Tag: Royal Mail

Four make shortlist for Royal Mail brief

Royal Mail is understood to have shortlisted four agencies to pitch for its GBP25m media planning and buying account. They are incumbent Carat, plus OMD UK, PHD and MediaCom.
Starcom was involved in the early stages but is not going through to the next round.
An appointment is set to be made at the end of March, when Carat’s contract expires.
No one from Royal Mail was available for comment at the time of writing.
In its invitation to tender document, the Royal Mail stated that the four-year contract was worth between GBP75m and GBP100m.
Up to two agencies will be appointed to the planning and buying account, which is divided into media planning and buying, including pre and post-campaign analysis, and communications planning for disciplines such as direct marketing and sales promotion. Both are currently handled by Carat and the latter is worth between GBP1m and GBP1.25m a year.

Carat has handled the account since 1997.

Read More

Royal Mail walkout is cancelled

Strike action by UK postal workers has been called off for the second week in a row.

Royal Mail delivery staff at 11 offices were set to walk out for 48 hours tomorrow and Thursday in a dispute over the firm using part-time workers for full-time positions.

However, the Communication Workers Union (CWU) has cancelled the action after a resolution was reached following national talks last week.

It comes after another 48-hour strike was called off on January 19 and 20.

The row has raged for more than a month and hit pre-Christmas deliveries when more than 700 staff from 11 offices walked out on December 9, 16 and 18.

They included employees from offices in Biddulph, Burslem, Cheadle, Kidsgrove, Leek, Longton, Stoke, Stafford, Stockton Brook, Uttoxeter and Werrington.

Last week’s two-day strike was averted at the 11th hour and the dispute was expected to be brought to an end at final talks yesterday.

However, progress was held up when the meeting had to be postponed due to illness.

Royal Mail confirmed an agreement had been struck with the CWU, but declined to reveal any details.

Read More

UK Post offices' future 'lies with unique services'

Distinct products and unique services could safeguard the future of the threatened post office network.

That was the view of about 20 of Moray’s sub-postmasters and postmistresses who met last night to discuss the latest challenges facing their businesses.

It is not known how many in Scotland will be affected, but estimates range from 300 to 600.

Trade and Industry Secretary Alistair Darling said in December the cuts were needed because of losses of GBP4million a week.

Last night, those in Moray said some of the area’s post offices may no longer be viable, and that will be due in part to Government policy.

A sub-postmaster from Craigellachie said constant decisions to share once-unique post office services with other outlets was crippling the service.

Announcing the proposal, Mr Darling promised a GBP1.7billion package for the period up to 2011, including compensation, thought to be about GBP70,000 each, for sub-post office proprietors ordered to close.

There will also be an on-going subsidy of GBP150million a year to maintain a network of the remaining 12,000 main and sub-post offices.

But some at the meeting last night said they did not want a subsidy – they wanted to be part of a vibrant business that sustained itself.

They also expressed their desire to see the GBP1.7billion package spent wisely.

Former Fochabers sub-postmaster Paul McBain said: “They need to spend that money looking for business that is going to keep the post office vibrant.”

Read More

Royal Mail's deficit cloud darkens

Opposition parties have rounded on the UK government over Royal Mail’s deepening financial crisis, as an exodus of big corporate clients heaped pressure on the firm to tackle its GBP5.6bn pensions deficit.

BT dropped Royal Mail in favour of TNT Post for a GBP90m contract, with UK energy supplier Centrica and the Carphone Warehouse quickly following suit – both choosing private suppliers.

In total Royal Mail lost out on contracts worth nearly GBP150m.

The Department for Work and Pensions (DWP) became the first high profile department to turn its back on the Royal Mail and has since said it would not rule out dropping the firm for future contracts.

Alan Duncan, Conservative shadow trade, industry and energy secretary, quizzed the government in parliament over its failure to deal with the situation.

The government-owned former monopoly has struggled to retain business after postal services were fully opened to competition last year. Since then it’s lost more than 10% of the mail-handling market to private firms.

Read More

Royal Mail loses big business deals

Royal Mail has ‘lost’ 2.bn business letters – one in eight – to private competition in the past 12 months, Financial Mail can reveal.

About 18 of Royal Mail’s largest business clients, including HBoS, Lloyds TSB, Barclaycard, Centrica and the Department for Work and Pensions, have defected to private carriers. There are fears that other Government departments will also take their business elsewhere.

The loss of so many large customers is expected to have a strong impact on the company’s profits, which will be announced at the end of March. Operating profits last year were GBP 355m.

The Carphone Warehouse last week became the latest firm to dump Royal Mail and sign up with a new postal provider, UK Mail.

Executives at Royal Mail are becoming increasingly frustrated because, under the terms of its licence, the company cannot offer to cut prices to try to keep business.

It can compete with cut-price competition only by lowering all its delivery charges to business customers, a move that would have to be funded through increased efficiency and new technology.

One hundred top business clients are responsible for 40% of Royal Mail’s profits and traditionally business customers effectively subsidise domestic household mail.

The growing loss of customers will put further pressure on the Government to agree to Royal Mail’s restructuring plans.

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!




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.

 

Pin It on Pinterest