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Implementation of new distribution model starts

Pressemeldung from 03.12.2001

Annual savings in the order of hundreds of millions expected starting from 2004

The modernisation of logistics operations at Österreichisch Post AG (downsizing to a total of six logistics centres) also necessitates a reorganisation of distribution services.
Today, 3 December 2001, Österreichische Post AG's negotiating team has agreed on a joint approach with the works council. Once the implementation will have been completed by 2004, the reorganisation of distribution operations will result in annual savings in the order of hundreds of millions.
The new distribution model and the reduction of locations with a distribution service of their own will result in a marked quality improvement and will also boost productivity.

The new distribution organisation
Basically, there will be two new types of distribution in place as of 2002.

  • Under type 1, units of 6 - 14 delivery staff members will be formed. The responsibility for managing such units will continue to rest with the respective post office management.
  • If the number of delivery staff employed equals or exceeds 15, a distribution base (type 2) will be established. This independent distribution unit will be headed by a distribution manager who will be responsible for the staff assigned to the unit both from a technical and a HR management point of view.
The future number of locations attributable to each type will have to stand up to European benchmarks.
Austria currently has 1,825 delivery offices for 3.7 million delivery points.
In Great Britain, there are only 1,200 delivery offices as compared to almost the tenfold number of delivery points (35 million). In the Netherlands, 537 delivery offices are in charge of 9.1 million delivery points, in Denmark, there are 334 delivery offices for 3.1 million delivery points.

The next steps to take
Now that the process to follow has been agreed upon, the next steps will be taken in the Austrian federal provinces. Taking account of the given situation and the applicable planning parameters (6-14 or 15 plus delivery staff members), the exact number of delivery units of each type will be defined for each province. Apart from primary decision criteria - economic efficiency and staff numbers - building and logistics aspects will also be taken into account in the location selection process.

The benefits of the new distribution model
Simplified and streamlined processes that allow nation-wide benchmarking will result in a savings potential in the order of hundreds of millions each year starting from 2004. Apart from ensuring a significant increase in productivity and improving delivery quality, increased distribution flexibility is another major benefit of the new model. The reorganisation of the distribution system will enable Österreichische Post AG to quickly adapt to changing customer requirements in the future (for instance, by setting up new delivery "time windows"). Likewise, it will also be possible to compensate much more efficiently for human resources bottlenecks due to sick leave or vacations.

For further information, please contact

Österreichische Post AG
Company communication
Press section/ PR
Michael Homola
Tel.: +43 (1) 515 51 - 32010