "There has been tremendous interest in Sustainable® Mail and we are delighted that so many brands have signed up to the service. Reaching 100 million items in the first nine months is an impressive and important milestone for us.

"The organisations involved have met our strict criteria and we are sure they will be joined by many others willing to take advantage of this product and work with us to reduce direct mail waste and streamline production."

To qualify for the Sustainable® Mailproduct, mailers must meet certain specification criteria. In the first instance they must achieve entry level standard to access the product, with prices of up to two per cent below normal Mailsort® tariffs available. Clients can then achieve an even better postage rate - up to 4.7 per cent discount - by demonstrating intermediate level requirements.

The criteria to qualify for Sustainable® Mail at the entry level include:
• The use of recycled fibre from recovered waste paper and/or virgin fibre sourced from a Defra approved forest certification scheme in all paper products
• The adoption of good data practices such as the development and maintenance of an internal suppression file as well as the checking of customer and prospects against the Mailing Preference Service
• The recyclability of all paper elements of the mailing, including windowed and padded envelopes
• A statement or logo, such as Recycle Now, on the outside of the mailing to encourage recycling of the item

Included in the intermediate level specification are requirements that:
• All printers, mailing houses or in-house mailing facilities used to produce a mailing must have an environmental management system conforming to BS EN ISO 14001
• No ultraviolet varnish finishes or rubber-based adhesives are used in the mailing
• Each item must give clear information as to how the addressee can register to unsubscribe from receiving information about any or all of a sending company’s products for one year

Source: E-CourierNews

3rd February
Bakker scoops award

TNT’s Peter Bakker has been granted the Sustainability Leadership Award 2010 by SAM and SPG.

The two sustainable investment companies presented the award to the CEO and Ashok Gadgil, a professor for environmental technology at the University of Berkeley.

Each year since 2001, the award recognises “two individuals who have provided extraordinary leadership or done pioneering work on behalf of sustainability and business success.”

The jury highlighted the efforts of TNT to fight world hunger and reduce carbon emissions through its two programs, “Moving the World” (a joint initiative with the United Nations’ World Food Programme) and “Planet Me.”

Source: TNT

3rd February
UPS “better positioned”: 4Q results

UPS chairman and CEO Scott Davis said the company has emerged from the “worst recession in decades leaner, more focused and better positioned” after publishing its 4Q results.

UPS announced diluted earnings per share of $0.75 for the fourth quarter of 2009, above the company’s original guidance of $0.58 to 0.65 per share, due in large measure to strong performance by its international segment. That segment saw volume growth, a substantial gain in operating profit and improvement to a 16.7% operating margin.

The quarter’s diluted earnings per share declined 9.6% compared to the $0.83 in adjusted diluted earnings per share a year ago. Reported earnings per share for 2008 were $0.25.

For 2009, UPS generated free cash flow of $4.1bn and posted adjusted operating profit of $4.0bn. On a reported basis, operating profit was $3.8bn. Adjusted earnings per share were $2.31 and $2.14 on a reported basis.

“UPS ended 2009 on a high note by leveraging network changes implemented throughout the year and executing flawlessly during the peak holiday shipping period, which was stronger than we had anticipated,” said UPS chairman and CEO Scott Davis. ”The company demonstrated its ability to manage effectively in changing market conditions. UPS has emerged from the worst recession in decades leaner, more focused and better positioned to take advantage of increased global trade.”

4Q 2008

Consolidated Results 4Q 2009
4Q 2008
Adjusted

Revenue $12.38 B
$12.70 B

Operating profit $1.26 B
$803 M
$1.38 B

Operating margin 10.2%
6.3%
10.9%

Average volume per day 17.3 M
17.3 M

Diluted earnings per share $0.75
$0.25
$0.83

For the three months ended 31 December 2009, package volume rose 1.4% to 1.1bn pieces while average volume per day was unchanged at 17.3m packages.

During the holiday shipping season, global volume exceeded 22m packages on eight days, including two on which it exceeded 24m packages. UPS experienced more delivery volume than in 2008 on each of the seven days before Christmas. A well-executed peak season operating plan and significant growth in online retail sales contributed to the stronger-than-expected results for the quarter.

For the full year, the company delivered 3.8bn packages, an average of 15.1m per day, down from 15.5m in 2008. Revenue decreased 12% to $45.3bn.

Cash Position

UPS ended 2009 in a strong financial position. In addition to exceptional free cash flow, UPS also:

Paid $1.8bn in dividends.
Invested $1.6bn in capital expenditures.
Repurchased a total of 10.9m shares for $569m.
Ended the year with $2.1bn in cash and short-term investments.
US Domestic Package 4Q 2009
4Q 2008

Revenue $7.55 B
$7.99 B

Operating profit $764 M
$932 M

Operating margin 10.1%
11.7%

Average volume per day 14.9 M
15.1 M

For the fourth quarter, air volume increased with Next Day Air up 2.8% and deferred up 4.3%. However, ground volume per day was down 2.9%. Total US average daily volume decreased 1.9%. Operating margin improved sequentially to 10.1%, the highest in 2009. The 5.2% decline in revenue per piece was driven primarily by lower fuel surcharges and weight declines.

In the quarter, UPS pushed ahead the mobile shipping arena with the introduction of applications for iPhone, iPod and BlackBerry devices. In addition, the company expanded its WorldShip platform with integration of a freight forwarding capability that complements its small package and LTL freight shipping processes.

On 8 January 2010, UPS announced it was restructuring the US Domestic Package segment. By leveraging technology and the management skills of its people, the company will create larger geographic operating entities and provide more marketing resources at the local level. The new structure will be in place by early April.

4Q 2008

International Package 4Q 2009
4Q 2008
Adjusted

Revenue $2.79 B
$2.64 B

Operating profit $467 M
$366 M
$393 M

Operating margin 16.7%
13.9%
14.9%

Average volume per day 2.4 M
2.2 M

International operating profit jumped 18.8% on an adjusted basis and 27.6% on a reported basis on revenue growth of 5.8%.

Average daily volume growth of 11.8% was driven by increases of 3.1% in export and 17.8% in domestic. These gains and strong cost management contributed to an operating margin of 16.7%, the highest since the fourth quarter of 2007. All regions experienced export volume growth, led by Asia and the United States. Domestic volume improvement was driven by a third-quarter acquisition in Turkey along with strong performance in Europe and Canada.

During the quarter, UPS continued investing for the future with the opening of its expanded hub in Toronto, Ontario, which more than doubled its package handling capability.

4Q 2008

Supply Chain and Freight 4Q 2009
4Q 2008
Adjusted

Revenue $2.03 B
$2.07 B

Operating profit $28 M
($495 M)
$53 M

Operating margin 1.4 %
(23.9%)
2.6%

Reductions in segment revenue and operating profit were caused by declines in global forwarding and UPS Freight.

Forwarding’s operating margin was challenged by rapidly escalating transportation costs stemming from a surge in demand in a capacity-constrained environment out of Asia.

The Logistics business recorded an increase in revenue, driven by growth in the healthcare sector. Improved operating efficiencies and contract management produced strong results.

UPS Freight experienced a difficult fourth quarter. Revenue per hundredweight increased, but shipments were flat and tonnage declined. The unit posted an operating loss for the quarter due to the extremely competitive pricing environment in the LTL business. Year-over-year, UPS Freight gained market share.

Outlook

“Economic forecasts indicate gradual improvement as 2010 unfolds,” said Kurt Kuehn, UPS’s chief financial officer. ”The first quarter will be the most challenging of the year for UPS with profitability only slightly better than last year.

“For 2010, UPS will substantially improve performance by leveraging our extensive product portfolio and global network,” Kuehn continued. ”As a result, we anticipate that diluted earnings per share should be within a range of $2.70 to $3.05, an increase of 17% to 32% over 2009 results. We also expect cash generation to remain strong in 2010, with capital expenditures totaling $1.8bn. This is well below our historical range but still supports growth opportunities.”

Source: UPS

3rd February
DPD and Interlink offer one hour delivery window

DPD and Interlink have launched a system for giving customers a one hour window for their home deliveries.

Home shoppers who buy from retailers shipping with DPD or Interlink can receive a free SMS or email giving them a precise one hour window in which the driver will arrive.

If the recipient of the SMS knows that they won’t be in to sign for the package, they can text back and arrange for the company to deliver on a more convenient date – from a choice of the next three days. GeoPost, parent of DPD and Interlink, has invested £2m over the past two years developing the technology needed for the one hour delivery window.

A recent survey by pollster Opinion Matters which found that of 1,369 adults, 82 per cent find it "frustrating" or "very frustrating" to wait at home for a delivery, not knowing when it will arrive; and 80 per cent have had to go to a parcel depot or Royal Mail office in the last 12 months to collect a parcel.

GeoPost UK chief executive Dwain McDonald said: “Our new service means more "right first time" deliveries which will also produce environmental benefits in the shape of fewer return journeys to attempt delivery, reduced fuel consumption and lower carbon emissions.”

Source: Logistics Manager

2nd February
CitySprint provides retailers with the opportunity to excel

CitySprint sponsored the event for the launch of Snow Valley’s Online Retail Delivery in the UK 2010 report which took place at the Groucho Club on 20th January 2009. Now in its fifth year, the Online Retail Delivery in the UK report is the industry authority on the delivery services that UK retailers are providing to their customers.

The fact that the report identified same-day delivery as a growing trend meant CitySprint was an ideal choice of sponsor as, towards the end of 2009, CitySprint launched a new SameDay courier service which is changing the face of online retail by offering customers more control and flexibility over their deliveries. CitySprint launched the service with online retailer ASOS.com and is now working with a number of other retailers who are keen to offer their customers this leading-edge delivery choice. At the event, ASOS.com was presented with the ‘Golden Chariot’ award. They achieved the top-spot as a result of its value for money, customer service and flexibility of delivery options. ASOS.com was followed by runners-up Ebuyer, PC World, and Amazon.

Amongst the other key recommendations in the report were ‘more Saturday, nominated day and time of day options’ and ‘more detailed online order tracking’. All areas in which CitySprint can help retailers excel.

CitySprint operates a national network 365 days a year 7 days a week. In a time when many organisations have chosen to streamline their locations CitySprint has remained committed to its national network. It is this geographic presence and round-the-clock service which makes the Retail solution possible. Even with cut off times factored in, in order to offer such a responsive solution to retailers it is vital that the logistics partner has fleet located close to the retailer’s distribution centres.

In addition CitySprint’s investment in technology can help retailers provide their customers with unrivalled levels of transparency regarding their delivery. Each of CitySprint’s couriers are equipped with hand-held GPS devices. CityTrakkers, which transit information to and from CitySprint in real-time. Essentially this enables CitySprint to know, and be able to view, the exact location of each of their couriers located throughout the UK. The customer benefit of this investment is the unrivalled transparency it offers. Once a courier electronically acknowledges acceptance of a delivery this becomes 'live' on the system. From this point forwards the customer can view the real-time location of the courier making their delivery. Retail customers can either use this information themselves or open the system up to their customers providing added-value levels of customer service.

Bel Shergill, CitySprint’s Retail Sector Development Manager, said; “CitySprint was delighted to sponsor this event. As the UK’s largest privately owned SameDay Courier network and leading provider of retail delivery solutions, we are fully committed to excellence in e-commerce fulfilment and that is exactly what this event was about. As a supplier of delivery services to ASOS.com we were pleased to see them take the top-spot as a result of their flexible delivery options.”

Source: E-CourierNews

1st February
TNT sees “positive development” in Express

TNT has continued to see a “positive development” of its volumes in the Express division in Q4 2009.

The volumes in air, road and domestic in Q4 were all above those in Q4 2008. TNT views this as encouraging after the sharp but as of Q2 stabilising volume decline in the first nine months of 2009 against 2008.

For the first time in 2009, the Express operating margin in Q4 was above that in Q4 2008. The focus on cost savings has contributed substantially to this result, while price pressure has continued.

In Mail, the decline in addressed volumes in the Netherlands in Q4 2009 was in line with expectations as was operating income, helped in particular by good Master plan savings and strong “Christmas volumes”.

“The first two weeks in 2010 saw a continuation of the somewhat more positive volume trend of Q4 2009 in Express. Price pressure is still noticeable, however. The cost savings programmes continue to be on track to optimise our cost base further. In Mail, in line with guidance given at the 3 December 2009 analyst meeting, volumes are under pressure due to liberalisation and substitution, whilst cost savings progress will continue to support a continued good cash contribution,” a company spokesman said.

“Impairments (non cash) at the end of 2009 of goodwill and certain assets in EMN will be approximately EUR 150m. In Express, further impairments for already decommissioned planes and certain intangibles will be approximately EUR 20m. Both impairments will be charged against the Q4 results and are roughly in line with indications given on 3 December.”

Source: TNT

1st February
Dalkeith Transport joins Palletforce

Dalkeith Transport and Storage, one of Scotland’s largest hauliers, is to become a shareholder member in pallet network Palletforce on 1 March.

The move follows its decision to end a 10-year association with rival network Palletways.

Palletforce said Dalkeith was attracted by “the network’s unique position as a member-owned palletised distribution operation; as, ultimately, this ensures quality throughout the network as every ‘member’ company has a stake in its success”.

Dalkeith has depots at Newtongrange, near Edinburgh, and Cumbernauld, near Glasgow, and operates a fleet of 47 trucks and 100 trailers hauling general freight throughout the UK.

Source: IFW

1st February
Transport revenues hit at Norbert

Norbert Dentressangle has reported a 12.5 per cent decline in revenue during 2009, which it said reflects the adverse impact of the recession.

Transport revenues were hit hardest, falling 14.8 per cent on a published basis and 13.4 per cent at constant exchange rates.

However the company said business volumes during the last quarter of 2009 were comparable to 2008.

The decline in logistics revenue came later in the year and was less severe compared to transport, seeing a 9.6 per cent drop on a published basis and six per cent decrease at constant exchange rates.

EBITA is expected to total some £69 million (80 million euros) which the group said is a result of rigorous management of its balance sheet, particularly in terms of working capital requirement.

Source: Logistics Manager

1st February
UK Pallets achieves double 'ISO' and 'OHSAS' honours

UK Pallets' drive for continuous service and operational excellence is never ending, backed up by a commitment to ensuring it measures up on performance. This ethos has recently inspired the company to seek and achieve a double honour, receiving accreditation on 24th November 2009 in two integrated management programmes - BS EN ISO 14001:2004 (Environmental) and BS OHSAS (Occupational Health and Safety Advisory Services) 18001: 2007.
UK Pallets Managing Director Terry Richards says UK Pallets is probably the first company in the UK, let alone the first in the pallet industry, to achieve an integrated certification for both standards from one assessment programme.

Preparation started in April 2009 using external consultant Harry Staniforth Associates Ltd in readiness for the external assessment by LRQA in October. Harry Staniforth said afterwards, "In 20 years of consulting and supporting over 110 companies achieving various standards, I cannot remember any company coming under such intense scrutiny - eight days - at all levels, with only minor issues being raised. This is a credit to all at the company."

UK Pallets Managing Director Terry Richards says the accreditation will provide objective and independent assurance to customers that UK Pallets operates to the highest standards in handling their freight. The standards will help reinforce to all involved in the network the need to get the quality and reliability of service right first time every time while encouraging a 'must get through' attitude and behaviour.

Source: E-CourierNews

1st February
Nightline Delivers its promise with NetDespatch

Nightline Delivers, Ireland's largest independent express delivery company delivering up to 40,000 items per night, has selected software from NetDespatch as part of its secure parcel shipping technology service for its customers. The NetDespatch Velocity SaaS (Software as a Service) web services are offered to existing and new customers that ship up to 20 parcels per night and supports Nightline Delivers' promise of "safe, secure and on time" deliveries.

The NetDespatch services automate the process of booking, labelling and tracking parcels all over Ireland as well as international deliveries to the United Kingdom and are fully integrated with Nightline's consignment tracking services - providing full on-line proof of delivery. Since implementing the NetDespatch service Nightline Delivers has been able to significantly reduce the use of manual consignment notes and has seen an improvement in data accuracy. This in turn has increased delivery efficiency and boosted customer service levels.

" The number one benefit of NetDespatch for our customers is the elimination of manual consignment notes. We no longer have to re-key information into our parcel management system and this means we have accurate information entered first time. The system stores electronic consignment details on line that customers can easily access if required allowing them to track parcels through our network to their destination, giving them full proof of delivery," says Orla Sheils, Administration Manager, Nightline Delivers.

"Customers like the user-friendly system and it makes light work of their administration. It requires no special software and is fully multi-user as it is accessed over the web. For Nightline Delivers the move to electronic shipping means greater efficiencies with no chance of mis-deliveries and this helps customer relations," adds Orla Sheils.

