Tag: Royal Mail

The Future of UK Postal Services

Posted by | Jun 25, 2007 | |

Now in its sixth year, this conference is firmly established as one of the leading events in the postal calendar. And with Royal Mail’s modernisation programme, the new operators’ increasing market share, the expansion of end-to-end, and Postcomm’s Strategy Review on the agenda, this conference comes at a crucial stage in the development of the market. This event will bring together the leading players in the industry to debate these issues and determine the future of the UK postal services industry

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Postal firm DX confident that doubling its size is in the bag

Posted by | Jun 25, 2007 | |

DX, the postal business bought last year by private equity firm Candover Partners, is confident it can double in size over the next few years as deregulation of the postal industry gathers pace.

The firm – originally known as Document Exchange – was started nationally in the mid-1970s on the back of a major postal strike. The legal profession and law societies decided that they needed an alternative postal network. With a network of branches across the UK, DX is now one of the biggest competitors to Royal Mail.

DX, which has more than 27,000 private and public sector customers, stands to benefit if Royal Mail staff press ahead with the first national postal strike for 11 years.

Earlier this month, some 69,000 members of the Communication Workers Union – 77 per cent of those voting – backed a strike over pay and cost efficiency plans.

As well as legal practices, DX services surveyors, accountants, estate agents and other professional services firms. Its new Rutland Square facility can count all of the major Scottish law firms among its users.

Although DX is focused primarily on next-day business mail services, its clients have access to a special delivery product that covers both business and residential addresses.

Candover paid almost £350m last July to secure DX. The venture capital heavyweight also bought Secure Mail Services, which delivers cheque books and credit cards to consumers, for an undisclosed sum.

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Council takes on Post Office over closures

Posted by | Jun 22, 2007 | |

Westminster City Council is to lobby the Post Office at a hearing next month on the closure of post offices in its borough.

The council claims that as high streets are forced to fight for their future because of increased competition from out-of-town developments, Post Offices are vital in attracting shoppers and providing community services.

In July, senior bosses at the Post Office will give evidence to a Westminster City Council Overview & Scrutiny Committee hearing that is examining the impact of proposed franchises and closures in the area. The council will seek to protect Post Offices under Policy SS1 of its Unitary Development Plan, which states: “Though all shops are considered important, local convenience shops are considered particularly important.” The council includes Post Offices in its list of local convenience stores.

Councillor Danny Chalkley, Westminster City Council’s Cabinet Member for Economic Development and Transport, said: “At a time when there appears to be a consensus in encouraging small shops and local trade to benefit the environment and help establish a sense of community, we are faced with the heart of many high streets being ripped out through Post Office closures.

A six-week consultation is also due to begin next month on the planned relocation of a Post Office on Poland Street in Soho to the WHSmith store at The Plaza on Oxford Street. This is one of 15 Crown Post Offices across London that are subject to a new franchise agreement with WHSmith.

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Royal Mail to deliver telecoms improvements

Posted by | Jun 21, 2007 | |

Royal Mail is planning to consolidate and transform its telecoms infrastructure to cut costs and improve flexibility.

The organization has started a procurement process for the provision and management of its existing telecommunications services, and will examine how to transform its network, including the production and distribution of digital audio-visual content via media such as IPTV.

Royal Mail says the network services, including voice, data, fixed and mobile, must be able to meet its future requirements.

The 10-year contract will be worth about £65m and will also include provision of its call centre infrastructure.

Datamonitor analyst Alex Kwiatkowski says Royal Mail is looking to adopt IP technology.

A 10-year contract is not common, but suggests the organization is investing significantly to ensure the project is done properly. This is particularly important as Royal Mail is a large business with more than 14,000 post offices, says Kwiatkowski.

The firm has overhauled resource planning and business intelligence systems and introduced RFID and mobile devices in recent years, contributing to the turning of daily losses of £1m into earnings of GBP 2m.

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Royal Mail response to planned CWU strike

Posted by | Jun 21, 2007 | |

Royal Mail said today the CWU’s planned strike action next week would only add to the very difficult competitive challenges the company and its people are already facing.

Royal Mail Chief Executive Adam Crozier said: “Royal Mail will do all it can to mitigate the impact of strike action but we are very disappointed for our customers at the disruption they are now facing. We remain very willing to sit down with the CWU to explain again the absolute need for Royal Mail to modernise and to underline how damaging a strike would be for postmen and women, and our customers.”

According to Royal Mail website:
• The mail market in the UK is declining by 2.5% per year
• Royal Mail has already lost 40% of bulk business mail to rival postal operators
• Royal mail’s rivals are 40% more efficient not because their people work harder but because they have already modernised and have much more technology
• Royal mail’s rivals pay their people 25% less than Royal Mail

Mr Crozier added: “We are losing business because we have failed to change and modernise – and as a result our costs and therefore our prices are higher than those that rivals are charging in the intensely competitive business mail, which makes up 90% of all postings.

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