Tag: UK

Royal Mail wants price cut for businesses

Posted by | Aug 23, 2007 | |

Royal Mail is pressing the industry regulator, Postcomm, to make radical changes to the universal service obligation, under which it must deliver mail to all the UK’s 27 million addresses for the same price. It wants business post taken out of the deal to allow it to charge less for franked mail.
Postcomm is conducting a wide-ranging strategic review of postal services as competitors battle Royal Mail for a share of the market and all mail providers face a growing challenge from new communications media such as email. The review covers competition, innovation, regulation, governance and the structure of the universal service.
Royal Mail’s proposals were revealed last Thursday 23rd August in Postcomm’s interim report on the review. The regulator, which has allowed changes to the universal service in the past, gives a cautious response to the plans. It acknowledges that removing business mail from the deal would help Royal Mail to be more commercially flexible. But it notes: “We believe that to manage some potential risks, a phased approach might be an attractive way forward.”
One concern is that Royal Mail’s proposals could harm small businesses unable to take advantage of competition in the bulk mail market. “We need to ensure the service remains aligned with changing customer needs and the economic costs of providing it,” Postcomm says. “The basic right to post a stamped letter anywhere in the UK for the same price will remain at the centre of the universal service.”

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Royal Mail needs 'radical change'

Posted by | Aug 23, 2007 | |

Royal Mail’s survival depends on major initiatives to slash costs, such as contracting out part of its operations, according to a Postcomm report.

The UK mail service regulator called on Royal Mail to introduce radical measures to modernise its business so that it could face more competition.

Royal Mail has been losing market share to rivals since it ceased to be a monopoly in 2006.

The group is currently involved in a bitter pay dispute with its workers.

A number of strikes since June have disrupted the UK postal service as the Communication Workers Union battles for a bigger wage settlement than the 2.5 pct pay rise on offer.

Union officials are also opposing large-scale changes to the Royal Mail, which would see greater use of automation in sorting mail. This could lead to an estimated 40,000 job cuts, they say.

In its report on the future of the mail market beyond 2010, Postcomm blamed Royal Mail’s financial troubles on rising labor costs and significant pension scheme obligations.

In 2010 Royal Mail’s current pricing agreements will come to an end.

Declining market volume and discerning purchasing by customers has also contributed to to reducing profitability at the group from GBP 159m in the first six months of 2005-06 to GBP 22m in the first six months of 2006-07, the regulator observed.

It raises the possibility of Royal Mail franchising out some of its sorting, delivering or collections operations to keep costs down. Similar solutions have been found by national mail operators in Germany, US, Australia and New Zealand.

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TNT Post becomes major postal provider for the Welsh public sector

Posted by | Aug 20, 2007 | |

This month, TNT Post’s South West & South Wales team has started handling mail for two NHS Trusts in the Welsh public sector in what is predicted to be the biggest postal deal in the country since full deregulation of the postal service in 2006.

The deal will see TNT Post work collaboratively with Value Wales, under the OGC Buying Solutions Framework as a supplier to public sector organizations in Wales. By working in partnership with Value Wales, TNT Post will look to handle across the Public Sector over 100,000 items a day by the end of the first year, resulting in the Welsh tax payer saving an estimated GBP 1 million.

The first bodies to work with TNT Post will be the Cardiff and Vale NHS Trust and Gwent Healthcare NHS Trusts. Together they will pass an estimated 12,000 mail items daily to TNT Post in South Wales and as a result of these savings, the Trusts will be able to channel this money into the delivery of their front-line services.

TNT Post in the South West & South Wales has to date secured a number of significant customer wins during the first six months of trading and now has more than 50 customers in the area.

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Free parcel service for frontline troops

Posted by | Aug 20, 2007 | |

Royal Mail is proud to announce today that it will be making special arrangements for a free parcel service to British troops in Afghanistan and Iraq.

Royal Mail’s Chairman, Allan Leighton, said: “Royal Mail wants to see our frontline troops get as much support as possible.

“We’re now urgently working with the British Forces Post Office to set up special arrangements to start as soon as possible for a free parcel service until Christmas so that friends and family can send free parcels to Afghanistan and Iraq. We’ll be making an announcement with further details within days.”

Royal Mail added that it would be pleased to review with the Ministry of Defense how the free parcel service might be maintained after Christmas.

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Operational Investment at Pallet-Track

Posted by | Aug 20, 2007 | |

Pallet-Track the UK’s fastest growing overnight pallet network is pleased to announce major investment of over GBP 300,000 into its operation.
The company has just taken delivery of six H20 Linde trucks with the latest specification available in the market today. Powered by a VW Audi engine the new IC trucks are the quietest yet producing only 72 decibels. The truck is 30 pct more fuel efficient than its predecessor with enlarged fuel cells providing greater operating hours in the demanding sort operation.
Additionally Pallet Track has also purchased new scales and an automatic shrink wrapping machine in line with introducing a quality controller to oversee the entire night operation. The role of this person will be to check weigh consignments at random, identifying inadequately wrapped goods along with any manifest discrepancy, reporting and setting corrective actions through the head of operations.
The company will also take delivery of 7 new Jungheinrich trucks in two months time.

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