“Forward ever, backward never: onwards with Breaking Through”

POSTAL NEWS
No 17-2020

Formulated by UNI AproPost and Logistics Sector

1.  E-commerce boosts Posten Norge's revenue and profit. February 27, 2020.

2.  PostNL sells majority stake in Nexive. February 26, 2020.

3.  Terminals add value for retailers. February 26, 2020.

5.  UPS invests US$173m in Hanover hub. February 24, 2020.

 

1.  E-commerce boosts Posten Norge's revenue and profit

February 27, 2020
The Posten Group performed well in 2019, with preliminary figures showing revenue of NOK 24 212 million, representing an increase of 1.3 per cent compared with the previous year.

Adjusted operating profit for 2019 is NOK 808 million, which is NOK 278 million better than 2018.

The increase is mainly driven by growth in the logistics business. Posten Norge is now starting to see positive effects from the long-term measures taken to meet the growth in the e-commerce market.

"We are pleased with the trend in 2019. The growth, especially in the e-commerce market, comes from our development of services and digital solutions that meet customer needs. We are accelerating our innovation efforts and are shaping the delivery network of the future. Last year we expanded our delivery network in Norway, Sweden and Denmark with almost a thousand new collection points", says Tone Wille, CEO of Posten Norge.

Increased e-commerce leads to growth in the logistics segment

The logistics segment improved its adjusted operating profit significantly compared with 2018. Solid market growth and new digital services, combined with increasingly cost-efficient operations in the Norwegian parcel and freight network, resulted in a significant profitability improvement.

In order to meet the growth and offer attractive solutions to Nordic online stores, Posten Norge continues to expand capacity and networks in Sweden and Denmark. In Norway, Posten Norge will coordinate and integrate the production of parcels and freight in a joint network.

Declining letter mail volumes are weakening the mail segment

Profit was reduced in the mail segment. Significant cost adjustments made in operations largely compensated for the sharp decline in addressed mail volumes. In 2019 addressed mail volumes fell by 9.9 per cent and the decline is expected to continue. In order to further adapt the postal service to lower demand, mail delivery will take place every other day from July 2020 as allowed for in the new Postal Act. Packages will still be delivered every weekday in most of the country.

Operating profit (EBIT) for 2019 ended up at NOK 162 million, a reduction of NOK 253 million from 2018. Operating profit was negatively affected by NOK 651 million, mainly as a result of transition costs of approximately NOK 430 million for the necessary restructuring of the postal business.

Combating climate change

"2020 is the start of the decade when Norway will reduce emissions by 50 per cent, and Posten Norge will continue its ambitious efforts to combat climate change challenges. The Group aims to use only renewable energy sources for vehicles and buildings by 2025. We are testing and using new vehicles, establishing emission-free mail and freight distribution systems, and are continuing to develop new business models that will make everyday life easier for most people", says Wille.

Other matters

The Group's workforce at the end of 2019 totalled 13 995 full-time equivalents (FTEs), a reduction of 464 FTEs compared with 2018. The trends in sickness absence and injury frequency rate were positive. Sickness absence decreased to 5.9 per cent from 6 per cent the previous year. The injury frequency rate was reduced to 7.8 from 8.7 the previous year.

 

 

2.  PostNL sells majority stake in Nexive

 

February 26, 2020

Mutares and PostNL have signed an agreement on the sale of 80% of Nexive’s business. Nexive is the number-two mail and parcels provider in Italy and currently a full subsidiary of PostNL.

PostNL will obtain a minority interest of 20% in the entity acquiring the Nexive business. The transaction is subject to a number of conditions and is expected to close in Q2 2020.

Robin Laik, CEO of Mutares SE & Co KGaA comments: “We look forward to developing Nexive in our portfolio and will support the future repositioning and growth path of the company. We aim to further grow its nationwide network, to further develop the last-mile business as well as to enhance operational and administrative efficiency.”

Luciano Traja, CEO of Nexive adds: “This step gives us the opportunity to take the Nexive business to the next stage in achieving our strategy. We are well positioned to benefit from the innovation and solutions that we have introduced for our customers in recent years. Our strategy is aimed at our growing market share and taking full advantage of ongoing growth in the Italian e-commerce market.”

