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Our office is currently going thru the revision process and its a bit of a shambles. Whoever thought taking away large parcels from a van share would be a good idea is smoking something wacky. Walks aren't going out, yorks of large parcels are getting left behind and when things do get covered on docket it costs them a fortune. I'm really not sure how sustainable it is. Obviously its an awful time of year to be brining this in and I'm sure by Feb it won't be such a problem but our place is a mess and the next 8 weeks are only gunna get worse and worse!
Beetrootjuice, keep the faith and keep being positive, just like the share price, upwards and onwards.
Ponty. Teething problems? Endemic problems more like.
Sounds like a few teething problems, all offices going through these revisions, will at sometime or other, have experienced or are going to experience these slight problems, which will eventually be ironed out. Keep being positive, upwards and onwards.
I think that they were referring to DSA mail which comes in pre-prepped and ready to go straight to the LSM/IMP. The customer gets a huge discount for volume and I have heard figures of around 10p per letter but that's not gospel.
Obviously the more stamped LBC that we process and deliver the better as that comes in at a minimum of 66p, so if we can get a delivery point with one second class letter and a small parcel or jiffy bag then that's excellent.
Not sure what we're doing differently now but they always used to say letters cost us more to deliver than they got revenue for. Make it up to suit their agenda mostly. I can say that mail is not 'down' as they used to say , but then the people who delivered it could always see that.
what about people who pay for first class but don't get it delivered for three days because they hold an entire walk in (except the tracked and specials) ,are they getting what they paid for?
Very helpful thx
blockfire, you are absolutely correct that letters, especially letter box collection mail, is extremely profitable which is why RM are bringing in "Delivery to Specification" which essentially means deliberately holding back second class mail until day two despite the fact that it could have been delivered on day one thus ensuring that the customer only gets the service that it has paid for.
RM are also working out how it can link parcels into the equation.
Mr Oligarch, re little red boxes ; very funny indeed and very well put !! My understanding (although I should know more) is that RMG would like to reduce their ‘obligation’ to deliver everyday ? Via parliament as you say. I was staggered when I saw how much money that would save them (I think several hundred million) but I couldn’t exactly work out where that comes from. HOWEVER, in my mind part of the power of the offering of RMG is this platform; a huge pretty fixed cost base (ex Christmas) platform that needs to have as much put through it to generate bigger profits. Those extra parcels drop straight to the bottom line. However, this fixed daily or near daily platform I believe also offers the most environmentally beneficial service. We don’t need little white vans randomly running everywhere all day (I believe) with an associated MUCH bigger carbon footprint. (Note Yodel thIs week saying they are NOT investing in electric!) Outside of food arguably, everyone should have as close to one daily drop off to the doorstep as possible. Ultimately, as I have said before, retailers should be judged not just on their own carbon footprint BUT on the total including third party delivery costs (random white vans hairing around the country!). PLEASE PLEASE PLEASE mr RMG tell us and the market more about this in your results. I will try and dig out a brilliant FT article from a few months ago encapsulating it.
In the meantime… to revert to the little red boxes .. RMG is all about the daily platform and putting huge volume through it. If between April and end September the business achieved £400m of operating profit - again I urge the RMG board members to start talking about the inevitable £1bn of operating profit AT SOME POINT in the years to come. If they don’t … with a share price where it is - the other inevitable will happen - the business will be bought by Private Equity as night becomes day and all stakeholders will be worse off long term. Come on RMG !
The inevitable … £1bn min annual operating profit (£850m ish already), £1bn net cash (ex leases) (£800m ish by end March 22 I reckon anyway), mkt cap… £10bn +++ easily not £4.1bn !!! Lets NOT let PE buy this business !!
Giddyupskippy, "Thus paving the way for the company to somehow bin the letter side off as that is a burden & then to go as a parcel company".
Is that where you think that this is going?
So who is going to empty those funny little red boxes on street corners six days a week?
Sorry to burst your bubble but RM are committed to the USO and this can only be changed by an Act of Parliament.
No letters will be binned before then
And yet an opposing view recently. Time will tell.
I’m a cynic at the best of times lol. But I believe the national revision has been brought in to fail massively. Thus paving the way for the company to somehow bin the letter side off as that is a burden & then to go as a parcel company. See a memo about photographic evidence at the door like what DPD do. Great idea but again increases the workload that is unachievable when you have 1400+ calls (granted not delivering to everyone of those)
A bit worrying to read the differing opinions. Of course it's nigh on impossible for the average investor to know what the outcome might be.
Some here believe the CEO being an experienced operator will ensure success. All will become clear in the fullness of time.
My office implemented the latest national revision last Monday. An absolute s### show. Walks not sequenced correctly, upon poor overheads & numerous other essential failings from planners to ease us into it. No planning just implement and run. Had regional manager & area manager down blowing hot air about. In my 17 years as a postie I Really do question the direction of RM. van shares are barely completing one round. Some rounds been left for days. With Xmas around the corner I dread to think how we’ll cope. Our office didn’t fail one delivery during the severe covid months. Now failing 7+