TNT posties set to explode monopoly

[TrueBlueTerrier]

http://scotlandonsunday.scotsman.com/bu ... 3691396.jp

Scottish streets considered for trial challenge by Royal Mail rival

By Nathalie Thomas

A FLEET of orange-uniformed TNT postmen will soon take on the Royal Mail on the streets of Scotland, the boss of the private postal operator has hinted.

Nick Wells, chief executive of TNT Post, told Scotland on Sunday that the company was gearing up to launch trials of its first "end-to-end" service, where items are picked up, sorted and delivered by TNT staff without any involvement from the Royal Mail.

He gave his clearest indication yet that some of the locations, which the company has so far refused to confirm, are likely to be in Scotland.

"We're going to deliver an end-to-end delivery to carry out the final mile of addressed mail," he said. "You could find there will be orange postmen on the streets of Scotland."

Although a number of private operators have entered the UK postal market since it was opened up to full competition in February 2006, Royal Mail continues to dominate what is referred to in the trade as the "final mile" – the actual delivery of letters and parcels to individual addresses by postmen.

Since its launch in Britain in 2003, Dutch company TNT Post has seized a 9% share of the market, yet it still has to rely on Royal Mail for the final leg of deliveries, effectively handing business back to its competitor.

Wells said: "Last year we handled over 1.8 billion items, but we give all of that back to Royal Mail. Royal Mail still do the end-to-end. We're Royal Mail's biggest client."

It is understood that TNT Post is planning to launch its own end-to-end service early this year in order to reduce the amount of business it hands back to its rival.

Although Wells refused to disclose locations and timings of the end-to-end pilots for competitive reasons, he said TNT Post has been building up a sizeable business in Coatbridge, Glasgow, over the past 18 months.

"Since we started in Scotland we've got about 250 customers," he said. "It's quite a vibrant area with lots of customers."

The company has been targeting businesses in the central belt in particular, launching the PremierSortFlex service for businesses that send more than 250 letters and parcels a day. Corporate clients include Bank of Scotland.

However, Wells said the company had no plans to support the struggling Post Office network in Scotland, which will see up to 30 branches closed or downgraded this year.

Postcomm, the postal services regulator, recently urged private companies such as TNT Post, DHL and UBS to strike deals with the Post Office network over undelivered mail.

Sir Nigel Stapleton, chairman of Postcomm, said private operators could leave undelivered mail for customers to collect at post offices, rather than forcing them to trudge out to remote out-of-town depots.

But Wells said: "At the moment I think we're prevented from doing so by the contracts between Royal Mail and the Post Office. We therefore haven't looked too closely at that."

The full article contains 508 words and appears in Scotland On Sunday newspaper.
Last Updated: 19 January 2008 4:57 PM

[plodsie]

TNT will hopefully be placed under the same constraints in what they can charge their customers for the end to end, and they'd do well to remember that it will cost a lot more, which inevitably will push their prices up. The thing is, why bother? They have a license granted by postcon which effectively guarantees profit without the donkey work.
Another thing.... ORANGE uniforms in such a place as Coatbridge? Better off with giving them riot gear!! - They obviously don't know Scotland that well..

[pinstripe]

Wasn't TNT saying this last year, and the year before? I'll believe it when I see it with my own eyes. Saying that I would actually like to see some competition on the ground, Leighton and Crozier would have to come up with a new set of lies to scaremonger us with. Face it folks there will be job losses, with or without TNT. We have more to fear from our own bosses than the competition, now isn't that weird.

[axeman]

All suposition they only want the quick buck with minimal outlay

[Phantom]

Its business to business mail deliveries, not residential. It would simply cost too much for them to do.

[johnnyp]

"We're going to deliver an end-to-end delivery to carry out the final mile of addressed mail," he said. "You could find there will be orange postmen on the streets of Scotland."

[norbert]

TNT will hopefully be placed under the same constraints in what they can charge their customers for the end to end, and they'd do well to remember that it will cost a lot more, which inevitably will push their prices up. The thing is, why bother? They have a license granted by postcon which effectively guarantees profit without the donkey work.
Another thing.... ORANGE uniforms in such a place as Coatbridge? Better off with giving them riot gear!! - They obviously don't know Scotland that well..

Not a good idea , A Dutch Company sending their staff round in Orange Uniforms , everything TNT is Orange , as if it didn't need stirring up even more !


I don't think this is the way to raise the profile of the Corporation in the media , very naive !, bit crazy up there

[Lounge Lizard]

It's the location that was so predictable, 'Scotland' so that they can't be accused of only being interested in the heavily populated parts of Britain, and then the "central belt" as of course they've not the slightest intention of sending their orange postmen to the Outer Hebridies or Shetlands. And no plans of course for orange post boxes springing up all over the land, no, the loss making stamped mail is of no interest to them. In the unlikely event of their scheme taking off and spreading it will be interesting to see whether orange postmen are accepted in the Catholic areas of Northern Ireland and Scotland, and yes the Dutch Post Office did choose orange historically from their Protestant House of Orange.

[DGP1]

It'll be really funny to see them trying to walk up the Ormeau Road (Paisley would be wetting himself with glee afterall he'd see orange feet on the Ormeau Rd.)

And I've heard that there'll be competition delivering mail every year so I just don't believe them anymore.

[dvbuk55]

Well I believe this is not the only time it has been tested and failed - they reportedly tried to set up a E2E in Manchester a couple of years ago and it was shelved after 3 weeks. There is no substitute for shanks pony and it costs a lot, and it is immaterial what colour its wearing.

[Night Tonic]

They may not deliver to the Shetlands but the fact they're trying to get into the major cities where most of the money is to be made is not good for our jobs. They may not know customers like we do but businesses will nine times out of ten use the cheapest.

[deadbox]

If TNT take over they'll want to employ us to do the work ! ( experianced posties who know what they are doing )

I don't mind wearing orange instead of blue.....If the pay is right

Lets face it , were NOT over paid, Terms & cond. have gone down the plug hole and now that the PENSION is about to dissappear....there's not a lot to stay for

Might as well be treated as donkeys by TNT than RM

Leighton is about to lose his winning hand - Posties that CARE about service - as they leave over the next year or two, RM will get WORSE, and the people on the street will DEMAND a better service......ALONG COMES TNT to fill that percieved gap in the market !

At least as RM dissappearing down the plug hole we can laugh at UNCLE ALAN

*** BURGER BOY CROZIER " I'm going to MAX your delivery for just 30p extra! "

[plodsie]

They may not deliver to the Shetlands but the fact they're trying to get into the major cities where most of the money is to be made is not good for our jobs. They may not know customers like we do but businesses will nine times out of ten use the cheapest.

I would disagree that businesses will use the cheapest. Reliability through us is second to none, most businesses who currently use TNT do so because they know they have the reliability of Royal Mail for deliveries. The price is only a bonus. There is no point in sending mail if it cannot be delivered promptly and securely. TNT are untried in this, and it will be interesting to see exactly how they fare. They certainly will not be able to do it at their current prices.

[Night Tonic]

True but the fact remains that businesses are switching to rival sorting operations and whether we'redelivering them or not, we're still losing money on them.