Royal Mail must transform fundamentally

[TrueBlueTerrier]

Royal Mail must transform fundamentally so it can lead a healthier mail market

F...ing Postcomm Again

27 March 2008

Postcomm, the independent postal services regulator, has argued that fundamental reforms are essential if Royal Mail is to have a long-term sustainable future and the needs of all users of mail are to be met.

In its first submission to the independent panel reviewing the postal services market, Postcomm has highlighted the positive impact for customers since the addressed letters market was opened fully to competition over two years ago:

* Larger customers have enjoyed lower prices and increased innovation;
* Residential mail users have experienced record levels of service quality from Royal Mail; and
* Smaller businesses and public sector customers are also now beginning to reap the benefits of choice.

During this period, there have also been significant structural changes in the mail market that are directly linked to advances in technology and the increasing use of alternative forms of communication such as email and the internet. These changes pose challenges but they also create new opportunities. Royal Mail’s performance in rising to meet these new challenges has been disappointing.

Royal Mail continues to lag significantly in terms of investment, efficiency and substantial product innovation. Their recent focus has been on forestalling new entrants to the mail market and far less on adapting to these more far-reaching structural changes. This situation is unsustainable and unless addressed will result in accelerating decline.

Postcomm believes the future health of Royal Mail, the universal service, and the addressed letters market as a whole are inextricably linked. Decisions about fundamental reform have to be taken swiftly if Royal Mail is to lead a healthier mail market and provide a strong universal service.

Postcomm Chairman Nigel Stapleton said:

“Royal Mail’s problems are a lot more deep-rooted than having to deal with modest amounts of mail competition and regulation. Royal Mail is experiencing some fundamental changes in how senders are using mail following the rapid growth in the use of email, text messages and the internet for communications and marketing.

"Sweeping change and innovation can make both Royal Mail and the public winners from these far reaching market developments, but nothing less is required to ensure that the much valued universal service remains at the core of the market.

“There has to be a step change in strategy and approach, such that Royal Mail moves forward decisively to address its legacy issues of under-investment, difficult labour relations and the massive burden of its pension fund deficit. Recent experience in the parcels market demonstrates that more competition, particularly over the final mile, will help rather than hinder this fundamental transformation.

“The clock cannot be wound back on the competitive developments facing Royal Mail which are bringing significant benefits to customers. It is perfectly possible, however, for an organisation of the scale and reach of Royal Mail to transform its business and customer services rather than to remain locked in the past. We have been waiting far too long for this to happen and decline will be irreversible if these nettles are not grasped quickly.â€

[DGP1]

* Larger customers have enjoyed lower prices and increased innovation; - Yes lower prices but 'increased innovation' what the hell is that?

* Residential mail users have experienced record levels of service quality from Royal Mail; - Mail arriving later in the day and the worst service levels for years and an increasingly angry public who blame the posties up and down the country when they don't get the level of service they used to get.

* Smaller businesses and public sector customers are also now beginning to reap the benefits of choice. - Smaller businesses cannot spend enough money for the big DSA companies to become interested in them but the public sector (ie. the tax payer) does benefit slightly from a slightly cheaper price but pays in reduced service level.

Postcom and Postwatch are organisations run by intellectuals who have never worked in the relevant field but they have read books about it and decided that because they've read about something that they are fully experienced (I'm thinking of reading a book on brain surgery does anybody want me to operate on them?)

[plodsie]

“There has to be a step change in strategy and approach, such that Royal Mail moves forward decisively to address its legacy issues of under-investment, difficult labour relations and the massive burden of its pension fund deficit. Recent experience in the parcels market demonstrates that more competition, particularly over the final mile, will help rather than hinder this fundamental transformation."

legacy issues of under-investment (By the Government) difficult labour relations (caused by INEPT management appointed by the Government) massive burden on it's pension fund deficit (Caused by... Guess who? yes them again)

Recent experience in the parcels market demonstrates that more competition, particularly over the final mile, will help rather than hinder this fundamental transformation."


PostComm have given the big Postal Operators 6 years and yet they have only hinted at an end to end service. 6 years are more than enough for multi-billion pound companies like TNT and DHL to begin to perform that task. They haven't and that is due to poor regulation by a regulator appointed by.... THE GOVERNMENT!

