Royal Mail has successfully reached its target of 90% automation across its parcel operations thanks to strategic investments in state-of-the-art parcel hubs, high-speed sorting machines and robotics.
The postal operator noted that the key milestone marks a major step forward in efficiency and improved service, helping to meet the growing demand for next day parcel deliveries.
The automation investments are part of Royal Mail’s modernisation strategy, which has seen substantial improvements across the business.
“Reaching 90% automation is a key milestone in our mission to deliver a modern, more efficient Royal Mail,” said Royal Mail Chief Operating Officer, Alistair Cochrane. “We will continue to explore new technologies to enhance our performance and meet the evolving needs of our customers, while supporting our workforce with cutting-edge technology.”
Automation investments
The company beat the 90% target following years of investment, which included the opening of two state-of-the-art, automated parcel hubs in Warrington in 2022 and Daventry in 2023, which can process up to 1.5 million parcels a day combined.
Furthermore, 10 specially designed large parcel conveyors were deployed at mail centres across the country to manage bigger parcels, and three new high-speed parcel sortation machines were added to mail centres in Leeds, Plymouth and Exeter, each one increasing processing by 21,000 parcels per hour.
Royal Mail noted that the investments have boosted the quick handling of deliveries, especially during the Christmas and peak periods, meeting the growing demand for items to arrive the next day.
Increased automation also enabled the post to handle increased volumes in Q4 2024. In the fourth quarter, Royal Mail saw volumes in its parcels business, increase by 2% to 395 million pieces while revenues grew by 3.2% to £1,250 million.
Upgraded products
Royal Mail also noted that its modernisation strategy and automation investments have led to some of its oldest products being upgraded. Earlier this month, for example, the operator updated its app, making it possible for customers to request proof of postage when they drop-off smaller parcels and packets with a barcode at the 115,000 postboxes in the UK.
Nick Landon, Chief Commercial Officer at Royal Mail, said: “We are seeing more and more customers using second hand marketplaces to sell clothing and these items are likely to fit in a postbox. With the convenience of a UK-wide network of 115,000 postboxes located within half a mile of 98% of addresses, customers don’t need to go out of their way to drop off their parcel.”
Late last year, Royal Mail also became the first delivery company in the world to add digital tracking to its containers used for transporting letters and parcels. The tags transmit live data on location, humidity and temperature as they travel around the country.
And in 2023, the company upgraded postage stamps, adding digital barcodes to improve tracking and dramatically reduce counterfeits.
Royal Mail’s out-of-home network
The key automation target has been met as Royal Mail continues to rapidly expand its number of parcel points to meet growing demand.
In December, the company announced it was launching its own exclusive locker network, in addition to giving customers access to around 1,200 shared-use lockers from Quadient and Yeep!, and 6,500 Collect+ points at convenience stores in the past year.
This is in addition to 1,200 customer service points, 1,200 dedicated parcel postboxes and access to the Post Office’s 11,500 branches.
