1. Best in France Case Study September 2003 - May 2005
TNT in France
Best in France Case Study
September May 2005
By: Ms. Bousquet, Ms. Furno, Mr. Naywosz Paszkiewicz and Ms. Roussel

2. Executive Overview TNT’s business TNT’s products and clients
Why did it come to France ?
Do TNT’s values fit the French culture?
Constraints in France
Adaptation to France
Key Constraint Costs
Key Benefit Numbers
Essential Advice

3. The TNT Express Company
Arrival in France : December 1998
International transport express company
parcels delivered each day in France
3, parcels and documents delivered each week in the world (200 countries)
Turnover 2005 : 5,3 mds euros
TNT Express France : leader in France for business to business transport
TNT European market share is 11% in broad market and 22% in narrow market
Market shares
Express is mainly a regional play with very different market positions in each continent.
1) Courier, Express and Parcels including standard parcels and US Ground
2) International and major domestic markets
Source: Annual reports; Transport Intelligence 2003; Bear Stearns 2003; Manager Romberg 2002; Datamonitor, MSI; DRI WEFA; DHL; UPS; McKinsey research.

4. The activity of TNT TNT Express, TNT Logistics, TNT Post
TNT Express in France : a key place in Europe
A full-completed transport market in France but not abroad thanks to the European expansion
TNT has three divisions:
TNT Express : its goal is to make sure the documents, parcels and freight are delivered safely and on-time using the integrated air and road networks.
TNT Logistics : it designs, implements and operates complex supply chain solutions on a national, regional and global scale for medium to large enterprises .
TNT Post : it processes 17 million postal items each day which are addressed to more than 7 million addresses in the Netherlands.
France is a key place for TNT, because it is the crossroads of Europe.TNT is an international company which aims at providing solutions for all the European countries. Thus it was obvious to settle in France.
TNT pays very attention to the European sector for historical reasons and also because the European Union is getting larger and so are the benefits of using TNT.

5. TNT's clients
Domestic, business to business, industrial companies, dangerous goods delivery services
Expectations : To be the fastest, the more reliable
The French presence helps TNT's ability to satisfy client demands, because it is now a main European express hub
« Flexibility for your business » is TNT’s motto to attracting clients : private ones but mainly business companies. When it comes to industry, TNT Express also has a specialist Global Account Management (GAM) division staffed by teams of industry experts to handle the specific requirements of multinational companies mainly in the automotive, life sciences, communications, information technology and electronic industries. TNT is even able to transport hazardous goods where conditions allow and in accordance with the IATA, ICAO and ADR regulations for the transportation of hazardous goods.
TNT Express defines ‘express’ as an on-demand integrated service that provides customers with:
-time or day definite delivery -door to door collection and delivery facilities -international customs clearance -full track and trace visibility -proof of delivery -round the clock support .

6. Why did TNT came to France?
TNT is a global company
Currently located in 64 countries
France is a major strategic location of Europe
TNT is a global company that aims to offer solutions for every countries by a complete range of services adapted to customers’ needs.
The company is especially located in Europe where its historical roots remain: Netherlands, Germany, Belgium, United Kingdom and Spain.
That is why it was all the more obvious and essential to invest in France: Crossroads of Western Europe ( common borders with UK, Belgium, Germany, Italy, Spain.)

7. TNT’s values TNT’s 7 values
Were easy to instill in France since they are universal
- To satisfy the customer
- Continuous improvement
- to pay attention to the other
- Act as a team
- To be honest
- to keep succeeding through time
- To make the company a world wide citizen
These values are present in all TNT warehouses in the world. Since they are generic, they were easy to instill in France. Even in the context of Jet Service’s acquisition there was no hard time implementing them.

8. Constraints in France A different legislation in each country
French employement laws :
A constraint for developping the activity
A reduction of the competitivity
-TNT had to face constraints that are the same in each country : a different legisaltion
-But there are constraints that are only in France : the length of work in a week is very short in France, and the employement laws are very strict.

9. Adaptation to France A long integration of Jet Service in TNT
The Jet Service team had to adapt :
TNT France had to propose all the range of TNT product
Working internationally needs new know-how's
TNT France is a combination of know-how's
-TNT bought Jet Service in 1999, but it began to associate the 2 names only in 2001, and Jet Service disappeared in 2003
-TNT have a global policy : to offer the same services all over the world : French managers had to adapt to this policy. But it was not only Jet service who had to adapt, but also TNT, to create common know-hows that fit both the French market and TNT requests.

10. Key Constraint Costs An important investment : 305 millions euros
Different cost structures

11. Key Benefits A strategic position
An image benefit thanks to an established brand
An important market

12. Essential Advice
To work in delivery services, you have to think in term of network
You need to buy a French company to implant yourself in France…
… But the market is already quite saturated
-Entry barriers are very high in this kind of job, and if you start from zero in a country, You will have a long period without profit
-There are 4 big operators in the world : DHL, UPS Fedex and TNT. Those big 4 are already settled in France, so it would be difficult for a new company to settle in France in the future

13. We Thank Hervé Féat, Marketing director TNT Express France
58 avenue Leclerc BP LYON Cedex 07
Tel :  + 33  (0) gsm : + 33 (0) e.mail :
Rachel Timmerman, Depot operations manager
Garonor Ouest, Batiment 25
93151 Aulnay sous Bois
Tel : (0)
e.mail :

14. Bibliography
Questionnary (cf. notes pages)

15. Our Team Louise Bousquet Amélie Furno Casimir Naywosz Paszkiewicz
Groupe HEC, H016
1, rue de la Libération Jouy en Josas
20, rue Guynemer PARIS
Amélie Furno
Groupe Hec, K15
1, rue de la libération
Jouy en Josas
1 bis, impasse Henri Regnault Garches
Casimir Naywosz Paszkiewicz
Groupe Hec, H12
23 av. Foch PARIS
Capucine Roussel
66 bd Vincent Auriol
75013 Paris