Royal Mail plans suppliers bill cut

[TrueBlueTerrier]

http://www.google.com/hostednews/ukpres ... 133027777A" onclick="window.open(this.href);return false;

Embattled Royal Mail has outlined plans to cut supplier bills by at least 20% as it seeks to bolster its balance sheet ahead of privatisation, it has been reported.

The group, which last week reported a 72% plunge in half-year profits, shocked its top 150 suppliers by revealing aims for drastic reductions in supplier costs at a recent meeting, according to The Sunday Times.

The Post Office owner's suppliers are said to be angry at the demands, with Royal Mail thought to have given them a few days to put forward proposals and set a 30 day deadline to negotiate new contracts.

Kath Harmeston, group procurement director at Royal Mail, is understood to have made a presentation for cost cutting at the meeting, detailing proposals to review supplier payment terms, the sale of some assets and a sale and leaseback of part of its property portfolio.

A spokeswoman for Royal Mail said: "Royal Mail is striving to get the best value for money throughout the business and we are asking our suppliers for their ideas and proposals on how we might achieve this - but we are absolutely not imposing a blanket cut on suppliers' bills."

The group's half-year results laid out the pressures facing Royal Mail as it readies itself for a planned part or full privatisation by the Government.

Its profits plunged after its letters business slumped into the red as the number of letters posted in Britain continue to decline, while it is also facing greater competition.

The letters arm saw losses of £66 million in the six months to September 26 against £48 million profits a year earlier.

Royal Mail said the average postbag was now at a level not seen since the mid- 1990s, with letter volumes falling to around 68 million a day - a drop of 16 million in the past five years.

Its overall operating profits dropped to £52 million from £184 million as it said the group continued to suffer increased competition from rivals as well as the use of email, websites and social media.

[DGP1]

Maybe they could ask the DSA leeches to pay what it actually costs to deliver their mail

[pinstripe]

Maybe they could ask the DSA leeches to pay what it actually costs to deliver their mail

Careful now DGP, that's our (soon to be) new masters you're referring too. It wouldn't be like you to be disrespectful to those in charge.

[DGP1]

Maybe they could ask the DSA leeches to pay what it actually costs to deliver their mail

Careful now DGP, that's our (soon to be) new masters you're referring too. It wouldn't be like you to be disrespectful to those in charge.

http://www.dgp1showinghisarse.com" onclick="window.open(this.href);return false;

[Eric]

So I guess that means even cheaper and nastier rubber bands to look forward to!

[TrueBlueTerrier]

Maybe they could ask the DSA leeches to pay what it actually costs to deliver their mail

Careful now DGP, that's our (soon to be) new masters you're referring too. It wouldn't be like you to be disrespectful to those in charge.

http://www.dgp1showinghisarse.com" onclick="window.open(this.href);return false;

My god you could have warned me. I'll need therapy after that:

[DGP1]

Sorry Teebs, just send me the bill for the treatment

[noggin1969]

RM will be lea

[POSTMAN]

In The Sun ((apparently) Blame the wife yeah!) one supplier said,'They gave us pasties then hit us with this!'

[DGP1]

TBH if RM actually spent money on buying proper equipment then they would spend less in the long term................but I don't suppose anyone would get a bonus for that kind of think

[TrueBlueTerrier]

In The Sun ((apparently) Blame the wife yeah!) one supplier said,'They gave us pasties then hit us with this!'

I can imagine the conversation at HQ when they were setting this up.

Head Honcho: Right we have this big announcement to make lets make them aware who we are lets get Corporate . Get some posties in to serve food it'll save us money. OK I am off for me 10am lunch.

Greasy Poll Climber: Pasties I am sure he said Pasties. Ah well he knows what he is doing.


2 Weeks later RM are serving Pasties to business leaders .

[DGP1]

In The Sun ((apparently) Blame the wife yeah!) one supplier said,'They gave us pasties then hit us with this!'

I can imagine the conversation at HQ when they were setting this up.

Head Honcho: Right we have this big announcement to make lets make them aware who we are lets get Corporate . Get some posties in to serve food it'll save us money. OK I am off for me 10am lunch.

Greasy Poll Climber: Pasties I am sure he said Pasties. Ah well he knows what he is doing.


2 Weeks later RM are serving Pasties to business leaders .

I thought it was supposed to be pastries buns always make me happy

[POSTMAN]

Sorry,it was pastries,you know what the prints like in the sun,still funny though.

DG,what you doing reading the sun?

[DGP1]

Sorry,it was pastries,you know what the prints like in the sun,still funny though.

DG,what you doing reading the sun?

How dare you, I would never read that toilet paper .............sometimes my jokes do turn out to be true that'll teach me for making jokes

TBH I think pasties would be better

[rhino49]

So I guess that means even cheaper and nastier rubber bands to look forward to!

Yes - another snap decision