Royal Mail misses service targets

The Royal Mail has failed to hit any of its 15 performance targets, but says the service is improving.
For the three months to June just 88.3% of first class letters were delivered the next day, against a target of 92.5%.

But it added the service had seen a major improvement in August when it rose to 92% from May when just 87.2% of first class post was delivered on time.

Royal Mail added that deliveries improved after dipping in the spring, when changes to the service took place.

"There is now real evidence the service is getting better," said Royal Mail chief executive Adam Crozier.

Targets 'in sight'

"Clearly there were some problems in the spring but the service has improved, month-on-month, since May and we are now approaching our target level for first class mail." added Mr Crozier, who took personal day-to-day control of the letters business in May.

WORST DELIVERY AREAS
Oxford - 68% First class post on time
Glasgow - 80%
Lerwick - 81.4%
Swansea - 81.9%
Kirkwall - 83.5%

He also said that he hoped to hit all of the Royal Mail's targets within the coming months.
Royal Mail said that while it missed all of its targets during the three months to June, it was now hitting four of its 15 targets according to preliminary figures for August.

Second class post is now hitting its target of 98.5% of items being delivered on time compared with April, when 98.3% was getting to its destination in time, the firm said.

BEST PERFORMING AREAS
Kirkcaldy - 96.5%
Sunderland - 96%
Milton Keynes - 95.7%
Kingston-upon-Thames - 94.9%
Sheffield - 94.9%


Mr Crozier said the organisation was now making progress, adding that 95% of the operational changes - such as scrapping the second post- had now been made.

"Royal Mail is now operating profitably after launching its renewal plan two-and-a-half years ago when the company was losing more than £1m every working day."

'A way to go'

BBC business editor Jeff Randall agreed that the service was now improving, but warned more could still be done.

For the last three years customers have been paying higher prices for a declining service. This is a bad consumer equation
Peter Carr, Postwatch

"I think on the evidence of the last two months, next day first class has improved," he told Radio 4's Today programme.

"But if it fails to meet that target then everything else comes apart. They are improving but have a way to go."

He also warned that Mr Crozier would only have until the end of the year to show that his leadership was working - otherwise he could face the axe.

'Worrying figures'

Postal watchdog Postwatch said the news that just six of the countries 121 postcode areas were above the Royal Mail's delivery targets was "worrying".

Deliveries over the period were the poorest for three years, with more than 1.7 million first class letters not delivered on time between April and June, chairman Peter Carr said.

"These results show that service levels in the first quarter of this financial year did not improve on last year's very poor performance in 11 of the 15 targets.

"For the last three years customers have been paying higher prices for a declining service. This is a bad consumer equation."

Mr Carr added that the figures would pose "serious problems" for industry regulator Postcomm, which has yet to decide whether to penalise the Royal Mail for failing to meet last year's targets.

Mr Crozier did apologise to customers for the Royal Mail's poor service.

The group revealed it is paying out a record £50m in compensation for late delivery of post to business and individual customers following disruption to the service last year when deliveries were hit by industrial action.


Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/3613158.stm