News

Royal Mail announces major investment in hand-held technology

(30 October 2014)

Royal Mail today announced an investment of around £130 million over five years in hand-held technology to provide more flexible delivery for customers and better tracking capability.

  • Royal Mail today announced an investment of around £130 million over five years in hand-held technology to provide more flexible delivery for customers and better tracking capability. This investment is part of Royal Mail’s budgeted expenditure
  • This programme is part of Royal Mail’s IT transformation programme, a key objective of which is to support the delivery of our parcels strategy. Delivery companies are increasingly technology companies, as they seek to provide better tracking and delivery solutions
  • The investment means Royal Mail will begin rolling out around 76,000 next generation hand-held devices to postmen and women in 2015. The roll-out is expected to be completed in the 2016/17 financial year.
  • The investment will have the following expected benefits:
  • Moreflexible delivery for customers not at home when we attempt to deliver a parcel, e.g, by enabling them to tell us a safe location to leave the item if they are not at home
  • Improved management information and enhanced tracking for parcels customers by adding information rich barcodes to shipping labels
  • Earlier this year, Royal Mail launched a new parcels shipping and tracking platform to enable e-retailers to improve integration between their IT systems and Royal Mail

Royal Mail today announced an investment of around £130 million over five years in hand-held technology to provide more flexible delivery for customers and better tracking capability.

Through its Field Force Automation services, BTwillwork with Royal Mail to decide which hand-held device to deploy. Royal Mail will roll out the new hand-held scanners to postmen and women in 2015.

The contract with BT also covers the day-to-day management of the current and new devices and operating platform for a five-year period. Royal Mail’s mobile connectivity is provided by BT under an existing, separate contract. Within the investment, Royal Mail expects to finalise a contract in the coming weeks for the supply of software applications for the devices.

Investing in our IT

The five-year investment is part of Royal Mail’s IT transformation programme, a key objective of which is to support the delivery of our parcels strategy. This includes enabling Royal Mail to be more flexible and customer responsive.

Earlier this year, Royal Mail launched a new parcels shipping and tracking platform to enable e-retailers to improve integration between their IT systems and Royal Mail.

This summer, Royal Mail also made its Local Collect ‘click and collect’ service with Post Offices available to its 20,000 SME contract customers. This enables many of the UK’s leading small and medium size online businesses to offer shoppers the option of collection from any of 10,500 Post Office branches.

Nick Landon, Managing Director of Royal Mail Parcels, said: “We are delighted to announce our investment of around £130 million in IT which will better enable us to develop new services for parcels customers. This is part of our on-going programme to continue to respond to the needs of our customers and maintain our leading position in the UK parcels market.”

Luis Alvarez, Chief Executive Officer of BT Global Services, said: “We’re passionate about helping leading organisations like Royal Mail blend the latest technologies with their people's skills and experience to get the best business results - something we call the art of connecting. The new hand-held devices, provided and managed by BT, will transform parcel tracking, helping Royal Mail create an even better connection with its customers.”

For further information contact:

James Eadie, Royal Mail Group
020 7250 2468/07850 757271
james.r.eadie@royalmail.com

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