Time to transform

Changes in communications and commerce, driven by the internet, mean our business is changing.

Working together, we are building a parcels-led, more balanced, more diversified international company. Our turnaround and grow plan in the UK is at the heart of our updated strategy.

We are facing challenges in the UK. Our network isn’t set up to deliver larger parcels and next day items – key growth areas - as efficiently and quickly as we need to. We need to change in line with the market demand. In 2018-19, we sorted 12% of our parcels automatically. In five years, more than 80% of parcel sortation will be automated.

As part of our investment, we’re going to extend our network to handle next day and larger parcels more efficiently. This traffic will be processed through three new fully automated parcel hubs, and then delivered by van through potentially 200-300 of our large delivery offices. The extended network is expected to be fully operational by 2023.

Play the RMtv video above to hear chief operating officer and chief finance officer, Stuart Simpson, tell us how we’re investing in the network and why we need to transform.

‘We’re going to build three new parcel hubs over the coming years,’ said Stuart. ‘Those hubs will sort some of the other parcels that go through the core network, but, from a Delivery perspective, 85% of the parcels that we have in five years will go through the core network.

‘And just to make people understand, that’s more parcels than currently go through the core network, but we’re supplementing it with a second delivery that’s great for customers and creates great opportunities for our people.

‘It’s important to remember that the vast majority of the parcels we deliver are small. We expect that will continue to be the case, and that they will continue to be delivered alongside letters.’