Nightline Delivers is working with NetDespatch to further develop the system for automating returns from retail chain customers to their warehouses, streamlining administration and providing accurate electronic records of all shipping transactions.

"By developing the NetDespatch system to handle returns from our retail customers to their warehouses and distribution centres, we will be able to offer enhanced levels of service. They will be able to book a return collection online without having to complete written documentation, manually printing labels or telephoning their local depot. It will save them a lot of time and improve their returns management processes," says Orla Sheils.

Source: E-CourierNews

29th January
Adam Crozier to leave Royal Mail later this year to join ITV

Royal Mail today announced that Adam Crozier, Group Chief Executive, will be leaving Royal Mail later this year to take up the post of Chief Executive of ITV.

Royal Mail Chairman Donald Brydon said: "Adam has done and continues to do a remarkable job in leading Royal Mail through a major transformation in extremely difficult market circumstances. The Group benefits from his strong leadership and commitment to ensuring that Royal Mail has the strength and profitability to continue to support the Universal Service and to build the platform for our future growth.

"Adam remains as Chief Executive of Royal Mail for the next few months and during that time I will continue to work closely with him to ensure that our momentum is maintained right across the Group and to ensure a smooth transition to his successor."

Source: E-CourierNews

28th January
APC Overnight Selects Award-winning Greener DAF Tractor Units

The two award-winning EURO 5-rated 410 hp, 6 x 2 tractors operate at 44 tonnes and will be added to APC Overnight’s midlands’ fleet. The investment in the vehicles represents APC Overnight’s approach to using the latest truck technology to provide superior customer service, while actively reducing the company’s carbon footprint.

The trucks use the most advanced technology on the market, including the innovative AS-Tronic gearbox to harness the power of their 12.9 litre, six-cylinder engines, making it an effortless and safer driving experience for the drivers. The intelligent drive-train technology coupled with the specially developed air management kit provides high performance with class-leading fuel economy and low emissions.

“After trialling various manufacturers, DAF delivered an overall better solution to meet our requirements on efficiencies, performance, driver satisfaction and value for money. Also, DAF has a strong presence in the UK, with a significant amount of manufacturing and assembly work performed here. APC Overnight’s strategy is to support British business and to play our part as the UK fights recession,” says Syed Ziaullah, Operations Director, APC Overnight.

“The new tractors represent our view on investing in the future of our fleet while taking a proactive approach to our environmental responsibilities. The DAF CF85 is proven to be among the best vehicles available for demanding applications and the two new units will take pride of place in our midlands operations,” he adds.

Rob Binnion, Retail Truck Sales Manager, Greenhous DAF says: “We are delighted that APC Overnight has selected Greenhous DAF to supply the new tractor units. APC Overnight is a forward-thinking company that puts service first and we are confident that the DAF CF85 will provide superb all-round performance. Moving forward, we hope that we shall build a long-term relationship with APC Overnight as its fleet supplier of choice.”

Source: E-CourierNews

28th January
CitySprint buy Post Haste

UK-based CitySprint has acquired the Post Haste Group for an undisclosed sum.

Post Haste is a specialist same day express courier company which was founded in 1977. CitySprint has acquired the Reading, Bracknell, Basingstoke, Tolworth, Swindon, High Wycombe, Watford, Edinburgh and Dundee elements of the Group.

The deal enables CitySprint to enhance its UK presence, increase revenues by an estimated 6% and continue their growth strategy which has been fuelled by a period of organic growth and four strategic acquisitions which have been made in the past 18 months.

The acquisition represents a continued commitment to a bold, yet realistic, growth strategy, claim CitySprint. Whilst the deal does not expand their infrastructure, as all locations will be merged with existing CitySprint ServiceCentres, it does increase staff and fleet sizes enabling them to increase their capacity and therefore responsiveness.

Commenting on the deal, CitySprint chief executive, Andrew Bernard said: ” We have recognised Post Haste as a strong business and are delighted to be able to offer our services to its existing customers, and look forward to welcoming staff and fleet to the CitySprint team.”

Post Haste chairman, Richard Howard, added: “This deal has been a huge success; not least because of CitySprint’s professional attitude. The deal, from beginning to end, has run smoothly with all of our fears unfounded and laid to rest by CitySprint’s approach. ”

Source: CitySprint

27th January
Deutsche Post DHL chief eyes recovery

Deutsche Post DHL’s chief executive expects the global economy will continue on its recovery path this year, given early signs of a pickup in demand for the shipment of goods, reports Reuters.

“We cannot say much until goods start shipping, but from what I hear from customers … I am optimistic for recovery,” Frank Appel said at a media conference on Monday.

Shipping companies around the world were hit by the global economic crisis as trade volumes collapsed. So far, the economies of Asia and Latin America are largely improving faster than those in the rest of the world.

“In Asia, where recovery seems to be taking place first, we will benefit due to our footprint there,” Appel said.

Deutsche Post generates about an eighth of its revenues in the Asia/Pacific region.

The company is competing with US rivals FedEx and United Parcel Service to expand its express delivery operations in Asian countries such as China, where rising global trade drives demand for logistics services.

Appel also affirmed Deutsche Post’s 2009 outlook, which sees adjusted earnings before interest and tax (EBIT) of at least 1.35bn euros ($1.91bn).

“For sure we will meet our guidance that we gave the market,” Appel said. Deutsche Post is due to publish its 2009 earnings on 9 March.

Source: Reuters

27th January
APC Overnight depot purchases unique ‘Eco Urban’ trailer

Wolverhampton, UK, 27 January 2010 – APC Overnight’s local depot in Burry Port, South Wales, has purchased a first of its kind Eco Urban trailer from Yorkshire-based W Trailer Co. The aerodynamic design of the trailer includes a double deck in its front section allowing greater carrying capacity, but with reduced fuel consumption and lower emissions. APC Celtic Couriers will use the 10-metre trailer for deliveries into city and town centres throughout the SA (Swansea) postcode region as well as for trunking to the APC Overnight national hub in Wolverhampton.

“We needed a manoeuvrable compact trailer that would allow us to get in and out of town and city centres. In addition it had to be as fuel and emissions efficient as possible as well as provide good load capacity. By meeting these requirements within the design of the Eco Urban trailer, it allows us to provide customers better services and keep costs down. W Trailer Co has produced a totally practical solution for APC Celtic Couriers and we are proud to be the first depot in the UK to take delivery of the new trailer,” said Gareth Jenkins, Logistics Manager, Celtic Couriers.

Stewart Burton, W Trailer Co, reports that although the Eco Urban is the first of its kind built by the company these new shorter aerodynamic trailers are the way forward for urban collections and are replacing traditional rigid bodied trucks. They offer more flexibility for the operator and improved service to the depot customers and the reduced running costs make economic sense.

“APC Celtic Couriers briefed us on what the company needed as an efficient delivery solution and the Eco Urban is the result. The trailer uses the same roof design as our standard Eco Deck Trailer. It provides extended 26-pallet row capacity within a standard 10-metre length and the aerodynamic design reduces environmental impact. We have been building urban trailers for many years and we have seen a shift in demand for these shorter trailers as they can be used with existing tractor units, reducing the need to invest in additional vehicles such as rigids. They are becoming the preferred equipment for getting deliveries easily in and out of town. We have since extended our Eco family to include both urban and rigid products,” said Stewart Burton.

Source: APC

26th January
Royal Mail and mailing houses join forces to shape future of the industry

Royal Mail today announced the creation of a new Strategic Mailing Partnership™ to drive developments and shape the future of the mailing house industry.

Independently chaired by direct marketing industry stalwart and former Postwatch vice-chair Judith Donovan CBE, the new organisation reflects Royal Mail’s desire to collaborate more closely with mailing houses and help develop products and services, drive forward modernisation and tackle issues affecting the industry.

The Strategic Mailing Partnership™ will be steered by a board featuring 12 executives from a cross-section of mailing houses working alongside Judith Donovan, as well as two Royal Mail representatives.

Mailing houses handle around 90 per cent of all Royal Mail bulk mailings and use its spectrum of products, including Presstream, Mailsort and Walksort.

Jim Bulmer, Head of Mailing House Development at Royal Mail, said: "We have listened to the mailing house industry’s concerns and requirements for a long time now. They are a key partner for Royal Mail and we aim to improve dialogue through The Strategic Mailing Partnership™ to give them a voice in our operations and the development of our key products, while also helping them to shape the future of the mailing house industry.

"Judith Donovan’s appointment as independent chair is critical and she will be instrumental to us working closer with mailing houses to create positive changes to the future of mail as a medium."

Judith Donovan said: "The UK mailing house industry has come a long way since the early days of mass print production. Many now offer cutting-edge data, creative and print services, and distribution through channels including email, SMS and of course direct mail. I’m delighted Royal Mail asked me to chair The Strategic Mailing Partnership™ which will be crucial both to mailing houses and the UK’s mail industry as a whole."

The initiative is being launched with a targeted direct mail drive to senior mailing house executives in a bid to encourage free membership. Those who sign up will receive a follow-up welcome pack including a statement of intent from the partnership.

The Strategic Mailing Partnership™ will also hold a series of events around the country as part of a newly constructed communications programme designed to create a sustainable, meaningful two-way dialogue. These will include regional roadshows, a national annual conference and other networking opportunities allowing attendees to share best practice.

While Royal Mail has invited inaugural members to sit on the board, all of them will face re-election in January 2011 in order to give the industry a say in its future profile. The full list of board members is:

• Judith Donovan CBE (Chair)
• Jim Bulmer, Head of Mailing House Development, Royal Mail
• Helen Poole, Mailing House Development Manager, Royal Mail
• Yolanda Noble, CEO, dsicm
• Matthew Diamond, MD, Lorien Unique
• Miles Berry, MD, Prospect Mailing Services
• Gavin Boyd, MD, Mail International
• Chris Shorrock, MD, Codestorm
• Gary Hazlehurst, Technical Services Director, FCS Lasermail
• Lucy Edwards, deputy MD, Howard Hunt Group
• Jackie Peddie, MD, The Mailing House Group
• Paul Johnstone, Operations Director, RR Donnelly Global Document Solutions
• John Wells, Group Commercial Director, Communisis
• John Ellis, Group Sales Director, Sunline Direct
• James Portsmouth, MD, 4DM.

Source: E-CourierNews

25th January
PALL-EX ACHIEVES AN INTEGRATED MANAGEMENT SYSTEM

Leading pallet distribution network Pall-Ex has become the first in its sector to be certified with an integrated management system (IMS) across its business operation.

The system integrates three specific management standards : IS09001:2008 for quality management, ISO14001:2004 for environmental management and OHSAS18001:2007 for health and safety management.

Managing director Adrian Russell said the new management system has been achieved in response to the company’s objective of meeting future environmental and health and safety challenges as efficiently as possible.

Adding that the innovative system, which has been branded internally as EPICENTRE, also provides the business with easy and quicker access to all key management information.

“Pall-Ex has successfully maintained its ISO9001:2000 quality management system since February 2003, and this has provided the business with a structured framework which has allowed us to work seamlessly together in line with company procedures and approved practices,” he said.

“With the existing quality management system as its backbone, EPICENTRE brings additional strength to our business by allowing us to streamline more information than ever before.

“By driving a broader focus to all elements of our business including health and safety and the environment, EPICENTRE provides everyone at Pall-Ex with an extremely comprehensive, valuable and easily accessible information resource.”

Pall-Ex – which is the UK’s number one network for distribution of palletised freight - has continued to demonstrate its commitment to improving health and safety and environmental performance.
Key initiatives developed in recent years include working with the Health & Safety Executive to reduce pedestrian movements within its Hub environment; continuing to operate a cleaner, greener compressed natural gas fleet of trucks; and endorsing the design of an efficient trailer to its membership of hauliers to reduce fuel costs and environmental impact.

25th January
TNT starts carbon-free tricycle deliveries in Paris

TNT Express France has started using tricycles to deliver light parcels in the centre of Paris.

The carbon-free service will initially cover the 3rd arrondissement of the capital before extending to the entire city heart by June 2010.

The initiative is conducted in cooperation with Green Logistics / Becycle, a new company specialising in ecological transportation. TNT already makes tricycle deliveries in eight other French towns (Lyon, Bordeaux, Saint-Etienne, Dijon, Nancy, Rouen, Grenoble, and Valence).

“Three other city centres will follow during the first half of 2010,” said Eric Jacquemet, the president of TNT Express France. “Cargo tricycles have proved reliable, efficient and popular for inner city deliveries. They are an answer to noise, pollution, and traffic jams.”

Source: TNT

25th January
FedEx named in FORTUNE 100

FedEx has been named in FORTUNE magazine’s list of the “100 Best Companies to Work For” in the United States in 2010.

The company is ranked 91st overall and was recognised specifically for its ability to manage through the economic downtown by taking proactive steps to minimise layoffs and reinstate salary increases and 401(k) match, which the company suspended last year in the midst of the economic downturn.

“FedEx owes its continued success to its people, and I would like to thank our 275,000 team members around the world for their loyalty and dedicated service this past year,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. “This year’s recognition is further confirmation that our people-service-profit philosophy works well in both good and challenging times. FedEx team members continue to support and inspire each other to go that extra mile for our customers and the communities we serve. I am very proud of each and every one of our team.”

Source: FedEx

22nd January
Deutsche Post DHL sign Volvo deal for 1,800 green trucks

Deutsche Post DHL and Volvo Trucks have signed a frame agreement to supply 1,800 new trucks.

The new vehicles will be delivered to the UK, Finland and Sweden within the next two years and will primarily cover Express, Freight and Supply Chain operations.

These trucks are compliant with the EURO 5 standard and will gradually be replacing the older vehicles, which meet the EURO 3 standard. The EURO 5 standard sets limits for noxious exhaust emissions from motor vehicles, such as nitrogen oxide and soot particles, and is based on a European Union directive on emissions that was introduced in 2009.

“The modernisation of our fleet is an important part of our GoGreen climate protection program. By deploying new vehicles, we are satisfying Europe-wide standards and will be able to further protect the environment”, explained Rainer Wend, director of corporate public policy and responsibility at Deutsche Post DHL.

“We are proud to be a preferred supplier for Deutsche Post DHL”, said Staffan Jufors, president and CEO of Volvo Trucks. “We share the same focus on sustainable growth. We aim to increase our cooperation, especially regarding environmental issues, to find common ways to tackle the challenges that the transport industry is facing.”

Source: Deutsche Post DHL

21st January
Sales boost for UK Mail

UK Mail saw third quarter sales rise four per cent on year ago, the company said in its interim management statement. It now expects it profit for the year ending March 2010 to be ahead of previous predictions.

“The third quarter has seen good progress, with the overall group trading performance slightly ahead of our expectations.”

The parcels business returned to growth, the first year-on-year increase since the first quarter of the previous financial year. However, it warned that volume growth had been partly offset by continued pricing pressures.

The mail business continued to grow sales, benefiting from some early signs of improvement in the levels of more discretionary mailings that had suffered as a result of the economic downturn.

The Specialist Services business also saw sales growth with an improving trend in both courier and pallets.

As a result of this good trading performance, we now expect that profits for the year ended March 2010 will be slightly ahead of previous expectations.

Source: Logistics Manager

21st January
Palletforce green credentials recognised

Palletforce has boosted its green credentials after obtaining the ISO 14001 accreditation, which recognises organisations that are controlling and improving their environmental performance.

The Staffordhire-based network has 86 members working across the UK and Europe and more than 600 trucks passing through its hub every night.

Palletforce had to demonstrate its ability to measure, manage and report key aspects of environmental performance and that it is working to improve certain objectives.

John Rothery, Palletforce’s health, safety, quality and facilities manager, said: “In areas that are controlled by our members, suppliers and customers, our approach is to work closely with them to help them understand and progressively minimise the impact of services provided and purchased.”

The company was also recognised for its standards in health and safety a few weeks ago and now holds the ISO 14001, ISO 9011 and OHSAS 18001 standards.

Source: Logistics Manager

21st January
Wincanton focuses on ‘transformational’ businesses

Wincanton is investing to create substantial new capacity in the foodservice sector following a major contract win with “one of the fastest growing foodservice companies”.

Foodservice is one of a number of sectors which it has identified as having a “potentially transformational impact” on its business.

The company has just released its interim management statement for the three months to 21st January and said: “Although our markets remain challenging, we continue to expect to report full year pre-tax profit in line with management expectations.”

It has identified defence as another growth sector, and said that a major contract renewal with AgustaWestland, significant growth in activities with BAE Systems and a new win with the Aircraft Carrier Alliance “provide further encouragement that this is another sector which offers major development opportunities for Wincanton”.

