Mitigate The Impact Of The Strike Action

Last edited: 20/10/2009
With every indication that the national postal strike is due to start this week, there is an obvious need for companies to rely less on physical documents, their delivery methods and the operational processes that depend on them.


The Reality Of The Situation:
The action is certain to have a huge impact on businesses that depend heavily on Royal Mail. For those familiar with the 'cheque in the post' phrase, you might hear it a lot more this month as a valid excuse for non–payment. The last national stoppage in 2007 resulted in a backlog of about 200 million letters and parcels. It is also estimated that over 50 million postal items are sent through the Royal Mail system daily and one can only imagine how many of these items are vital to the survival of small businesses as over 90% of them use the Royal Mail as their only postal operator. To make matters worse, Royal Mail lorry drivers are taking part in the strike, so there is bound to be an enormous amount of undelivered letters, cheques and parcels. With indications that this action may last for days, the implications are huge.


Process Deterioration:
For companies that have to submit important documents such as statutory accounts and VAT returns, there is an increased likelihood of incurring penalty fines from HMRC/ Companies House as a result of late payments. Already, in anticipation of this predicament, HMRC has disclosed that anyone who misses the October 31 deadline will be able to appeal their fine. There may be similar offerings to ease some of the effects of the strike, but even providing proof to appeal fines may be time–consuming and expensive, or just frustrating.


In addition to this, companies that handle client payroll activities and send pay slips by post need to find alternative delivery methods to avoid significant disruption during the strike. Companies that outsource usually depend on documented information and the physical transfer of files and documents. These companies and their outsourcing partners may face increased delays in information sharing and utilization. For companies that are willing and able to pay their debts, late receipt of bills, credit card statements and lost orders may significantly delay payments.

It is now more important than ever for companies to consider alternative means of communication such as electronic solutions and other forms of ecommerce and digital communication. Many companies might consider switching from outsourcing to insourcing, as data can be easily shared internally when service providers work within client organisations.


Possible options:
To cushion your company against this disruption and other similar interferences in the future, you may wish to consider migrating to systems and procedures that are less dependent on external influences and more dependent on yours. Specialist companies can help clients review and build processes that have more emphasis on electronic communication;

Some of these processes can be done with minimal cost including email billing, online order processing, electronic cash management, telephonic or electronic credit control including handling collection letters. You can also get assistance with tracking missing invoices and payments as well as chasing debtors more regularly. There is also the web–based online50 software that can be used to facilitate remote accounting for added client convenience.

For more information about how we can help, kindly contact Gary on 01582519622 or clientcare@efm.uk.com. Please visit our website for details of all our offices at www.efm.uk.com. You may also email ruth@efm.uk.com in the Midlands, maurice@efm.uk.com in the Northwest or malcolm@efm.uk.com in the Northeast.