Business Post Group plc announces that its mail company UK Mail, the leading competitor to Royal Mail in downstream access postal services, has been awarded a contract to provide downstream access postal services for TV Licensing. This marks a major achievement for UK Mail and follows in the footsteps of the prestigious mail contract won with HM Government Department for Work and Pensions (DWP).
This new contract is due to commence on 1 April 2007 and is worth up to £8.1 million per year.
UK Mail beat off formidable competition from three rival postal providers in the final stages of the tender process in 2006. The business’s provision of significant cost and service benefits coupled with its various pricing and product innovations were all critical factors in the final decision. The BBC began trading with UK Mail on a trial basis in October last year whilst negotiating the final details of the contract. During this period substantial cost savings were identified alongside an improved flow of calls to its call centre.
All presorted mail from TV Licensing will now be dispatched via UK Mail’s downstream access model whereby mail is collected and sorted at its national network of 58 sites into Royal Mail’s 69 Inward Mail Centres on a daily basis.
Commenting on the new business relationship, Beverley Tew, Head of Revenue Management, BBC TV Licensing, said:
“TV Licensing is pleased to be working with UK Mail to provide a cost efficient postal service.
“We are committed to achieving the best value for money and level of service for all TV Licensing operations, which this new contract reflects. Collection costs as a percentage of income generated have fallen year-on-year as the operation becomes more effective and efficient at maximising license fee revenue, and we are focused on continuing this trend. “
Business Post’s Chief Executive, Guy Buswell, said:
“We are delighted to have won this very significant contract, particularly following the award of the major mail contract for HM Government Department for Work and Pensions UK Mail is delighted to be entering into this new agreement with BBC TV Licensing. We envisage a long and highly successful relationship with mutual benefits for both businesses. “