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April 2009 Open House and Expo Presenter – Jim Spates.

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Presentation on theme: "April 2009 Open House and Expo Presenter – Jim Spates."— Presentation transcript:

1 April 2009 Open House and Expo Presenter – Jim Spates

2 Knowledge is Power Elite 8 - Learn and Save Methodologies 8 proven methods to reduce mailing and mailroom shipping costs

3 Knowledge is Power Reduce your carbon footprint Go Lean and Green! Its just better for everything and reduces costs Recycle ink cartridges for all printing devices including postage equipment. If you do not have a resource for postage meter cartridges, call us. We would be happy to stop by and pick them up Promote duplexing throughout your organization and gently remind the troops, consistently Consolidate like delivery addresses into one envelope. Save on material as well as postage

4 Knowledge is Power Reduce your carbon footprint Introduce reusable envelopes to mail items back & forth to branch locations Use UPS mail back envelopes made of 100% recycled fiber and the envelopes are free Reduce the print margin from 1 ¼ to ¾. Doing so would save enough trees in one year to fill the state of Rhode Island Do not mail zero balance statements Research electronic mailing options: , efax, secure electronic invoicing and statement processing Promote and communicate your Lean and Green initiative to all of your internal and external clients

5 Knowledge is Power Reduce your carbon footprint Send your ready to mail, ready to fax, or ready to documents in one print stream Mail Inserter Fax Document Control Systems analyze the data and ensures full automatic control of print output and digital distribution. this eliminates hours of manually formatting files for delivery. Mail Machine Archives Printer

6 Knowledge is Power Be Accountable Companies that do not charge back postage and overnight costs typically lose upwards of 26% of these costs (Morgan Stanley survey 2008) Do you currently capture some or all of the cost and chargeback's to internal clients? Doing so provides the following: Senior management visibility to each departments spending habits Increased awareness of annual increases by all carriers: USPS, UPS, FedEx. Avg increase of up to 8.5% depending on the make up of the mail piece or parcel Assigns ownership to an expense that typically gets overlooked and can be easily reduced in most cases Allows for more accurate budgeting of expenses

7 Knowledge is Power How to Deploy a Solution Design a mailroom request form requiring 1 week advance notice with description of contents and delivery objective for mailings of 50 pieces or more Research your mailing systems standard features and options that may be added to provide you with a department, class and volume breakdown – Oh, we dont do any priority mail! Track and analyze monthly mail runs that are over 200 pieces. Could they have gone out standard mail and received a 39% discount or could we have mailed it with our presort partner at a 9% discount with faster delivery? – Oh, we dont do bulk mailings, only monthly product notices!

8 Knowledge is Power How to Deploy a Solution Use free carrier systems reporting functions or research a vendor solution that captures overnight mail analysis reports – It has to be there tomorrow! Analyze special services usage and research why they are being used – It has to go Certified Return Receipt because I need to proved I mailed it! Be and hold people accountable for what they spend! You will be shocked how your costs will go down.

9 Knowledge is Power Design on a Dime or… …how to get your mail in shape before its too late? Impact: Costs could be up to 39% higher due to the USPS shape based pricing that was instituted 2 years ago.

10 Knowledge is Power Design on a Dime How has your budget been affected? Returned mail or mail received postage due is now in play Who in your organization is aware or is not aware of the SBP stipulation? What matters? (Review) Letter – Flat – Parcel Size – Thickness – Weight – Rigidity Its how you make the bed – hand folding versus machine fold…Rough rules of thumb

11 Knowledge is Power Design on a Dime Example Rough Rules of Thumb: n 8½ x 11, 20 lb. bond up to 10 pages – use #10 envelope n 8½ x 11 with #9 return up to 8 pages – use #10 envelope n 8½ x 11, 20 lb bond, up to 11 – 21 pages – use 6 x 9½ envelope n 8½ x 11 with #9 return up to 9-19 pages – use 6 x 9½ envelope n 8½ x 11, 20 lb bond, up to 21 & up pages – use 9 x 12 flat envelope n 8½ x 11, 20 lb bond with #9 return envelope, 19 pages & up, use 9 x 12 flat envelope n Use of the IMS Page Calculator

12 Knowledge is Power Design on a Dime Consider: Duplex Printing. Lighter & Greener Specialized packaging for CDs, parcels, flats Conformer Expansion Envelope Conduct a meeting with your marketing and design team to help promote these requirements and be involved in the approval process of future mail pieces Get buy-in from senior management to require the use of the IMS Postage Guide and deploy on all users desktop or network folder

13 Knowledge is Power Actual Case Study n Our client mails 1,200 to 1,300 multi-page invoices to their customer base consisting of 2 – 26 pages (8½ x 11 in 9 x 12 flat envelope). We re-weighed each piece after mail was processed and sorted by weight. n We hand-counted each category from $1.02 to $4.02 and put the results into Excel...

