Postal Services Performance Manager Balanced Scorecard Feedback Reporting Period: Q3 (April – June 2010)

The balanced Scorecards were completed by organisations across the sectors, the suppliers and Procurement Scotland. Giving together a balanced picture of the frameworks from the perspectives of demand, supply and management. Overall the feedback received for each of the frameworks was positive, however, opportunities for improvement have been identified. The following pages provide an overview of the scores and feedback received, and following the review meetings with the suppliers, the actions arising. In addition it was identified that the scorecards did not provide sufficient opportunity to provide feedback directly on Education. Moving forward this is an area which we will include within the balanced scorecard. The Q4 balanced scorecards will be issued out on the 29 th October 2010 Overview of Q2 Demand (End user organisations) Supply (TNT Post) Management (Procurement Scotland)

Scorecard Summary Demand SidePS Supply Side Demand SidePS Supply Side Quality323Delivery234 Fit for Purpose2.523Lead Time/Delivery Time2.634 Corporate Social Responsibility2.833Accuracy2.324 Continual Improvement/Innovation2.524 Service223Cost223 Responsiveness2.423Pricing Stability2.724 Complaints2.223Invoice Accuracy1.922 Management Information2.523Cost Reduction Initiatives2.534 Communication2.624 Education/Trainingn/a

Overview Overall Scorecard scores In looking at the overall scores from the balanced scorecards it must be noted that they represent very different viewpoints and in such that a number of factors must be taken into consideration when looking at the variance in the scores. Demand Side – In many instances when completing the scorecards the scores given reflected both Procurement Scotland’s and the supplier’s performance. Whilst we appreciate that you want to give feedback on areas which may be down to decisions made by Procurement Scotland, the scorecards should reflect the suppliers performance. Comments on Procurement Scotland’s performance/decisions taken should be included within the overall comments. Please be assured that they will be reviewed and where appropriate actions will follow. Procurement Scotland – In completing the scorecard Procurement Scotland have taken into account the feedback from organisations, the MI received from the suppliers and how the frameworks are perceived as performing. Supply Side – In completing the scorecards the suppliers have in some areas compared themselves against their performance within the market. Demand SidePSSupply Side

Feedback received CommentsAction OverallIn general, TNT Post are providing a good service with minor concerns in a number of areas. Over the last quarter the main area of concern has been the machine readable service change and the manner in which this has been managed by TNT Post. Effective communication has to be assured going forward. QualityThere have been issues with mail being returned with the incorrect return address, some of which was of a confidential nature. This was initially a software issue which TNT Post has assured has now been resolved. ServiceDelay in receiving credits for machine readable read mail items.TNT Post acknowledge this delay and are now working to ensure all due credits are given. Enquiries/Queries relating to invoicing and mail formats are seldom answered timeously. We are constantly having to follow up invoice queries with supplier Customer Service function has now improved following fluctuating demand through rollout with extreme spikes of activity M.I provided late to Procurement Scotland and some organisations have reported problems with format and reports not received. TNT Post have put in place measures to ensure report is provided on time to Procurement Scotland and will continue to work with organisations to ensure individual reports are provided in an adequate format. DeliveryTNT Post currently 99.65% compliant CostPricing held firm with only Royal Mail element subject to annual increase, however, organisations have expressed concern over the recent Machine Readable service change as there were user the impression they were achieving mail of the correct quality prior to this change. This could have been managed in a more efficient and different manner TNT Post acknowledge this concern are monitoring incoming mail to ascertain levels of machine readable mail and apply appropriate credits. Several invoice issues have been raised but are dealt with speedily.