In home delivery it said that it had implemented a step change in the operational performance and service levels of Marks & Spencer's home delivery business - a major contract win in the first half.

“First half losses in the now closed shared user home delivery network have been eliminated.”

Wincanton has also been expanding its business in container transport but said that container volumes have yet to recover to pre-recession levels, and had recently been badly affected by port closures due to adverse weather conditions.

“We are continuing, with a longer-term perspective, to add new business from Wincanton's existing manufacturing and retail customers.”

Volumes were also subdued in construction but “new business wins with customers such as Cemex and Speedy Hire, and a healthy pipeline of further development opportunities, confirm our ability to gain market share in the sector, increasing the potential upside for Wincanton as we head towards 2011 and our customers' expectations of market recovery.”

On the continent, Wincanton is still in the process of restructuring its German road network and the planned headcount reductions and site closures were on track for completion by the end of the current financial year.

It has also reported a contract win to manage Porsche’s, Pan-European inbound supply chain into manufacturing plants in Leipzig and Stuttgart.

Graeme McFaull, Wincanton Chief Executive, said: “Wincanton generated strong profit and dividend growth for shareholders pre-recession and is delivering a resilient performance through the recession. We look to the future with confidence given the recovery and growth prospects of our increasingly diversified portfolio of services.”

Source: Logistics Manager

21st January
NLH EXPRESS DELIVERIES JOINS THE FORTEC NETWORK

Crewe based NLH Express Deliveries has joined the Fortec Pallet Distribution Network’s growing family of licensees.

The partnership marks the latest chapter in a story of success for NLH, based on the Marshfield Bank Employment Park.

The firm was set up in 1991 and today operates out of a 6,000 square metre warehouse.

During the past 12 months business has soared for the company. Extensive growth since January 2009 has led to NLH more than doubling its fleet from 20 to almost 50, and its workforce from 20 to 45.

Clients range from packaging firms to major household name medical companies.

Through its partnership with Fortec, NLH Deliveries will cover the CW postcode which includes all of Crewe and the surrounding towns of Tarporley, Congleton, Nantwich, Winsford, Northwich, Sandbach and Middlewich.

Robert Johnson, Sales Manager of NLH, said as a result of the early success of the partnership with Fortec, the company had invested in another 18-tonne rigid lorry and a 44-tonne articulated lorry. Three more staff have also been taken on to handle the Fortec side of the business.

He said: “The haulage industry has taken a real battering in the past 12 months but we have worked extremely hard to keep all of our staff in employment and win more contracts. Our motto is not to worry about the recession, but to beat it!

“We approached a number of pallet networks because we felt it was a missing link within the company. We went with Fortec as they offered the best deal and their service was the most compatible to suit our requirements.”

Neil Hodgson, Managing Director of the Fortec Pallet Distribution Network, said he was delighted to welcome NLH Express Deliveries to the team.

He said: “NLH has had an exceptional year in 2009 and has demonstrated what can be achieved even during the adverse economic climate.

“We wish the company every success in 2010 and look forward to what we are sure will prove to be a long term and mutually beneficial relationship.”

Source: Fortec

20th January
DHL appoints 180 Amsterdam

DHL has appointed 180 Amsterdam to its multi-million pound global ad account, following a four-way pitch, reports Marketing Magazine.

The agency won the business after a final shoot-out against M&C Saatchi. Publicis Deutschland and DDB Germany were involved at an earlier stage of the process.

The review was called in September after Ogilvy Advertising resigned the business to pitch for UPS, which it went on to win.

Last year DHL became a sponsor of London Fashion Week, held in September. It also sponsors fashion weeks in 10 other cities around the world, including New York, Milan and Sydney.

Source: Marketing Magazine

20th January
Sales boost for UK Mail

UK Mail saw third quarter sales rise four per cent on year ago, the company said in its interim management statement. It now expects it profit for the year ending March 2010 to be ahead of previous predictions.

“The third quarter has seen good progress, with the overall group trading performance slightly ahead of our expectations.”

The parcels business returned to growth, the first year-on-year increase since the first quarter of the previous financial year. However, it warned that volume growth had been partly offset by continued pricing pressures.

The mail business continued to grow sales, benefiting from some early signs of improvement in the levels of more discretionary mailings that had suffered as a result of the economic downturn.

The Specialist Services business also saw sales growth with an improving trend in both courier and pallets.

As a result of this good trading performance, we now expect that profits for the year ended March 2010 will be slightly ahead of previous expectations.

Source: Logistics Manager s

19th January
Fear for jobs at DHL French parcels unit

Financial group in takeover bid promises long-term profitable future

DHL has received an offer to buy its domestic France parcels unit from French financial holding company Caravelle.

Although the unit generates an annual turnover of around €300m (US$435m), it has seen considerable losses in recent years and in 2009 is expected to be in the red to the tune of nearly €70m.

Caravelle specialises in company rescues and has experience in the parcel delivery sector from its ownership of the XP France network.

DHL said that in the interests of customers and staff, it was essential that a deal be struck during the first quarter of this year.

While unions have long been opposed to the sale, they are now resigned to it.

The CDFT union secretary at DHL France, Pascal Huart, told IFW the takeover would probably lead to the loss of 600-700 jobs in operations and support functions, such as customer services, IT, accounts and HR.

"We want guarantees that workers will have the possibility of transferring to other branches of the group," he said.

"We’ll also be looking for better severance packages than those DHL has offered in the past to redundant staff, as we consider that it has been a series of management errors over a number of years that are responsible for the state the unit is in today, and the employees are, ultimately, paying the price."
He added: "If we’re not satisfied, we could resort to strike action again.

"Frankly, an investment fund is hardly an ideal buyer, and Caravelle’s strategy is likely to consist of getting the unit into shape before selling it on at a comfortable profit."

However, Caravelle president and CEO Pierre-André Martel attempted to reassure workers and said DHL’s French parcels business would have a long-term future "as an autonomous and profitable operator in an industry undergoing concentration".

Huart said DHL was putting more than €200m on the table to aid restructuring the unit, wipe off the losses racked up over the past few years and fund the severance payments programme.

"Caravelle will need to put in between €30m and €40m fairly quickly in order to fund new infrastructure requirements," he added.

Source: IFW

19th January
Debenhams signs £113m deal with DHL

Debenhams has signed a £113 million logistics contract with DHL Supply Chain, extending its 12 year relationship with the firm until 2012.

Under the three year agreement DHL’s fashion unit will continue to develop and provide all Debenhams’ warehouse and distribution services to 157 stores across the UK and Ireland.

DHL operates all three of Debenhams’ UK distribution centres, providing a range of transport and warehouse services including supplier collection, store deliveries, outbase and cross-dock operations.

The department store has recently undergone a two year cost improvement programme delivered through internal process reviews, operational developments and streamlining, including advancements in warehouse picking operations.

Debenhams has managed to cut the cost per unit by more than ten per cent since 2006/07.

The retail chain has also made environmental savings by introducing super cube trailers and double deck trailers, allowing it to reduce kilometres travelled by 792,000 and fuel burnt by 203,000 litres.

It has also added Euro 5 compliant vehicles as standard to its fleet since 2006 and reduced carbon dioxide emissions by 517 tonnes year-on-year.

Paul Leggett, head of logistics for Debenhams, said: “One of the other key changes in recent years has been the evolution of an advanced warehouse solution that now better allows DHL to focus its resources on moving Debenhams high priority product lines more swiftly through the supply chain.

“This in turn has helped us become more agile with our promotional activity and supported the large transition to more own bought product that occurred this year.”

DHL has also taken over the operation of three off-site stock rooms, allowing it to develop new services.

Source: Logistics Manager

19th January
CitySprint takes over Post Haste group

CitySprint, the same-day courier network, has acquired the Post Haste Group for an undisclosed sum.

Post Haste is a specialist same-day express courier company which was founded in 1977. CitySprint has acquired the Reading, Bracknell, Basingstoke, Tolworth, Swindon, High Wycombe, Watford, Edinburgh and Dundee elements of the Group.

The deal will see CitySprint expand its UK presence, increase revenues by an estimated six per cent and continue its growth strategy, which has been fuelled by a period of organic growth and four strategic acquisitions which have been made in the past 18 months.

CitySprint said that while the deal did not expand its infrastructure, as all locations will be merged with existing CitySprint service centres, it would increase staff and fleet sizes enabling it to increase capacity and therefore responsiveness.

CitySprint chief executive Andrew Bernard, said: “We have recognised Post Haste as a strong business and are delighted to be able to offer our services to its existing customers, and look forward to welcoming staff and fleet to the CitySprint team.”

Post Haste chairman Richard Howard, added: “This deal has been a huge success; not least because of CitySprint’s professional attitude. The deal, from beginning to end, has run smoothly with all of our fears unfounded and laid to rest by CitySprint’s approach. CitySprint is a professionally managed, well-oiled machine that has worked hard to ensure that staff and customers alike have had a positive experience throughout the transition period. I would recommend that anyone considering exiting the industry to have no hesitation or fears in talking to CitySprint; their discretion can be totally relied upon.”

Source: Logistics Manager

19th January
Iveco renews K+N contract

Truck manufacturer Iveco has renewed its logistics contract with Kuehne + Nagel for a further period of three years.

K+N manages the majority of Iveco’s European aftermarket supply from five regional spare parts distribution centres in Turin in Italy, Langenau in Germany, Madrid in Spain, Trappes in France and Winsford in the UK.

It operates a total of 300,000 sq m of logistics space with between 80,000 to 160,000 SKUs per depot. Stock is distributed overnight by K+N’s automotive distribution network throughout Europe.

Under the contract, K+N will introduce a set of enhancements, such as RFID and pick-by-voice technologies. Restructuring measures will also be implemented to create an even more efficient and responsive supply chain for Iveco’s spare parts division on the basis of continuous improvement.

“Iveco Customer Service confirms its partnership with Kuehne + Nagel as a key lever to improve customer satisfaction and parts business profitability,” said Enzo Gioachin, Iveco’s senior vice president in charge of customer service.

Source: Logistics Manager

19th January
Palletline Meets the Tiling Challenge

Shipping fragile yet heavy tiles around the UK to differing and sometimes inaccessible delivery destinations demands a distribution solution which successfully combines reliability with flexibility and careful handling. British Ceramic Tile - one of the leading tile manufacturers in the UK – entrusts palletised distribution specialists Palletline to deliver safely every time.

British Ceramic Tile supplies to a wide range of differing outlets nationwide, delivering to the major multiples, national house developers and directly to the trade including independent tile retail outlets, contractors and specifiers.

The company began working with Devon-based Palletline Member Company Gregory Distribution over a decade ago, initially moving full loads and pallet load consignments around the UK to meet developing requirements. Since then, the relationship between the companies has strengthened and formalised. Today, Gregory Distribution manages the entire transportation solution on behalf of British Ceramic Tile, of which over 70% is delivered via the Palletline network.

In line with recent investment for manufacturing efficiency, British Ceramic Tile is also constantly striving to reduce energy use in transportation, both from ‘quarry to kiln’ using locally sourced raw materials and from ‘kiln to customer’ via responsible distribution solutions.

Matthew Gazzard, Financial Director for British Ceramic Tile, comments on how the solution provides a good fit with his company’s corporate philosophies. “Not only do Gregory Distribution and the Palletline link give us a comprehensive transport solution, but the manner of distribution also matches our environmental credentials,” he stated. “Palletline’s operating procedures give us a cost effective and sustainable option for transporting our products across the UK, reducing road miles and helping us to offer better value for money to our customers than most of our competitors.”

British Ceramic Tile and Gregory Distribution have now signed a new seven year deal for warehousing and distribution where Palletline plays an important role in what is essentially a full 3PL solution provided by Gregory Distribution.

Source: E-CourierNews

18th January
DHL sends logistics support to Haiti

Deutsche Post DHL has sent its Disaster Response Team to provide on-the-ground logistics support to the international relief effort in Haiti.

The team is preparing to operate out of Toussaint L’ouverture International Airport in Port-au-Prince to manage the logistics, and ensure the continuous flow of inbound freight at the airport, including the transfer and distribution of incoming relief goods, once roads are stable.

It will carry out its activities in close co-operation with the United Nations.

Chief executive Frank Appel said: “DHL is committed to providing unwavering support to the people of Haiti and our employees and their families during this devastating situation. We will do our utmost to make sure adequate food and medical supplies are delivered from the international airport to the people.”

The DHL team in Port-au-Prince, Haiti, is preparing to handle a variety of unsolicited relief goods such as tents, tarpaulins, food, clothing, medicines and water purifying equipment.

DHL is planning to build a temporary, professional warehouse at the airport, including sorting facilities and making a full inventory of donated goods.

One of the team’s tasks is also to ensure the speedy loading of aid onto trucks or helicopters. The mission is expected to last for several weeks.

Chris Weeks, DHL director of Humanitarian Affairs, said: “The team was designed to respond to devastating situations like these and is committed to helping the people of Haiti. Its members are well-trained to provide hands-on effective logistics support to help the victims of natural disasters in the time of need.

“However this disaster is going to require exceptional logistics skills as the country had poor infrastructure even before the earthquake struck.”

* Elsewhere, UPS has contributed more than $1 million in cash and in-kind support to earthquake relief efforts in Haiti through its charitable arm, The UPS Foundation.

The $1 million donation will include $500,000 in cash and up to $500,000 of in-kind services for the shipment of needed supplies. The funds will be divided between The American Red Cross, CARE, UNICEF and other organisations that assist with long-term relief activities.

Dan Brutto, president of UPS International, said: “Through our financial commitment and logistics expertise, UPS is positioned to respond quickly to the urgent needs and tremendous suffering that have been created by the earthquake. We felt it was critical that we act fast to support the relief efforts.”

Source: Logistics Manager

18th January
UPS and Honeywell team up for network-switching hand-held

UPS and Honeywell are teaming up to develop a new generation of hand-held computer for UPS drivers to improve communication links.

UPS will deploy more than 100,000 Honeywell mobile computers when the project is complete.

The system is known internally at UPS as the Delivery Information Acquisition Device V (DIAD V).

It features technology that provides on-the-fly switching between mobile networks, meaning the computer can automatically jump to another network provider if the preferred signal is lost to help ensure packing tracking reliability.

The new model will also feature a colour display and microprocessor with expanded memory, a colour, auto-focus flash camera to enhance proof of delivery, faster WiFi support to enable larger content downloads and a 2D imager that can decode a number of symbologies.

UPS will begin field testing the device in late 2010 with plans to begin a multi-year, global deployment in 2011. The DIAD V will be approved for operation in more than 100 countries.

“Starting in 1991, UPS was the first in its industry to equip drivers with a hand-held computer,” said David Barnes, UPS’s chief information officer. “Over the past two decades, the DIAD has become a critical component of an integrated global network that’s now tracking more than 15 million deliveries every day.”

Source: Logistics Manager

15th January
FedEx provides Haiti aid

FedEx is working with their designated charitable relief organisations to help ensure aid is on the way to Haiti, after an earthquake hit on 12 January.

They plan to provide transportation services for the American Red Cross, Heart to Heart International, Direct Relief International and Water Missions as soon as conditions allow.

A company statement said:
FedEx team members are deeply saddened by the devastation caused by the earthquake in Haiti. The thoughts and prayers of everyone at FedEx are with the victims, survivors and loved ones affected by this disaster. Because of severe damage caused by the earthquake, our operations have been suspended into and out of the island until further notice. All customer shipments are being held in Miami until we can resume operations.

The most efficient way to support this effort is to donate monetary support to a legitimate charitable organization. Logistics within Haiti prevents FedEx from sending products and aid collected by individuals or local organisations.

Source: FedEx

15th January
UPS donates $1m to earthquake effort

UPS has contributed more than $1m in cash and in-kind support to earthquake relief efforts in Haiti through its charitable arm, The UPS Foundation.

The $1m donation will include $500,000 in cash and up to $500,000 of in-kind services for the shipment of needed supplies. The funds will be divided between The American Red Cross, CARE, UNICEF and other organisations that assist with long-term relief activities.

“With hundreds of thousands of people affected, our hearts go out to Haiti,” said Dan Brutto, president of UPS International. Brutto serves on the Board of Directors for the US Fund for UNICEF. “Through our financial commitment and logistics expertise, UPS is positioned to respond quickly to the urgent needs and tremendous suffering that have been created by the earthquake. We felt it was critical that we act fast to support the relief efforts.”

With a network that extends around the globe, UPS has been a leader in disaster relief and response. In recent years, UPS relief efforts in the Philippines, Samoa, China, Myanmar and across the United States have included warehouse management, transportation network design and supply chain distribution.