HernaVerhagen, CEO of PostNL, says: “This transaction will allow Nexive to further develop its business and to build its position in the Italian mail and parcels market. For PostNL, the sale of the majority stake in Nexive underpins our strategy of focusing on our core markets in the Benelux region, supporting our transformation into an e-commerce logistics and postal service provider.”Nexive provides mail services to 80% of Italian households and parcel services to the entire Italian market.

It’s the number two in the Italian mail market and aspires to be the smart challenger, offering customers the best balance between service, quality and price. It achieves this ambition by focusing on customer interaction and by further strengthening its network.


3.  Terminals add value for retailers


February 26, 2020
What options do terminals such as My Post 24 offer senders and recipients and how do they add value?

Convenience for recipients – added value online


The last mile of a parcel delivery can often prove to be its undoing. That’s because recipients are often not home when the parcel is due to arrive.

Swiss Post offers customers a number of options in an effort to solve this dilemma. Using the “My consignments” online service, customers can manage their consignment – even if it is already in transit or waiting in a branch for collection. The customer experience can be optimized even further by using the “My Post 24” service.

 

“My Post 24” – Collection points becoming more popular


Collection points and terminals are becoming extremely popular in the retail industry. In Germany, for example, department stores and shopping malls are putting far more effort into integrating collection points or “lockers”, as they are often described.

In an effort to improve the customer experience, Swiss Post offers its end customers PickPost and My Post 24 in the Digital Commerce API – a single interface for everything.

The “My Post 24” service promise lies in its reliable delivery options. The locations of the “My Post 24” terminals can be found using the Swiss Post location search. This is also included in the “PickPost/My Post 24” module in the “Digital Commerce API”. The network of terminals is constantly being expanded. In Switzerland, customers already have the option of collecting their consignments from over 155 terminals.

The advantages of “My Post 24”


There are many advantages for customers who use "My Post 24", which can also be communicated very effectively by retailers.

·       The collection point is an alternative delivery address from which parcels and letters can be collected around the clock, even items with track and trace (registered mail, international parcels). Recipients are given a QR code to use for collection. They can even sign for the consignment or pay for it using any major credit or debit card directly at the terminal.
·       The ”My Post 24” terminal also accepts returns. Customers can also drop off their own, pre-franked consignments.
·       If the recipient of a consignment was not at home, the collection point may be chosen as an alternative to picking up the consignment from a nearby branch. Via “My consignments”, customers receive an electronic notification with the required QR code. There is no need to wait for a notification in their private letter box. Recipients have access to their consignments 24/7.
·       The terminal can also be used as a locker. This means that customers can use it for their own personal business.

The “locker” option is also an interesting one for high-street retail. The collection point becomes an extension of the shop counter.

Parcel terminals also offer added value for high-street retail


By having deliveries sent to terminals using the “My Post 24” service, customers no longer have to worry about parcels arriving when they are not at home. The frustration of waiting for a parcel, only to miss its arrival, is therefore avoided.

With these service options, high-street retail, in particular, has the opportunity to create and exploit synergies with online shops. If the “Digital Commerce API” has been correctly integrated into the online shop, the customer has the option of choosing between staffed collection services such as “PickPost” and terminals with “My Post 24”. Click & collect in high-street retail can be cleverly combined and enhanced with the “My Post 24” service. Retailers are thus in a position to meet all customer needs when it comes to shopping, collection or posting.

As reported by Amazon, around 60 percent more US customers sent their order to a collection point during the Christmas period in 2019 compared with the previous year. The figure clearly shows just how much the business of parcel delivery is changing. Front door deliveries may gradually become the exception, rather than the rule. With “My Post 24”, retailers are already able to provide their customers with the most reliable delivery option of all. It is worth being prepared.


