Viapost service to challenge postal operators

Post by **TrueBlueTerrier** » 03 Sep 2007, 17:46

http://www.ft.com/cms/s/0/55b96d0a-59b5 ... fd2ac.html

By John Willman, Business Editor

Published: September 3 2007 03:00 | Last updated: September 3 2007 03:00

Royal Mail and other postal operators will face a new competitive challenge next month, with the launch of a service that promises to cut the cost of business mail and reduce the carbon emissions of sending letters through the post.

Viapost will allow customers to e-mail letters to distribution centres around the country, where they will be printed out, folded and sorted before being handed over to local Royal Mail distribution centres for final delivery to the recipients.

Although Royal Mail will deliver for Viapost over "the final mile", the new service is likely to take business from its collection and sorting business where it has already lost a large share of the market to competitors such as TNT Post and UK Mail.

The state-owned operator is currently locked in negotiations with the postal union over its modernisation plans, with a deadline of tomorrow for reaching agreement to avoid further strikes.

However, the new service will also pose a threat to Royal Mail's competitors, since it could prove attractive to the large business mailers that have already switched to private-sector providers but want to reduce their carbon footprint. The Viapost regional centres will be much closer to the 70 Royal Mail access points that take in post for final delivery and using them will reduce carbon emissions associated with mailings by up to 60 per cent.

The idea is the brainchild of Ben Way, the dotcom millionaire who was named new business millennium young entrepreneur of the year in 2000. The company is chaired by David Bland, former chairman of Postwatch South-East, the postal consumer watchdog, and the chief executive is Simon Campbell who has built several businesses.

The Viapost service will offer immediate savings to small and medium-sized businesses which will be able to send out invoices, marketing circulars and other correspondence by e-mail from their desktop computers. The letters will be printed out on high-quality printers at regional distribution centres and inserted in envelopes before being fed into Royal Mail's delivery system.

The new service will guarantee first-class delivery for the cost of a second-class stamp, while saving the cost of stationery, printing supplies and labour for filling envelopes. Viapost estimates this will save small businesses about Â£1 an item in time, materials and postage.

Large business mailers already use specialist mailing houses to print out and sort their post before handing it over to Royal Mail for final delivery. However, because Viapost will be able to print the items at regional centres closer to the recipients, it will save the cost of shipping the sorted mail around the country.

The main attraction for these mailers will be the saving in carbon footprint, according to Mr Campbell. "All the banks are now looking for ways of reducing their carbon emissions, as is BSkyB."

Copyright The Financial Times Limited 2007

Post by **TrueBlueTerrier** » 03 Sep 2007, 17:47

Question is why couldn't Royal Mail come up with this sort of idea.

Post by **disheartened** » 03 Sep 2007, 17:52

TrueBlueTerrier wrote:Question is why couldn't Royal Mail come up with this sort of idea.

Answer......because they cant be bothered and generally dont give a sh1te about the future

cruisey · Post by **cruisey** » 03 Sep 2007, 17:57

It takes brains teebs mate. No one at the top of the business has an initiative and they rely on us with the watch and win bollocks

Jimi · Post by **Jimi** » 03 Sep 2007, 18:05

Though my recollections may be a bit cloudy due to the passage of years and quite a few pints of Guinness and whisky chasers, Royal Mail did try this out about 10 years ago I remember receiving a couple of letters this way but it seems to of died a death. And if you go back even further it’s the basic idea behind a telegram an electronically transmitted message, that’s delivered the final mile by a postal worker.

Post by **dvbuk55** » 03 Sep 2007, 18:14

You still get back to the "final mile" delivery by RM.

All the pundits keep bleating the death knell - but where's the final milers?

Post by **evilc** » 03 Sep 2007, 18:33

Jimi wrote:Though my recollections may be a bit cloudy due to the passage of years and quite a few pints of Guinness and whisky chasers, Royal Mail did try this out about 10 years ago I remember receiving a couple of letters this way but it seems to of died a death. And if you go back even further itâ€™s the basic idea behind a telegram an electronically transmitted message, thatâ€™s delivered the final mile by a postal worker.

You are right rm did offer this service, but obviously did not push it hard enough.

Post by **dvbuk55** » 03 Sep 2007, 18:49

evilc wrote:
Jimi wrote:Though my recollections may be a bit cloudy due to the passage of years and quite a few pints of Guinness and whisky chasers, Royal Mail did try this out about 10 years ago I remember receiving a couple of letters this way but it seems to of died a death. And if you go back even further itâ€™s the basic idea behind a telegram an electronically transmitted message, thatâ€™s delivered the final mile by a postal worker.
You are right rm did offer this service, but obviously did not push it hard enough.

If it was 10 years ago then I seriously doubt the technology would have been up to it and in truth I don't think its a viable operation now.

Post by **janitor** » 03 Sep 2007, 21:47

It wasn't ten years ago it was later than that, they said they couldn't make it pay then scraped it due to lack of interest, i think the one of the only volume customers they had was TV licensing.

martin · Post by **martin** » 04 Sep 2007, 04:25

IS'NT ALAN LEIGHTON ON THE BOARD OF DIRECTORS OF DOT COM?????????

:lfo :lfo

Jimi · Post by **Jimi** » 04 Sep 2007, 13:10

janitor wrote:It wasn't ten years ago it was later than that, they said they couldn't make it pay then scraped it due to lack of interest, i think the one of the only volume customers they had was TV licensing.

I am glad that other people remember this failed attempt, if it does take off this time the effects will be devastating not only for Royal Mail but TNT,DHL and the rest; because the big posters that moved to them will move again for a further saving, our advantage is that we will still be delivering the mail.

Post by **POSTMAN** » 04 Sep 2007, 13:23

There is another company that does this abroad,i think they are German,i got them in my news alerts a while back.
From what i rem they seemed quite successful,but i accidently deleted the link.
Anyway,doesn't matter now as we have the threat closer to home.
IF RM was to do summin like this,with us being a trusted brand we should be sucessfull as well,if not more shouldn't we?