In addition to providing financial and in-kind commitments to Haiti relief, UPS is a member of the World Food Programme’s Logistics Emergency Teams (LETs) and anticipates the activation of those teams. The LETs initiative involves providing “loaned” logistics experts to oversee on-site disaster response, normally for a deployment of three-to-six months.

UPS provided logistics support in Haiti just two years ago when the island nation was slammed by hurricanes and flooding. One of the UPS experts dispatched in 2008, UPS Americas Region Health and Safety Manager John Vera, describes crisis response in Haiti as extraordinarily difficult because the country has little modern infrastructure.

“Our job is to respond quickly and get supplies to those who need it most, but it’s not an easy task in Haiti,” said Vera.

UPS will continue to work closely with relief organistions that are active in the Haiti recovery effort over the coming weeks.

Source: UPS

15th January
DHL offers green option in US

DHL Global Mail became the first mail services provider in the US to enable customers to send shipments in a way that leaves a net zero carbon footprint.

Eco-conscious companies can now choose a new method of shipping and mailing that supports their environmental protection goals.

Global Mail is pleased to introduce the GOGREEN Carbon Offset service, a carbon neutral shipping and mailing option for materials sent within the US. This voluntary service allows Global Mail customers to offset the CO2 emissions produced during the delivery of their shipments by paying a small fee to help fund climate protection projects. Available for all of the company’s domestic shipping and mailing products, this new offering is part of the GoGreen climate protection program - an initiative of Deutsche Post DHL, Global Mail’s corporate parent.

“Many of our customers share our commitment to the environment, and they voiced their desire for a more eco-friendly mailing option,” said Lee Spratt, CEO of DHL Global Mail - Americas. “GOGREEN helps our customers reduce their carbon footprints in a practical and transparent way, while expanding Global Mail’s own climate protection efforts.”

Source: DHL

15th January
UK Pallets gets first Curtainclear double-decker

UK Pallets, the palletised freight distribution operation within UK Mail Group, has taken delivery of a second-generation Curtainclear double-deck trailer from W Trailer for use on its Scottish trunking operations. The new, 52 pallet capacity trailer, featuring a unique twin-curtain design, has been specifically built to optimise access to all deck space where items need to be checked and scanned prior to transportation. This is ideal for pallet networks where freight checking and scanning are a critical part of the delivery cycle.

W Trailer’s twin-curtain model, fitted with two fixed and two vari-decks, affords much greater flexibility than the single-curtain trailer they launched earlier this year but still retains all the benefits of its predecessor. Its other special design features include robust “super single” tyres to prevent under-inflated or punctured inner tyres causing blow outs, and dual cross-wired side marker lights, again to minimise the risk of breakdown. With the new trailer set to clock up an average of 25,000 miles per week travelling back and forth between UK Pallets’ Lichfield and Glasgow hubs, this will prove of enormous benefit to the business.

The Curtainclear rear design is also said to save a further 2% on fuel when compared with a standard double-deck trailer making it a more economically efficient as well as greener option for pallets networks. UK Pallets will be monitoring fuel usage and comparing savings against its current fleet of standard double-deck trailers to pinpoint any resulting fuel reductions.

Commenting on the new double-deck trailer, Graeme Wilson, Commercial Development Director at UK Pallets said: “We are really excited about this new addition to our fleet, both because of its enhanced range of functionalities as well as the significant environmental benefits it can deliver. If the Curtainclear double-decker lives up to its expectations then we will be looking at replacing further trailers as well as promoting this design to our 70-plus members throughout the UK.”

Source: The Delivery Magazine

15th January
Hermes chooses Beumer sorters for Hannover distribution centre

Hermes Logistik Group has chosen Beumer to equip a new distribution centre at the Hannover-Langenhagen airport in Germany.

The order for the distribution centre comprises two high-capacity sortation systems, type BS 25 E-Tray, each with a capacity of 10,600 trays per hour. These systems are being installed to sort cardboard boxes, bags and small items, as well as letters and catalogues.

Beumer said both sorters ensured redundancy in the new distribution centre, resulting in high operational reliability of the system.

In addition, the sorters have the flexibility to increase the number of planned destinations, enabling Hermes to react quickly if the volume of deliveries grows in the future. This also allows the unloading capacity at the final stage of extension to be doubled.

Source: Logistics Manager

15th January
TM Logistics appoints fleet manager

TM Logistics has appointed Howard Rowbotham to the position of fleet manager, responsible for managing its fleet of 200 trucks and 300 trailers.

He will be based at the company’s headquarters in Worcestershire and will also manage relationships with TML’s service providers and deal with repair and maintenance costs, as well as providing technical support and compliance assistance to the firm’s 16 depots.

Rowbotham was most recently at Wincanton as a fleet engineer and has more than 30 years experience in the transport sector.

Source:

14th January
Argos owner Home Retail Group lifts profit forecast

Argos and Homebase owner Home Retail Group (HRG) has increased its full-year profit forecast after sales in the second half of 2009 beat expectations.

The retailer now expects its pre-tax profits for the current financial year to 31 March to total £285m, £20m more than it previously predicted.

The update came as it said same-store sales at Argos increased by 0.1% in the 18 weeks to 2 January.

Sales growth at Homebase was stronger, rising 4% on a like-for-like basis.

Despite the increased profit forecast, HRG said trading conditions would "remain challenging" in 2010.

HRG chief executive Terry Duddy said Argos had "performed ahead of our plans in its most important trading period".

The group said it was also continuing to benefit from increased cost savings at both Argos and Homebase.

Source: IFW

14th January
DHL unveils mainland Europe’s first teardrop

DHL Supply Chain has unveiled mainland Europe’s first teardrop trailer, which is now in operation between the Netherlands and Germany.

The teardrop style of trailer has been used in the UK for a number of years, but it is the first of its kind to be used in continental Europe.

An early incarnation of the truck went through an 18-month trial in the UK, and DHL has since worked on a new design in collaboration with DON-BUR specifically for use in mainland Europe.

The materials used for the trailer have been adapted and it has also been built to meet European legislation requirements.

Paul Eden-Smith, senior VP consumer, retail & fashion sector, EMEA, DHL Supply Chain, said: “As businesses come under increasing pressure to reduce carbon emissions new innovation is key to driving positive environmental change.

“This is the first trailer of its kind in mainland Europe, which we expect will provide a 10 per cent reduction in fuel usage and save up to 25 tonnes of carbon dioxide emissions during the first year of operation.

“Our latest collaboration with DON-BUR is an important step forward and will help to ensure further innovation in aerodynamic truck design remains high on the European supply chain agenda.”

Source: Logistics Manager

13th January
Jobs to go in Jersey

Jersey Post has announced that it will shed up to 80 jobs.

The company, along with the Communication Workers Union (CWU), has announced they need to introduce changes to its workforce if the organisation is to remain competitive, commercially viable and continue to provide an important postal service for the island’s community in the future.

In working towards these changes to help the organisation reduce its costs, a four-year voluntary redundancy (VR) scheme, is being offered to staff. The changes will result in a new staffing profile for the postal operation, including new processes and roles being introduced in preparation for future opportunities. The changes are to be phased in and will be completed by the end of 2013, and will include VR opportunities for up to 80 staff over the same time period.

Pete Donaghy of the CWU said: “Although redundancies are a by-product of these changes, these redundancies are being dealt with in an open, fair and manageable way.”

Both Jersey Post and the CWU expressed that the key principle to achieving long-term sustainability was the continuation of close partnership working between the union and management at all stages, from development of business strategy, through to implementing operational changes.

Ian Carr, managing director of Jersey Post’s postal business said: “We are experiencing fundamental change to our business, as the dynamics of the postal market are reshaping it, and key to a successful future is embracing that change. Our success will be built on clear strategic vision and the important partnership we have with our staff and the CWU.

“Change is not new to us. This is just another stage in the journey we have been on with our staff and union for some time. I am confident our plans and this approach will take us forward to a sustainable future, delivering value to our staff, customers and shareholder”.

Donaghy added: “The CWU is keen to ensure that the services and products offered by Jersey Post to its customers continue to be the best available, maintaining professionalism, quality and efficiency. With the interests of our members at heart we want them to share in any success that change brings through these negotiations. We are confident that the objectives and agreement that we will achieve during these negotiations will secure ongoing employment and long-term sustainability for Jersey Post and our members.”

The changes announced focus on reducing the existing cost of the postal infrastructure. The Jersey Post Group will continue to embrace other new opportunities as emerging technologies change the shape of the communications market, and the on-line shopping revolution continues to grow the logistics and distribution markets.

Source: Jersey Post

13th January
Wincanton opens new 10,000sq metre DC

Wincanton has opened its new £3m (US$4.8m) distribution centre at Manchester’s Trafford Park, boasting 10,000sq metres of infrastructure dedicated to the food service sector.

David Jones, Wincanton’s food service MD, said: “We now have significantly more capacity in our network, enabling both Wincanton’s growth ambitions and those of our existing customers.

“We are investing significantly in our food service business and have aggressive plans for growth; this site is just the beginning of a business transformation programme that is designed to elevate Wincanton into the supply chain partner of choice for the food service industry.”
The facility increases Wincanton’s food service throughput capacity by over 125%, and provides over 3,700sq metres of frozen storage space, 3,500sq metres of chilled storage and 1,700sq metres of ambient storage – space for nearly 6,500 pallets.

Source: IFW

13th January
Maersk increases Europe-Asia rates

Maersk Line has announced it will implement a general rate increase on services from Europe to south Asia and the Middle East.

The Danish shipping line will increase rates for dry commodities by US$100 per teu from 15 February.
It said: “The trading conditions for the carriers operating in these markets are still subject to unacceptable rate levels and the situation is unsustainable in the longer term.”

Source: IFW

13th January
KN wins Roche Chile contract

Healthcare firm Roche Chile has selected Kuehne + Nagel (KN) to manage distribution services for its medical, promotional and raw material products.

Under the terms of the contract, KN will handle end products and raw material and will also cover the handling of temperature-controlled biotechnological products and psychotropic medicines.

It will be responsible for distribution to hospitals, clinics and pharmacy distribution centres throughout the country.
René Delsin, general manager of Roche Chile, said: “It will allow us to dedicate more attention to demand generation, without losing the quality of our current distribution in Chile.

“We will also have the possibility to incorporate new technologies, explore synergies and further integrate our logistics and distribution processes, improving our efficiency and reducing inventories.”

Source: IFW

13th January
Filter manufacturer signs with Geodis Calberson

Donaldson Filtration (GB) has signed a three-year contract with Geodis Calberson.

The agreement covers all UK and European road transport linked to Donaldson’s factory in Leicester, one of 13 locations the company has across Europe.

Geodis Calberson will manage the daily collection of consignments for Donaldson Filtration from the facility into all major European markets, including France, Germany, Spain, Italy and Benelux, as well as Eastern Europe and Ireland.

It will also deliver to the UK through the Geodis owned Fortec pallet network, and via dedicated vehicles.

The contract is for the collection and delivery of up to 100 pallets per week.

Source: Logistics Manager

12th January
Highways Agency signs four-year Norbert deal

The Highways Agency has signed a four-year national warehousing and distribution contract with Norbert Dentressangle.

The Highways Agency, an executive agency of the Department for Transport, is responsible for operating, maintaining and improving the strategic road network in England.

It has a major role in delivering the government's ten year plan for transport.

Norbert Dentressangle will be responsible for the storage of around 1,500 SKUs at its shared-user warehouse in Telford for the provision and maintenance of roadside cameras, telephones and electronic signs for the motorway network in England, including matrix signs, gantries, nuts and bolts.

It will also distribute these items to either to The Highways Agency’s regional maintenance contractors or direct to roadside projects.

Initially, Norbert Dentressangle will provide more than 100,000 sq ft of storage space, including hard standing for heavy materials and equipment, racking for palletised products and storage bins and shelving for small items.

The 3PL is also providing technical support facilities within the site for use as a workshop by The Highways Agency’s technical support contractor.

The distribution operation will involve a mix of dedicated, shared and sub-contract deliveries. Where possible, it will deliver materials and equipment direct to site on a just in time basis, helping to minimise lead times and handling and distribution costs.

Nigel Dovell, manager for The Highways Agency, said: “Their solution will support efficiency improvements in our operation, which in turn supports the efficient delivery of projects to improve the operation of and safety on the English motorway network.”

Source: Logistics Manager

12th January
Geodis strengthens drinks service

The Geodis Group is set to launch a new service for the beverage sector, and in order to strengthen its position in the sector has acquired the logistics business of specialised operator Chevallier.

Geodis customer that produce or distribute beverages will now be offered the multi-modal transport and logistics service, which covers the entire supply chain.

The acquisition of Chevallier is designed to strengthen Geodis’ existing specific organisation with the addition of six more platforms dedicated to the French market: four in the Paris region, one in the Rhône-Alpes and one in the Provence-Alpes Côtes d’Azur regions, all of which are connected to rail.

Jean-Louis Demeulenaere, deputy chief executive of the Geodis Group, said: "I am pleased that we have developed this multimodal solution combining our expertise in logistics, road transport and rail transport for one of our group's strategic sectors.”

Source: Logistics Manager

12th January
Twin challenge to Royal Mail's parcel business as internet shopping creates extra demand

Royal Mail's highly profitable parcels business faces ferocious new competition from companies planning to do deals with corner shops and garages as collection points for customers.

The explosion in business created by internet shopping has been responsible for a surge in parcel sales at Royal Mail.

The extra demand has more than compensated for the steady losses from the letters business as more people switch to sending emails.

Homeowners are also fed up with receiving cards through their letterboxes telling them to pick up their parcel from a depot often some distance away.

Now two rivals are stepping in. PayPoint, the bills payment company-based in Welwyn Garden City, Hertfordshire, and private mail company DX Group in Iver, Buckinghamshire, are both establishing their own parcels businesses.

PayPoint has been steadily building up its parcels operation since Royal Mail's strikes started in November.

The impetus for the new business called Collect+ was not just the Royal Mail strike, but a deal with eBay.

Buyers on eBay are offered a delivery choice and can opt to have their goods sent through Collect+. Their parcel can be delivered to a nearby shop or garage.

The company has 4,000 outlets, mostly convenience stores, where parcels can be collected. There are plans to expand to about 5,000 outlets if the business continues to grow.

A PayPoint spokesman said: 'The strikes certainly helped the business, but people often prefer to pick up their parcels from a secure point near them rather than get one of those letters telling them that their parcel is in a depot miles away.'

DX Group is working on plans to invest up to £40m in about 1,700 outlets, ranging from shops and garages to rail stations, bus stations and airports.

Goods ordered online would be delivered to locked boxes and the recipient could pick them up after being texted or emailed an entry code. Most of the pick-up points, which would be accessible 24 hours a day, would be nearby.

John Coghlan, chief executive of DX, said: 'We are considering setting up similar operations overseas.'

Source: Mail Online

12th January
Pall-Ex Renews CNG Fleet With Barloworld

Continuing a partnership that has stretched back over 10 years, Pall-Ex has taken delivery of a new fleet of 40 CNG powered forklifts from Barloworld . We are now operating our 3rd generation of Hyster fork trucks which work intensely day and night.

The new fleet of Hyster H2.0FT Fortens Advance 2,000kg capacity trucks are powered using Compressed Natural Gas, continuing our environmental commitments. The trucks can be filled in less than 2 minutes therefore also minimising health and safety risks. Barloworld have fitted Continental’s CSEasy tyres which are proven to last 3 times longer than standard tyres with lower roll resistance, giving greater fuel efficiency.

Operations Director, Fraser MacNeill, said: “Our fork lift trucks represent an intrinsic part of the Pall-Ex operation which functions 24 hours a day and is an extremely demanding environment. We operate the only cross-docking hub in this sector and rely completely on the performance of the forklift fleet in a tough, intense and time sensitive operation”.

Source: E-Courier News

11th January
UPS to cut 1,800 positions in US

UPS will cut 1,800 positions from its small-package operation in the US to help the company focus on profitable growth.

UPS said it would cut the 1,800 management and administrative positions by reducing the number of districts and regions in its US small package operation from 46 to 20 and five to three, respectively.

It said: “Normal attrition will minimise some job displacements, and approximately 1,100 employees will be offered a voluntary separation package."

Scott Davis, UPS chairman and CEO, said: "The decision to reduce our workforce is difficult and we appreciate the significant contributions of those who will be affected by this change, but we believe this will allow us to sharpen our focus on profitable growth while being even more nimble in serving our customers."

"The new management structure creates regions and districts that are better aligned geographically, in turn, this will enable more local decision-making and resources to be deployed for our customers."

There are no plans to close any operating facilities and UPS said the consolidation of offices would not affect customer relationships.

UPS has also announced it will report better-than-expected results for the fourth quarter of 2009, thanks to improved results and savings generated through cost management.

