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Parcel firms outline plans for automation
22 May 2015
Royal Mail has announced it will roll out automated parcel sorting to around 20 of its busiest mail centres in a bid to drive efficiency amid falling prices.
The company saw parcel volumes rise 3% in the past year but revenues rise 1%. The firm is concerned about increasing competition from Amazon, with projected volume growth ‘dependent on the speed and extent of rollout of Amazon’s own delivery network’.
Royal Mail CEO Moya Greene said the company’s performance "will be weighted to the second half and will be dependent on our important Christmas period”.
Royal Mail declined to tell us what its timetable was for the automation programme and how much budget had been allocated.
UK Mail also announced this week that its Ryton Hub was operational with the automation roll out started and expected to reach optimal efficiency in time for the 2015 Christmas Peak.
The company said effective use of automated sortation is vital in its industry, to further reduce sortation costs and to increase capacity.
UK Mail intends to increase the level of automated sortation to some 80% of its parcels volumes.