4.  Social Activities at La Poste: Unite around the challenges and demands of tomorrow!


At the end of January 2020, the "Social" Commission met, animated by our values ​​and our convictions. With 31 participants from all over France, the inventory of social activities at La Poste includes several worrying elements: reduction in the budget for 2020, desire to want to change “flagship” services, insufficient communication, support nuanced associations, etc., are all themes that galvanized our “ambassadors” of social activities to build future actions to take with La Poste.

The work environment is becoming tougher, including the essential part linked to private life and daily life. Social activities allow postal workers to be helped, supported, guided, listened to in a wide range of fields. To ignore the benefits of social action in the company would be nonsense in a company like La Poste, which wants to be exemplary from a social and societal point of view.

Through these two rich and interactive half-days, FO Com endeavored to give the floor to representatives in the field, spokespersons for postal workers on a daily basis, in order to be able to respond to the really expressed need of postal workers. This approach is in line with our Resolution of Social Activities, voted at our last Federal Congress in June 2019.

Our objective is clear: Quality social activities, postal workers and postmen well supported!



5.  UPS invests US$173m in Hanover hub

 

February 24, 2020

 

UPS is investing €160m (US$173m) in an advanced technology super hub in Hanover-Langenhagen.

The expansion will happen in two phases until 2023, doubling sorting capacity to 30,000 packages per hour.

The groundbreaking for the hub, one of UPS’s largest investment outside of the USA, was attended by Dr Bernd Althusmann, Lower Saxony Minister of Economic Affairs, Employment, Transport and Digitalisation.

Hanover-Langenhagen will serve as an important link in UPS’s European and German network, offering businesses improved access to its smart global logistics network.

Frank Sportolari, president of UPS Germany, said online retail sales in Germany are expected to reach €70bn (US$76bn) this year.

“E-commerce offers small and medium-size businesses a platform to trade like micro-multinationals. Transforming our existing sorting and distribution hub in Hanover-Langenhagen will allow businesses of all sizes in Germany to reach new business customers and consumers worldwide, whether that’s in Seoul, San Francisco or Stuttgart,” Sportolari said.

Althusmann added, “Langenhagen and Hanover are located in the middle of Germany and in the heart of Europe – a potential from which the logistics sector can profit like hardly any other location. The expansion of this UPS branch is thus a commitment to the business location of the Hanover region and at the same time a door opener for the export activities of local companies.”

The hub will cover 24,000m(258,300ft2) once the second phase is completed in 2023.

Phase one will involve the construction of a new building alongside the existing facility, to be completed by the summer of 2021.

Phase two will involve demolition of the existing sorting and distribution center and the construction of the second building.


Source : https://www.parcelandpostaltechnologyinternational.com/news/operations.

 


POSTAL NEWS
No 18-2020

Formulated by UNI AproPost and Logistics Sector

1.  Foodsters Win Major Victory for Workers in the Gig Economy.February 27, 2020.

2.  JD Logistics helps SMEs get back to business.

February 26, 2020.

 

3.  NZ post and OCS to bring UK customers more delivery options. February 24, 2020.

 

4.  Posti acquires the Swedish logistics company Aditro Logistics. February 24, 2020.

5.  CTT invests €12M in Spain in express mail, parcel service. February 22, 2020.

 

 

1.  Foodsters Win Major Victory for Workers in the Gig Economy


February 27,2020
We are one big step closer to certification to represent Foodora couriers in Toronto. And the decision is a big precedent for organizing gig workers.

On Februrary 25, the Ontario Labour Relations Board (OLRB) delivered a landmark decision siding with CUPW’s arguments that Foodora Couriers are dependent contractors (a classification closer to ‘employee’) of Foodora and not independent contractors.

It is the first such decision by the OLRB — or by any labour board in Canada to the best of our knowledge — on workers in the gig economy. However, the decision shares many of the hallmarks of previous OLRB decisions regarding worker classification, including past cases regarding couriers. The major difference in this case is Foodora’s App.

As noted by the OLRB, the App was key to determining the relationship of the couriers to Foodora because its business operation flows through the App. Foodora has couriers sign a contract that calls them independent contractors, they must do this as a condition of employment. However, it does not change the facts.

