1

David Hawkins

Head of Contract

Operations

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Welcome to a business that visits over a million addresses an hour

All in a day’s (Night’s) work

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Royal Mail – The numbers

•Collect, Process and deliver more

than 80 million items every day

•Employ circa 160,000 people

•121 Postcode areas

•1,400 Delivery offices

•50 Mail centres

•24/7 operation

•Last year generated > £6 billion

revenue

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The Journey of a Letter…

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Against the Clock

•Posted 20:00 hrs

•Mail Centre Last Despatch 22:00 hrs

•Logistics Network – 5 hours length & breadth UK

•Mail Centre Arrival 03:00 hrs

•Delivery Office 06:00 hrs

•Delivering to our Customer next day

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Connecting Business in the UK

• London to Edi by Road = 9.5 hours

• London to Edi by Train = 5 hours, plus transfer

• London to Edi by Air = 1.15 hours, plus transfer

• London to Belfast by Road = 18 hours

• London to Belfast by Air = 1.15 hours

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RM Logistics

We have one of the largest distribution networks in the UK

• Over 4,800 vehicles & trailers

• 9 Regional Distribution Centres

• 38 Vehicle Operating centres

• Operations at 17 airports

• 3 Rail hubs

• 97 Vehicle Service Centres

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Road Operations

Logistics 8

• Network Distribution provides the heavy fleet links between every mail centre and network hub:

•Runs between mail centres

•Runs between mail centre and network hubs

• 38 vehicle operating centres

• A total of 4,400 scheduled services every day

• 2,500 drivers (approximately 400+ are agency resource)

• 4,800 trucks/trailers

• 100m miles & 50m litres fuel annually

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WRT

PRDC

SDC

•Royal Mail owns 15 x 4 car sets,

which operate 7 movements per

day Northbound & Southbound

•Three Rail Terminals on West

Coast Mainline

By Rail

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Air Network –Dimensions

• 10 key airports and 7 on islands (incl. Scottish islands, Channel Isles and Isle Of Man)

• 55 separate flights (sectors) Tuesday to Friday 60 on a Monday night and 15 on a Saturday

• Daily average payload 250 tonnes, about 5 million items per night

• 74% payload carried on jet aircraft and 26% payload carried on turbo-prop aircraft

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Current

Airports

BFS

CWL

EMA

EXT BOH

STN

NCL

EDI

ABZ

INV

IOM

GCI JER

SYY

BEB

KOI

LSI

KEY:

ABZ ABERDEEN

BFS BELFAST

BOH BOURNEMOUTH

EDI EDINBURGH

EMA EAST MIDLANDS

EXT EXETER

INV INVERNESS

NCL NEWCASTLE

STN STANSTED

CWL CARDIFF

BEB BENBECULA

KOI KIRKWALL

LSI SUMBURGH

SYY STORNOWAY

GCI GUERNSEY

IOM ISLE OF MAN

JER JERSEY

Current Airports

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Our Suppliers

Jet 2

Titan Airways

Atlantic Airlines

Logan Air

Ben Air

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When does the Air Network work

• Screen some 55,000 items 22:00 to 00:30

• Flights at our Hub at EMA 23:00 to 01:30

• Flights at our London Gateway at STN 23:45 to 01:00

• Flights at EDI 23:30 to 02:30

• Flight at BFS 19:20 to 01:30

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What we currently fly & Why

• All 1C despatched by mail centres

e.g. STL, packet post and flat rate contracts, 1C returns, International export.

• 1C packets despatched by Amazon

• Special Delivery items throughout UK

• 2C (including Tracked) despatched by mail centres where necessary to connect to day C delivery

To and from BT, IOM, Guernsey & Jersey

• RM Parliament & Queens pouches Edinburgh/London

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Impact of Not Flying • Major Impact In Scotland & Northern Ireland

Failing circa 1m for Scotland & 1m for N.I.

• Economy in Highlands & Islands

Reliant upon RM services

• 2 Day Service Jersey, Geurnsey & IOM

Banking and Insurance services

• Quality of Sevice from 95% to 80%

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Impact of Not Flying Impact upon our Customers –

Amazon

British Gas

E-Bay

Screwfix

All major Banks, Investment Houses

Parliament

• Loss of aprox 1,000 jobs within the industry