Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Apologies I can't post full transcript. https://www.thetimes.co.uk/article/royal-mail-faces-a-600m-lawsuit-can-its-new-boss-turn-things-around-qt6t6w9ml
Basically saying Whistl may bring a legal case 2024/25 based on unfair competition claiming IDS put prices up to prevent them taking on letter delivery services. Ofcom did issue a fine for this previously. Also, interestingly VESA own a chunk in the owners of WHISTL perhaps a massive hedge
Oligarch so customer dissatisfaction with the service not the relationship between the 2 businesses? which in my experience has generally been pretty good. Of course, as services go online, and new products evolve POCL requirements will change just like ours. POCL
Broch RM still have a 10-year deal with PO counters. I am not sure how RM could dictate to another business that they could only accept RM items.
DerekR what is the difference in margins? Is that because of volume discounts to large posters or easier/quicker processing costs?
So some users can now take their items to PO counters handier for some rather than dropping off at local co-op, One stop shop etc not a massive issue IMO and was already known that PO Counters would look to increase their business/footfall.
Oligarch I was for a time involved in part of the relationship with POCL how has it worsened IYO?
Redceo always good to have a nice wee break in the sun. I am sure lots of information/analysis and opinions to come up to results day. Normality will return eventually or maybe never as I seem to have been saying that for the last 10 years.
Broch the details of the incentive scheme is due to be shared later this week. Might be worth waiting to see the criteria. Hopefully, they keep it simple office/duty daily clearance plans based on volumes vs hours utilised. The CWU heads broadly welcome the incentive scheme, and they will have some of the finer details.
Broch certainly sounds like the focus is clearly on QoS and offices clearing. With all the additional resource being put in should be easy to hit any Christmas clearance targets. Perhaps the view is to increase resource to avoid any further fines from Ofcom and to demonstrate actions to Ofcom to push the USO reduction debate along. Let's hope we have a strong and profitable Christmas pressure period for all.
TMS yes Mr T departs end of month but fairly sure he will have already pretty much cleared his desk, CWU seem fairly satisfied with the early discussions with Martin S but still saying all managers need to get on board. I thought we would have both CEO appointments finalised by now. The world is in quite a state and stability seems a long way off.
Henky 16th November. Dates are shown in this link.
https://www.internationaldistributionsservices.com/en/investors/financial-calendar/
Morning all back from a holiday break and a quick read through there doesn't appear to have been much news over last few weeks. All I have picked up is
New CEO for GLS
All revisions stopped until 2024
Incentive scheme for Christmas
Usual Christmas agency being brought in
Looks like the focus is on recovering QoS. Unclear if stopping revisions applies to just any new ones scheduled or the reviews of those already in place. The business will have geared up its agency levels on known forecasts. Not long until next results where picture will be just that bit clearer.
In other news some unvalidated news reports on several sources suggesting Vladimir Putin has had a cardiac incident.
DerekR DHL obviously see it as further expansion and opening it up to other couriers to use for a fee no doubt. It may perfectly suit some regular travellers. As it says on the link,
Targeting 15,000 Packstations
Last year, Deutsche Post DHL Group announced plans to increase the number of currently more than 9,000 Packstations to around 15,000 machines by the end of 2023. The DHL Packstation is very popular with customers because it is accessible around the clock and easy to use.
In addition, Packstations are usually located in central places of daily life, such as supermarkets, on company premises or in residential areas so customers can combine parcel collection and shipping with their everyday errands without detours.
So, it's basically where a significant footfall would land. Those businesses that already utilise lockers in UK seem more attracted to local shops/retail units. I am sure IDS if they do go down this route significantly will do their customer research and target the most suitable.
DerekR I agree it is going round in circles and it needs to be broken, As you know IDS provide Ofcom with reams of data and Ofcom do their own analysis. It is easy for some sitting outwith the business to say how it should be run and how the business should deliver on its transformation program. The volumes. revenue and costs are hard facts as is their own customer needs research. You mention price controls and my understanding is these are in place until March 24 and agreed these can be increased by CPI.
I cant see how Ofcom would change that very much going forward and not allow IDS to close the gap on the loss making USO service. Lets wait and see what they advise next.
DerekR perhaps the wording has changed over the years but this extract from the government paper on the debate on USO Jan 23 I would be delighted if Ofcom can assist the business in achieving an up to 10% margin what an impact that would have on the bottom line.
Hopefully by listening to representation from the business and CWU. They can then advise the government decision makers. I personally don't expect anything imminently and they may well ignore any "advice" from Ofcom and kick the can down the road but the reality of the loss making USO and questions won't just go away and need solutions. Of course the business needs to improve what it does and manage costs to service USO products effectively.
Quote:
"For ‘reported business’ - this is the part of Royal Mail which includes all
the products provided through or in relation to the network that
underpins the universal service. This is the part of Royal Mail that Ofcom
focus on when monitoring its performance, and Ofcom have indicated
that a 5-10% profit margin for this part of the business would be
“consistent with a commercial rate of return” – this level of profits has
not been achieved in recent years. This data is reported annually
There may be other new/revised statements, but Ofcom have already commented on any savings that could be made,
• The evidence suggests reducing the frequency of letter deliveries requirement to five days a
week would reflect users’ reasonable needs. It would also potentially allow Royal Mail to make
net cost savings of around £125-225m per year in 2022/23 terms, assuming Royal Mail is able to
realise these savings by modifying its operational delivery model.
• Although this saving could make a material contribution to the longer-term sustainability of the
universal postal service, it would not be sufficient alone. Sustaining the universal service depends
on Royal Mail’s successful implementation of its transformation plans and ability to operate a
more efficient parcels network in future.