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Post haste: Towards a speedy reversionssolution10.30am Registration & refreshments11.00am DMA Welcome        Chris Combema...
WelcomeChris Combemale, Executive Director, DMA #dmapost
Council manifesto and proposedsolutionsHoward Matthews, Vice Chair, DMA Mailing House Council  #dmapost
DMA Mailing House Council1.   Product specifications cannot be consistently     achieved in volume mail production2.   Sur...
DMA Mailing House Council4.   No process for mail producers to challenge     surcharges and no independent adjudication5. ...
TNT/DSA proposed solutionsCharles Neilson, Group services director, TNT Post  #dmapost
Poste Haste: Towards a speedy      reversions solution        1st August 2012
Reversions are increasing• Increase shows  increasing focus by Royal  Mail• Not about your mail  getting worse!• About imp...
Contractual positionCustomers               Royal Mail              DSA            Providers  Mailing  Agents
Contractual position       Customers                           Royal Mail     80%                         DSA             ...
Contractual position                            34%       Customers                           Royal Mail                  ...
To whom do RM bill surcharges?• Posting customer  – CDA Clients directly  – Carrier• Carriers usually have back to back  c...
Common Reversion types  –   Address Clear zones  –   Tap test failures  –   Punctuation  –   Barcode clear zones  –   Seal...
What MCF would like to seeTransparency and reliability• RM to share sampling methodology  – Best case with industry so we ...
What MCF would like to seeProportionality• Review of charging structures  – Charge proportional to the failure and its    ...
What MCF would like to seeRealistic Trigger Points• Review of trigger points  – What dictates a local or national reversio...
What MCF would like to seeEvidence• Tolerances are being properly measured• That tests are being conducted fairly• That th...
Present proposed solutions andupdated processesJenny Ledgar, Network access director, Royal Mail  #dmapost
Royal Mail Revenue ProtectionStephen Agar -       Managing Director, Consumer and NetworkAccessJenny Ledgar -       Networ...
Agenda• Key industry issues & input from the Industry• Proposed solutions to tackle key issues     Map of where the ‘speed...
Key industry issues• Proportionality• Transparency• Production difficulties with 100% specification  requirement• Communic...
Input from the Industry• Our customers• Strategic Mailing Partnership members• Mailing Presentation Advisory Group members...
Solution – tackling transparency• Map of where the ‘speed cameras’ are   Produce and publish a schedule of attributes that...
Solution- tackling the productspecification• Full review of OCR and Barcode product  specification including sealing speci...
High / low impact attributes• Examples of high impact attributes      sealing specification      visibility of address for...
Solution – tackling proportionalityAn interim approach toreversions for OCR/CBC inRetail/Wholesale                        ...
More work to do…….. Finalise solutions and prepare for  launch Improved communication with  industry / process for the mai...
In conclusion• You said your issues with our processes were  with   Proportionality   Transparency   Production difficulti...
Any     Questions?29
Panel discussionChris Combemale, DMAHoward Matthews, DMA Mailing House CouncilCharles Neilson, TNT PostJenny Ledgar, Royal...
