Royal Mail to “transform parcel tracking” with £130m investment

Royal Mail is investing £130m in 76,000 new hand-held devices to provide better tracking capabilities for its parcel services. The company has handed a supply contract to telecommunications giant BT to provide the technology over few years.

It will be up to BT to decide what kind of technology will be provided.

As well as boosting tracking capabilities, the new investment is expected to help improve the flexibility of Royal Mail’s parcel deliveries as it competes against companies providing increasingly sophisticated forms of delivery alternatives for the e-commerce market.

It will mean householders can manage their shipments more easily, for example by telling Royal Mail a safe place in which to leave an item if they are not at home to receive it.

Royal Mail said the contract was part of its broader IT transformation programme, which is supporting its parcels strategy.

The new devices will start being rolled out to delivery staff next year, with the roll out to be completed in the 2016/17 financial year.

“New services”

Nick Landon, Managing Director of Royal Mail Parcels, said: “Our investment of around £130m in IT will better enable us to develop new services for parcels customers. This is part of our on-going programme to continue to respond to the needs of our customers and maintain our leading position in the UK parcels market.”

BT’s contract also includes day-to-day management of current and new devices over a five-year period.

The company will handle the programme through its Field Force Automation services unit.

Luis Alvarez, Chief Executive Officer of BT Global Services, said: “We’re passionate about helping leading organisations like Royal Mail blend the latest technologies with their people’s skills and experience to get the best business results – something we call the art of connecting. The new hand-held devices, provided and managed by BT, will transform parcel tracking, helping Royal Mail create an even better connection with its customers.”