april 2009 open house and expo presenter – jim spates
TRANSCRIPT
April 2009 Open House and ExpoApril 2009 Open House and Expo
Presenter – Jim Spates
Knowledge is Power
Elite 8 - Learn and Save Methodologies
8 proven methods to reduce mailing and
mailroom shipping costs
Knowledge is Power
Reduce your carbon footprint
Go Lean and Green! It’s 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
Knowledge is Power
Reduce your carbon footprintIntroduce 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: email, efax, secure electronic invoicing and statement processing
Promote and communicate your Lean and Green initiative to all of your internal and external clients
Knowledge is Power
Reduce your carbon footprint
Send your ready to mail, ready to fax, or ready to e-mail documents in one print stream
Mail Inserter
Fax
Document Control Systems analyze the data andensures full automaticcontrol of print outputand digital distribution.this eliminates hours of
manually formatting filesfor delivery.Mail Machine
Archives
Printer
Knowledge is PowerBe 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 habitsIncreased 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 parcelAssigns ownership to an expense that typically gets overlooked and can be easily reduced in most casesAllows for more accurate budgeting of expenses
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 don’t 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 don’t do bulk mailings, only monthly product notices!”
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 cost’s will go down.
Knowledge is Power
Design on a Dime
or…
…how to get your mail in shape before it’s too late?
Impact: Costs could be up to 39% higher due to the USPS shape based pricing that was instituted 2 years ago.
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
It’s how you make the bed – hand folding versus machine fold…Rough rules of thumb
Knowledge is Power
Design on a Dime
Example
Rough Rules of Thumb: 8½ x 11, 20 lb. bond up to 10 pages – use #10 envelope 8½ x 11 with #9 return up to 8 pages – use #10 envelope 8½ x 11, 20 lb bond, up to 11 – 21 pages – use 6 x 9½ envelope 8½ x 11 with #9 return up to 9-19 pages – use 6 x 9½ envelope 8½ x 11, 20 lb bond, up to 21 & up pages – use 9 x 12 flat envelope 8½ x 11, 20 lb bond with #9 return envelope, 19 pages & up,
use 9 x 12 flat envelope
Use of the IMS Page Calculator
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
Knowledge is Power
Actual Case Study
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.
We hand-counted each category from $1.02 to $4.02 and put the results into Excel...
Knowledge is Power
Annual Savings$6,292.68
$524.39 $835.36 1279$1,359.75 1279
$36.90 $83.70 $0.93 90$120.60 $1.34 90
$148.42 $275.12 $0.76 362$423.54 $1.17 362
$311.60 $448.40 $0.59 760$760.00 $1.00 760
$27.47 $28.14 $0.42 67$55.61 $0.83 67
SavingsTotal $Should Have
Mailed @ Piece CountTotal $
Mailed @
Piece Count
Case Study – Monthly Mail Volume
Annual Postage Prior to Mail Optimization
$16,317.00
Annual Total After Mail Optimization
$10,024.30
Knowledge is PowerActual Case Study Results
38% savings in postage Reduction in material costs Leaner and Greener 2 hours in manpower to execute the study Collect - quantify - report
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
Knowledge is Power
Work Sharing
Components Volume 500 1st Class / 200 or 50 lbs standard mail Complete Correct Address CASS-PAVE – N.C.O.A Certified in the last 95 days Pre-sorted & trayed to the finest level Preparation of a 3602 Postage mailing statement Delivery to the USPS
Knowledge is PowerWork Sharing
Potential Savings from $0.42 cents 1 oz piece rate
Mixed AADC 3-Digit Automation Non Profit9% 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.
Knowledge is PowerWork Sharing – Outsource
Local Option - Access Direct – Presort Bureau, Farmingdale NY 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.
Mail is labeled and scheduled for the correct flight or truck via Postal One, then delivered accordingly to the USPS.
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.
PCH Test & Study of Postal One substantiates this claim over the last 2 ½ years
Knowledge is PowerWork Sharing – Outsource
Potential savings from $0.42 cent 1 oz piece rate
Low Mid High
$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.
