LTB 247/16 - Post Office: Admin & Supply Chain - "Major Challenges Facing Supply Chain"

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LTB 247/16 - Post Office: Admin & Supply Chain - "Major Challenges Facing Supply Chain"



No. 247/2016

19th April 2016

POST OFFICE: ADMIN & SUPPLY CHAIN – “MAJOR CHALLENGES FACING SUPPLY CHAIN”

Dear Colleagues

Branches are advised that a Post Office communication has been cascaded to our members in Supply Chain today, the theme of which is “major challenges facing Supply Chain”. The communication is attached to this LTB for your information.

We have formally met with the Post Office twice this month (6th and 13th April) at their request to discuss the “challenges” facing Supply Chain and the resultant impact on our members. Of particular concern is an admission by the Post Office that analysis suggests the “strategy for growth isn’t fit for the future and that our financial performance is under significant pressure”.

As it stands we are yet to receive any formal proposals; however, the overall emphasis in the Post Office’s communications is simply about reducing costs in order to “create a more cost-effective and sustainable operation”.

The Post Office is claiming that the majority of services performed for the external market are unprofitable and as such are impacting detrimentally on the cost effectiveness and the future sustainability of Supply Chain. Indeed, the Post Office is also claiming that in order to meet the current requirement for external services, “...it costs us about £28m to service externals in a year, but these services generate only £18m in revenues. The services that do make a profit only make a very small profit”. Assuming this statement is correct, this is an astonishing admission of failure on the part of management.

It is important to note the Union has not accepted the analysis put forward by the Post Office or the assessments they have made. We have though, agreed to attend a workshop in the future where we can examine the findings in more detail. Crucially, as it stands, no decisions have been made.

In closing, the small crumb of comfort I am taking from the Post Office communication, which by management’s own admission is “quite a negative picture”, is that they are “keen to work collaboratively with the unions on these issues”.

In light of this development, the Postal Executive is today considering placing an Emergency Motion before conference, subject of course to SOC support.

We will be meeting with the Post Office again to continue our discussions after annual conference. Further developments will be reported.

Yours sincerely

Andy Furey
Assistant Secretary



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LTB 247/16 - Post Office: Admin & Supply Chain - "Major Challenges Facing Supply Chain"
Attachment 1