As a result, the company has adjusted its projected earnings per share from a range of US$0. 58 to $0.65 to a range of $0.73 to $0.75.

Kurt Kuehn, UPS’ CFO, said: "The stronger earnings stem from better-than-expected results in both domestic and international operations and savings through cost management.

"However, we still anticipate a gradual economic recovery with improvement more evident as 2010 progresses."

Source: IFW

11th January
Cinram hub gets a voice

Cinram Logistics UK, distributor of entertainment media, has rolled out a voice-directed picking (VDP) system from Knapp UK at its site in Aylesbury, Buckinghamshire.

Ten VDP terminals have been supplied for the picking of fast-moving lines from pallets, (such as new DVD releases of top films), as well as for slow-moving and bulky articles from static shelving.

Knapp has upgraded both the hardware and software at the distribution centre in a move to help boost capacity.

The new equipment includes a new KiSoft Klass-X WCS, a PLC upgrade from Siemens S5 to S7 and modernisation of the pick-to-light system, including replacement of all 8,456 displays with the latest technology.

Knapp's VDP software KISoft VOICE features multi-language options.

Source: Logistics Manager

11th January
Biffa takes 237,000 sq ft at ProLogis Park

ProLogis has signed a lease agreement with waste management business Biffa for a newly developed 237,000 sq ft distribution facility in the West Midlands.

Biffa will occupy Building Three at ProLogis Park Midpoint, one of the West Midlands' premier distribution parks. The company will use the building as a materials recycling facility for non-hazardous recyclable materials and has been granted an Environmental Permit from the Environment Agency to operate the space.

Source: Logistics Manager

8th January
HDN vs Royal Mail

The 2010 UK parcels market is wide open as Home Delivery Network gets ready to go toe-to-toe with Royal Mail.

"A transformational deal." That was the view of Gary Monk, Home Delivery Network's chairman, as he commented on his company's acquisition of DHL's parcel business in the UK.

The undisclosed deal- concluded this week -will now see HDN's market share rise to 17%, and although that still leaves the company firmly behind Royal Mail (who has the leading market share of business at 30%), it provides a statement of intent - Royal Mail could be on the rocks and HDN is ready to capitalise - the foundations for "transformation" are in place as HDN doubles in size. The combination of the two businesses will now deliver more than 180m parcels a year, leading to an estimated £600m turn over.

One cannot underestimate the damage caused to the Royal Mail brand by the series of strikes that have dogged the national operator since the summer months of 2009. The dispute with the Communication Workers Union not only led to a drop in confidence in the Royal Mail, but also saw a number of retailers fall into the lap of their rivals - with HDN one of the companies to benefit most.

Firstly, HDN has recently won contracts from Amazon and Asda, as well as renewing a five-year deal with Home Retail Group, the owner of Argos. Secondly, HDN's sister company, Shop Direct Group, recently reported a rise of 6.3% in Christmas sales, which also generated the delivery of 8m parcels. HDN itself says the online delivery market is growing by up to 15% a year. Both companies are owned by Sir David and Sir Frederick Barclay.

The recent contract wins, together with the e-commerce boom, has seen HDN cope with the recession better than most, and certainly better than the business it is buying. This was echoed by Monk when speaking to the media about the contrast in fortunes between HDN and DHL Domestic in recent times. He said: "It's no secret that [DHL Domestic] has not been particularly successful in the last couple of years but it's been on an improving trend."

A DHL spokesman also suggested that the time was right for DHL Domestic to benefit from a strong business partner. He said: "The UK domestic parcel delivery marketplace is all about scale and high volumes, which in turn drives operational efficiencies, and is highly competitive. Despite the recession, our management team has been very successful in substantially improving the performance of the Domestic business in the past year. However, we believe the time is right to divest the business to a strong UK operator."

Ken McCall, CEO of DHL Express UK, said: "It was important to us to divest our own parcel business to a company that we can trust. HDN is a strong and well-respected player in the B2C field and thus ideally complements the B2B focused services we currently offer. This will certainly create an unrivalled service for all UK domestic parcel customers."

Deutsche Post originally took a 50% share in Securicor Distribution in 1998, before merging the business with its DHL brand after taking full control. It is widely believed that the integration of the businesses was not as successful as first thought - with DHL's express division not living up to its billing. Only last year, express sales in Europe were down by 17.4% - with the UK exchange rate also hampering business. McCall suggested that the transition - a crucial time for HDN's new venture - will be carried out efficiently. He said: "We remain committed to ensuring our domestic parcel customers receive DHL's usual high standards of service and will work closely with HDN to ensure a smooth transition process. It will absolutely be business as usual for these customers."

If the integration of the businesses is carried out "smoothly" then 2010 promises to be an interesting year. Whilst Royal Mail contends with quick jabs from the CWU, they should be keeping a wary eye on HDN's knockout punch.

Source: Chris Dolan - Post&Parcel Editor

8th January
Compass Logistics launches new LCL service

Irish freight forwarder Compass Logistics has launched a new less-than-container-load service from Europe into Ireland in partnership with Dutch-based European distribution company CTS Group.

For the service, Compass, which was set up in the final quarter of last year, consolidates cargo from all over Europe at CTS' facility in the Netherlands and then picks it up on Fridays for delivery in Ireland on Mondays and Tuesdays.

Compass director Karl McKenna said: "Our customers ring us with anywhere between one pallet and a full load to from any country in Europe.

"CTS Group, with its Europe-wide transport network, manages the collection on our behalf and takes the freight to its depot."

He added that by March, Compass hoped to add a Tuesday departure with a 72-hour transit time specifically targeting its customers in Dublin.
McKenna estimated that since Compass' launch it had grown to become one of the top five Irish groupage container importers in Dublin.

"Both directors have worked together for other forwarders for many years here in Ireland, we saw an opening - and we took it," he said.

"Through the years we had our own customers here that we had generated and thankfully they have stuck with us, so we had the contacts we needed to hit the ground running."
In order to grow the business further, Compass, which also offers deep sea forwarding services, is in the process of recruiting two new sales staff in the south and west of Ireland, along with some Netherlands-based sales staff.

Source: IFW

8th January
Norbert Dentressangle wins Beretta deal

Norbert Dentressangle has been awarded a six-year contract for the storage and distribution of branded clothing and accessories by Italian firearms manufacturer Beretta.

Beretta will occupy 3,000sq metres in Norbert Dentressangle's distribution facility located at Castel San Giovanni in the Emilia-Romagna region of northern Italy, and the operation will involve the storage, handling and distribution of clothing and accessories to Beretta's own stores and other retail customers throughout Italy and Europe.

Source: IFW

7th January
Goodrich Power Systems renews with DB Schenker UK

Aircraft electronic systems provider Goodrich Power Systems has extended its contract with DB Schenker in the UK.

Schenker first won the contract at the start of 2006, looking after Goodrich's import and export air freight requirements primarily from the US and Canada, but it has now been extended to include the despatch process and some land and ocean solutions.
Schenker said additional business was won by working on a package which reduced overall shipping costs by 20%.

The new contract will run for two years.

Source: IFW

7th January
Cook calls last orders at Post Office

Royal Mail today announced that Alan Cook, managing director of Post Office, will retire in May after more than four years at the helm of the company.

Under Cook's leadership Post Office Ltd has become one of the fastest growing providers of financial services in the UK with more than

2.2m customers and has driven forward new business opportunities for

Post Office branches including the introduction of new biometric recognition technology.

Cook said: "I'm delighted to have been given the opportunity over the past four years to help build a sustainable future for Post Office Ltd and I'm honoured to have worked for an organisation which plays such an important role every day in communities around the UK."

Royal Mail said a successor to Cook will be announced in due course.

Source: Royal Mail

6th January
Deutsche Post DHL receive French offer

Deutsche Post DHL said it received an offer for its French domestic parcel business, which it aims to offload by the end of March to focus on its profitable express delivery business, reports Reuters.

The news comes a day after Deutsche Post, Europe's biggest mail and express delivery company, sold its UK domestic parcel business to Britain's Home Delivery Network for an undisclosed price.

Financial investor Caravelle has made an offer for the French business, which has about 3,400 employees, a spokesman for Deutsche Post said on Wednesday (6 January).

Media has already speculated last month that a sale to Caravelle was in the making, saying that the deal could be valued between $200m and $300ms

The Post spokesman said there were no plans to sell any international businesses or the express delivery operations.

Source: Reuters

5th January
HDN acquires DHL's UK domestic operations

Home Delivery Network Limited (HDN) has reached agreement with Deutsche Post DHL to acquire its UK domestic B2B and B2C parcel delivery operations, DHL Domestic.

The combined businesses will have annual sales of more than £600m and will deliver more than 180m parcels a year.

The combination of HDN and DHL Domestic will create a sustainable delivery business in which customers will continue to experience high quality standards of service while benefiting from a broader product offering, said HDN in a statement.

HDN believes that the two businesses will be ideally positioned to exploit the continued growth in a sector that is being driven by the expansion of e-commerce in which there is increasing overlap between B2B and B2C customers.

HDN will continue to provide best-in-class service for the combined customer base. Their increased scale will result in a more efficient business that will be capable of withstanding intensifying competition from a wide range of traditional B2C and B2B carriers, as well as challenging the Royal Mail more effectively.

This transaction will provide greater security to its customers, people and other partners. There will be a sizeable investment from HDN to ensure that the businesses will achieve their long term prospects. DHL Domestic will continue to trade under the DHL Domestic name until the two businesses are fully integrated.

The transaction does not include DHL's UK International Time Definite and Same Day express services. DHL's other UK businesses DHL Freight, DHL Global Forwarding, DHL Supply Chain, DHL Global Mail and Williams Lea are unaffected by this move.

Brian Gaunt, HDN chief executive, said: "This transaction is great news for customers of both HDN and DHL Domestic. The growth of e-commerce has transformed our marketplace and with it the demands of our customers. Combining these businesses will enable us to offer our clients a wider variety of propositions and a more efficient service. However our immediate focus will be to maintain the exceptionally high standards of service that our customers have come to expect from both businesses."

Ken McCall, CEO of DHL Express UK, said: "It was important to us to divest our own parcel business to a company that we can trust. HDN is a strong and well-respected player in the B2C field and thus ideally complements the B2B focused services we currently offer. This will certainly create an unrivalled service for all UK domestic parcel customers. We remain committed to ensuring our domestic parcel customers receive DHL's usual high standards of service and will work closely with HDN to ensure a smooth transition process. It will absolutely be business as usual for these customers."

The transaction was agreed today (5 January) and is subject to clearance by the appropriate regulatory bodies.

Source: HDNL

5th January
NYK to cut owned fleet in half

Japanese shipping group NYK has revealed plans to cut its container fleet in half by 2015 as it seeks to limit its exposure to long-term fixed assets.

In a new year speech, NYK president Yasumi Kudo said the liner trade was highly volatile and having an excess of long-term assets, such as ships, was a problem.

He said: “Ocean transport is a growth industry from a medium- and long-term perspective. There is the strong possibility that the supply-demand balance will settle down to a proper level in the future, if operators learn enough from their recent bitter experiences and accept slow steaming as normal practice to deal with soaring fuel prices and environmental problems.

“We have no intention of completely losing the expected profit in such a case by having hard-asset [ships]. The problem lies in having an excess of long-term fixed assets.

“We must exercise constant care to minimise our long-term fixed assets, overcome any deficiency in such assets through short-term lease and thereby maintain our downward flexibility at all times.

“The part of our container vessel fleet, which constitutes such long-term fixed assets, will be slimmed down to half the number of vessels and its total space capacity will be trimmed to two-thirds by 2015.”
NYK took some steps to reduce its container fleet capacity last year through its Yosoro project.

Since January, it has reduced its container fleet, taking into account slow-steaming, from 410,000teu to 360,000teu.

In other areas of its business it has idled two of its ten aircraft and reduced its warehouse space from 850,000sq metres to 760,000sq metres and its truck fleet from 1,500 to 1,100 vehicles.

Kudo also revealed the rationale behind its decision to merge its two freight forwarding divisions – NYK Logistics and Yusen Air and Sea Services.

He said: “When viewed from the customers’ perspective, the sales activities of these two logistics companies in the same NYK Group involve not only different services - contract logistics business of NYK Logistics and air freight forwarding business of Yusen Air and Sea Service - but also identical services, namely, ocean freight forwarding business.

“This undoubtedly represents a business system ignoring our customers’ viewpoint.

“Merging these two companies makes it possible not only to eliminate overlapping sales systems, but also to establish a structure capable of fully serving all logistics needs of customers - ocean/air freight forwarding and contract logistics businesses.”

Source: IFW

5th January
Maritime takes over DHL Container Logistics

Maritime Group has taken over DHL Container Logistics (UK), DHL’s container arm in a share purchase deal for an undisclosed sum, and renamed it Maritime Container Logistics.

The deal covers all the container transport activities of DHL Container Logistics, including container lifting, storage and repair operations at Felixstowe and Trafford Park, Manchester.

Maritime reckons the deal makes it the largest container transport operator in the UK. The enlarged business will operate 900 vehicles with transport depots at every major seaport and consumer conurbation in England and 16 acres of dedicated container storage.

“DHL Container Logistics is an excellent fit for our business, with complementary depots and customer base,” said John Williams, managing director, Maritime. “Not only have we been able to strengthen our UK network, we have extended our service offering to customers, though container lifting, storage and repairs.”

“We are delighted to have reached agreement with Maritime to acquire the company and that its future is secure under the wings of a strong market leader, committed to the container transport sector,” said Jeroen Eijsink, managing director, DHL Freight.

Felixstowe-based Maritime operates a network of depots for container transport and distribution from sites at Bristol, Hams Hall, Leeds, Liverpool, Manchester, Newcastle, Southampton, Thamesport and Tilbury.

Source: Logistics Manager

4th January
Chrysler picks Wallenius Wilhelmsen Logistics

US car maker Chrysler has chosen Wallenius Wilhelmsen Logistics to provide ocean transport from North America to Europe

It has also been chosen to handle traffic from North America and Europe to Australia and New Zealand.

The agreement covers a variety of Chryslers made in the US and Canada, including the 300C, Charger, Compass and Nitro models.

Wallenius Wilhelmsen Logistics operates more than 60 car carriers and ro-ro vessels, serving 20 trade routes to six continents. It carries some 2.3 million vehicles a year by sea.

Source: Logistics Manager

23rd December
CITY LINK GIVES SUPPORT TO NEW APPEAL TO HELP WOMEN AND CHILDREN IN ETHIOPIA

City Link, the UK’s premium express delivery Company is backing a brand new appeal to send thousands of pairs of pants and bras to young boys and girls in Africa.

The appeal – Smalls For All – has been started by Livingston woman Maria Macnamara and follows a recent volunteering holiday to Ethiopia.

During her two week stay in September Maria worked in an orphanage with hundreds of boys and girls up to 16. On her return she decided she wanted to do something more to help the poverty-stricken country. In October she set up a website and an appeal to send underwear for boys and girls.

She called on the help of City Link to deliver 1,000 pairs of pants to Addis Ababa. The appeal has had the backing of several businesses and individuals in the Edinburgh area and since October she has collected more than 5,500 pairs.

Maria said: “There is a real problem with poverty. When I returned I felt I had to do something. I have been rallying help from people ever since and have had some fantastic support. And for City Link to say they will transport them to Addis Ababa for free is tremendous. I am actively applying for charity status but am self funding this project at the moment and thanks to their generosity I am now able to travel to Kenya early next year when I will take more underwear to a refugee camp, helping thousands more people.”

The delivery is being organised by City Link’s Edinburgh Depot. Thomas Hunter, General Manager, said he and his colleagues were only too delighted to help.

He said: “We were touched by Maria’s story from her stay in Ethiopia and when she asked for our help we were only too delighted to do what we could.

“We picked up the pants on Monday and they are being transported to the Sheraton Hotel in Addis Ababa.”

Maria called for anyone else who would like to help the appeal to log on to www.smallsforall.wordpress.com

City Link’s Edinburgh Depot employs a team of 90 who handle 600 Customer accounts across the EH and FK1 to FK6 postcode areas. The Depot handles up to 30,000 parcels a day.

City Link, which is this year celebrating its 40th anniversary, employs 5,500 people throughout the UK, operating 3,000 vehicles from a network of 85 Depots, handling approximately 350,000 parcels daily.

Source: City Link

22nd December
Deutsche Post DHL on the verge of selling its French DHL

According to several news agencies last week, Deutsche Post was said to have accepted an offer from French firm Caravelle.

There has yet to be any official word from the Post’s management board. The financial aspects of the deal are also yet to be confirmed, but figures in the press range between $200m to $300m.

