Thursday, November 30, 2006

(What) Time for the Last Post?

The final collection times made by Royal Mail are becoming earlier in some areas of the UK. Postwatch has been monitoring changes to final collection times across the UK, and has recorded over 6000 cases where final collection times have changed. Of theses changes, over 5000 have resulted in collection times becoming earlier. The changes have predominantly occurred in rural areas, where it is not uncommon for the final collection time to be brought forward by 7 hours (16:00 to 09:00). Although changes in urban areas are generally smaller, even a one hour change from 17:30 to 16:30 can have a large impact on the working patterns of businesses.

Since the introduction of a single daily delivery in 2003-04, delivery times are also getting later for many customers. Although Royal Mail has no obligation to deliver by a specific time each day, they aim to complete deliveries by 2pm in urban areas and 3pm in rural areas. However, Postwatch is aware that mail is often delivered after these times.

The problems caused by later delivery times and earlier collection times can be large. An individual or business wishing to respond to correspondence in the same day will have a shorter time to do so, and may even face the prospect of mail being collected locally before they have their daily delivery, making same-day replies impossible. Later delivery times and earlier collection times may force businesses to either alter their working patterns, or cause delays in mail based correspondence.

Postcomm is currently undertaking a consultation on collection and delivery times in order to evaluate the effects of these changes. Postwatch has consulted its various stakeholders for their opinions on this important issue and will respond to the Postcomm consultation accordingly.

6 Comments:

Anonymous Anonymous said...

Since deregulation it seems we have problem after problem that we didn't have before. What are postwatch/postcomm's plans in solving this matter? I run a business that relies on post being on time and it simply isn't, I can receive it at anytime of day now. I used to have my mail delivered by 10am everyday and even an hour earlier on Saturday. Can you please explain the benfits as a customer that deregulation has brought to this situation? I am very interested to know.

11:29 am GMT  
Anonymous Anonymous said...

Experience has taught me not to rely on Royal Mail for sending anything urgently. I always reckon on four working days if I have the choice...

Messenger, email, fax and telephone are now my communication mainstays. And only messengers are expensive.

2:07 pm GMT  
Anonymous Anonymous said...

I'm still waiting Postwatch, what are the benefits since deregulation?

7:37 am GMT  
Anonymous Anonymous said...

Thanks for your comments on this subject.

I assume that when you reference deregulation you are referring to the liberalisation of the postal market? The market became fully open to competition on the 1 January this year and it was a move that Postwatch supported on the grounds that competition would bring choice, competitive prices, innovative products for customers and drive Royal Mail efficiencies.

There is very little real competition in the retail postal market at the moment but the threat of competition has definitely prompted Royal Mail to become more customer focussed and the last quarter has seen the best quality of service figures ever.

Competition has also meant a significant increase in choice to the customer in the area of bulk mail and this will potentially follow through to social customers given the proper market conditions and regulatory practices.

The recent change to delivery times is not a result of deregulation. Royal Mail’s licence states that it must carry out one delivery per day (time not specified) in order to cut costs and increase efficiencies. We recognise that this have proved detrimental to some customers, particularly small business.

Competition is a reality in the postal market in the UK and Postwatch and Postcomm will continue to work closely to ensure that real, effective competition emerges and that the customer experience continues to improve.

Given the relative newness of competition and the particularities of the postal market, sector specific regulation, and consumer representation, will be essential over the next 5 to 10 years and beyond. However, looking beyond 10 years, if effective competition is achieved in wholesale and retail postal markets, then self-regulation and consumer protection and competition law will best regulate the industry as is the case in the energy industry. It is during this latter period that Postcomm should plan its exit strategy.

Additionally, it would be desirable to see greater openness in the Government’s relationship with Royal Mail. The conflict of interest that the Government has with Royal Mail as shareholder (wanting to maximise revenues and minimise cost) and as legislator (with social objectives) can undermine Royal Mail and the postal services market. Therefore Postcomm could ask Government to publish its vision in this area.

We recognise that much of Postcomm’s current approach has been to introduce competition, enforce Royal Mail’s service standards and set price controls. We consider that over the next 5 to 10 years all these regulatory aspects will need to remain. In terms of the development of competition, Postcomm should look at the key barriers including VAT exemption. Further to this, we believe that in a competitive market the security of mail is paramount for customers and that future regulation should be focused in this area to ensure the security of mail with new operators. However, these requirements should not be onerous for new operators so as to create a barrier to entry and a balance must be achieved.
As the market develops, we consider that regulation in the area protecting particular vulnerable consumers will need to be maintained. In particular a focus on defining and (re-defining) the USO will be of critical importance over the next ten years. Postcomm should develop a number of transparent and challengeable tools to assess risks to the USO. Additionally it may be appropriate for Postcomm to review the quality of service of the articles for the blind service to ensure that it is being treated as first class mail and that customers are receiving a good service in light of competition.

Further potential regulatory areas to be examined include reinstating a Post Office queuing target and a fast, effective and clear compensation scheme for lost and delayed mail.

10:37 am GMT  
Anonymous Anonymous said...

I'm sorry but this doesn't answer the question of what the benefits are. Since "liberalisation" all I see is a worse service.

Late and inconsistant delivery times coupled with early collections is causing most first class mail to be 3-4 days late.

The only ones benefitting are large corporate business customers like banks and utility companies etc. The social and domestic and small business customers have been hit severly with these changes and have no choice but to carry on using Royal Mail. This whole process has been ill thought out and without any regard to smaller customers, it is a disgrace.

11:21 am GMT  
Anonymous Anonymous said...

It seemns unlikely that we are going to be able to reach agreement.

We do strongly believe that the very good levels of service that Royal Mail are now achieving is because the company is responding to the 'threat' of competition.

Over 93% of 1st class mail is being delivered next day. Most 1st class mail is not delivered late as you claim.

We agree it is the large mailers that are currently reaping the financial rewards that competition delivers. That was expected. Gradually the new competitors will seek to serve smaller mailers so as to maximise market share.

But we reiterate all consumers are benefitting from the improved performance of Royal Mail.

12:25 pm GMT  

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