Tag: UK

Sub-postmasters' 'morale so low' – concerned MSP (UK)

Posted by | Aug 13, 2008 | |

North east of Scotland MSP Nanette Milne has voiced fears that more Post Office branches could shut in the future after the current 2,500 closure programme consultation ends.

It follows the announcement by Post Office Ltd last week that 40 Post Office branches would close.

Dr Milne said: “I have real concern as to what the Labour Government intends to do with Post Offices in the future. Speaking to sub-postmasters the North east it is clear that morale has never been so low…”

“The Business and Enterprise Select Committee, Chairman Peter Luff MP has said there could be a further 4,000 closures, mainly if sub-postmasters retired and were not replaced, and that there could be no compulsion to replace sub-postmasters who retire.

“A recent report by the Business and Enterprise Select Committee noted that the Post Office had estimated a network of around 7,500 would meet the national criteria for access to branches, although Government funding and the company’s business case were both based on the number of outlets remaining at 11,500 after the current closure programme is completed.”

She added: “I do not think it is satisfactory simply to accept that the network may continue to shrink in an unplanned way between now and 2011. Post Office Ltd should be obliged to use its best endeavours to keep the network at a minimum of 11,500 fixed outlets.

“The future shape of the network is a matter of direct political concern and the Labour Government must take ultimate responsibility for ensuring its considerable subsidies are being used to secure a network which meets the public’s needs.”

Dr Milne also commented on the Post Office Card Account contract, which is currently up for tender, with the result of who will run the contract in future, expected this summer.

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Royal Mail USO needs funding says Lawson

Posted by | Aug 12, 2008 | |

Steve Lawson, editor for Hellmail the postal industry news site said it was ‘highly probable’ that Royal Mail would have to consider reducing the frequency of its deliveries or cutting back on some of its services if fuel costs continue to remain high and more business was lost to rivals.

“Royal Mail is providing a very expensive service whilst continuing to lose market share” he said.

“Raising stamp prices to meet increased costs isn’t something that Royal Mail is able to do at will either, and often there’s a real lag between pricing and operating costs which puts Royal Mail at a real disadvantage. Present stamp prices are fixed until 2010 but that doesn’t take into account the sharp increase in diesel prices.”

“Royal Mail wants to provide the best service it can, as indeed do postal workers themselves, but the business is under huge pressure from Postcomm to reduce its operating costs. The six day a week service is an expensive one to provide, as is the universal service which guarantees a minimum collection and delivery service even to areas that are incredibly costly to provide. Sending a postman into the back of beyond to deliver a 34p letter isn’t exactly profitable. Add declining mail volume as well as business lost to rivals, and it becomes fairly obvious that maintaining such a high level of service is an enormous task. I doubt its sustainable unless stamp pricing becomes more flexible. It seems highly probable that some key part of its service will go.”

“There needs to be a fixed funding for the USO if Royal Mail is to be able to compete on fair terms but no decision has been made on who should pay for it in the longer term. Postcomm has already said that it isn’t keen to share that cost between operators as that would effectively undo its own efforts to help stimulate competition. Postwatch too, suggested some contribution from all postal operators but to date, it remains unresolved and it wouldn’t surprise me in the least if Royal Mail reports an even bigger loss on the USO this year. Its not an issue we can ignore.”

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DHL wins GBP 3.6 million British Home Stores contract (UK)

Posted by | Aug 12, 2008 | |

DHL Exel Supply Chain announced a new GBP 3.6 million (4.5 million euro) contract over three years to provide logistics e-fulfilment warehousing services for Bhs throughout the UK. This contract is an addition to DHL’s existing business with the major high street retailer and will involve handling over 150,000 customer orders each year.

DHL is to deliver a range of services to Bhs including: processing customer orders; processing customer returns; value added services and customer helpdesk services. The company will handle a variety of products for Bhs including clothing, gifts, home and lighting products

This additional contract was awarded to DHL after a competitive tender process. DHL’s capability will support growth of the online ordering business, reduce operating costs and improve service levels.

Bhs currently also uses DHL Global Forwarding for outbound freight logistics services and DHL Express for 24 and 48 hour parcel delivery services.

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Consultative Committee set for a second term

Posted by | Aug 12, 2008 | |

Charles Prescott, Chairman of the Direct Marketing Association in the United States, has been re-elected as head of the UPU’s Consultative Committee. Murray Buchanan, International Development Director with Royal Mail, will assume the vice-chairmanship. This committee, which was created at the 2004 Bucharest Congress, is mandated to represent the interests of the postal sector in the wider sense, and to act as a framework for effective dialogue between postal sector partners.

The CC is made up of 19 non-governmental organizations representing customers, delivery service providers, organizations of workers, suppliers of goods and services to the postal sector, and similar organizations of individuals and companies with an interest in international postal services.

Knowing that they can breathe new life into the organization by representing the point of view of customers/suppliers, the members of the CC wish to play an increasingly important role in areas such as support for postal reform, the environment and sustainable development, the universal postal service and postal security.

They have contributed to the development of the new Nairobi Postal Strategy, and will play an active part in its implementation, along with governments, designated postal operators and the Restricted Unions.

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First class plan (UK)

Posted by | Aug 12, 2008 | |

Royal Mail wants to build a new bulk mail distribution centre as part of a GBP 51 million investment programme in the north west.

As a result of the plans Liverpool Mail Centre, in Copperas Hill, and Crewe Mail Centre would both be relocated to the current regional bulk distribution centre, which is based in Warrington.

The move comes after a six-month consultation period with the Communication Workers’ Unions and Unite and it will see mail centres in Stockport, Oldham and Bolton closed.

Steve Cameron, Royal Mail territory director, said: “It is essential that we have the most suitable postal network to enable us to compete effectively in the years ahead. We need to invest to defend our market share and to retain existing business and win new customers.

“That means reshaping our network in a way that increases efficiency, makes the best of our investment in technology and allows us to improve our service to customers. We are also determined to provide a more modern working environment for our people.”

The changes are part of a GBP 1.2 billion programme to bring new technology and sorting equipment and will not take place until 2009.

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