According to Transport Intelligence, “French based Caravelle is a specialist in turning loss making companies around, looking to make investments in the region of €300-400m. One of its recent acquisitions was the French cold-chain road freight business Lamberet. According to Lamberet, Caravelle paid €19.5m for the company. Caravelle also has extensive investments in automotive engineering companies located in France.”

Source: French Media

21st December
Tokyo pharma company signs NYK contract

Ranbaxy Laboratories, the global generics company of the Daiichi-Sankyo Group, has signed a contract with NYK Logistics (UK) to handle all products destined for the UK market.

The operation is based at NYK Logistics’ pharmaceutical centre in Northampton, which provides supply chain systems for a number of major pharmaceutical customers.

The 175,000 sq ft facility provides temperature-controlled, high-security storage in line with the latest good distribution practice.

NYK’s healthcare distribution centre has a Manufacturers’ Import Authorisation from the Medicines & Healthcare Regulatory Authority (MHRA), as well as an MHRA Wholesale Dealer’s Licence and is therefore able to provide storage for products manufactured in Europe, as well as imports from outside the EU.

NYK receives all Ranbaxy’s product batch released and ready for sale throughout the UK.

NYK will handle 23 million packs per annum on behalf of Ranbaxy, destined for hospitals, pharmacies and wholesalers.

The pharmaceutical company is headquartered in Tokyo with revenues of £986 million ($1.6 billion).

Source: Logistics Manager

18th December
FedEx see drop in revenue and net income for Q2

FedEx revealed a drop in revenue of 10% and a drop in net income of 30% for its second quarter, in comparison to 2008 levels.

The company reported earnings of $1.10 per diluted share for the second quarter ended 30 November, compared to $1.58 per diluted share a year ago.

“Positive momentum in the global economy and continued execution of our business strategy drove volume growth across all FedEx transportation segments, highlighted by increased international shipments,” said Frederick W. Smith, FedEx chairman, president and chief executive officer. “We have taken decisive actions during the economic downturn to reduce expenses while expanding our networks in growth markets. We are providing outstanding service levels during our busiest shipping season thanks to the dedication of our more than 275,000 team members.”

Second quarter results

FedEx reported the following consolidated results for the second quarter: Revenue of $8.60bn, down 10% from $9.54bn a year ago; operating income of $571m, down 27% from $784m last year; operating margin of 6.6%, down from 8.2% the previous year; and net income of $345m, down 30% from last year’s $493m.

Revenue and earnings declined as a result of lower yields, primarily due to a substantial decline in fuel surcharges year over year. Shipment growth, particularly in international express and at FedEx Ground, and strict cost controls benefited results.

Outlook

FedEx expects earnings per share of $0.50 to $0.70 per diluted share in the third quarter, and $3.45 to $3.75 for fiscal 2010, which reflects the current market outlook for fuel prices and a continued modest recovery in the global economy. The company earned $0.31 per share in last year’s third quarter. The company’s capital spending forecast remains $2.6bn.

“Our balance sheet is strong, volumes are growing, and we are encouraged by our performance as we emerge from the worst economic downturn in FedEx history,” said Alan B. Graf Jr., FedEx executive vice president and chief financial officer. “While there is some uncertainty regarding the sustainability of current demand trends after our peak shipping season, we expect our strong operating leverage to provide improved year-over-year profitability in the second half of our fiscal year. Effective cost management remains a priority and should continue to benefit results.”

With an outlook for modestly improving economic conditions and business performance, FedEx will resume merit salary increases for calendar 2010 as well as a 50% resumption of the 401(k) company match for most US employees. These programs were suspended a year ago. In addition, second quarter results reflect expenses to accrue for expected payouts under the company’s variable incentive compensation programs, which are designed to pay base incentives to most hourly, professional and manager-level employees prior to paying any amounts to senior management. These expected costs are included in the company’s earnings guidance.

FedEx Express segment

For the second quarter, the FedEx Express segment reported:

-Revenue of $5.31bn, down 13% from $6.10bn a year ago

-Operating income of $345m, down 36% from $540m last year

-Operating margin of 6.5%, down from 8.9% the previous year

US domestic average daily package volume increased 4%, while revenue per package dropped 19% due to lower fuel surcharges, rate per pound and weight per package. FedEx International Priority (IP) average daily package volume increased 6%. IP revenue per package declined 14% primarily due to lower fuel surcharges.

Operating income and margin declined year over year, as last year’s results significantly benefited from falling fuel prices and the related fuel surcharge timing lag. Continued reductions in network operating costs driven by fewer flight hours and improved route efficiencies, along with other aggressive actions to control spending, partially offset the negative impact of fuel price. A one-time adjustment to a self-insurance program also benefited the quarter, but was largely offset by incremental variable compensation accruals.

FedEx Ground segment

For the second quarter, the FedEx Ground segment reported:

-Revenue of $1.84bn, up 3% from last year’s $1.79bn

-Operating income of $238m, up 12% from $212m a year ago

-Operating margin of 13.0%, up from 11.9% the previous year

FedEx Ground average daily package volume was up 4%. Yield decreased 2% primarily due to lower fuel surcharges. FedEx SmartPost average daily volume grew 63%, aided by gains from DHL’s exit from the U.S. domestic package market. Operating income and margin grew primarily due to increased volume and improved productivity.

Earlier this month, FedEx Ground announced that it will be increasing FedEx Ground and FedEx Home Delivery rates by an average of 4.9%, effective 4 January 2010. FedEx Ground is also making various changes to surcharges, including modifications to its fuel surcharge table.

FedEx Freight segment

For the second quarter, the FedEx Freight segment reported:

-Revenue of $1.07bn, down 11% from last year’s $1.20bn

-Operating loss of $12m, down from operating income of $32m a year ago

-Operating margin of (1.1%), down from 2.7% the previous year

Less-than-truckload (LTL) yield decreased 12% due to the continuing effects of a competitive pricing environment and lower fuel surcharges. Average daily LTL shipments increased 3% year over year and growth rates improved month over month throughout the quarter. Operating income and margin decreased in the quarter due to the competitive pricing environment, partially offset by higher shipments.

FedEx Services segment

FedEx Services segment revenue for the second quarter, which included the operations of FedEx Office, was down 12% year over year, due to declines in copy product revenues and the realignment of FedEx SupplyChain Systems to the FedEx Express reporting segment, effective 1 September 2009. The financial impact of this realignment was immaterial.

Source: FedEx

17th December
DHL partner with SAP

SAP will be given the status of Global Technology Partner of the DHL Innovation Centre, placing it among the most important innovation partners of Deutsche Post DHL.

SAP will be given the status of Global Technology Partner of the DHL Innovation Centre, placing it among the most important innovation partners of Deutsche Post DHL.

Keith Ulrich, head of Technology & Innovation Management at Deutsche Post DHL, said the new partnership will ensure ideas can become reality.

“For us, affirming the strategic alliance with SAP into a Global Technology Partnership represents a significant expansion of our joint research efforts aimed at achieving rapid market success for innovation activities,” he said.

“By integrating our innovation centres with the research centres of SAP we are able to respond more effectively to our shared networks, drive forward research activities, and present global solutions to the outside world.”

The DHL Innovation Centre work to innovate new, flexible, sustainable logistics solutions for the future.

Volker Merk, director of SAP Deutschland, said it is great to have a research partner which can innovate for real customer demands.

“The innovation partnership with DHL is exactly what we want a research collaboration to be,” Merk said.

“What we are doing with the DHL Innovation Centre is not just theoretical research, but customer-oriented innovation. With our technology and our expertise, we want to support DHL in meeting real-world industry challenges using software innovations.”

The DHL Innovation Initiative was established in 2007 and is based in the DHL Innovation Center.

SAP is part of long list of partners in this program, including IBM, Intel, Oracle, Phillips and Motorola.

Deutsche Post DHL combines all its logistical research and development activities in the DHL Innovation Centre, close to the corporate headquarters in Bonn.

One central aspect of the partnership with SAP is the early identification of shared research, development and implementation initiatives for Deutsche Post DHL logistics applications.

To achieve this, SAP research centres will work closely with the DHL Innovation Centre.

Potential scenarios and demonstrations will be developed for presentation to the wider expert community in the showroom of the DHL Innovation Centre and where appropriate in SAP’s Living Labs.

DHL has been offering their logistics and shipping services in Australia since 1972.

Source: Inside SAP

17th December
Norbert opens new Madrid facility

Growth across its Spanish network has prompted Norbert Dentressangle to open a second facility in Madrid.

The new 4,000 sq metre centre in San Fernando De Henares will act as a regional consolidation and transhipment point for local customers using ND’s next day delivery services in the Iberian Peninsula, and as a distribution centre for the north zone of Madrid.
The company opened a 14,000 sq metre, fully automated distribution centre at Leganes last year to serve southern Madrid and has since seen a 30% increase in pallet volumes.

ND predicted further growth in its Spanish business which is already handling over 2.5m pallets each year.

Source: IFW

17th December
City Link Cardiff wins £780,000 a year contract

Williams Medical Supplies has signed a contract with City Link in Cardiff to take care of all its distribution needs in a deal worth £780,000 a year.

The deal follows a month-long trial partnership between the two companies and comes on the back of City Link moving into a flagship depot at Taffs Well in September.

The new depot is 51,000 sq ft and at present can handle 9,000 parcels daily.

Clive Reynish, general manager, said the move had been essential as increased business across the NP and CF postcode areas had led to it growing out of its former home on the Portmanoor Industrial Estate.

He added: “Williams Medical Supplies is a highly respected company and has a reputation second to none as the leading provider of medical supplies and services to the healthcare market in the UK. As part of our contract we are distributing supplies to more than 8,000 surgeries and Primary Care Organisations across the country.”

Source: Logistics Manager

16th December
TNT receive four certificates in UAE

TNT Express UAE has successfully been approved for recertification this month following in-depth audits across four key categories.

The ISO, OHSAS and SA certificates cover quality, environmental, health and safety and social accountability management systems making TNT Express UAE one of only a handful of UAE-based companies to achieve the international standard.

“This is a major milestone for the team here at TNT Express. We work very hard both locally and internationally to ensure that we maintain our standards of service and meet our corporate responsibilities to customers and communities. To be recognised for our efforts by a third party and to be re-certified by auditors of international best-practice goes to demonstrate publicly the benchmark quality that we see in our teams every day,” commented Bryan Moulds, country general manager of TNT Express UAE.

TNT Express UAE has now received recertification for ISO 9001 Quality Management System, ISO 14001 Environmental Management System, OHSAS 18001 Health & Safety Management System and SA 8000 Social Accountability Management System.

Source: AME

16th December
UPS offer BlackBerry app

UPS is offering BlackBerry users an application to find the nearest UPS location and ship and track packages.

Starting 16 December, BlackBerry users can for downloading the app for free at www.blackberry.com/appworld.

Users can track shipments, create shipments using the My UPS address book, calculate shipping rates and time-in-transit and then find the nearest UPS location. The new UPS Mobile App doesn’t require log-in for tracking. But when logged in, the application shows a history of tracked shipments and automatically refreshes when the application is opened.

The UPS Mobile App supports the BlackBerry Storm, BlackBerry Bold, BlackBerry Tour and the BlackBerry Curve 8900, Atlanta-based UPS said.

Source: Atlanta Business Chronicle

16th December
Norbert opens second Spanish hub

Norbert Dentressangle is set to open a second facility in Madrid to accommodate a 30 per cent growth in volumes in its Spanish distribution network.

The company provides next-day delivery services via a network of 60 sites.

It now handles more than two and a half million pallets as part of its pallet distribution business, and expects this to continue growing.

The 4,000 sq m centre in San Fernando De Henares will act as a consolidation and trans-shipment point for product from customers in the area, prior to onward, next day delivery throughout the Iberian Peninsula in the short term.

Going forward, it will also act as a distribution centre serving customers in the north of Madrid.

Norbert Dentressangle opened a 14,000 sq m, fully automated distribution platform in Leganes in 2008, serving the southern zone of the Spanish capital.

Source: IFW

15th December
TNT expect French growth this Christmas

TNT Express France is expecting to deliver over 6m parcels around Christmas time, twice more than in 2008.

TNT’s French arm has announced it will ensure next-day deliveries to French online shoppers until 24 December.

Consumers can choose to receive their goods at home, at work, or in one of the 4,000 Relais Colis de France service points.

TNT Express France serves more than 150 online retailers, including cddiscount.com, bhv.fr, and quicksilver-store.com. The products range from electronic devices, mobile phones, books and toys to flowers and sports equipment.

The French are expected to spend over €5bn online for Christmas and New Year’s Eve, says the French home shopping trade association.

Source: TNT

15th December
Irish post better results

An Post, the Irish postal operator, has seen a 5% improvement in its next-day delivery service during the summer months.

A total of 85% of mail posted during the July to September period was delivered on the next working day, according to ComReg’s quality of service monitor results.

“This represents a 5% improvement on the same quarter last year and consolidates the sustained progress achieved on service improvement over the last three years”, An Post chief executive, Donal Connell said.

“We are fully committed to achieving the 94% next-day delivery target,” he added.

The improvement has been achieved in parallel with major work changes successfully implemented by staff across An Post’s collection, delivery and processing operations nationwide. An Post handles more than 3m items of mail every working day and volumes will more than double during the lead-up to Christmas.

Source: An Post

15th December
BMW picks K+N for logistics at Leipzig

BMW has selected Kuehne + Nagel as its logistics partner at its production site in Leipzig. K+N will take over responsibility for the entire supply chain for final assembly of BMW automotive products from 1st January.

At the site, which comprises 44,000 sq m of warehousing and handling space, the operator will manage the full range of logistics operations to support production, including receiving, storage, sequencing, set-building and production line delivery.

In addition, it will be responsible for the supply and return of empty containers and for the execution of pre-assembly operations, and will co-operate with the automobile manufacturer in various supply concepts, such as Kanban and supermarket models.

Kuehne + Nagel has won logistics contracts with BMW in Germany, South Africa and Japan.

Source: Logistics Manager

15th December
Stobart adds 30 reefers to fleet

Eddie Stobart has added 30 new Schmitz Cargobull reefers to its trailer fleet.

They will be used to deliver foodstuffs for Stobart’s grocery retail clients on routes throughout the UK and Europe.

Source: Logistics Manager

15th December
A Davies Transport Joins Pall-Ex

Pall-Ex, the UK’s No 1 pallet distribution network, has appointed A Davies Transport to its freight distribution network. Based in Woodkirk, Dewsbury A Davies Transport are specialists in nation-wide distribution, using modern vehicles and state-of-the-art satellite tracking and navigation systems.

“I am delighted to be able to add A Davies Transport to our list of some 100 member depots, I have no doubt that they will be an extremely valuable addition to our growing network” said Chris Tancock, Network Development Director for Pall-Ex.

“We are a family run business with strong family values and are proud of the relationship we have established with our many and varied customers” Comments Managing Director Andy Davies “We have long recognised the advantages of being in a network and have tried two previously. However, with the move to Pall-Ex, we believe we have now found the right partner with the same values and vision – especially as regards innovation and quality. We look forward to a long and happy partnership.”

Source: Pall-Ex

14th December
Royal Mail to announce record pensions deficit?

Royal Mail is set to enter the record books next year — but perhaps not in the way it would wish to, reports The Times.

The postal operator confirmed yesterday that it is on course to report a deficit in its pension fund of £10bn, breaking the record held by BT, which last month reported a deficit of £9.4bn.

Adam Crozier, Royal Mail chief executive, said the pension fund deficit was being revalued, but confirmed the figure was likely to be at least £10bn, compared with £3.4bn at the last valuation three years ago.

He told The Times: “The really difficult thing lying behind all this [the company's performance] is still the pension problem. It will be another two to three months before we know the exact size of the deficit, depending on the actuaries.”

Dave Ward, deputy general secretary of the Communication Workers Union, said the union was as “daunted” by the scale of the pensions deficit as Royal Mail itself. He added: “The Government must take responsibility and honour its commitment for the deficit which will allow the company to continue with a modernisation programme which increases profits, quality of service and greater innovation in products and services.”

Under proposals tabled by Lord Mandelson, the business secretary, the Government had hoped to transfer Royal Mail’s pension deficit to the taxpayer. However, because these proposals were linked to a part-private Royal Mail, they were scuppered by backbench Labour MPs and have since been taken off the table. They are unlikely to be revived this side of the general election.

Royal Mail confirmed yesterday that a £305m payment into the pension scheme during the six months to 30 September - part of a plan to pay at least £260m into the scheme annually during the next 14 years - more than wiped out its profits during the period.

The company reported a 4% rise in operating profits, to £184m, despite a 1.6% drop in group revenues due to the recession and the decline in mail volumes.