“…it is about the right and ability of the company to control how the work is performed that lends more favourably to a conclusion that the individuals are dependent contractors. The evidence, as described under the various factors, shows that Foodora couriers might work independently, but always within the parameters unilaterally established by Foodora and under the watchful eye of dispatch.”

The decision cited a number of reasons that the relationship between couriers and Foodora more closely resembles that of an employee. Through the App, Foodora has power over how and where the couriers perform their work and can use GPS to monitor them. It has control over the couriers’ workflow, work rules, scheduling, incentives and restrictions, and can supervise their pace. It also has the ability to discipline them in a manner similar to progressive discipline. 

“The Board concludes that when examining the level of integration, the couriers more closely resemble employees rather than independent contractors.”

Unlike entrepreneurs, couriers are unable to self-hire or promote their services directly to restaurants and customers. Couriers also cannot unilaterally change the rates and fees charged for their services. If variations are required, all changes must be done through the App and the dispatchers.

“In every practical sense, Foodora ensures the relationship is between itself, the customer and the restaurant. The courier is a cog in the economic wheel – an integrated component to the financial transaction. This is a relationship that is more often seen with employees rather than independent contractors.”

This is a critical decision towards better worker rights in the gig economy, and a big win for our external organizing. But we still need progressive legislation that will protect all precarious workers including temporary, contract, and gig workers.


 

2.  JD Logistics helps SMEs get back to business

 

February 26, 2020

 

JD Logistics is offering support to small and medium-size enterprises to get back to work during the coronavirus outbreak.

To support importing merchants, shipments from high demand export centers in Australia, the USA, Canada, Japan, South Korea, Germany and the UK are being given subsidies and priority by the Chinese e-commerce company.

JD’s storage service, which allows individuals and small enterprises to store their goods in JD’s warehouses, is also providing subsidies to clients and JD Service+ is offering SMEs subsidies for disinfection and sterilization services.

JD Logistics is also opening up its smart supply chain management platform covering planning, replenishment and analysis.

JD has also announced it is providing free software to small and micro enterprises to help them get back to work.

Tools include WMS, TMS, OMS and ERP, covering the entire supply chain process including inbound and outbound, inventory management and transportation.

 

 

3.  NZ post and OCS to bring UK customers more delivery options


February 24, 2020 

Mail and parcel delivery specialist, OCS Worldwide (OCS), has  announced the opening of two international mail processing centres (IMPCs) with New Zealand Post in the United Kingdom.

The launch of the mail processing facilities or ETOE (extraterritorial office of exchange) operations with New Zealand Post will enable OCS’s e-commerce clients to reach international markets by accessing New Zealand Post’s extensive global distribution network, directly from the UK.

OCS’s Heathrow facility will begin processing mail and parcels through the ETOE this month, and this will extend to OCS’s Midlands hub in Coventry, in the Spring.

Tim Jones, Managing Director of OCS Worldwide, said: “This represents a very exciting milestone in our evolution at OCS. Our e-commerce business is growing and having access to the International Postal system allows us a greater level of visibility and control over our post than we have previously had and this will be of huge benefit to our customers. It has become quite apparent in recent years that we share many cultural synergies with our friends at New Zealand Post. They are an ambitious and responsive partner with a strong focus on speed, reliability, quality, transparency and sustainable growth and we feel privileged to be working with them in this way.”

 

Rachael Manson, Market Development Director (Asia & Europe) of New Zealand Post, said: “New Zealand Post is thrilled to be embarking on this journey with OCS. A key theme within our strategic direction is to be “the best partner for online shopping” and the ongoing expansion of our operating hubs is critical to this success.

We see the ability to utilise our postal expertise alongside a commercial operator such as OCS to bring UK based customers a broader set of delivery options for their parcel movements, as well as supporting our existing hub operations in New Zealand, Australia and Singapore.”

OCS has been working in partnership with New Zealand Post on commercial parcel exports from the United Kingdom, since 2015.

