Capital Markets Day announcement date.

Celgar · Post by **Celgar** » 15 May 2019, 19:43

Anyone know the date for the Capital Announcements Day announcement on the future direction of business for Royal Mail? It is supposed to happen before the end of May and there are not many days left of May.

zz666 · Post by **zz666** » 15 May 2019, 19:53

22nd May.

Celgar · Post by **Celgar** » 15 May 2019, 22:56

Cheers. All hell is going to break loose methinks.

rubberbond · Post by **rubberbond** » 16 May 2019, 07:51

Celgar wrote:Cheers. All hell is going to break loose methinks.

Would you care to expand.?

Martin Walsh · Post by **Martin Walsh** » 16 May 2019, 08:40

Royal Mail’s capital markets days is next Wednesday 22nd June.

This announcement is aimed at getting investors to buy shares and raise the share price. At the moment there are rumours that Deutsche Post may try and take over Royal Mail with the share price so low.

To do this the company will set out what their plans will be and how they are going to both grow parcels but also reduce costs by cutting jobs :

This is expected to include :

Parcel Separation which is removing larger parcels from being delivery by the current 1400 delivery offices to just the circa 300 LAT units meaning job losses in all those offices who lose the parcels above shoe box size.

How they intend to roll out digital technology to increase productivity and set standards

k979aaa · Post by **k979aaa** » 19 May 2019, 10:32

Should imagine the impact will depend on the definition of the size of a shoe box and what type of shoe box men's women's or kid's size here is a guide https://www.quora.com/What-are-the-dime ... e-shoe-box" onclick="window.open(this.href);return false; Or will RM adopt a one size fits all approach for that is what they usually do!

Woody Guthrie · Post by **Woody Guthrie** » 19 May 2019, 11:28

k979aaa wrote:Should imagine the impact will depend on the definition of the size of a shoe box and what type of shoe box men's women's or kid's size here is a guide https://www.quora.com/What-are-the-dime ... e-shoe-box" onclick="window.open(this.href);return false; Or will RM adopt a one size fits all approach for that is what they usually do!

Unless RM plan to redefine their parcels we already have a definition.
It's anything larger than a medium parcel.

Medium parcels may measure up to 610 x 460 x 460mm, and must not weigh any more than 20kg.

● A postal tube of up to 900mm in length also qualifies as a medium parcel.

The "shoe box" definition is unhelpful, a standard shoe box would qualify as a medium parcel as would the vast majority of the parcels we deliver so the real question is how do RM generate real savings from this plan and that has to be from replacing the time we spend delivering large parcels with more delivery or collapsing walks if you like. One of the many problems with that is that it's far more physically demanding delivering another 20% of a delivery than it is to deliver a dozen large parcels. This job isn't just about time, it's also what you're asked to do in that time.

Post by **SpacePhoenix** » 19 May 2019, 12:22

Woody Guthrie wrote:Unless RM plan to redefine their parcels we already have a definition.
It's anything larger than a medium parcel.

Medium parcels may measure up to 610 x 460 x 460mm, and must not weigh any more than 20kg.

● A postal tube of up to 900mm in length also qualifies as a medium parcel.

That's not quite correct anymore. A Tracked item could be within that size limit but could potentially weigh 30Kg. if you look at the RM price list anything larger than a medium parcel shouldn't even be in RM's network, they should be going parcelforce

Woody Guthrie · Post by **Woody Guthrie** » 19 May 2019, 13:03

Tracked items are not included in the definition of small,medium and large parcels.
Tracked items are at the moment not even part of this proposal.

Post by **wacko74** » 19 May 2019, 13:25

Woody Guthrie wrote:Tracked items are not included in the definition of small,medium and large parcels.
Tracked items are at the moment not even part of this proposal.

Well just about all the large (shoebox+) size parcels in our D.O. come as tracked (and are mostly all Amazon)... so it doesn't look like we'll be getting any taken off us then.

k979aaa · Post by **k979aaa** » 19 May 2019, 17:02

wacko74 wrote:
Woody Guthrie wrote:Tracked items are not included in the definition of small,medium and large parcels.
Tracked items are at the moment not even part of this proposal.
Well just about all the large (shoebox+) size parcels in our D.O. come as tracked (and are mostly all Amazon)... so it doesn't look like we'll be getting any taken off us then.