The figures do not cover the period in which Royal Mail was hit by a series of national strikes by members of the Communication Workers Union but do include the impact of a number of unofficial walkouts.

Crozier said that much of the improvement was a result of the modernisation programme, which meant 5,000 people left the business during the period, taking the total since spring 2002 to about 60,000.

He said the results fully justified the programme, much of which was pushed through in the face of opposition from the union, which is discussing plans with Royal Mail under a peace deal brokered by the TUC to halt the strikes.

“We genuinely do understand that change is difficult for our people but what this shows is that modernisation does work,” Crozier said. “Change is difficult for everyone but Royal Mail has no alternative but to change and modernise if it is to compete in today’s highly competitive communications market.”

Crozier said that two thirds of the revenue decline were structural and the rest down to the recession.

Ward said: “These financial results betray the myth that the CWU has been blocking change. Postal workers are working harder than ever before. We believe they deserve to be rewarded for the success they have brought to this change process which has delivered a 4% increase in half-year profits.”

Source: The Times

14th December
UK rivals grab 30% of post

One in three letters is handled by a rival to the Royal Mail, the state owned firm has admitted, reports The Daily Mail.

Every day, around 72m letters and parcels are sent - and around 26m are not picked up or sorted by the Royal Mail.

Within two or three years, it is likely that private firms will handle most British mail.

Only customers sending ‘personal’ post, such as birthday and Christmas cards and thank-you letters, and small companies will still use the firm.

The figures highlight the crisis which has hit the company since it was opened up to competition in 2004.

In just five years, a rapidly growing list of companies has deserted the Royal Mail for one of its competitors.

Barclays, Sainsbury’s, Lloyds Banking Group, Royal Bank of Scotland, Powergen and Aviva are just some of the companies which have abandoned it.

Many customers do not realise that post such as bank statements and utility bills are not handled by the Royal Mail.

But letters dealt with by its rivals are easy to spot. They do not have a stamp and the envelope is marked clearly by the rival’s name, such as TNT Post or UK Mail.

At present, Royal Mail’s rivals still rely on it to actually post the letter through letterboxes. These companies pick up letters and sort them but give them to Royal Mail’s postmen for the ‘final mile.’

Private firms could choose to deliver the mail themselves but it is currently too expensive and impractical to do so.

However, TNT would like to have its own postmen delivering its letters in the future.

The figures from the Royal Mail show the extraordinary impact on the company since it lost its monopoly.

In 2005, TNT handled 300m letters, rising to 1.7bn by 2007 and 2.6bn a year today. Royal Mail said most bulk mail is now handled by its rivals.

To make matters worse, in only three years the number of letters sent every day has dropped by 12m.

Overall, yesterday’s figures show Royal Mail made an operating profit of £184m during the six months to the end of September, up 4% on last year.

Post Office profits rose from £28m to £41m, helped by new financial services such as a wider range of mortgages.

Source: The Daily Mail

14th December
UPS to be even busier on busiest day

UPS has circled Monday 21st December as its busiest day of the year, when it predicts it will deliver some 22 million packages worldwide – 40 per cent more than daily volumes on a normal day.

This compares to reports earlier in the week from FedEx, which said its busiest day of the year will be Wednesday 16th December when it predicts it will see an 18 per cent rise in the volume of packages it delivers.

UPS said it will deliver approximately 400 million packages around the world in the four week run up to Christmas, up slightly on the 2008 holiday season.

UPS Airlines will fly more than 330 additional flights per day globally during the four days leading up to Friday 25th December. The company’s highest volume day for handling air express packages will be Wednesday 23rd December, when it will deliver more than six million air packages.

Source: Logistics Manager

10th December
Irish postal operator to slash 1,300 jobs

An Post has said that it intends to reduce its 10,000 strong workforce by 1,300 between 2010 and 2012, reports RTE Business.

Around 450 people received letters from the company over the last few days inviting expressions of interest in voluntary redundancy.

From that group, the company is seeking 250 redundancies as the first tranche of the three-year redundancy programme.

The company has 1,250 post offices and 200 postal agents.

The job cuts form part of a drive to realign the company structure and size in line with a new business reality - where mail volumes are down 10% year-on-year.

The company is also facing the challenge of fully liberalised mails market within the next year, and is seeking to streamline the company ahead of that.

The staffing cuts would apply across all levels of the company nationwide, including headquarters, collection, retail, and processing.

The company says staff numbers were already reducing due to change programmes and automation, with a loss of 351 employees in the last year alone.

Redundancies would be on a voluntary basis, though the terms have not yet been revealed.

Source: RTE

10th December
TNT Post: Gradual introduction of minimum wage feasible and necessary

TNT Post has taken note of the announcement by Sandd and DHL Global Mail that they will be requesting summary proceedings to challenge the “Temporary decree on postal contract of employment”.

TNT Post is urging the Dutch government not to relax the minimum social requirements agreed by all players when the Dutch postal market was liberalised.

A company statement said:

Price level

The Dutch postal market has turned into a tender market since it was fully opened to competition, with the delivery of large volumes of mail being put out to tender, not only by businesses, but also by the government and public organisations. TNT Post has determined that for all calls for tenders put out in 2009, price was for over 60% decisive in who would be awarded the contract, with criteria such as quality and sustainability being secondary considerations.

According to Sandd and DHL Global Mail, the present price level makes the gradual introduction of contracts of employment that ensure a minimum wage impossible. In recent calls for tender, including for the main governmental postal volumes, Sandd offered rates of less than 12 euro cents per item. DHL Global Mail won the right to deliver TV guides for broadcasters Veronica, AVRO, KRO and NCRV by offering a rate of less than 13 euro cents. In recent months, Sandd and DHL Global Mail have taken some 150m mail items away from TNT Post in total.

Restrictions under competition law prevent TNT Post from offering rates at this level.

Furthermore, TNT Post feels that such a price level is not desirable because this blocks the way to fair conditions of employment. Accordingly, TNT Post emphatically rejects allegations that the company is responsible for the current price war raging in the Dutch postal market. TNT Post’s subsidiary Netwerk VSP is not taking part in this price war either; it has recently increased its rates in order to be able to gradually introduce contracts of employment that ensure a minimum wage.

Competing on the basis of conditions of employment

Liberalisation has a major impact on employment at TNT Post. The Dutch postal company must be realigned to deal with the new situation. In a shrinking market, this has far-reaching consequences for the terms and conditions of employment and the jobs of TNT Post employees.

Harry Koorstra, Group Managing Director TNT Post: “It is remarkable that the other postal companies can offer such low rates. It would be no problem for them to attract volumes while offering higher rates and, at the same time, meet the requirements set by law concerning terms and conditions of employment. This would give our competitors as well as TNT Post a fair chance to adapt to the new market situation.”

Well considered decision

The “Temporary decree on postal contract of employment” is carefully drafted legislation that sets out a step-by-step schedule for the gradual introduction of the minimum wage in the Dutch postal market. When it was agreed to open up the postal market fully to competition, the government, trade unions and the postal sector all agreed that the current practice of paying deliverers on a piece-rate basis was socially unacceptable and needed to be phased out.

Under the “Temporary decree on postal contract of employment” the aim is to eventually have 80% of mail deliverers working under a fair contract of employment. This target is to be achieved using very reasonable interim steps, having 10% of the mail deliverers working at contracted minimum wage by April 2010, 30% by April 2011, 60% by April 2012, and finally 80% by October 2012.

At present, some 100,000 people work in the Dutch postal market, with 30 to 40% of these being paid on a piece-rate basis. These people do not qualify for social security, pension schemes, holiday pay or paid sick leave.

TNT Post calls on the government to stand by its decision to introduce contracts of employment that ensure payment of the minimum wage and to ensure that this decree is properly enforced.

Source: TNT

10th December
Ceva's Amsterdam facility renews security certificate

Ceva Logistics’s Amsterdam facility has been recertified under the Transported Asset Protection Association (Tapa)-A security certification audit.

The Tapa award is given to facilities that pass a series of security standards.

Ceva’s facilities in Paris, Dublin, Brussels and London Heathrow will be audited by Tapa in the coming weeks.
Paul Linders, Ceva’s security director, said: “Tapa plays an important role for our industry. For our customers, this re-certification demonstrates our commitment to security and protection of their goods at recognised global standards and is part of our ongoing efforts to offer the best services and solutions in the industry.”

Source: IFW

10th November
Tie Rack renews DHL contract

Tie Rack has renewed its contract with DHL Supply Chain in a deal worth £4.3m that extends the relationship until 2012.

The contract covers the Tie Rack and Rolling Luggage brands and is run from from the multi-user Hams Hall site. DHL manages a full range of services, including inbound freight from suppliers in India and China, as well as cross-docking, pick and pack, dispatch and returns handling.

DHL’s specialist fashion unit will continue to run all international inbound freight and warehousing operations serving 197 Tie Rack and 40 Rolling Luggage stores in the UK, Europe and the US.

The contract includes a new consolidation centre based in Hong Kong and opened by DHL in March 2009 for a shorter and quicker supply chain to markets in the Far East and Australia. Through the new service, Tie Rack is able to ship products sourced in Asia direct to the Hong Kong warehouse where they are picked, packed and dispatched to more than 50 stores and franchises across Australasia.

Lindsay Smetham, Tie Rack’s logistics manager, said: “The Hams Hall facility provides flexible labour and storage services and the integration of DHL’s warehouse Styleflow system has improved the accuracy and speed of operations through the use of scan pick technology.”

Source: Logistics Manager

10th December
Royal Mail reports 4% rise in operating profit

Royal Mail has reported an operating profit of £184m for the six months to September, up 4% from a year ago.

But the company also announced that it had paid more than £300m into its pension fund over the period.

It said its pension fund deficit was being revalued and was expected to reach £10bn, compared with £3.4bn at the last valuation three years ago.

Revenues for the half-year fell £73m to £4.58bn, hit by the continuing decline in mail volumes and the recession.

Royal Mail said its letters business had seen volumes fall to 72 million items a day, down by three million from last year.

Employment costs were £170m lower than in the same period last year. Royal Mail says that 60,000 people have left the group since 2002, with 5,000 job losses in the six months to September.

Profits were made in all four businesses within the Royal Mail group: the Post Office, Royal Mail Letters, Parcelforce Worldwide, and its European parcels business GLS.

Driving efficiency

Royal Mail said the rise in operating profits was an indication that the modernisation of its letters business was working.

"Everyone working the hours for which they are paid, working flexibly and using new equipment we're investing in... have helped drive efficiency and offset the effects of volume decline," said Royal Mail chief executive Adam Crozier.

Royal Mail says it is two-thirds through the implementation of its plans, the details of which sparked a number of strikes earlier this year.

The plans, which will cost a total of £2bn, include:
- the roll out of walk sequencing machines which sort the mail for a route
- the installation of large flat sorters which sort larger items such as catalogues and magazines
- more "intelligent" letter sorting machines which sort mail faster and more efficiently

Commenting on the figures, the Communication Workers Union (CWU) said the hard work of its members should be recognised by Royal Mail bosses.

"We believe postal workers deserve to be rewarded for the success they have brought to this change process. A pay freeze is no way to thank staff who have seen colleagues leave and workloads rise," said CWU deputy general secretary Dave Ward.

Source: BBC News

9th December
FedEx predicts 18pc rise in peak Christmas traffic

FedEx is predicting an 18 per cent increase in the volume of packages that move through its EMEA network on its busiest day of the year, 16th December, compared to 2008.

In addition to the usual seasonal spending in stores, consumers are helping to fuel a rise in online sales this holiday, contributing to the surge in the number of packages which move through the FedEx network at this time of year.

With consumers spending more time online, e-commerce will likely drive more holiday activity this season than in the past, making the week starting 14th December the busiest of the year.

Research from online retailer eBay revealed that 85 per cent of consumers across Europe intend to spend as much as they did last year or increase their online spending this year, with four out of ten consumers shopping more online now than in 2008—in part because of a challenging economy preventing pre-holiday upturns in retail stores.

Additional research carried out by the Centre for Retail Research in the UK also revealed that online spending in 2009 is set to reach a total of £8.9 billion this Christmas, representing 20p in every £1 spent, and a 24 per cent increase on previous years.

Adam Psarianos, vice president, operations, FedEx Express Northern Europe, said: “There's a dynamic happening, as the tough economic environment sees e-commerce fast outpacing more traditional means of retailing. In many ways, we see this trend as the growth opportunity for years to come.”

Source: Logistics Manager

9th December
Italian spectacle for Ceva

Ceva has won a one year contract to handle warehousing and distribution in Italy for spectacle brand Italia Independent.

The deal with LA, the company founded by Lapo Elkann that holds the brand includes services such as labelling, the creation of packaging, and the management of advertising materials.

Ceva will offer tailored support for the company’s growth, as well as assisting in the development of complex activities over the product categories that LA covers.

This operation will take place at Ceva’s site at Scarmagno, Turin, which specialises in fashion.

Source: Logistics Manager

8th December
FedEx up 2010 charges

FedEx will increase the standard list rates for FedEx Ground and FedEx Home Delivery by an average of 4.9% for 2010.

FedEx SmartPost rates also will change.

FedEx previously announced that it would increase shipping rates for FedEx Express by an average of 5.9% for US domestic and US export services also effective 4 January.

T he FedEx Express rate increase will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by two percentage points.

Additional adjustments will also be made to the FedEx Express and FedEx Ground fuel surcharge tables.

Source: FedEx

8th December
French haulage workers strike over wages

Five unions have called on the 500,000 workers employed in France’s road freight sector to strike for an undefined period from 13 December over demands for increased salaries.

The action is likely to target distribution hubs supplying temperature-controlled goods to supermarkets in the run-up to Christmas, rather than blockading roads and fuel depots, which were features of previous disputes.

Employer trade body the TLF recently offered a pay rise of 3%, which was rejected.

The road haulage federation, FNTR, has not offered any increase, arguing that its members are in no position to do so, not only as a result of recession, but also because of proposed new French taxes relating to HGVs and CO2 emissions.

"A strike must be avoided at all costs," Transport Minister Dominique Bussereau told French radio, adding that he thought some of the salary demands lodged by the unions were justified.

Bussereau has been in in talks with employer groups and had arranged a meeting with union representatives for today (7 December).

Source: IFW

8th December
City Link cleans up with shower deal

Shower manufacturer Triton has signed a deal worth more than £150,000 a year with City Link for the national distribution of customer parcels and the delivery of extended warranty mailings.

The contract follows a three-month trial period.

Graham Neve, general manager in service at Triton, said: “We had been using another delivery company until recently but they underwent a major restructure. Following this we felt that some of our service requirements were not being met.

“For us, it is not about price and who is the cheapest. City Link had many strong selling points, not least its track and trace system. This has proven to be a tremendous help to us as when we have customers on the phone asking where their delivery is we can now give them the answer almost immediately.”

* Elsewhere, City Link has signed a three-year framework agreement with Fraikin to replace its entire fleet of 222 double-deck box trailers with a new double dropframe curtainside trailer.

This replacement programme will allow City Link to fine tune its hub and spoke operation using 236 purpose-built Don Burr trailers.

Phil Duckworth, operations director at City Link, said: “Switching to curtainsiders allows us to use larger cages which can be loaded and unloaded exclusively by forklift truck.

“In comparison with our existing box trailers this will cut loading times by around 70 per cent, whilst also delivering further health and safety improvements as staff will no longer have to manually roll the cages on and off the trailers by hand.”

The trailer delivery has been split into two phases, with delivery of an initial batch of 80 trailers due to be completed by the end of the year.

A further 156 new trailers will be built and delivered into service by Fraikin during 2010.

Fraikin will also be responsible for servicing and maintenance as part of the new contract hire agreement. This will include the provision of tyres and comprehensive breakdown support.

Fraikin has also taken over the fleet management responsibility for 119 trailers previously maintained by another supplier.

All of the double-deck box trailers being de-fleeted during 2009 and 2010 will be prepared for sale by Fraikin's in-house used asset team, with trailers ranging in age from two to six years.

Source: Logistics Manager

7th December
TNT announce strategy “Vision 2015”

TNT has published Vision 2015 – a strategy that sees further stabilisation in its trading environment. Key points include:

-Vision 2015 focuses TNT’s activities on Day-Definite Delivery Services globally and Mail Services in the Netherlands.

- In the Day-Definite Delivery Services four focus areas are defined: European Parcels; Freight; Special Delivery Solutions and Emerging Platforms. All areas offer attractive profitable growth opportunities.

- Mail NL will focus on cash flow, cost adjustment and business renewal in a sharply declining market. European Mail Networks will realise and free up its value through partnerships and sale.

- Starting from a cautious 2010 economic recovery assumption, the Vision 2015 ambitions are translated into clear and attractive financial objectives.

