Royal Mail on target in latest quarter, after difficult 2011

Royal Mail has said its service quality during the first three months of 2012 has been the best since the summer of 2010, but over the full 2011-12 financial year targets were narrowly missed. The company currently in the middle of one of the biggest transformations in British industry said it delivered the “overwhelming majority” of mail delivered on or ahead of target from January through March 2012.

Stamped and meter franked First Class mail saw a 93.4% rate for overnight delivery, beating Royal Mail’s 93% target.

The figures assembled by independent researchers TNS from 230,000 sample letters also suggested 98.9% of Second Class mail was delivered within three working days, against a 98.5% target.

Royal Mail said the final quarter of the 2011-12 year also revealed a “strong performance” from its postmen and women on delivery of Standard parcels, European International Delivery and the “majority” of business mail services.

Targets during the quarter were narrowly missed in Bulk First Class mail and in Special Delivery services. Among the 11 post code areas that failed their delivery targets, 10 were in London or the South East of England from January to March 2012.

Full year

The promising final quarter of the financial year did not help Royal Mail avoid missing its full-year service quality targets for First Class stamped and franked mail, which came in at a 92.7% average.

However, Second Class quality was above target for the full year.

For the full year, observers noted that 21 post code areas failed to meet their minimum service standards, with 15 of those in London or the South East.

Mark Higson, managing director of operations and modernisation at Royal Mail, said: “We have achieved target-beating performance at national level in the most recent period with 107 postcode areas out of 118 achieving the minimum standards set for them.

“The challenge now is to ensure that there is high performance in every part of the country as we continue to modernise Royal Mail.”

Last year saw Royal Mail narrowly missing its targets as it continued its efficiency drive that saw 373 delivery offices modernised, four mail centres closed and three new mail centres opened during 2011.

Higson noted that Royal Mail has some of the toughest quality standards of any postal service in Europe, adding: “I pay tribute to our people’s commitment to our customers as they work hard to transform Royal Mail. The biggest period of change is underway and it is a demanding and painful process.”

“Good achievement”

The UK’s national consumer watchdog Consumer Focus said Royal Mail’s figures were a “good achievement” considering the scope of its modernisation programme.

Mike O’Connor, chief executive of Consumer Focus, said: “Most postcode areas achieved the standards set for them but there appear to be persistent problems in London and the South East which remain a concern.

“Royal Mail should look further at why postcodes in this region don’t seem to perform as well as others around the country.”

The Communication Workers Union said the figures showed an improvement on the year before, with CWU deputy general secretary Dave Ward stating that the public was “receiving a better service thanks to the hard work and dedication of postwomen and postmen up and down the country.”