SummaryChris Combemale, Executive Director, DMA  #dmapost
Thank you for attending                         Please joinus for lunch and networking #dmapost
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DMA Post Haste: Towards a speedy reversions solution

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Transcript of "DMA Post Haste: Towards a speedy reversions solution"

  1. 1. Post haste: Towards a speedy reversionssolution10.30am Registration & refreshments11.00am DMA Welcome Chris Combemale, DMA11.05am Council Manifesto and proposed solutions Howard Matthews, Vice Chair, DMA Mailing House Council11.25am TNT/DSA proposed solutions Charles Neilson, Group services director, TNT Post11.45am Present proposed solutions and updated processes Jenny Ledgar, Network Access Director, Royal Mail12.05pm Interactive Question & Answer session13.00pm Lunch & Networking #dmapost
  2. 2. WelcomeChris Combemale, Executive Director, DMA #dmapost
  3. 3. Council manifesto and proposedsolutionsHoward Matthews, Vice Chair, DMA Mailing House Council #dmapost
  4. 4. DMA Mailing House Council1. Product specifications cannot be consistently achieved in volume mail production2. Surcharges are not proportional to either the failure rate or the additional cost incurred3. Lack of objective evidence of failing to meet specification
  5. 5. DMA Mailing House Council4. No process for mail producers to challenge surcharges and no independent adjudication5. Little or no communication between mail producers and RMW
  6. 6. TNT/DSA proposed solutionsCharles Neilson, Group services director, TNT Post #dmapost
  7. 7. Poste Haste: Towards a speedy reversions solution 1st August 2012
  8. 8. Reversions are increasing• Increase shows increasing focus by Royal Mail• Not about your mail getting worse!• About improving processing efficiency and collecting due revenue• Forcing compliance to NB 2012 figures include sealing reversion charges of which 90% specification or changing have recently been credited basis of presentation
  9. 9. Contractual positionCustomers Royal Mail DSA Providers Mailing Agents
  10. 10. Contractual position Customers Royal Mail 80% DSA Providers 2% 18% Mailing AgentsNB Numbers are illustrative only
  11. 11. Contractual position 34% Customers Royal Mail 66% 80% DSA Providers 2% 18% Mailing AgentsNB Numbers are illustrative only
  12. 12. To whom do RM bill surcharges?• Posting customer – CDA Clients directly – Carrier• Carriers usually have back to back contracts with their clients and pass on reversion charges in full• Posting customer sometimes charges the mailing agent for its failure to meet specification
  13. 13. Common Reversion types – Address Clear zones – Tap test failures – Punctuation – Barcode clear zones – Sealing• Technically these have failed current spec• Mail can be sorted and delivered• Are examples representative or the exception?
  14. 14. What MCF would like to seeTransparency and reliability• RM to share sampling methodology – Best case with industry so we all know the rules – Worst case with some trusted third party – Certainty that rules are followed equally in both Wholesale and Retail mailings• How else will we know if the process is – Fit for purpose – Fair and reasonable
  15. 15. What MCF would like to seeProportionality• Review of charging structures – Charge proportional to the failure and its consequences – Not an arbitrary next service charge – Charge levied on • Only the Items that fail • On some objective cost justified measure
  16. 16. What MCF would like to seeRealistic Trigger Points• Review of trigger points – What dictates a local or national reversion? – Must take industry capability into account • 100% compliance not achievable • Specifications cannot require 100% compliance • Fairer tolerance needed
  17. 17. What MCF would like to seeEvidence• Tolerances are being properly measured• That tests are being conducted fairly• That the tests are being applied equally across channels and providers• That the problems reported result in cost increases that justify the surcharge• Detailed RP evidence can be provided to prove reversion
  18. 18. Present proposed solutions andupdated processesJenny Ledgar, Network access director, Royal Mail #dmapost
  19. 19. Royal Mail Revenue ProtectionStephen Agar - Managing Director, Consumer and NetworkAccessJenny Ledgar - Network Access Director, Consumer andNetwork AccessTim Cable - Director Products, Royal Mail Retail
  20. 20. Agenda• Key industry issues & input from the Industry• Proposed solutions to tackle key issues Map of where the ‘speed cameras’ are Full review of OCR and barcode product specification including sealing specification An interim approach to reversions• More work to do Improved communication with industry / process for the mail producer to challenge any surcharge Revenue protection on site – what are the options?• Conclusions• Questions20
  21. 21. Key industry issues• Proportionality• Transparency• Production difficulties with 100% specification requirement• Communication with the ‘bill payer’ / no opportunity for the mail producer to challenge any surcharge• Provision of evidence when mail fails specification21
