O2 Case Study

The Client
O2 comprises mobile network operators in the UK and Ireland, along with integrated fixed/mobile businesses in Germany and the Czech Republic. It also owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively as well as having 100% ownership of Be, a leading UK fixed broadband provider. In addition, the group includes O2 Airwave, which supplies secure digital communications to the emergency services and other public safety organisations. O2, a Telefónica company, is headquartered in Slough, UK, and has more than 35 million customers across Europe.

The Situation
In April 2006, O2 contracted UK Mail to handle domestic presort mail services. O2, headquartered in Slough, is one of Europe’s leading providers for mobile communications, technology, and entertainment. O2’s major mailing need is to deliver customer statements to its clientele throughout the United Kingdom. Although the company had used Royal Mail’s Mailsort service in the past, postal deregulation created an opportunity to look at reducing costs. After a period of extensive testing, O2 integrated their needs with UK Mail’s Presorted Business Class service.

The Solution
The presort process with O2 is carefully scripted. O2’s mailing house in Gloucestershire prepares the customer statements in C5 envelopes and is placed in specially designed UK Mail boxes for storage and security. The statements are then distributed to 69 Royal Mail Inward Mail Centres overnight. Each bag has a barcode which is scanned through every part of the UK Mail network. The chain is only complete when a signature is collected for every sealed bag handed over to the local Royal Mail sorting office. The efforts of UK Mail allow O2 to more efficiently plan for their customer mailings. Day-definite services guarantee when O2’s customers will receive correspondence. In cases for less time sensitive items, O2 can utilise UK Mail’s state of the art sort equipment for cost-reduced unsorted mailings.

The Outcome
“I am extremely pleased with how the implementation went. Not only have we benefited from from major cost savings, but we also enjoy improved service levels and greater transparency of the mail process. The success of the partnership means we will soon be sending large letters and packets through the UK Mail network.
Susan Smith, Billing and Services Manager,

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