Knowledge is PowerWork Sharing – Outsource
Access Direct is ideal for:
Monthly Statements Daily Invoices Quarterly Newsletters Occasional Promotional Mailings
Elite 8 Learn & SaveNegotiate carrier contracts
Volume is not a factor, even the smallest mailer/shipper can get a discount. Sometimes you just need to ask.
Collect data Review carrier invoices to get a feel for volume &
package types Educate yourself on accessorial definitions – carrier
websites provide detailed description of accessorials Speak to your internal & external clients. Get a feel for
their level of satisfaction & relationship with your carrier.
Negotiate carrier contracts
Request detail & data from all carriers. “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
Negotiate carrier contractsLook for the following: MPC (Minimum Package Charge) $4.57 commercial Discount Level by Class & Weight
Favorite trick: Carriers show huge discounts for classes and weight categories you don’t use
No Discount for Value Added ServicesEnglish – No discount on accessorial up charges
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
Knowledge is PowerNegotiate carrier contracts
Refunds due and never collected (common) Request a new proposal based on your findings Engage multiple carriers – even the Post Office is
discounting these days Engage a 3rd party professional if your volumes exceed
$200K/year. Tony Nuzzio from ICC Logistics will address this subject later today.
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?
Knowledge is PowerRate Shop – Rate Shop – Rate Shop
Compare base rates after discounts between carriers Compare accessorial up charges after discounts between
carriers (residential – insurance – fuel surcharge – DIM rated)
Compare time in transit goals vs. total rate between carriers
Compare what we want to what the client expects (the sales guy again!)
Fulfill our SLA’s (Service Level Agreement) Clarify who pays the freight
Knowledge is PowerHow can you accomplish effective rate shopping?
Document your SLAsIf there aren’t 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
Knowledge is Power
Example –
1 lb Letter going from
Hauppauge NY
to Hackensack NJ
Ground Next Day
10:30
Next Day
3:00
2nd Day
AM
2nd 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
0 0 0 0 0
Residential
Surcharge
$2.05 $2.40 $2.40 $2.40 $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
2nd Day
10:30
2nd Day
3:00
Savings by choosing
Ground Day
Definite
60% 56% 51% 42%*Ground Fuel Surcharge 2.5%Air Fuel Surcharge 11.5%
Knowledge is Power
Don’t 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)
Ground Next Day
10:30
Next Day
3:00
2nd Day
AM
2nd 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
0 0 0 0 0
Residential
Surcharge
$2.05 $2.40 $2.40 $2.40 $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
2nd Day
10:30
2nd Day
3:00
Savings by choosing
Ground Day
Definite
60% 56% 51% 42%
Savings by choosing
USPS Priority Mail
71% 68% 63% 59%
Knowledge is Power
Carrier Tools
UPS Worldship Web Site API Airbills
FedEx Campus Ship FedEx Café USPS 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
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
Knowledge is Power
Research Vendor solutions that provide multiple carrier
options in one integrated, intelligent box
Knowledge is Power
Address Hygiene What is the impact? Return mail costs your organization plenty
$ .50 manual return no automation
$ .42 outgoing postage
$ .15 material envelope etc.
Sub: $1.07 each ($107.00 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 ($1,102.00 per 100)
Knowledge is PowerAddress Hygiene
The Real Cost
fuggedaboutit
Lost sales/relationship opportunitySignificant reduction in cash flowRe-ship due to client move or extremely poor address quality
…priceless
Knowledge is PowerAddress Hygiene
Corrective Measures
Go to where the address is born: Order entry Web interface Phone orders Fax to data entry CRM Customer Service Database FedEx Cafe UPS Worldship
Knowledge is PowerAddress Hygiene
Multiple Data Bases – let me count the ways!
Invest in or share address hygiene tools such as (Satori Capture) to cleanse an address where it’s born.
Deploy a Customer Communication Management (CCM) initiative
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 don’t know what we don’t know”
Promote the importance of mailing & shipping accuracy CCM – Customer Communications Management
Use IMS as a Resource
Knowledge is Power
Thank You
For Attending