  22. 22. Input from the Industry• Our customers• Strategic Mailing Partnership members• Mailing Presentation Advisory Group members• DMAOur thanks to all who have helped develop the following proposed solutions22
  23. 23. Solution – tackling transparency• Map of where the ‘speed cameras’ are Produce and publish a schedule of attributes that our Revenue Protection teams will focus on, on a 12 month rolling basis e.g. Oct-Dec 12 - sealing specification Jan-Mar 13 - flexibility Apr-Jun 13 - specific addressing standards Jul-Sep 13 - dimensions Note: We reserve the right to revert on any failed attribute of the specification Share schedule on RMW website, RM technical and via industry groups i.e. SMP Provide regular update on RMW website, RM technical and via industry groups on key causes of reversions by number23 and value
  24. 24. Solution- tackling the productspecification• Full review of OCR and Barcode product specification including sealing specification underway Due to be concluded Sept 12 New sealing tolerance defined and to be shared shortly A phased reintroduction of sealing reversions between Sept 12 and Jan 13 17th Sept – Oct        revert 20% of any national reversion Nov – Dec             revert 50% of any national reversion 1st Jan 2013                   full reversion• Product specifications defined as having a high operational impact or a low operational impact …. see next slide24
  25. 25. High / low impact attributes• Examples of high impact attributes sealing specification visibility of address for OCR; clear route and tag zones for OCR; 2mm clear zone round CBC• Examples of low impact attributes mail piece meeting specific flexibility requirement; specific width of individual bars of a CBC; delivery address only - Punctuation corresponding to PAF® or all punctuation omitted country name must not be used type face - recommended fonts to be used (others permitted)• We reserve the right to switch attributes between low and high impact and vice versa depending on how the attributes perform in our operation. We have focussed on getting this solution developed and approach agreed and therefore, we have not had time to fully test all attributes25
  26. 26. Solution – tackling proportionalityAn interim approach toreversions for OCR/CBC inRetail/Wholesale Low volume High volume Auto   detected Medium volume detected detected Reversions Find one container Up to 10% of mailing Over 10% of mailing Process needs to Reversion with faulty detected detected be developed Policy item/items, levy a Defined fixed charge for container. Ops 10% of mailing reverted to 100% of mailing Process needs to Impact £25 minimum plus a next applicable service reverted to next be developedRetail charge * for each applicable service (High) container up to x container. Above x 10% of mailing surcharged 100% of mailing Process needs to container, non with a fixed unit charge surcharged with a be developed Ops compliance will move based on a flat fee per item fixed unit charge Impact to medium volume eg range 0.5p – 1.5p based on a flat fee per (Low) detected item eg range 0.5p – 1.5p Reversion Find one failed Find failed containers in Find failed containers Current process container, revert that multiple IMC’s, revert the in many IMC’s, revert maintained for Policy container to next total segment at those the entire mailing high impact Defined applicable service IMCs. failures Ops 100% of mail in identified 100% of mail reverted Current process Impact IMC’s reverted to next to next applicable maintainedWholesal applicable service servicee (High) 100% of container is 100% of mail in identified 100% of mail Process needs to reverted to next Ops IMC’s surcharged with a surcharged with a be developed applicable service fixed unit charge based on fixed unit charge Impact a flat fee per item eg range based on a flat fee per (Low) 0.5p – 1.5p item eg range 0.5p – 1.5p 26Retail/ Rework/ Operational charges* for additional activity undertaken by RM Ops. Retail = additional charges.New or revisedWholesal Ops Wholesale = contractual charges already in placee Charges
  27. 27. More work to do…….. Finalise solutions and prepare for launch Improved communication with industry / process for the mail producer to challenge any surcharge Revenue protection on site – what options are available?27
  28. 28. In conclusion• You said your issues with our processes were with Proportionality Transparency Production difficulties with 100% specification requirement Communication with the ‘bill payer’ / no opportunity for the mail producer to challenge any surcharge Provision of evidence when mail fails specification• Our proposals provide an interim solution to most.• Aim to launch 17th Sept28
  29. 29. Any Questions?29
  30. 30. Panel discussionChris Combemale, DMAHoward Matthews, DMA Mailing House CouncilCharles Neilson, TNT PostJenny Ledgar, Royal MailStephen Agar, Royal MailTim Cable, Royal Mail #dmapost
  31. 31. SummaryChris Combemale, Executive Director, DMA #dmapost
  32. 32. Thank you for attending Please joinus for lunch and networking #dmapost
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