Our strategy

We have a clear vision to be recognised as the best delivery company in the UK and across Europe. Our strategy to achieve this leverages our strengths while aiming to deliver sustainable shareholder value and our Universal Service commitment. 

 

Our strategic priorities

 

Winning in parcels

We have maintained our pre-eminent position by pursuing faster growing parts of the UK parcels market while making it easier for consumers, SMEs and marketplace sellers to use Royal Mail services. Our investments in tracking and automation have been key to maintaining our position. Through our significantly enhanced IT, we have the ability to offer any retail account customer a tracked service.

Key initiatives:

  • Delivery confirmation on all barcoded standard parcels
  • Automated parcels sortation enables us to process small parcels more quickly
  • Growing tracked and return volumes through initiatives and service improvements
  • Working with China Post to provide Chinese and UK customers with faster delivery and tracking services
  • Expanding GLS-ONE in Germany, enabling customers to create their own labels and choose delivery to a specific address, parcel box or GLS ParcelShop. GLS Sameday offered in 11 cities
  • Acquisition of the Spanish express parcels delivery company, ASM 

 

Defending letters

Letters are very important to our business. They account for almost 60 per cent of our UK revenue. We continually seek to add value to mail and increase the efficiency and effectiveness of our operation.

Key initiatives:

  • The Strategic Mailing Partnership™, a joint initiative with the mailing house industry, to improve overall efficiency and operational processes
  • Establishment of new collaborative projects with the advertising industry to raise the profile of marketing mail
  • Working with advertising agencies to sell direct mail alongside other media as part of integrated advertising plans
  • Giving customers incentives to use direct and advertising mail at a discount rate
  • Completing the roll-out of software upgrades to letters and large letters sortation equipment 

 

Growing in new areas

We are making the most of our existing assets and increasing our capability through carefully selected investments. We want to develop a broader revenue base and grow in the UK and overseas. GLS is well positioned to grow in new markets and to support the Group’s careful and focused geographic expansion. We are also increasing our digital capabilities across the Group, particularly in e-commerce.

Key initiatives:

  • Acquisitions of GSO and Postal Express1 , leading regional next-day parcel delivery companies, operating principally on the US west coast
  • Expanding our relationships with retailers and network partners to stimulate cross-border volumes between the UK and Asia
  • Developing consumer-facing products and services that leverage our data, brand and relationships
  • Continuing to roll-out our UK fleet maintenance services to other businesses, employees, friends and family 

 

 

Enabling our strategic priorities

 

Strategic focus on costs

The highly competitive UK parcels market, coupled with the ongoing structural decline in letters, has resulted in increased revenue pressures for the Group. Being more efficient and controlling our costs means we can become more competitive, win and retain more business and continue to provide the best employment terms and conditions in the industry.

Key initiatives:

  • Improving the efficiency of our logistics network, through the use of telemetry
  • Continuing to progress efficiency opportunities to use shared delivery resources for the collection of mail from low volume postboxes
  • Delayering management structures
  • Reducing road and air routes
  • Reducing the number of facilities while ensuring we have the most accessible Delivery Office network in the UK
  • Bringing down costs in central functions 

 

Technology and innovation

We are harvesting the benefits of investments in our technology backbone to support our strategic priorities to win in parcels, defend letters and grow in new areas. We are working with partners to provide delivery management software for international parcel shipments, better data management and improved labelling capabilities. We continue to deploy technology to drive efficiency and increase the pace of change through our operation.

Key initiatives:

  • Completed national roll-out of our new PDA technology in our core network
  • Introduced new functionality to our online postage service Click & Drop, making it quicker and easier to buy online postage and print address labels
  • Developing international shipping solutions using the cross‑border capabilities of our acquisition, Intersoft
  • Customers can print delivery and return labels from their mobile phones at Customer Service Points • More than eight billion items have now been sent with Mailmark® 

 

An engaged and motivated workforce

Our employees drive the continued success of Royal Mail Group. We believe good employment conditions drive quality of service. Our permanent employees are paid above the Living Wage, which, in turn, is above the legal minimum set by the Government. They also receive the additional benefits associated with permanent employment, such as National Insurance contributions, paid holidays and a good pension. This is underpinned by a proactive relationship with the unions and a strategic focus on efficiency in our operations.

Key initiatives:

  • Introduced My Bundle, home of the total reward statement, which includes our employees’ flexible benefits range
  • Initiatives to support women who want to progress their careers, including our Springboard programme
  • More than 70,000 of our people took part in the ‘Big Conversation’ to identify areas that will make Royal Mail a better place to work
  • Making it easier for our employees to find out what is going on in the business through our Royal Mail app, available on all Royal Mail and personal devices