Source : https://postandparcel.info/119118/news/e-commerce\

 

 

4.     Posti acquires the Swedish logistics company Aditro Logistics


February 24, 2020

As part of Posti’s strategy, Posti is strengthening its presence in Sweden and Norway by acquiring Aditro Logistics, one of the leading contract logistics companies in the Nordics​. The acquisition is in line with Posti’s ambition of growing its logistics, parcel and eCommerce businesses. 

On February 24, 2020, Posti, Valedo Partners and other shareholders of Aditro Logistics have signed an agreement, under which Posti will acquire the entire share capital of Aditro Logistics AB.

Aditro Logistics was founded in 1973 as DilaLogistik AB in Jönköping, Sweden. The company offers a broad portfolio of logistics services such as warehousing, staffing and transportation services. Aditro Logistics has an attractive, highly diverse and loyal customer base. The company has six warehouses in Sweden and one in Norway, with a total of approximately 230,000 m2 of storage space.

Over the past years, Aditro Logistics has grown profitably and organically, clearly outpacing the market growth. In 2019, Aditro Logistics’ net sales were some EUR 100 million (some SEK 1,100 million). The company has 1,100 full-time employees, out of which 1,050 are based in Sweden and 50 in Norway.

The acquisition of Aditro Logistics increases the growth of Posti’s logistics services. “Posti is growing in line with its strategy, and through this acquisition we are strengthening our presence in the Nordics and the Baltic Sea region. Together, we can support our customers to be even more competitive in the market,” says TurkkaKuusisto, President and CEO of Posti Group. “In Finland, our Transval Group is the market leader in logistics outsourcing solutions. With the acquisition of Aditro Logistics, we are becoming one of the major players in the Swedish and Norwegian market as well. This enables us to better develop and broaden our service offering for our customers in the Nordics,” Kuusistocontinues.​

“This transaction is great for us and for our customers,” says Johannes Gussander, CEO of Aditro Logistics. “We have over 40 years of experience in providing a broad range of warehousing, staffing and transportation services to a versatile customer base. In addition, we have a proven track record of driving profitable organic growth. By joining forces with Posti, we can learn from each other, expand our offering and take our current logistics outsourcing solutions to the next level,” Gussander continues.

After the closing of the transaction, Aditro Logistics will be operated as an independent Business Group within Posti and it will be headed by Johannes Gussander, the current CEO of Aditro Logistics. Gussander will report to TurkkaKuusisto, the President and CEO of Posti Group.

The transaction is subject to customary competition clearance in Sweden and is expected to close in the second quarter of 2020.

 

5.  CTT invests €12M in Spain in express mail, parcel service

 

February 22, 2020
The Portuguese company launched a new brand in Spain. The strategic plan foresees an investment of 12 million euros in new facilities, distribution optimization technology and digitalization.

CTT, Portugal’s post office, on Friday launched a new brand in Spain, in an investment of 12 million euros, with the ambition to grow 70% in three years and become the leader in the cross-border express and parcel market.

“We think we are far below our natural market share in Spain and we have no doubt that we will be leaders in the cross-border market [between Portugal and Spain],” said João Bento, the executive president of CTT, after the presentation of the new brand.

CTT in Portugal are leaders in the express and parcel business, while in Spain they only have a 3% market share.

“It is in the cross-border market [mail that crosses the border] that we are well positioned and we aspire to be market leaders,” João Bento insisted, explaining that the strategy for the coming years is to grow in the Spanish market, which is about eight times larger than the Portuguese in this sub-sector.

“If all goes well” in the area of express mail and parcels, “in a few years the turnover in Spain will be higher than in Portugal”.

CTT’s Spanish subsidiary company, Tourline Express, from now on changes its name to CTT Express and becomes part of the Portuguese CTT Expresso.

According to data from CTT, the new company inherits a shipment volume of more than 30 million per year and an annual Iberian turnover of 125 million euros in the express and parcel segment.

The strategic plan foresees an investment of 12 million euros in new facilities, distribution optimization technology and digitalization.

Last Monday in Lisbon, João Bento presented the new positioning of the brand in Portugal, where the company is the universal postal operator, presenting itself as the market leader in mail and in the distribution of express and parcels and also carries out financial services activities.