Yodel plans to be back in black after DHL integration
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By Laura Hailstone YODEL CHIEF EXECUTIVE Jonathan Smith says the irm will be back in the black once it is operating just one network. He anticipates completing the closure of half the company’s 120 depots during 2012.
Following Yodel’s purchase of the DHL Domestic business last year, the parcel carrier has effectively been operating two networks.
“The proit kick was always going to come into play when we have just one network up and run ning. We always knew we’d lose that amount [£1m a week] when we were running two networks. It’s not a shock to us,” says Smith.
He says the integration of the two businesses is going well. With the IT integration now complete, Yodel is focusing on the “physical” integration, ie staff, depots etc.
“We have commenced a voluntary redundancy programme at our head ofice, but it does not include drivers or sort centre staff,” says Smith.
“We continue to experience dificult market conditions. About 75% of our business is B2C and 25% B2B, so our business is retaildependent. It’s volatile at the moment; you get a couple of good days and then a couple of bad. I’ve never known anything like it.” Smith says the real test of the state of the market will be Christmas. “We’re predicting an earlier peak this year for online deliveries because of fears that bad weather will disrupt deliveries again. But right now we don’t know if people are going to spend as much this Christmas.” Yodel recently won a distribution contract with Pet Supermarket previously held by Parcelforce.
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