PARCELNET ANNOUNCES PLANS FOR THE FUTURE
Following the announcement earlier this year that home delivery specialist Parcelnet will be integrated into a new international logistics business, the company has today outlined a number of strategic business plans designed to support its future development. In particular, the company is intending to make a number of major investments over the next six months, including the opening of a purpose-fitted hub and the transfer to a new head office building, and scale down existing fulfillment commitments to focus on its core home delivery business.
The new hub will be located in Nuneaton and is scheduled to be opened in mid-2009, creating over 100 jobs. This facility is expected to absorb volumes from existing facilities in Bradford and Peterborough, becoming the central access point for Parcelnet's home delivery operation and enabling the company to enhance the services available to its customers, including the development of a next-day delivery offer. Elsewhere, Parcelnet has further strengthened its depot network with the opening of a new 38,000 sq ft depot in Weybridge to handle projected growth in London and the south east of England.
Plans are also currently underway for a new head office building that will be located in the Leeds area. The move, expected to take place in the second quarter of 2009, will see the company transfer from its existing head office in Bradford that it shares with other businesses within the Otto Group. It follows previously announced changes in the company's reporting structure and will enable Parcelnet to better meet future business objectives.
Parcelnet has taken the decision not to retender for the fulfillment work it currently handles on behalf of several high street and home shopping retailers. The company will continue to provide home delivery services to those businesses affected, but phase out fulfillment activities as current contracts expire.
Carole Woodhead, Managing Director at Parcelnet, said: "Parcelnet's longer-term vision is to concentrate investment and expansion activities on its highly-successful distribution business where we see significant opportunities. These measures are designed to secure our future success particularly during these difficult economic times."top
PARCELNET OPENS NEW HOME DELIVERY DEPOT IN WEYBRIDGE
Parcelnet, the leading home delivery solutions provider for high-street, catalogue and online retailers, has opened a new depot at Brooklands Industrial Estate in Weybridge to handle added volumes in London and the southern Home Counties.
The 38,000 sq ft facility replaces a smaller depot in Mitcham that no longer met operational needs - creating around 60 news jobs - and will enable Parcelnet to increase throughput by 40 per cent.
The warehouse includes two dock levellers and has been fitted with a carousel conveyer system to enhance efficiency and streamline the parcel sortation process. The site will house a 24-hour, 6-day operation that will receive and dispatch around 120,000 consignments a week to couriers located in south and east London, Kent, Surrey and Sussex. Where appropriate, the facility will also handle stock collections for key clients.
Parcelnet provides a nationwide home delivery solution via its hubs and a 20-strong network of regional depots. From there, consignments are distributed to more than 7,000 lifestyle couriers for onward delivery to households across the UK and Ireland.
Carole Woodhead, Managing Director at Parcelnet commented: "The opening of the new depot forms part of Parcelnet's ongoing investment programme that is designed to develop our operation to handle future business growth and better meet the delivery needs of our customers. The Weybridge site will strengthen our presence in London and the south-east of England and enhance our ability to provide a fast, effective and responsive home delivery service to the end-user."top
PARCELNET EXPANDING INTO CROSS-BORDER EUROPEAN DISTRIBUTION
Parcelnet is expanding into cross border European distribution by linking up with sister company Hermes after successfully integrating two major acquisitions in the last two years. "We want to be part of the European network as part of Hermes," managing director Carole Woodhead said on the sidelines of last week's Courier Parcel Logistics exhibition in London, where Parcelnet and Hermes had a joint stand.
German based Hermes is building up a European network with sister companies Parcelnet, Mondial Relay (France) and Porta a Porta (Italy) as well as its subsidiary in Austria. Parcelnet is currently testing cross border deliveries from Britain to Germany for TV shopping company QVC, Woodhead said. "More British companies are interested in Europe, and there are European customers with UK shipments," she commented. The home delivery firm, which has so far used other European carriers for its cross border shipments, is also in talks with France's Mondial Relay over cooperation. "In future we want a common service offer," she added.
