UK Mail, one of the UK’s leading postal providers, has been awarded a major new contract worth £12 million a year, to provide Downstream Access (DSA) postal services for HM Government Department for Work and Pensions (DWP).
UK Mail beat off fierce competition from major rivals to win the tender and DWP will become UK Mail’s largest customer by revenue.
With the Royal Bank of Scotland and DWP, UK Mail now has two of the three largest mailers in the UK as customers. DWP is one of the largest Central Government departments and the first to appoint an independent downstream access operator. They mail documents such as pension statements and winter fuel payment notifications, sending tens of millions of items a year from two Regional Distribution Centres in the North East and North West.
A one year trial with UK Mail and one other postal provider was carried out before the tender process, resulting in 4% service level improvements and substantial cost savings for DWP. DWP were keen to appoint a postal supplier who could offer reliability, value for money, reputation, management information and proactive account management.
Gary Knowles, Category Manager from DWP says ‘We are pleased to announce we have moved our postal supplier from Royal Mail to UK Mail following a successful trial and tender exercise. We have the utmost confidence in UK Mail that they are able to meet our capacity needs at a competitive price. We look forward to continuing and developing a good working relationship.’
The contract is due to start on February 5th and will pave the way for other public sector organisations to become more effective in procuring the right postal choice.
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