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Analysis of the Effect of Management Quality Variables in Delivery Cost Functions

In: The Contribution of the Postal and Delivery Sector

Author

Listed:
  • Catherine Cazals

    (Université de Toulouse)

  • Thierry Magnac

    (Université de Toulouse)

  • Soterios Soteri

    (Royal Mail Group)

Abstract

Letter volumes in countries with advanced broadband networks have been in decline since the early to mid-2000s while, more recently, parcel volumes have started to grow quite rapidly. The main drivers of these trends, namely the substitution of physical letters with electronic modes of communication and increasing levels of on-line shopping, are expected to continue for some time. This raises two important challenges for postal universal service providers (USPs). The first is to manage operational changes to meet the evolving needs of consumers, such as changes in the quantity, shape, size and weight of mail sent and received. Second, USPs need to reduce costs and increase efficiency as quickly as is practically possible in order to help slow the decline in letters and to compete more effectively with other parcel providers.

Suggested Citation

  • Catherine Cazals & Thierry Magnac & Soterios Soteri, 2018. "Analysis of the Effect of Management Quality Variables in Delivery Cost Functions," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy Brennan & Victor Glass (ed.), The Contribution of the Postal and Delivery Sector, pages 175-186, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-70672-6_13
    DOI: 10.1007/978-3-319-70672-6_13
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