And their for cannot accommodate any change in terms of extra workload.

Celgar · Post by **Celgar** » 21 May 2019, 00:04

Woody Guthrie wrote:
k979aaa wrote:Should imagine the impact will depend on the definition of the size of a shoe box and what type of shoe box men's women's or kid's size here is a guide https://www.quora.com/What-are-the-dime ... e-shoe-box" onclick="window.open(this.href);return false; Or will RM adopt a one size fits all approach for that is what they usually do!
Unless RM plan to redefine their parcels we already have a definition.
It's anything larger than a medium parcel.

Medium parcels may measure up to 610 x 460 x 460mm, and must not weigh any more than 20kg.

● A postal tube of up to 900mm in length also qualifies as a medium parcel.
The "shoe box" definition is unhelpful, a standard shoe box would qualify as a medium parcel as would the vast majority of the parcels we deliver so the real question is how do RM generate real savings from this plan and that has to be from replacing the time we spend delivering large parcels with more delivery or collapsing walks if you like. One of the many problems with that is that it's far more physically demanding delivering another 20% of a delivery than it is to deliver a dozen large parcels. This job isn't just about time, it's also what you're asked to do in that time.

If you have, say a dozen large parcels, those delivery points are likely to have other mail as well so you are going there anyway therefore no time may be saved. Versus the other side of the equation where we get 20% more delivery points which is likely at least another hours more work dependent on what types of mail they are. Actually when I break the proposal down like this it starts to look unachievable.

Celgar · Post by **Celgar** » 21 May 2019, 00:07

Woody Guthrie wrote:Tracked items are not included in the definition of small,medium and large parcels.
Tracked items are at the moment not even part of this proposal.

I haven't read anywhere that Tracked items were not a part of this proposal. I have read comments about small and large Tracked items arriving mixed up in MCs currently and how this fits with the proposal to move large parcels to the LAT hubs.

Martin Walsh · Post by **Martin Walsh** » 21 May 2019, 08:34

Tracked are not included in the parcel separation strategy.

Under Weighted items per work hour measurement there are different streams of traffic which industrial engineers have given their assumption over what weighting each stream of traffic from
Door 2 Door , sequence letter or tracked should take time.

There are 4 formats of parcels , these are formats 1 , 2,3 or 4.

Parcels formatted 3 & 4 are the parcels which are larger parcels. The description which is given ie above shoe box size can be misleading as parcels formatted 3& 4 include most parcels wider and bigger than a shoe box.

Remember Royal Mail parcels Strategy is to move these parcels from being delivered currently by circa 1400 delivery offices
To circa 300 later acceptance units.

Royal Mail’s plan is to have the larger parcels delivered between 16:00 to 19:00 during rush hour.

This is why it does not include tracked.

Royal Mail have also argued that the current and projected growth in larger parcels can no longer fit in the 37 mail centres hence why they want to open 3 parcel hubs across the UK and automate the larger parcels to the 302 LAT units.

Why is this Royal Mail strategy such a threat ?

There is a review from Of Com on Royal Mail’s efficiency and this will help determine the review of the USO review which has been bought forward to 2020 from 2022.

The measurement which Of Com use is Weighted items per gross hour which measures Weighted traffic against gross hours in offices.

Under parcel separation. Any office no longer receiving parcels formatted 3 & 4 which are the largest weighting will see their efficiency drop unless they take hours or jobs out to match.

Celgar · Post by **Celgar** » 22 May 2019, 17:08

According to the official release large parcels and ALL the Tracked items will be diverted to the LAT hubs. Those guys are going to have plenty to do. The official release also mentioned the percentage figure for natural wastage of staff within RM is less than a third of the average for the UK. Makes me wonder how they are going to lose 8000 posties without at least some forced redundancies or lay-offs.