Source: TNT

7th December
Fortec strengthens bond with Geodis Calberson

Pallet distribution network Fortec Pallet has unveiled a new corporate logo in order to strengthen the link with its parent company Geodis Calberson.

Along with the green colour scheme Fortec Pallet also has a new slogan: Delivering every step of the way.

Neil Hodgson, newly appointed managing director of the Fortec Pallet Distribution Network, said: “We can benefit from synergies under the Geodis Calberson banner and are committed to a new sales and marketing approach under this closer working relationship which will see Fortec go from strength to strength.”

Source: Logistics Manager

4th December
Mandelson gives Post Office a boost

The UK government is promoting new financial products and services that could be offered via the Post Office, ranging from a business account to children’s savings, reports Press Association.

Business Secretary Lord Mandelson said growing financial services would help secure the future of the postal network, which has suffered a wave of closures in recent years.

A public consultation was launched on the type of products that could be offered.

It included: a Post Office Current Account, accessible from any of the 11,500 branches across the UK; a Children’s Savings Account, designed to encourage children to save through their local post office; a Business Bank Account; and a Weekly Budgeting Account, offering a simple account to low income households so bills could be paid by direct debit every month or quarter.

Lord Mandelson said: “Growing financial services at the Post Office will help secure the future of the network and give people access to a full range of banking products at an institution they trust and value.

“At a time when some banks and financial services companies are seeking to reduce face-to-face contact with customers, the Post Office stands out. It offers a trusted brand, and has more branches than the high street banks combined. It is ideally placed to bring banking services back to the heart of people’s communities.

“Our consultation outlines exciting proposals, but I want people to have their say. This is an opportunity for local communities to tell us what they want and need from their Post Office.”

Prime Minister Gordon Brown said at the Labour Party conference in September that he wanted a bigger role for post offices in providing financial services aimed at increasing access to reliable financial products for consumers and small businesses.

The announcement will be welcomed by business groups and trade unions, which have been campaigning for a People’s Bank to help secure the future of the UK’s post offices.

Source: Press Association

3rd December
Royal Mail launch DM Sale

Royal Mail has announced the UK’s first-ever ‘DM Sale’ to help advertisers who use direct mail to try new campaign tactics.

A discount of 20% will be available on new or additional mailings in March and April 2010.

The initiative is designed to encourage advertisers who don’t use direct mail to test it as a stand alone activity or as part of an integrated campaign as well as enabling existing DM users to try different campaign tactics during the two-month period and maximise the use of their data.

The announcement follows recent research carried out by media agency group OMG, on behalf of Royal Mail, that showed direct mail’s ability to improve the performance of other marketing activities, with digital campaigns seeing a 62% increase in payback when combined with direct mail.

The study also revealed direct mail as the only advertising channel to show an increase in response rates in the first half of 2009.

Mark Thomson, media director at Royal Mail, said: “Advertisers and agencies alike are under pressure to deliver more for less. Most media channels are being underpinned with incentives including short-term price deals, value-added offers and shared risk opportunities and this initiative is a new approach for Royal Mail.

“We want advertisers who do not use direct mail to discover for themselves the benefits of a mail campaign either on its own or in combination with other marketing activities. The DM Sale will also enable existing direct mail users to make the most of their data and reach a wider audience than they would ordinarily target.”
The DM Sale offer will offer a 20% discount on new or additional Mailsort 3 letter volumes. It is also available for Royal Mail’s Sustainable Mail product, which is already priced up to 4.7% lower than normal Mailsort prices for mailings that meet environmental standards.

Advertisers wishing to take advantage of the mail sale will be required to complete their application by March 19 2010. The offer applies to any organisation willing to increase direct mail volumes above normal levels for March and April 2010 compared to previous years.

Source: Royal Mail

3rd December
UPS opens “door to the world”

UPS Canada has formally opened a $70m expansion of its Toronto distribution centre.

Scott Davis, chairman and CEO of UPS, and Mike Tierney, president of UPS Canada, presided over the official opening of the newly expanded 463,024-square-foot facility, the equivalent to about eight football fields. The enlarged “door to the world” more than doubles UPS’s package processing capacity to facilitate international commerce between Canadian businesses and their overseas counterparts.

In opening the expanded facility, Davis noted it might seem strange that UPS would invest $70m “in the middle of the worst recession in recent history.”

“But there’s a simple answer,” the CEO continued. ”UPS sees the same kind of possibilities in Canada that we saw more than 30 years ago when it began operations here. What we see is amazing potential - a strong and resilient Canadian economy, the unstoppable force of global commerce and a nation of companies ready to emerge stronger from the recession into a new era of global growth.”

UPS broke ground on the expansion of the Toronto hub in 2007, recognising a growing demand among businesses in Toronto - and Canada as a whole - to ship goods within the country and to destinations around the world.

“You can’t look at this building as a stand-alone facility,” Davis added. ”It’s really part of a global web of air and ground facilities, freight and airline fleets, warehouses and retail stores connecting each business to more than 200 countries and territories around the world.”

The expanded Toronto hub is located on Toronto’s northern border within the rapidly growing city of Vaughan, where UPS is the second largest employer. It will process freight shipments in addition to small package volume.

“This newly expanded facility will serve as a local economic driver, creating several hundred jobs for local and regional residents,” said Tierney. “In addition, it will contribute to the tax base and offer the city a state-of-the-art building in line with environmental standards.”

The building includes numerous eco-features, including skylights for more natural light; an energy management system for climate control that automatically detects the amount of sunlight in the building and adjusts the internal temperature accordingly; the expansion of the propane fueling area to facilitate a broader use of propane fuel, and a comprehensive storm water management system.

Source: UPS

3rd December
DHL partner with IATA

DHL Global Forwarding is partnering with the International Air Transport Association (IATA) in its global e-freight campaign.

Intended to take the paper out of air cargo, e-freight will continuously reduce the number of paper documents that DHL Global Forwarding has to handle with every air cargo shipment.

Of the 30 documents required, 16 are currently being replaced by electronic messages and the number will rise to 20 by 2010. Airlines will benefit considerably from this simplification.

DHL Global Forwarding handles more than a third of all international forwarder-issued e-freight shipments worldwide and introduced E-freight shipments already in 21 countries, covering 108 Airport locations. E-Freight allows a shipment to be created by the manufacturer, transmitted to DHL Global Forwarding via EDI, processed, transmitted to the air carrier, to destination operations and to customs authorities, de-consolidated and cleared for delivery in a secure electronic environment, without the need to produce a single piece of paper.

Despite the current downturn in global shipping activity, DHL Global Forwarding has invested considerable knowledge, manpower and monetary resources to be ahead of the learning curve.

“This is a future-oriented project,” Michael Schaecher, global head air freight, DHL Global Forwarding, said: “We are fully aware that in five to six years’ time the airfreight business will be very different from today, with electronic messages replacing the multiple handling of documents. E-Freight offers major advantages for our organisation, our service partners, our highly valued customers and, last but not least, the environment.”

Benefits of the initiative include lower costs, faster service with reduced cycle times of 24 hours on average, greater reliability and accuracy due to one-time data entry at the point of origin and much better visibility in the online track on account of electronic documentation, which allows for online track and trace functionality. It also protects the environment by eliminating more than 7,800 tons of paper documents worldwide - the equivalent of eighty Boeing 747 freighters per year. This will allow DHL Global Forwarding, which has already taken substantial steps to reduce its carbon footprint as part of the Deutsche Post DHL GoGreen initiative, to further deliver on its environmental commitments.

“The International Air Transport Association welcomes the willingness of DHL Global Forwarding, as the market leader, to fully embrace and contribute to the success of this groundbreaking initiative”, said Aleks Popovich, senior vice president, Industry Distribution and Financial Services, IATA. IATA is an international airline industry trade group based in Montreal, Canada. Representing over 230 airlines comprising 93% of scheduled international air traffic, its mission is to represent, lead and serve the airline industry.

Source: DHL

3rd December
Maersk and DP World join forces in Peru

DP World Callao and Maersk Line have signed an agreement that will see the world’s largest shipping line become DP World’s cornerstone client at its new facility in the Peruvian port of Callao.

The Terminal Services Agreement will come into effect when DP World completes development of its 850,000teu-capacity “Muelle Sur” facility, scheduled between April and May 2010.

“The new terminal will finally provide Peruvian exporters and importers with the opportunity to reduce costs by accessing an improved shipping network as well as improved land side logistics,” said Maciek Kwiatkowski, general manager of DP World Callao.
Michael Kaasner Kristiansen, Maersk’s head of operations for Latin America, said: “Maersk Line is expecting an improved end-to-end cost for our clients, coupled with berth windows and higher productivity to deliver unmatched schedule reliability in the Peruvian market.”

Source: IFW

2nd December
TNT makes urgent appeal to unions

TNT has urged workers’ unions to reconsider proposals for a labour deal.

The unions have so far rejected TNT’s proposals that include a 3.5% pay cut, and put forward their own terms, including a 1.5% pay rise, as negotiations to avoid job cuts and strike action drag on.

A TNT statement reads as follows:

TNT is surprised and disappointed at the trade unions’ stance on the company’s collective labour agreement and social plan, as announced by the unions today.

TNT sees no common ground whatsoever between the unions’ stance and the seriousness of the issues faced by TNT Post.

Since 2007, the necessary cost savings have been extensively discussed with the unions. A recent study by research agency Ecorys, commissioned by the unions, reconfirmed that far-reaching cost measures are necessary to maintain the viability of the company.

TNT Post is facing serious challenges in the liberalised postal market, with price representing a decisive factor in a market that is free to make its own choices.

Legal provisions are such that TNT Post is unable to lower its rates below cost price, which is largely determined by labour costs. The difference in wage costs, ranging from 23 euros per hour at TNT Post to 8 euros per hour at its competitors, means that TNT Post cannot simply make drastic cuts to its prices. As a consequence, from 1 January 2010 almost all Dutch radio and television guides, totalling over 100m mail items, will be distributed by competitors of TNT Post.

Recently, lower prices also led the government to contract the delivery of 70m mail items to the competition. Moreover, postal volumes are witnessing a strong decline as customers increasingly switch to digital solutions.

The proposals put forward by the unions will force drastic and rapid reorganisations resulting in a few thousand compulsory redundancies. TNT has therefore called on the unions to reconsider their proposals. TNT’s Board of Management wishes to discuss the submitted proposals and their consequences with the unions’ chairpersons. Following this discussion, TNT will enter into negotiations with the unions whatever their proposal.

In recent years TNT has repeatedly stressed that it favours acceptable changes to the level of terms and conditions of employment in order to protect as many jobs as possible and be able to take on the competition.

TNT attaches great importance to providing clarity to its employees as soon as possible.

Source: TNT

2nd December
KN wins Ireland pharma certification

Kuehne + Nagel (KN) has become the first company to be awarded the newly established Good Distribution Practice Passport from Life Sciences Ireland, an industry grouping within the Irish Exporters Association.

The voluntary code of practice for pharmaceuticals, chemicals and biotechnology, was developed by the Irish Exporters Association, Irish life sciences manufacturers and the Irish Medicines Board.

The GDP standard recognises an increased need for further compliance and regulatory requirements in the international supply chain.

Source: IFW

2nd December
Newspaper wins for Ceva Logistics

Ceva Logistics has won a five-year contract to manage UK distribution for the Telegraph Media Group, and three-year contracts with the Express and Sport newspaper groups.

Ceva has managed distribution for the Telegraph Media Group, which publishes the Daily Telegraph and Sunday Telegraph, for more than 20 years. The Express contract was won following a competitive tender.

Steve McLaughlin, director and general manager at Telegraph Media Group, said: “We’ve worked with Ceva for 20 years and view the team as an extension of our own. When a big story breaks late in the day or overnight, our printing schedule and distribution timings shift. So it’s critical for us that our logistics solution can adapt to cope with changes quickly and at cost.”

David Bermingham, managing director, Ceva Newsfast, said: “The publishing sector is facing unprecedented and challenging times and there’s a greater need than ever before for the distribution supply chain to be responsive. With such a tough operating environment, publishers are also seeking the most cost effective route to market. We have clearly demonstrated to these three companies that we can deliver unrivalled reliability and service excellence in a cost effective way”.

Last month, DHL won the contract to distribute The Sun and The Times newspapers for Rupert Murdoch’s News International following a 12-way competitive pitch.

Source: Logistics Manager

2nd December
Yamaha Music renews NYK contract

Yamaha Music UK has renewed its contract with NYK Logistics for the operation of its national distribution centre, handling musical instruments and audio visual equipment.

Yamaha supplies a wide range of musical instruments to music stars, as well the general public.

As part of its contract with Yamaha, NYK is responsible for the dispatch of the company’s full range of instruments, ranging from piccolos to grand pianos, as well as specialist equipment such as PA systems and mixing desks.

NYK receives orders by electronic data interchange with small items dispatched by a nominated parcel carrier.

Dedicated vehicles deliver upright and grand pianos, which are transported on protective shoes then reassembled at dealers by trained delivery crews.

NYK reworks various mass-market products and handles promotions and exhibitions, as well as direct deliveries to schools across the UK.

Source: Logistics Manager

1st December
KN wins aircraft logistics deal

Premium Aircraft Interiors Group (PAIG) has appointed Kuehne + Nagel (KN) as its global logistics partner.

The deal will see the logistics aspect of PAIG’s after-market business for aircraft cabins outsourced to KN across sea, air and road.

KN said it would install its web-based, supply chain visibility platform, KN Login, for PAIG and “undertake process improvements and operations reviews for Premium”.

Brent Collins, head of global supply chain services at PAIG, commented: “There is a much needed shift to customer responsiveness by improving operational performance with no impact to cost.
"KN has delivered against this model. Customers are already seeing the benefits of streamlined reporting and improved physical logistics processes, which in turn will remove waste from the value chain and much needed cost in a struggling airline market."

Source: Logistics Manager

1st December
DHL gets quick return as Paragon software delivers savings

DHL Supply Chain “Non Food Retail” has installed an innovative logistics software solution from Paragon Software Systems that is set to deliver substantial annual savings while maintaining service excellence. The system optimises DHL’s routing and scheduling for its Staples office products operation based at Watford Gap. The software was up and running within eight weeks and is already producing significant benefits. With such rapid results, DHL says the software has already paid for itself.

“We are very pleased to report significant success with the Paragon software for our Staples account. The system was installed and operational in a short space of time thanks to Paragon’s support team and the benefits have been immediate,” says Craig Holmes, General Manager, DHL Non Food Retail. “Our target is to reduce our transportation costs by a six figure number in year one of using the software and then double it going forward.”

“The system will help us achieve these long-term savings by producing optimised daily plans with accurate routes and schedules that will provide savings on fuel and assets. This will also help us to ensure maximum use of our fleet capacity, giving us the flexibility to deal with up to 60 store deliveries per day across the UK, plus supplier returns and waste collections. This all adds up to tremendous savings for our customer while maintaining our current service levels,” he adds.

DHL selected the software to replace a legacy system, centralising planning at its Watford Gap national delivery network site. Planning is performed daily for multi-drop deliveries of six to 10 pallets per store. These fluctuating loads correspond to consumer demand. Paragon provides the flexibility and accuracy to enable DHL to quickly optimise delivery schedules and achieve a minimum 87 per cent load per vehicle – in essence allowing the company to maximise service, while keeping a tight rein on resources.

Source: E-CourierNews

1st December
HOME DELIVERY NETWORK RENEWS CONTRACT WITH HOME RETAIL GROUP

Home Delivery Network Limited (HDN), the UK’s largest shared user home delivery and collection company, is delighted to announce long term renewal of its contract with Home Retail Group (Argos & Homebase).

HDN’s partnership with the group goes back to its GUS days and has continually demonstrated its ability to grow and adapt in a changing market. Introducing new services is fundamental to continued growth in this competitive arena.

Amongst some of these new services has been the development of SMS based customer pre-advice of estimated time of delivery, together with time windows, giving greater customer visibility and control of the delivery.

Brian Gaunt, chief executive of Home Delivery Network said: “Renewing our contract demonstrates the strength of our relationship with a leading multi-channel retailer recognised for great value. Key to growing our customer base is our ability to adapt to an ever demanding customer with changing requirements.”

“The renewal of this contract is a positive endorsement of the work we have undertaken over the last 12 months to improve the breadth of our service proposition for our customer base.”

Speaking on behalf of Home Retail Group, Brian McCarthy, Home Delivery Director, commented:

“Improved customer services, enabling the customer to see and control their order, is key to a great customer experience. HDN have demonstrated leadership in enhancing the customer journey whilst recognising the importance of maintaining a competitive cost base."

Source: HDN