Tag: Royal Mail

Changes to Royal Mail's Standard Parcel service

Posted by | Oct 21, 2003 | |

Royal Mail today welcomed Postcomm’s decision to allow it to make alterations to its Standard Parcel service. From 1 April 2004, Royal Mail will withdraw the delivery of Standard Parcels weighing more than 20kgs – a service historically provided, although not required under the terms of the Universal Service Obligation within the Postal Services Act. Royal Mail’s network is not designed for handling items weighing more than 20kgs, which account for less than one per cent of the four-and-a-half million Standard Parcels it delivers each year.
Royal Mail’s current charge for handling Standard Parcels weighing between 20kg and 30kgs is GBP10.76. The real cost of providing the higher weight delivery is between GBP22 and GBP36, depending on a variety of factors including the destination, resulting in an annual loss on the service of around £1 million.

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Royal Mail eyes return to rail for bulk traffic

Posted by | Oct 20, 2003 | |

The UK’s Royal Mail wants to use rail for long-distance bulk mail, but believes the sector cannot provide the consistency needed for time-sensitive shipments.
The decision in June to move time-sensitive mail to road under a new hub-and-spoke system by the spring, saving GPB90m (EUR127.8m), was a “complete no-brainer”, Royal Mail chairman Allan Leighton told a government transport committee inquiry. Quality of service, cost and, most importantly, consistency were all behind the decision, he said. Paul Bateson, Royal Mail’s director of logistics, accepted the fact that infrastructure provider Network Rail gave high priority to mail trains, but he said when there was a problem, rail could not recover quickly enough.

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Postcomm sets compensation rates for delayed mail

Posted by | Oct 7, 2003 | |

Following consultation, Postcomm today set out the details of how Royal Mail should compensate its customers if their letters and packets are delayed in the post. Postcomm’s determination provides separate compensation schemes for businesses that use Royal Mail for bulk mailings, and for private customers. The bulk mail compensation scheme will come into effect for this financial year, linked to Royal Mail’s quality of service from April 2003. Compensation for private customers will operate from 1 January 2004. Business customers who send out bulk mailings will be compensated at the rate of 1% of their bills for each 1% that Royal Mail fails to meet national targets. The minimum payment will be at a shortfall of 1% and will increase by 0.1% increments up to a maximum of 5%.A separate scheme is proposed for domestic users who will be able to make a claim for delays to first or second class mail, Special Delivery
and standard parcels.

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Banking on the future of the Post Office network

Posted by | Oct 3, 2003 | |

Postcomm publishes its third annual report on the Post Office network today. In it, Postcomm says that significant progress has been made in implementing the key recommendations of the Cabinet Office Performance and Innovation Unit’s 2000 report into the network. The last year has seen: the announcement of financial assistance for rural Post Offices, the start of the urban reinvention programme and improvements for remaining urban Post Offices, financial support for Post Offices in urban deprived areas and the launch of expanded banking facilities at Post Office branches.

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Regulator fines Royal Mail GBP7.5 million – Royal Mail comment

Posted by | Sep 30, 2003 | |

Commenting on Postcomm’s announcement today that it intends to fine Royal Mail GBP7.5 million for failing the licence targets last year for two First Class business mail services, Royal Mail’s Chief Executive Adam Crozier said: “This heavy GBP7.5 million fine further tightens the financial pressure on Royal Mail. It underlines the need for us to get on with the changes that will deliver efficiency savings and better services to customers. While Royal Mail has reported last month some of its best customer service for five years, we realise we have to perform even better to avoid further fines, potentially even greater than GBP7.5 million.

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