Dealing with Industrial Action Backlog

Jonathan DeCarteret, Senior Market Analyst at Post-Switch explains the alternatives when procuring Mail Delivery Services

Post-Switch, an impartial postal analysts and advisory service, says that Royal Mail has failed to react to the commercial world, describing it as one of the most inefficient operators in Europe.

Jonathan DeCarteret, Senior Market Analyst at Post-Switch, says that Royal Mail, under threat from competition, a ballooning pension deficit, shackled to a trade union and a conspicuous lack of innovation has put the USO (universal service obligation) in financial deficit and under threat.

"Royal Mail is one of the most inefficient operators in Europe and there is an urgent need to modernise, streamline, cut costs and compete on customer service. There is a general consensus that Royal Mail has failed to shake off a culture of complacency that reigned under monopoly protection and there is a real need for a culture of change that is about customer obsession and innovation. Royal Mail need the commercial talent to create new revenue streams and take advantage of a liberalised European postal market." he said.

His remarks follow the announcement by Royal Mail this week that the pension deficit has grown and the universal service is now seriously in the red. The Hooper review, to be released imminently, is expected to recommend a radical shake-up of the Royal Mail, including part privatisation of the delivery network.