The document discusses ways to address barriers to direct mail and promote it as an effective communications medium. It outlines some of Royal Mail's current initiatives like redesigning product portfolios and challenging regulations. It also discusses a kaizen project between Royal Mail Logistics and The Lettershop Group to improve their processes and relationship through mutual understanding and cultural change. The goal is to demonstrate a world-class supply chain to help tackle the perception that direct mail is difficult to use.

1. WORLD CLASS SUPPLY CHAIN John Hornby – CEO – The Lettershop Group Tim Cable - Head of Media Products – Royal Mail Jan Challis – Quality & Service Integrity Director – Royal Mail Logistics The Strategic Mailing Partnership™ supported by Royal Mail

2. Context What are Royal Mail currently doing What is SMP currently doing What do you think we should be doing 20 mins 20 mins Agenda

3. Context What is the problem we are trying to solve?

4. What does our market look like at the moment

5. What does our market look like at the moment

6. What does our market look like at the moment

7. The Opportunities Re- energise Direct Mail in an increasingly Digital World Bigger share from existing users Channel of choice for printed material More businesses into the Medium Keep Paper Relevant in Transactional mail Investment or Cost Part of the Customer Relationship

8. We did some research with SMEs Source: Insight Exchange, SME customer understanding (2010) Base: 146 Sophisticates Barriers to making more use of Direct Mail

9. The Barriers to Direct Mail Difficult to use 79 Expensive 74 Environmental 33 Doesn’t Work 20 Recipients don’t want it 16

10. Promoting Mail as a Communications Medium Redesigning our Product Portfolio Focus on Customer Experience Challenging our Regulatory Framework Investing in our Network Ensuring our Colleagues are up for the challenge What is Royal Mail Currently doing about it

11. What is SMP Currently doing about it

12. Kaizen project with lettershop Learning so far: Mutual view of processes, how and whether they work, and an understanding of common faults. Involvement of people most affected by issue is best way of solving/influencing the outcome. Cultural change: Employees appreciate they can influence outcomes, when it may appear rules and compliance reign. Great way to communicate Kaizen is a continuous process that will improve the relationship What is SMP Currently doing about it

13. Kaizen project with Lettershop Practical matters: Agreed to use Lettershop designed version of CCR to improve documentation flow Agreed to accept emailed Sales order, so long as received by 1700 DVD training session on CBC/OCR DVD delivered to Lettershop employees. Many questions from Lettershop employees answered face to face What is SMP Currently doing about it

14. What do you think is necessary to tackle the ‘ difficult to use ’ barrier, through demonstrating a World Class Supply Chain to current and prospective mailers? We would really like to hear yor views

15. Thank you