14 Knowledge is Power Annual Savings $6, $524.39$ $1, $36.90$83.70$0.9390$120.60$ $148.42$275.12$ $423.54$ $311.60$448.40$ $760.00$ $27.47$28.14$0.4267$55.61$ SavingsTotal $ Should Have Piece CountTotal $ Piece Count Case Study – Monthly Mail Volume Annual Postage Prior to Mail Optimization $16, Annual Total After Mail Optimization $10,024.30

15 Knowledge is Power Actual Case Study Results n 38% savings in postage n Reduction in material costs n Leaner and Greener n 2 hours in manpower to execute the study n Collect - quantify - report

16 Knowledge is Power Work Sharing Definition: Judy Spates assigns work list and posts on refrigerator in kitchen (also known as Honey Do) Jim Spates completes work list Or… Present automation compatible mail that meets the USPS standards to earn a discount and speed deliverability

17 Knowledge is Power Work Sharing Components n Volume st Class / 200 or 50 lbs standard mail n Complete Correct Address n CASS-PAVE – N.C.O.A Certified in the last 95 days n Pre-sorted & trayed to the finest level n Preparation of a 3602 Postage mailing statement n Delivery to the USPS

18 Knowledge is Power Work Sharing Potential Savings from $0.42 cents 1 oz piece rate Mixed AADC 3-Digit Automation Non Profit 9% 15% 74% $38.00/K $63.00/K $310.00/K Certified software and some tray preparation is required along with documentation and delivery to the USPS.

19 Knowledge is Power Work Sharing – Outsource Local Option - Access Direct – Presort Bureau, Farmingdale NY n Client meters mail at a reduced agreed upon rate. Presort firm co-mingles the mail with other firms in the same fashion as the USPS. n Mail is labeled and scheduled for the correct flight or truck via Postal One, then delivered accordingly to the USPS. n Mail is typically injected into the mail stream next day, yet you gain 1 to 2 days transit time due to sorting and reservation function of Postal One. n PCH Test & Study of Postal One substantiates this claim over the last 2 ½ years

20 Knowledge is Power Work Sharing – Outsource Potential savings from $0.42 cent 1 oz piece rate LowMidHigh $26.00/K$38.00/K$51.00/K Access will pick up mail at your facility based on volume at no charge or allow you to drop off at their Farmingdale site.

21 Knowledge is Power Work Sharing – Outsource Access Direct is ideal for: n Monthly Statements n Daily Invoices n Quarterly Newsletters n Occasional Promotional Mailings

22 Elite 8 Learn & Save Negotiate carrier contracts n Volume is not a factor, even the smallest mailer/shipper can get a discount. Sometimes you just need to ask. n Collect data n Review carrier invoices to get a feel for volume & package types n Educate yourself on accessorial definitions – carrier websites provide detailed description of accessorials n Speak to your internal & external clients. Get a feel for their level of satisfaction & relationship with your carrier.

23 Negotiate carrier contracts Request detail & data from all carriers. n We are conducting a study of our mailing & shipping costs and would ask that you provide us with: – Copy of contract currently in place – 12 months detail on piece & $ volume by class, weight, zone, accessorial charges and shipments delivered late. Once the data is collected, review & analyze the results (we can assist if you like) Knowledge is Power

24 Negotiate carrier contracts Look for the following: n MPC (Minimum Package Charge) $4.57 commercial n Discount Level by Class & Weight Favorite trick: Carriers show huge discounts for classes and weight categories you dont use n No Discount for Value Added Services English – No discount on accessorial up charges n Insurance – Address Correction – Residential Delivery - Fuel Surcharge – Delivery Area Surcharges – DIM rated packages (L x W x H / 194 etc. etc. etc.) Knowledge is Power

25 Negotiate carrier contracts n Refunds due and never collected (common) n Request a new proposal based on your findings n Engage multiple carriers – even the Post Office is discounting these days n Engage a 3 rd party professional if your volumes exceed $200K/year. Tony Nuzzio from ICC Logistics will address this subject later today.

