Executive Briefings

TNT Hopes for Large Savings from Restructuring

TNT Express has set out plans to make recurring savings of 220m EURO by 2015 with a series of measures, including consolidating services, optimizing its infrastructure and reducing indirect costs. The restructuring is expected to cost 150m EURO by the end of 2015.

Some 4,000 jobs will be affected over the next three years, under the programme which it calls "Deliver!"

The group wants to focus on higher-margin services and customer segments. It is targeting SMEs and single-source customers, higher-weight parcels and palletized freight along with international and special services products.

There will be a new management structure with an executive board and a global functional board with cross-company responsibilities.

The previous regional structure will be unwound. The new Business Units Australia/New Zealand, Benelux, France, Emerging, Europe/Americas, Germany, Italy and UK/Ireland will report directly to the chief executive officer.

The group is in the process of selling its domestic businesses in China and Brazil. It said the sale process in China was well under way, while preparations for sale of the Brazilian business had started.

Tex Gunning is due to take over as CEO on June first.

In its intercontinental services it is looking at sharing aircraft capacity, along with sub-leases and lease terminations to reduce its exposure on aircraft capacity.

The €220m of recurring savings are expected to come from improvements in cost efficiency and discipline in its operating model.

These include consolidating services, including shared service centres for administration; along with optimising infrastructure by concentrating depots and hubs within certain country regions).

It expects productivity increases, including optimized depot sort and load activities by changing depot configuration and processes.

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Some 4,000 jobs will be affected over the next three years, under the programme which it calls "Deliver!"

The group wants to focus on higher-margin services and customer segments. It is targeting SMEs and single-source customers, higher-weight parcels and palletized freight along with international and special services products.

There will be a new management structure with an executive board and a global functional board with cross-company responsibilities.

The previous regional structure will be unwound. The new Business Units Australia/New Zealand, Benelux, France, Emerging, Europe/Americas, Germany, Italy and UK/Ireland will report directly to the chief executive officer.

The group is in the process of selling its domestic businesses in China and Brazil. It said the sale process in China was well under way, while preparations for sale of the Brazilian business had started.

Tex Gunning is due to take over as CEO on June first.

In its intercontinental services it is looking at sharing aircraft capacity, along with sub-leases and lease terminations to reduce its exposure on aircraft capacity.

The €220m of recurring savings are expected to come from improvements in cost efficiency and discipline in its operating model.

These include consolidating services, including shared service centres for administration; along with optimising infrastructure by concentrating depots and hubs within certain country regions).

It expects productivity increases, including optimized depot sort and load activities by changing depot configuration and processes.

Read Full Article