MRM.COM : Parcelforce plans : What does our CWU agreement mean for Parcelforce Worldwide?

[POSTMAN]

https://www.myroyalmail.com/news/2021/0 ... orce-plans

We’re committed to Parcelforce Worldwide, but we need a programme of change to make sure it’s financially and economically stable in the long term, writes Achim Dünnwald, chief operating officer.

The CWU framework agreement at this time only has a pretty small paragraph on Parcelforce that confirms our commitment to that part of our business. But we need to start implementing a programme of change no later than 1 May.

It’s important to point out that the idea of TUPE-ing the company is off the table. Parcelforce will remain a proper and integral part of our UK business. It serves customers with some services that we’re unable to provide in the Royal Mail network. It has its place both in the express world and as a partner for our international shipments, as a partner for GLS on the European continent.

Having said that, we will also be looking for synergies. We have Parcelforce and we have the core Royal Mail network. There are shipments that are best handled upstream or downstream in either the Parcelforce network or the Royal Mail network. It's always best to let the customer decide what product specifications, speed, size, and price they want. But once we have the items, we also want to allow for crossovers to make sure the parcel travels in the most efficient place.

We're already doing that where, for example in remote areas, Royal Mail delivers for Parcelforce because it's just not economical to go over the ground twice. That's a good example. Another good example is that Royal Mail has taken some Parcelforce volumes, such as Adidas’ smaller business-to-consumer items. Adidas is – and will remain – a Parcelforce customer, but items were best handled on the Royal Mail network to be more efficient and better for the customer, so we diverted them.

This could work the other way around, too.

Look out for a new RMtv Special with Achim in the coming weeks as he updates us on the progress being made since CWU members voted ‘yes’ in favour of our framework agreement.