Royal Mail is to give mobile computers to 25,000 postal delivery staff to record the progress of tracked packages.
The move is part of Royal Mail's £1.2bn modernisation programme.
Royal Mail staff will use Intermec CN3 terminals to collect and upload by proofs of delivery, time stamps and other events throughout the delivery process by radio. Royal Mail customers will be able to track their parcels and mail through the system through a web portal.
The terminals are equipped with Blackbay's Delivery Connect software.
IT services company CSC, a lead contractor to Royal Mail, is working with Blackbay to ensure the software is up to scratch.
Robin Dargue, Royal Mail's CIO, said the new application would replace the existing paper-based tracking system, improving efficiency and cutting costs.
The deal is an expansion of Blackbay's business with Royal Mail. Parcelforce Worldwide has been a customer for more than five years, and 7,000 staff use the Delivery Connect software within the Royal Mail Group.