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Departmental Postal Services

Volume 479: debated on Monday 1 September 2008

To ask the Secretary of State for Transport what steps her Department has taken to monitor the cost of its mail services in the last 12 months. (221485)

The Department for Transport actively monitors the cost of its mail services on a regular basis, using the most economical delivery service wherever possible, with the default for outgoing mail being second class post. Listed as follows are some examples of actions undertaken:

The Highways Agency monitors on a monthly basis locational spend against forecasted expenditure and has also reviewed the internal mail delivery service in order to ensure best value.

The Driver and Vehicle Licensing Agency (DVLA) has already implemented a combination of software and mechanical sorting equipment to increase the volume of outbound mail discounts. Over the last 12 months DVLA has ensured that mail services contracts have been, managed robustly, and worked closely with Royal Mail and DX Group to ensure effective products have been utilised, and that both volume and price discounts have been maximised.

The Vehicle and Operator Services Agency (VOSA) has undertaken a review of processes and highlighted potential for savings via improved supplier processes and shared best practice. VOSA's business design authority, will, in possession of these data, develop an improvement project which will deliver:

a single contract supplier of postal services

a single contract supplier of parcel services

centralised invoicing for parcels and franking machines

a best practice guide for all areas

reduced process costs

an opportunity to reduce spend by about £100,000.