MRM.COM : The cost of Covid-19 : video : Being busy and profitable are not always the same thing

[POSTMAN]

https://www.myroyalmail.com/news/2020/07/cost-covid-19" onclick="window.open(this.href);return false;

In the latest RMtv programme, we look at the financial challenges presented by Covid-19 for Royal Mail, our postal peers and other industries.



Parcel volumes have mirrored Peak levels since the coronavirus pandemic brought the UK into lockdown and sent e-commerce soaring. But more parcels does not necessarily mean more profit for the business. Press play to hear why.

We delivered 550 million fewer addressed letters year on year in the first two months of this year. At the same time, we delivered around 80 million more parcels. But being busy and profitable are not always the same thing.

Jon Nicholson, sales director, parcels, said: ‘Our top line is moving up, but so is our bottom line. That gap stays the same. In letters, which are more profitable, we’ll have to put an awful lot more volume through the network or process them a lot more efficiently than we’re currently doing to address that balance.

‘Bigger parcels definitely mean more revenue for us, so we always charge appropriately for the size of the parcels. Our contract, particularly with our business customers, allow us to do that. But of course, what bigger parcels also mean is more cost, more yorks, more vans, more processing time, more floor space and so on.

‘So, with that increased size, yes, we get the increased revenue, but our costs go up by an equivalent amount.’

[hans solo]

but were a parcel business now fannies

[Cucumber]

So, busting our guts for 4 months is all for nothing.

[clashcityrocker]

For less than nothing.

[1617mel]

no extra floor space increase in our office , everything cramed in , and we manage just, the daily slog has gotten much tougher, the daily amount of time spent outside the office has definately increased out about 4.5 hrs daily, we are still starting at 6 am, that was what the union rep agreed with the management, also we understand that the full timers, starting early reduces the amount of people in the office at any one time, and they have the cheek to say the money we are making is not enough! then the whole shambles will have to be looked at again., because when we are done ,we are definately done. the section about absent colleagues is getting more to the point in my eyes, these people are seriously self isolating, to save lives. so if its like christmas every day in delivery, and has been for the last 16 weeks, then if we are not making enough to survive then our company is doomed!

[yubin282]

I'm sure it's nothing to do with the inept management

[Acca Dacca]

That is a slap in the face of every one of us who have bursted our arses all year

[GRS]

Trying to blind us with science. All this bigger packets means more yorks, more room etc etc. So as an example if a supermarket is busy they lose money having yorks of food being put out on the floor to restock shelves???? It doesn’t matter what ever happens in RM, you can be snowed under or have barely any work and its always the same old story...... not busy enough to make money or so busy that the overheads outweigh the income. Some very inept management going on from the senior management boys. How do they think every other business in the world copes.

[Acca Dacca]

Trying to blind us with science. All this bigger packets means more yorks, more room etc etc. So as an example if a supermarket is busy they lose money having yorks of food being put out on the floor to restock shelves???? It doesn’t matter what ever happens in RM, you can be snowed under or have barely any work and its always the same old story...... not busy enough to make money or so busy that the overheads outweigh the income. Some very inept management going on from the senior management boys. How do they think every other business in the world copes.

It always boils down to this;

They think we are overpaid and inefficient

[theotherone]

Hmmm maybe I'm reading too much into the video,but funny how they manage to tell us about job losses elsewhere.Not often you see that kind of thing of RmTv.

[Cucumber]

Hmmm maybe I'm reading too much into the video,but funny how they manage to tell us about job losses elsewhere.Not often you see that kind of thing of RmTv.

Exactly, it's as if they are trying to soften us up for some major wage cut/hours increase or something.

[Cucumber]

"Parcel volumes mirror peak levels."

When have we ever had a 14 week long Christmas pressure then?

[postslippete]

"So, with that increased size, yes, we get the increased revenue, but our costs go up by an equivalent amount."


So do they all expect us to work extra for FREE or something?
Having focussed on managing the decline on letters for YEARS do we suddenly now focus on 'managing the decline' on parcels??

The vid poses more questions than it does answers

[postieblueshirt]

If the costs go up and we make less money from parcels WHY ARE WE BECOMING A PARCELS FOCUSED BUSINESS???

[red666bear]

Don’t hire 19,000 inept agency workers at Christmas Royal Mail, we have been doing Christmas pressure parcel volumes throughout this pandemic without extra hands, pay us appropriately, your staff are your biggest asset the face of the company and you still refuse to acknowledge it.
Amazon adverts constantly on tv, where’s our advert showing what a fantastic job your staff have done? Who delivers amazon parcels when they can’t cope? US.

You’ve took the piss by saying parcelforce cant cope and dumped Adidas / reebok onto your already overstretched delivery staff.

Letters down less than 1% last year when you factor in the European and general election not your headline figure of 9%.
Let’s not also forget you put 6p on stamps in April.

A business that turns over billions and only makes a profit of 180 million, you obviously have your pricing structure wrong, managers are inept at a local, intermediary and national level.

Oh and where’s our pay rise?