[Night Tonic]

Its the VAT advantage thats stopping them. Once thats levelled out, TNT will go for it.

[DGP1]

Its the VAT advantage thats stopping them. Once thats levelled out, TNT will go for it.

No they won't. Why would they want to deliver x% whenever they can get us to do it for less than they can (I really can't see them driving 2 miles up a country lane to deliver 1 piece of junk mail).

[axeman]

Again mr N.T is barking the lines of r.m on the 'competition' theres no intention from the likes of tnt, dhl, city link and they and will not create an end to end service across the length and breadth of the u.k in the years to come. wise up N.T. the cost is to prohibitive. The only intent is to create bigger profit margins in using the D.S.A carrot that postconn dangled and r.m management were caught napping (as inept people usually are)




has to be a manager this guy trying to spread the words of his mesiahs big AL & liladam

[janitor]

So if TNT are so keen to set up their own delivery network why are they giving us parcels and packets to deliver where they have their own vehicles in the area anyway, if they wanted to deliver this stuff surely it would easier to give it to their own drivers, but no they give it to us, if they are that keen why do they give us their own mail to deliver between TNT units. UK Mail and DHL have made it quite plain they have no intention of setting up a end to end delivery network.

[AndyK]

[quote]The clock cannot be wound back on the competitive developments facing Royal Mail which are bringing significant benefits to customers. It is perfectly possible, however, for an organisation of the scale and reach of Royal Mail to transform its business and customer services rather than to remain locked in the past. We have been waiting far too long for this to happen and decline will be irreversible if these nettles are not grasped quickly.â€

[Carnoustie]

* Residential mail users have experienced record levels of service quality from Royal Mail

If the object of the whole competition exercise is that Joe Public gets better service, the Regulator is talking out of his @rse.

What about these NHS Trusts that send important medical appointment letters out via our competitors ? In order to qualify for bulk mail discounts, these cowboy companies hoard the letters until they've got enough volume to get the discount, resulting in many of letters being delivered AFTER the frickin' appointment date ! And who gets the blame for 'late delivery' of the letter ? You guessed it, US

[Phantom]

TNT and the likes know all too well about the problems recruiting and retaining delivery staff coz they just have to look at royal mail, VAT or no VAT they simply will not do it.

[pinstripe]

* Larger customers have enjoyed lower prices and increased innovation; - Yes lower prices but 'increased innovation' what the hell is that?

* Residential mail users have experienced record levels of service quality from Royal Mail; - Mail arriving later in the day and the worst service levels for years and an increasingly angry public who blame the posties up and down the country when they don't get the level of service they used to get.

* Smaller businesses and public sector customers are also now beginning to reap the benefits of choice. - Smaller businesses cannot spend enough money for the big DSA companies to become interested in them but the public sector (ie. the tax payer) does benefit slightly from a slightly cheaper price but pays in reduced service level.

Postcom and Postwatch are organisations run by intellectuals who have never worked in the relevant field but they have read books about it and decided that because they've read about something that they are fully experienced (I'm thinking of reading a book on brain surgery does anybody want me to operate on them?)

Yes, I think I could do with some, just recently I've become increasingly paranoid regarding RM and the governments secret agenda against me.

[DirtyHarry]

That Nigel Stapleton, didn't he win, asshole of the year, last year?

[Big Daz]

So if TNT are so keen to set up their own delivery network why are they giving us parcels and packets to deliver where they have their own vehicles in the area anyway, if they wanted to deliver this stuff surely it would easier to give it to their own drivers, but no they give it to us, if they are that keen why do they give us their own mail to deliver between TNT units. UK Mail and DHL have made it quite plain they have no intention of setting up a end to end delivery network.

Amazon switching 2nd class to DSA is a perfect proof of what you are saying, why are TNT not to delivering these amazon items?

[plodsie]

Amazon switching 2nd class to DSA is a perfect proof of what you are saying, why are TNT not to delivering these amazon items?

Did Amazon not go back to RM for their 2nd class?

[DGP1]

Amazon switching 2nd class to DSA is a perfect proof of what you are saying, why are TNT not to delivering these amazon items?

Did Amazon not go back to RM for their 2nd class?

It would seem so going by the packets in my DO