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Low cost claim

16th December 1993
Page 9
Page 9, 16th December 1993 — Low cost claim
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Which of the following most accurately describes the problem?

• General Parcels claims it can now deliver small freight consignments throughout Europe up to 50% cheaper than its integrated rivals.

Michael Howe, managing director of UK member United Carriers, says the savings are possible because its members only take profit once on a consignment, unlike other systems.

Five more carriers have joined General Parcels' European distribution network, which now delivers to 18 countries.

The network comprises one of the major distribution companies in each country. It has over 300 depots with 7,000 vehicles delivering 660,000 parcels a day. Howe believes the European small freight market is not well served by the express, next-day or overnight-delivery system: "Yet it is a huge market and it will continue to grow," he says.

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