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Friday, December 14, 2012

Branches and parcel delivery profits create letter losses..

Branches and parcel delivery profits create letter losses..

According to Royal Mail  price rises and job cuts bear fruits.

Focus given on cutting cost , only service on 6 days a week.

According to Royal Mail first half operation earnings trebled due to the increased profit from their branches and parcel delivery operations offset continuous fall by letter delivery. The postal operating company owned by Govt and planning to privatize created profit from 22 million pounds to 67 mp in a year.

By applying necessary steps - increase in price and cost control steps - Royal Mail was able to survive financial crisis , said Moya Greene ,CEO.The results are pouring in , but there are still more work to be done.

Royal Mail delivers 59 million items daily to 29 million British customers , told losses during operations on parcels and letters fell from 55 million to 41 million pounds in a year. This improvement shows the  price hike of a first class parcel from 41 pence to 46 pence.

The loss was compensated by 58 m pound profit of Royal Mall's British express parcels GLS and another 55 million pound generated from post office network. During the process of job cuts , Royal Mail cutoff 5000 workers in last 12 months,  of which around 2000 from head office.

Conditions of trading will always be challenging and hence we have to find out more cost cutting methods by sticking to deliveries on all days excluding Sunday. Royal Mail made  a loss of 120 million pound on letter business in last year. But Ofcom , industry regulator , proposed that they are able to charge whatever amount they want on their first class category of stamps in future.

Saturday, September 29, 2012

Massive UPS, DHL Investments Boost German Logistics industry

Massive UPS, DHL Investments Boost German Logistics industry
German logistic infrastructure has got a boost with two giants in different field, have come forwarded to invest in the country to enhance their respective businesses.
In a bid to expand its service in Germany, Deutsche Post (DHL) has geared up to invest around one billion dollars in its German parcel delivery infrastructure, while UPS declared the investment of 200 million dollar in European air hub located in the suburbs of Cologne. These two investments confirm Germany’s tag as the hub of European Logistic.
The representative of Germany Trade and Invest will participate in this year’s Council of Supply Chain Management Professionals’ yearly meeting to be held from October 2 to 5 at Philadelphia. The program will discuss about the scope of business and investment in Germany.
“Germany, having been placed in the middle of Europe, is identified as the best place for the companies to frequently transport goods to western and eastern part of Europe. However the trump card of the country is its infrastructure and the size of the market,” says parcel delivery industry expert David Chasdi from Berlin.
 The investment of UPS in Germany is the firm’s biggest ever in Europe, while this turns out to be the biggest investment ever since 1990 for DHL, which is aiming to accelerate the delivery of the packages. These investment clearly shows the Germany’s quick growth in e-commerce. In terms of the revenue generated annually, Germany’s parcel delivery industry is Europe’s largest one. Besides, Germany is ranked second in infrastructure after Hong Kong by World Economic Forum