26 Knowledge is Power Rate Shop – Rate Shop – Rate Shop We have experienced a significant abuse of carrier service levels and you need to put a stop to it! Morgan Stanley carrier survey 2008 states that you may recover up to 38% of your cost if you rate shop intelligently. What does rate shop actually mean?

27 Knowledge is Power Rate Shop – Rate Shop – Rate Shop n Compare base rates after discounts between carriers n Compare accessorial up charges after discounts between carriers (residential – insurance – fuel surcharge – DIM rated) n Compare time in transit goals vs. total rate between carriers n Compare what we want to what the client expects (the sales guy again!) n Fulfill our SLAs (Service Level Agreement) n Clarify who pays the freight

28 Knowledge is Power How can you accomplish effective rate shopping? Document your SLAs If there arent any, build it for both internal & external clients Educate your team – the sales guy may not know about the 300 mile rule. Ground - next day definite Engage multiply carriers – do not keep all your eggs in one basket Deploy a quick reference guide within your organization

29 Knowledge is Power Example – 1 lb Letter going from Hauppauge NY to Hackensack NJ GroundNext Day 10:30 Next Day 3:00 2 nd Day AM 2 nd Day PM Base Rate$4.57$14.85$13.15$11.00$9.45 Less 15% Disc. MPC$12.62$11.17$9.35$8.03 Fuel *$0.11$1.70$1.51$1.26$1.08 Tracking Fee Residential Surcharge $2.05$2.40 Total$6.73$16.72$15.08$13.01$11.51 Money Back Guarantee 1 Day End of business 1 Day 10:30 1 Day 3:00 2 nd Day 10:30 2 nd Day 3:00 Savings by choosing Ground Day Definite 60%56%51%42% *Ground Fuel Surcharge 2.5% Air Fuel Surcharge 11.5%

30 Knowledge is Power Dont need a guaranty but want the same look and feel…Try USPS Priority Mail at $4.95 $4.80 with Electronic Delivery Confirmation (PC Postage) GroundNext Day 10:30 Next Day 3:00 2 nd Day AM 2 nd Day PM Base Rate$4.57$14.85$13.15$11.00$9.45 Less 15% Disc. MPC$12.62$11.17$9.35$8.03 Fuel *$0.11$1.70$1.51$1.26$1.08 Tracking Fee Residential Surcharge $2.05$2.40 Total$6.73$16.72$15.08$13.01$11.51 Money Back Guarantee 1 Day End of business 1 Day 10:30 1 Day 3:00 2 nd Day 10:30 2 nd Day 3:00 Savings by choosing Ground Day Definite 60%56%51%42% Savings by choosing USPS Priority Mail 71%68%63%59%

31 Knowledge is Power Carrier Tools UPS WorldshipWeb Site APIAirbills FedEx Campus ShipFedEx CaféUSPS Web Site Stand alone applications do not allow for automated rate shopping quite purposefully You can, through proper education and policing, help curb the abuse

32 Knowledge is Power Build and Use a Shipment Request Form To From Department Contents Delivery Requirement/Time in Transit Tracking Requirement Research Vendor solutions that work with free carrier systems, giving you multiple options

33 Knowledge is Power Research Vendor solutions that provide multiple carrier options in one integrated, intelligent box

34 Knowledge is Power Address Hygiene n What is the impact? n Return mail costs your organization plenty $.50 manual return no automation $.42 outgoing postage $.15 material envelope etc. Sub: $1.07 each ($ per 100) $8.00 UPS/FedEx incorrect or incomplete address ($8.00 ground, $12.00 air) $1.95 added to bill due to address not being classified as residential in your database Sub: $11.02 each ($1, per 100)

35 Knowledge is Power Address Hygiene The Real Cost fuggedaboutit Lost sales/relationship opportunity Significant reduction in cash flow Re-ship due to client move or extremely poor address quality …priceless

36 Knowledge is Power Address Hygiene Corrective Measures Go to where the address is born: n Order entry n Web interface n Phone orders n Fax to data entry n CRM n Customer Service Database n FedEx Cafe n UPS Worldship

37 Knowledge is Power Address Hygiene n Multiple Data Bases – let me count the ways! n Invest in or share address hygiene tools such as (Satori Capture) to cleanse an address where its born. n Deploy a Customer Communication Management (CCM) initiative

38 Knowledge is Power Take Ownership and Educate Assess your operation and select one additional target per month to deploy Add additional value to your organization in difficult economic times Share the resources amongst the masses – We dont know what we dont know Promote the importance of mailing & shipping accuracy CCM – Customer Communications Management Use IMS as a Resource

39 Knowledge is Power Thank You For Attending


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