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Poor Postal Services Cost £450 Million
Source:www.postwatch.co.uk , Source date:
Postwatch today publishes a report commissioned from economic consultants NERA that for the first time estimates the cost to UK companies of poor postal services.
NERA estimates the total cost of postal delays and losses in 2001/02 to be in excess of £450 million.
The report also provides an insight into what business customers most want from
Royal Mail. Reliability was considered to be the most important aspect of the service, followed by speed of delivery and then price. 55 per cent of those surveyed reported delays in outgoing mail directly affected their business. The incoming mail figure was 37 per cent.
However, the report is not all bad news for Consignia.
- 83.1 per cent of those surveyed were either very or quite satisfied with Royal Mail's services.
- 7.3 per cent were very or quite dissatisfied.
- The remaining 9.6 per cent were neither satisfied nor dissatisfied.
Peter Carr, Chairman of Postwatch, commenting on the publication of the report said,” There have been a number of studies into the effects on the economy of poor public transport, traffic jams, and other issues. We were, however, surprised that no one had tried to estimate what effect a less than perfect postal service was having on business. This is why we commissioned NERA to do the research.”
“The report published today establishes a base line. We know what the cost to businesses in 2001/02 was of a poor postal service. Future studies will be able to show whether these costs have shrunk or grown. They will also provide an indication of the effect of competition on performance and unwanted costs.
“The report will confirm for Consignia that whilst customers overall are generally satisfied with its services, it does have problems. Present and potential competitors will note the importance business mailers attach to reliability over price. The DTI and Treasury will note that a company they own is costing UK business over £450 million a year. This must have an adverse impact on UK competitiveness.
