May 17, 2020

Royal Mail invests GDP 130m in devices for postmen

Royal Mail
UK logistics
postal service
Admin
2 min
Next generation of hand-held scanners announced
Follow @SamJermy and @SupplyChainD on Twitter.Royal Mail has announced its investing around £130 million over five years in hand-held technology t...

Follow @SamJermy and @SupplyChainD on Twitter.

 

Royal Mail has announced its investing around £130 million over five years in hand-held technology to provide more flexible delivery for customers and better tracking capability. 

The investment means it will begin rolling out around 76,000 next generation hand-held scanners to postmen and women from 2015. BT will work with Royal Mail to decide which hand-held scanner to deploy. 

The roll-out is expected to be completed in the 2016-17 financial year. Existing scanners will be swapped out as new devices are introduced.

The five-year investment is part of Royal Mail’s IT transformation programme, a key objective of which is to support the delivery of our parcels strategy. This includes enabling the 500 year old postage company to be more flexible and customer responsive.

Nick Landon, Managing Director of Parcels at Royal Mail, said: “We are delighted to announce that we are investing around £130 million in IT which will better enable us to develop new services for parcels customers. 

“This is part of our on-going programme to continue to respond to the needs of our customers and maintain our leading position in the UK parcels market.”

Luis Alvarez, Chief Executive Officer of BT Global Services, said: “The new hand-held scanners, provided and managed by BT, will transform parcel tracking, helping Royal Mail create an even better connection with its customers.”

The company said it will be offering more flexible deliveries for people not at home so items can be left elsewhere, as well as better tracking. Royal Mail will hope to receive a boost from the announcement after becoming one of the FTSE 100's biggest faller this week.

Its shares fell after Credit Suisse issued a downbeat note predicting levels of profitability recorded in 2014 will not be reached again until 2018.

For more information, please visit: http://www.myroyalmail.com/news/2014/10/next-generation-hand-held-scanners-announced

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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