Niyamath Parveez

In the build up to Christmas, and although it may be too early for most people to be considering it, businesses have to be prepared, many UK firms are starting to fret over the Royal Mail strike. The ins and outs of the Royal Mail strike won’t be discussed here, both parties have their points and their failings which indicate an unwillingness to negotiate but for the firms who are looking to sell in the run-up to Christmas, the uncertainty is bad for business.

Quite simply, if consumers are not confident of ordering online and receiving their purchase in time for Christmas, they will look elsewhere for their gifts. This could be disastrous for online stores who invariably see the Christmas retail market as their most important time of the year. If consumers are unwilling to shop with them, they could see their whole projections for the year go to waste. Given the current economic climate, many organizations are largely reliant on this market for their existence and the New Year could see firms going to the wall if they have a disappointing Christmas sales period. This is not the concern of the Royal Mail management or striking staff but there is a wider economic impact for the country as a whole from their actions.

Therefore, companies need to do all that they can to mitigate the downside incurred by the Royal Mail strike and outsourcing their delivery system is a fantastic way to work around the problems they may face. Many courier and delivery companies are reacting to the Royal Mail strike by offering deals and incentives for customers to work alongside them and this provides a better opportunity for the company to offer their customers a guaranteed delivery date. An online retailer which can advertise the fact that their deliveries are being handled externally from the Royal Mail will offer a greater degree of confidence to their consumers making it more likely that a shopper will buy from the site.

Therefore, setting up an outsourcing deal may be of tremendous benefit to a number of firms for the biggest retail period of the year but it is not something that should just be rushed into? Depending on the length of the strike, what sort of contract should be entered into? Is it better for a firm to just look to covering the Christmas market and then go back to the Royal Mail for the quieter New Year period? Would the outsourcing firm be happy with this type of contract? Would there be a higher premium involved because of the short term nature of the contract? If the price was high, could the firm justify using this outsourcing service or would they be required to pass on the extra cost to their customers, making it seem a costlier process for all concerned.

With the focus turning towards promotion and selling, this may not be something that many firms have a lot of time to wrestle with but there needs to be a focus on what needs to be done for the good of the business.