TNT to enter B2C home deliveries in 2011 says new boss

[TrueBlueTerrier]

TNT to enter B2C home deliveries in 2011 says new boss Alistair Cochrane

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TNT Express Services is to develop a high-end B2C home-delivery service in 2011 following the appointment of Alistair Cochrane as MD. The move is in contrast to Cochrane's predecessor Tom Bell, who retires at the end of the year and was reluctant to expand the B2C business beyond its existing 15% of TNT Express Services' volumes.

"We have always shied away from home deliveries and my stance has always been I don't want B2C," says Bell. "I don't know anyone who makes money out it, so Alistair's challenge will be to embrace it and find a solution."

Speaking to Roadtransport.com in his first interview since it was announced he was taking the reins at Britain's biggest express parcels carrier, Cochrane agrees that TNT's cost base and high-quality service means it will never compete at the cheap end of the home-delivery market.

"We don't want to be in the lifestyle sector because the margins are too low," he says. "We need to create something in B2C or at least approach it in a different way. It may be a new revenue stream for us and some of our customers would be keen for us to create an offering there. But we have to look at the returns that we can make because it is a low-yielding market."

TNT worked successfully with Apple on home deliveries for the iPad and Cochrane says the focus will be on high-value technology products. The company is planning to run smaller vehicles - 5-tonne rather than 7.5-tonne trucks and possibly electric vans - to cut costs and carbon emissions.

As well as B2C, Cochrane will look to develop TNT Express Services' international and business solutions activities, which includes specialist services such as archive and document management for large public and private organisations.

"Filling Tom's shoes is going to be a tough task," Cochrane admits. "We have to capitalise on the differentiation we create in the marketplace. What has always set TNT apart is the 'can do, make it happen' philosophy and that has to remain front and centre. If you talk to customers, what holds true is that TNT will get through when others can't."

[Wessex]

Here's a great idea- sign a deal with people like Amazon and then get the mugs at Royal Mail to deliver it for you .They will almost certainly do it for free, possibly even at a loss thus ensuring loads of money for you and your shareholders.Everyone's a winner.
Think up a name for this service -how about BastardtoChump ,abbreviate it to B2C to make it sound appropriately grown-up and business-like.Pass GO and collect another 200k bonus.

[arnold cheshire]

whats b2c ?

[TrueBlueTerrier]

whats b2c ?

Business To Consumer

[DGP1]

It's more likey it will be business to RM because it's cheaper

[TrueBlueTerrier]

Bumped - According to the FT TNT have annouced again that they aim to start deliveriing post.

Whats this the 3or 4th time they've said it.

[fishtank]

Bumped - According to the FT TNT have annouced again that they aim to start deliveriing post.

Whats this the 3or 4th time they've said it.

Information from a TNT manager in Edinburgh is that they have been scoping out businesses in the EH/TD area over the last two weeks with a view to start within 3-6 months.
The other rumour that has resurfaced is their renewed interest in RM.
There are things happening at TNT post UK.

[DGP1]

Have they sold off their Dutch delivery arm? Because that didn't work very well for them

[Talell]

Information from a TNT manager in Edinburgh is that they have been scoping out businesses in the EH/TD area over the last two weeks with a view to start within 3-6 months.
The other rumour that has resurfaced is their renewed interest in RM.
There are things happening at TNT post UK.

Well that might be because they have an ex-RM manager in charge in Scotland , to 'borrow' trade secrets