Tag: Royal Mail

Royal Mail price proposals ''could boost direct marketing''

Posted by | Mar 1, 2007 | |

Proposals from Royal Mail to give it greater control over the prices it charges could see greater amounts of direct marketing being delivered, a leading economist has said.

Speaking to the Telegraph, Ian Senior said a bid by Royal Mail to increase domestic postal charges and reduce business post charges could see marketers being able to afford more direct mail shots.

Prices are currently set until 2010, but company´s chief executive Adam Crozier is pushing regulator Postcomm to completely deregulate charges.

“I think it would have an impact on direct marketing because it is all about trying to keep costs down. If the cost goes down by one or two pence per item, then the volume could go up,” Mr Senior told the Telegraph.

“If prices fall, it is possible that the Royal Mail will get a bigger market share of direct marketing, but it doesn´t mean that the volume will go up,” added a spokesperson from the Direct Marketing Association.

Royal Mail claims that falling profits on business post is forcing it to seek changes to current fees, as it says it must both be more competitive in this area and charge more from domestic customers.

The regulated postal service still controls virtually all the mail delivered in Britain.

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Royal Mail’s first class service to customers

Posted by | Feb 28, 2007 | |

Royal Mail’s latest independent performance report shows postmen and women are continuing to deliver target-beating service to customers.

From April to the beginning of December 2006, stamped First Class mail beat its 93.0% target with 94.1% arriving the next working day, while Second Class mail also beat its 98.5% target, with a 99.0% performance over the same period.

Mail services used by larger businesses also exceeded their targets during the first three quarters of the 2006-07 financial year. These included Royal Mail’s Mailsort bulk business mail services, Printed Postage Impression (PPI) items, and the Presstream service for magazine mailings.

Royal Mail’s Standard Parcel service recorded a performance of 94.6% between April and the beginning of December 2006 – well above its 90.0% target. Special Delivery met its 99.0% target over the same period.

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New GLS network partner in Bulgaria

Posted by | Feb 27, 2007 | |

The GLS Group is expanding its European network through a network partnership in Bulgaria: Interlogistica Ltd., headquartered in Varna, started realising nationwide distribution for all GLS companies in February 2007. The network of GLS, one of the three largest CEP service providers in Europe, now covers 35 states.

Interlogistica is among the leading CEP service providers on the Bulgarian market. Through its national network of locations, the company ensures distribution throughout the country. With two hubs in Sofia and Varna, which also serve as depots, as well as 19 other depots, Interlogistica provides a 24-hour-service for 98 per cent of Bulgaria’s surface area. In peripheral zones, delivery is made within 48 hours. 78 delivery vehicles as well as seven long distance trucks are in use in Bulgaria. In addition, the company offers general cargo transports as well as air and sea freight services.

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Postcomm calls for radical action over Royal Mail's costs

Posted by | Feb 27, 2007 | |

Postcomm has today responded to Royal Mail’s statement on the future of the UK postal industry.

Postcomm Chairman Nigel Stapleton said:

“Royal Mail is using an attack on the regulatory structure as a smokescreen for its own lack of progress in tackling their high labour costs. Since Single Daily Delivery was introduced in 2004, every initiative that the company has taken to improve efficiency has been absorbed either by higher wage rates or increased pension costs. Royal Mail has failed to bring its costs into line as would be expected of an efficient mail operator.

“Royal Mail has not asked us for an increase of 6p on the price of a stamp, and competition and regulation are not threatening the Universal Service. Royal Mail remains the dominant player and retains well over 90 per cent of the addressed letters market, and still delivers more than 99 per cent of all mail in the UK. It has a unique VAT advantage which acts as a significant barrier to competition for new entrants. Competition has taken less volume away from Royal Mail than was predicted a year ago and, on 95 per cent of the volume they have lost, they retain more than 70 per cent of the revenue to cover their costs of delivering over the final mile.”

“The decline in Royal Mail’s profits is not due to competition from other postal operators. It has two root causes: Royal Mail’s inability to control its costs, and its need to finance their growing pension fund deficit. In the six months to 30th September 2006, Royal Mail raised its prices on average by over 4 per cent, but this generated only 1 per cent in additional revenues to cover labour and pension costs.”

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Royal Mail calls for radical review of postal market regulation

Posted by | Feb 27, 2007 | |

Falling mail volumes and intensifying competition are putting massive pressures on Royal Mail’s ability to keep delivering a one-price-goes-anywhere service for every customer, the company said today. It urged the postal regulator to allow Royal Mail to compete freely and fairly while ensuring everyone can continue to post to the UK’s 27 million addresses at uniform, affordable prices.

Royal Mail’s comments came as it published its detailed response to Postcomm’s strategy review on the future of the UK postal industry. Royal Mail’s response proposes four steps which Postcomm should take to create a fairer market:

• The one-price-goes-anywhere Universal Service should be re-focused specifically on stamped mail rather than including business products.
• Cross-subsidies should be removed to create transparency for business customers and to ensure that competition is sustainable.
• Business mail services should be fully deregulated because competition has now replaced the need for regulatory constraints.
• Operational integration of the postal network should continue as separation would create confusion, introduce complex and costly interfaces, endanger quality of service and jeopardise Royal Mail’s modernisation programme.

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