Tag: BCC

Disenchanted companies desert Royal Mail (UK)

Business customers are deserting Royal Mail and most firms do not find the postal group an efficient organisation to work with, a study by the British Chambers of Commerce (BCC) for The Times has revealed.
The BCC sought the views of nearly 1,000 businesses throughout the country about their use of Royal Mail and their experience of the organisation.
Sixty-eight per cent said that they did not find the postal group to be a “professional, efficient organisation to do business with”; 55 per cent said that Royal Mail was less reliable than it was five years ago and only 8 per cent thought that it had improved.
In a striking example of how much electronic communication has hit the use of postal services, nearly 86 per cent of businesses said that they used the internet and e-mail for transactions that they would have put through Royal Mail five years ago.
The BCC survey comes as the National Federation of SubPostmasters (NFSP) gives warning today that 3,000 more post offices may be forced to shut if the Government withdraws post offices’ rights to handle benefits and pension payments through the post office card account.
Royal Mail is in the middle of a programme to shut 2,500 post offices in its loss-making network.
Subpostmasters will press the Government to renew the contract for the post office card account when it comes up for review next year.

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BCC: Postal competition necessary for businesses (UK)

Businesses deserve an ‘efficient and cost effective’ postal service and any review of the market must take this into account, it has been claimed.

The British Chambers of Commerce (BCC) made the comments in response to business secretary John Hutton’s announcement of a ‘comprehensive review’ of developments in the postal services market since its liberalisation two years ago.

The review will look at trends in future market developments and the likely impact on Royal Mail, other carriers and consumers.

Hutton said: “We believe that opening the market has brought considerable benefits for users of postal services but there can be no doubt that the market has evolved, with new technologies such as email and text messaging having a huge effect on the way we communicate.”

Responding to news of the review, Natalie Evans, head of policy at the BCC said:

“The business community deserves and depends upon an efficient and cost effective postal service.

“Frustratingly, the recent strike action at Royal Mail had a significant impact on businesses across the country, costing small and medium sized businesses an estimated GBP 2.5m in delayed post every day there was disruption.

Evans said competition in the industry was necessary to ensure business mail got delivered.

She added: “If Royal Mail cannot ensure final mile delivery, then choice must be allowed to flourish within the industry.”

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Business deserts Post Office in the UK

Small businesses are ready to desert Royal Mail and switch to private sector delivery rivals after counting the cost of the damaging postal dispute, a survey shows.

More than half the small companies surveyed for the British Chambers of Commerce (BCC), say they are more likely to use alternative services to reduce the risk of further disruption to their business.

Rival mail services, the internet or a personal limited service for key customers are among the options they are exploring.

Royal Mail is braced for a backlash from dissatisfied customers, but is banking on higher rates charged by rivals to prove a deterrent for business customers to switch. The weekend BCC poll, based on replies from 183 members, showed 62pc of them have already started using alternative services to send and settle invoices, while 88pc have seen their businesses suffer from cash-flow problems and lost orders and other costs involved in meeting the cost of the strike.

Natalie Evans, head of policy at BCC, said the survey results hammered home the damage to Royal Mail and the loss of confidence among customers. “It will not be easy for Royal Mail to regain their confidence,” she said.

Royal Mail has seen business shrink even before the strike with the loss of 40pc of its bulk-mail business. Rivals TNT, Business Post and Deutsche Post have been working flat out during the strike to ensure they keep the new business.

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