In its home market, Parcelnet has successfully completed the integration of Redcats, bought in spring 2007, and of the TNT Post/JD Williams courier network, acquired earlier this year, Woodhead said. "Redcats expanded our capacity with three new depots. There was no capacity expansion with TNT," she noted. This expansion has left Parcelnet with a current network of 19 depots and 7,000 "lifestyle" couriers. These are subcontracted self-employed delivery staff who are generally local people with in-depth knowledge of their area and their parcel customers.
The British B2C delivery market was "attractive and growing", although the growth rates were slowing "to some extent", Woodhead pointed out. "The internet has been a huge driver," she said. But she noted: "There is more competition from B2B companies. We are seeing some overlapping of B2B and B2C. This is good for customers and means more choice of services." In terms of products, Parcelnet offers two core services: a rapid 24hour delivery and a standard 2-3 day delivery time. "A small number of larger customers use the 24hour service, and smaller customers use the 2-3 day service," she pointed out. In addition, Parcelnet offers premium options such as time certain delivery (morning or afternoon).top
PARCELNET ACQUIRES TNT POST'S COURIER BUSINESS
Parcelnet, the UK's largest courier delivery network and a leading provider of home shopping fulfilment services, has acquired the courier business of TNT Post. Under the agreement, Parcelnet has integrated TNT Post's nationwide courier operation and the home delivery contract for catalogue and online retailer JD Williams into its existing UK business, enhancing the company's network in terms of size and throughput.
Volumes totalling more than 12.5 million parcels per year have been smoothly and seamlessly transferred to Parcelnet - including the long-term contract with JD Williams - with minimal service disruption to customers. Parcelnet has also become TNT Post's preferred home delivery partner as part of the deal.
The extended network size - increasing to 7,000 lifestyle couriers - makes courier rounds even more local and has strengthened Parcelnet's presence in London and the south east of England, enabling the company to introduce enhanced service offers in the future. In addition, Parcelnet has taken on 100 full-time employees that previously held field, support and management roles within TNT Post, allowing the company to make best use of expertise and best practise.
Commenting on the acquisition, Carole Woodhead, Managing Director at Parcelnet, said: "This latest development builds on the acquisition of the Redcats courier business last year, further strengthening our network, enabling service enhancements and providing continued growth of our client base."
Keith Risk at JD Williams said: "The move to Parcelnet will enable JD Williams to offer a better service to our customers and the opportunity for them to choose enhanced delivery options. The complex migration from TNT Post to Parcelnet has been seamless and provides a solid foundation to streamline our customer's orders over the next few years"
Last year, Parcelnet acquired the UK courier network of catalogue group Redcats. Under the terms of the deal, Parcelnet was appointed to handle the home delivery service for Redcats' UK brands - notably La Redoute, Empire Stores, Vertbaudet and Daxon.top
EXCLUSIVE SPORTS SHOE RETAILER SIGNS UP WITH PARCELNET
Sportsshoes.com, one of the UK's leading specialist sports footwear and clothing retailer, has signed a three year deal with Parcelnet, to handle its daily deliveries to customers nationwide. Its decision to award the contract to Parcelnet is driven by the company's desire for high levels of service combined with a commitment to provide the best possible customer experience. Sportsshoes.com is a mail order and internet company as well as having the largest sports shoe retail outlet in the world, based in Bradford.
Parcelnet will collect parcels from Sportsshoes.com's warehouse at Shipley and take it to their hub at Bradford prior to onward delivery to the company's 20 operating sites across the UK. From there orders will be delivered to households nationwide utilising Parcelnet's unique network of over 7,000 lifestyle couriers.
Victoria Bannister, Managing Director at Sportsshoes.com, said: "We were one of the first sports retailers to diversify into mail order and then launch an e-commerce website and we have now been successfully meeting our customer's needs online for over 9 years. Getting the delivery right is a key part of this and we feel that Parcelnet's unique courier network will provide us with a flexible, high-quality doorstep delivery, combined with a friendly and local approach."
Mike Antwoon, National Sales Manager at Parcelnet, said: "Our work with Sportsshoes.com is a good example of how niche companies can also enjoy the benefits of our service which includes a fully tracked solution and a Saturday delivery as standard. More and more customers are buying into the courier network approach which generally involves a member of the local community operating within a 20 -mile radius. As a result they get to know their customers personally rather than providing a faceless service."top