Tag: Royal Mail

New Network Director for the Post Office

Posted by | Jan 10, 2007 | |

Retail executive Paula Vennells, who has worked with many of the UK’s leading consumer brands, has joined the Post Office® in the key role of Network Director.

She brings with her a wealth of experience from a range of companies including the Whitbread Group, Argos, Great Universal Stores, Sears, Dixons Stores Group, Reed International and Lunn Poly.

Paula, who also joins the Post Office Executive Team, said: “I’m very pleased to be joining the Post Office and to be taking on a central role in a network that serves 24m customers a week.”

She will report to Post Office Managing Director Alan Cook, who said: “I’m delighted to welcome Paula. She has the skills and background that make her ideally equipped for the job.”

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Siemens wins 55 million euro order from Royal Mail

Posted by | Jan 9, 2007 | |

Siemens Industrial Solutions and Services Group (I&S) has won a 55 million euro order from Royal Mail, the British postal service provider, to upgrade its Integrated Mail Processor Systems (IMP) for standard letter sorting. The systems will be fitted with new letter flow and reading equipment which will increase throughput by up to 20 percent. Conversion work is due to be completed by October 2008.

The IMP sorting systems from the I&S Postal Automation Division were put into operation between 1996 and 2002 and form the foundation of automatic letter processing at Royal Mail. The systems can perform the entire letter processing functions – such as preprocessing, reading, coding and sorting – in one process operation. Installing the Advanced Color Recognizer system will make new reading technology functions possible. This will enable more letters to be channeled into automated preprocessing and thus reduce manual handling. There will also be further improvements to the letter facing and reading processes. The separation of first and second class mail will become simpler and more efficient. Moreover, the recognition of postage stamps, meter marks, barcodes and electronic stamps will provide automated revenue protection.

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Government department snubs Royal Mail over GBP12m postal contract

Posted by | Jan 9, 2007 | |

The Communication Workers Union (UK) yesterday attacked the decision by the Department for Work and Pensions to award a GBP12m contract for post services to UK Mail, a leading rival to Royal Mail.
The union said it was disappointed that, at a time when the Department of Trade and Industry was finalising plans for investment in Royal Mail’s postal services business, other departments were giving work traditionally done by the state-owned former monopoly to private sector rivals.
The union’s general secretary, Billy Hayes, said: “This is a prime example of how disjointed departments in government are. Instead of using private postal services it is essential that the government understand they have a moral and social responsibility to the network and by not using the service themselves it does not exude confidence to the British public in a government-controlled institution.”
At a time when the DTI was conducting a review of the postal service, it was vital other departments did not make rash decisions which could affect its future, the union said.
A DWP spokesman said it had been urged by the government’s spending watchdog, the National Audit Office, to look at the way it bought postal services to see if it could achieve efficiency savings. The decision to award the contract to UK Mail, a subsidiary of Business Post, followed that review and would save the department about GBP2m over the 13-month life of the agreement.

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Postal union urges halt in Whitehall switch to private sector

Posted by | Jan 9, 2007 | |

The UK government has been urged to stop Whitehall departments switching to Royal Mail competitors for their postal services, after the Department for Work and Pensions signed a deal with a private operator to handle its bulk mailings. The Communications Workers’ Union said it was disappointed that government departments were considering using private contractors at a time when the Department of Trade and Industry was still mulling its investment plans for the state-owned postal service. The DWP said the decision to put the work to tender reflected its need to make savings and followed the recommendations of the National Audit Office.

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Business Post delivers key deal

Posted by | Jan 9, 2007 | |

Business Post shares gained more than 4pc yesterday after the mail and parcel delivery group won the first postal services contract the Government has put out to tender.

The shares closed 18 higher at 439p following the pounds 12m deal with the Department for Work and Pensions (DWP). Guy Buswell, chief executive, said: “We expect other departments to follow suit.”

The DWP’s decision will come as a blow to Royal Mail as private sector competitors make further inroads into its market. Business Post is its largest rival with more than 4pc of the market, delivering over 100m items a month.

Including the 14 other licence holders, Royal Mail has lost 10pc of its business since the process of deregulation began almost three years ago. A recent National Audit Office report estimated that the Government could save pounds 31m annually from more efficient postal services.

UK Mail, Business Post’s mail division, started delivering letters in May 2004. It now has revenues of pounds 40.4m – about 15pc of group turnover – and profits of pounds 3.2m.

DWP will be UK Mail’s largest contract by revenue. By volume, the biggest is NatWest owner Royal Bank of Scotland – the largest mailer in the country.

Business Post competes with Royal Mail on price and service. It does not offer an overnight delivery but guarantees a two-day service cheaper than second class.

It also picks up mail as late as 8pm and tracks all packages. It does not offer end-to-end delivery, but pays Royal Mail about 13p an item as the “access price” for final mile delivery by postmen.

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