25 March 2002

Consignia – Parcelforce – Bulk Mail - Consultant’s response by Paul Jackson, CEO, Triangle Group

Triangle would comment as follows on the three-year renewal plan announced today by Consignia.

Parcelforce

Simply put, the moves to close depots and come out of the three-day market are logical and five to ten years too late.

Parcelforce will now move into a highly competitive market based as much on customer service as price. There will need to be massive cultural changes and much improved customer-focus. It may be one of the largest operations where economies of scale are increasingly important but when a company moves into the higher service end of the market it needs to perform 100%. This is going to be very difficult as the depots are changed and networks are reorganised. It is a massive management task and can only be achieved with the support of all levels of staff.

Bulk Mail

The announcement of restructuring the network to accommodate this major business centre is a clear competitive response to Postcomm and potential new market entrants. This will be easier for the regulator, better for the customer and better for Consignia. The future for Royal Mail is about more sector focus of the management and appropriate networks. Cross-subsidisation and management duplication seem to be over.

Triangle Contacts:

Triangle Links:

Paul Jackson or Michael MacClancy
on +44 (0) 8709 507900

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