Tag: Royal Mail

Postcomm launches review of Royal Mail's charges for 'final-mile' delivery

Posted by | Mar 23, 2007 | |

Postcomm, the UK postal services regulator, has launched a review of the charges Royal Mail imposes on other operators for access to its network and the delivery of mail over the so-called ‘final mile’.

Royal Mail and its biggest private competitor, TNT Post, have both requested changes to the margin between the price Royal Mail charges its customers for bulk mail deliveries and the amount it charges other operators for end delivery.

The former monopoly provider wants the margin narrowed, saying the 13 pence per item it is allowed to charge its competitors for providing final-mile delivery to homes and businesses is not enough to cover its costs.

It added it cannot compete fairly in the business mail market under the current price controls because any cut in its prices must be matched by a reduction in the amount it charges its rivals to use its network.

Competition is developing at a much faster pace than originally predicted, according to Royal Mail, with new entrants such as TNT Post and DHL securing about 25 pct of the bulk business mail market since it was opened on 1 January 2006.

TNT Post, however, said Royal Mail was attempting to ‘squeeze its competitors out of the market’ by requesting a reduction in the margin.

TNT Post said the limited margin protection currently in place made it difficult to invest in the infrastructure required to compete with Royal Mail.

Royal Mail has also called for an end of the cross-subsidy of stamped letters by business mail.

Stamp prices need to rise by 6 pence to a level that can realistically fund the Universal Service, which lost more than 200 mln stg in the last financial year, it said.

‘Because stamped mail is subsidised by business mail our business mail prices remain artificially high, which makes it easier for rivals to ‘cherry pick’ business customers,’ it said.

The review of Royal Mail’s pricing and service quality levels until 2010 will be completed within six months, Postcomm said.

Read More

Royal Mail and Remploy pilot scheme for disabled workers

Posted by | Mar 23, 2007 | |

A partnership between Royal Mail and Remploy – the provider of employment services for disabled people – is set for a national roll-out following a successful pilot programme in the South East.

Over the past year, 32 Remploy candidates with disabilities or health conditions have been employed as postal workers. Eleven are based at the Jubilee Mail Centre in Hounslow, while candidates have also been placed into administration, sorting office and delivery roles.

The scheme is now being extended to Essex, Chelmsford, Chiswick and Guildford, prior to a national roll-out in April.

Mike O’Donovan, mail centre manager at the Jubilee Mail Centre, said: “Many people’s perceptions of disability have been turned around by working with Remploy and it’s great to know that the partnership will now be rolled out nationally.”

This year, Remploy aims to find 5,600 jobs for people with disabilities and health conditions in mainstream employment.

Read More

Pace of competition underlines challenges facing Royal Mail

Posted by | Mar 22, 2007 | |

Royal Mail today responded to Postcomm’s newly announced review of the 2006-2010 Price and Service Quality Control, saying:

• The UK mail market has fallen by 2% and is set to fall further.

• The drop in mail volumes compares with Postcomm’s predictions in setting the price control that the market would rise by between 1% and 2% annually.

• It is now increasingly likely that no other EU country will open its market to competition as Postcomm has done in the UK. This leaves our major rivals with protected home markets while at the same time they can enjoy a regulatory regime in the UK which is heavily tilted in their favour.

• Competition in the UK is developing at a much faster pace than originally predicted – Royal Mail’s competitors will handle around 2.5 billion letters this year, well ahead of expectations and equivalent to 25% of bulk business mail.

• That means that this year alone rivals are carrying around 600m more letters than had been anticipated when Postcomm set the price control, and although rivals require Royal Mail to deliver these letters over “the final mile” to homes and businesses, the price Royal Mail is allowed to charge for doing so doesn’t cover our costs.

• Royal Mail cannot compete fairly for business mail because the price control dictates that when we offer to lower our prices we have to reduce the amount we charge rivals to use our network by the same degree.

• As quality of service has improved across all our products and services our business customers are choosing to use Second Class and other cheaper services instead of First Class, reducing Royal Mail’s revenues.

Read More

UK Homes receive 15 billion items of junk mail a year

Posted by | Mar 21, 2007 | |

Every year UK households are bombarded by a staggering 15 billion pieces of junk mail, equal to 626 unsolicited letters per British household, but the consequences are more than just simple irritation on the part of the recipient.

An estimated140,000 householders fall victim to identity fraud every year and many people are putting themselves at risk by not shredding or destroying junk mail according to new research by CPP. 80 per cent of the population admit to throwing their junk mail away without even taking it out of the envelope. All an opportunistic thief needs to cash in on our identities is a name and address.

Over a lifetime the average person will throw 49,000 letters in the bin. A spokesman from CPP said: “The results from this survey are terrifying – people don’t realise that by dropping 49,000 letters in the bin, they are effectively giving fraudsters 49,000 opportunities to steal their identity.”

The statistics reveal we are most at risk when moving house. 16 per cent of people fail to tell people when they move, with a quarter of us getting so wrapped up in the trials and tribulations of changing homes we forget to tell banks, utility companies and the DVLA for at least 2 weeks.

Almost a third of us naively rely on the new occupants of our old homes to forward our mail on to us. But the trust may be misplaced: less than half of new owners bother to send on any correspondence at all.

A spokesperson for CPP said: “Moving home is a key time for people to leave themselves vulnerable to fraudsters. Giving notification of change of address should be organised weeks in advance and should be put in equal priority to signing the deeds or booking the removal lorry. If it isn’t, the consequences could be very serious.”

Read More

ByBox appoints new head of innovation

Posted by | Mar 21, 2007 | |

ByBox, the UK’s leading force in parts distribution, has further
strengthened its management team with the appointment of Mike Boxwell as Head of Innovation.

It is a completely new role and one which reflects the company’s commitment to innovation and technology.

With a background in IT, Mike has a long track record in the hand held scanner market with particular expertise in the courier and distribution industry.

Prior to joining ByBox Mike previously ran computer manufacturer Hand Held Products in the UK and also set up and ran Littlefoot which provides tracking and proof of delivery systems for major parcel carriers. Customers include La Poste, Royal Mail, DX, Amtrak, GeoPost and Business Post.

He has a strong knowledge of the parts distribution market having worked alongside ByBox for a number of years to provide hand held scanning solutions and will bring a valuable skill set to the already successful operation.

In his new role Mike will be involved in developing and managing a new scanning platform for ByBox’ unique network of electronic boxes whilst at the same time having specific responsibility for projects involving technology and innovation.

Mike is also no stranger to innovation having formed eBIKEshop in 2004 which
became the UK’s largest retailer of electric bikes. He sold the business at the end of 2005.

Aged 36 Mike is married with two young children.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

How ready do you feel for the de minimis changes coming in July?

Thank you for voting
You have already voted on this poll!
Please select an option!




View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest