There are 6 steps you can take to minimize the impact.
Schedule an onsite impact analysis so that you are prepared.
1. Class / Service - Choose Wisely
2. Shape – Repackage as appropriate
3. Automate – save on Labor
4. Address Quality = Better Results, Less $
5. Group – reduce mailings, not content
6. Account – Empower and Hold accountable
1. Class of Mail / Service
Does that Marketing Mailing really have to go at First Class?
Presorted First Class or Standard Mail done right can be just as effective
Learn the tricks to make Std Mail look like First Class
Best Way – Select the best Carrier and service level to fit the need.
Shop the “Best Way”
Simply select the day you want the mail or pkg. to arrive
Calendar View G2’s “Best Way” “ Viewer” shows estimated time of delivery and total charges
Automation Rates Save $ 2-ounce letter 58 ¢ 1oz. letter 41 ¢ 1-ounce auto letter 33.4¢ 2-ounce auto letter 45.9 ¢ Auto 21% Savings 19% Savings Base on 3-digit sort Auto First Class vs. Presorted First Class
Automation Rates Save $ 2-ounce letter 58 ¢ 1oz. letter 41 ¢ 1-ounce auto letter 23.3¢ 2-ounce auto letter 23.3 ¢ 60% Savings 43% Savings Base on 3-digit sort First Class vs. Standard Auto 3 Digit Auto 3 Digit
2. Pay Attention To Shape
Review designs of all current and planned mailings to ensure that they are cost effective using SBP requirements. For example:
A 1 oz. 6” by 6” envelope’s aspect ratio (length divided by height, must be between 1:3 and 2:5) is 1.0, and is subject to the non-machinable surcharge of $0.17 (41 cents vs. 58 cents, a 41% increase).
Minimize Costly Flats 6 x 9.5” + = $0.80 1-2 Pages Folded in ½ + = $0.41 9” x 12” Flat 1 to 2 Pages 49% Savings! Thin Flat Reconfiguration Example:
Think Thin 6” x 9.5” + = $0.97 - Flat Rate 7 Pages ½ Folded + = $0.58 - Letter Rate 6 Pages 40% Savings! Thin Flat Reconfiguration Example: #10 Envelope 6 Pages 6 Pages 6 Pages 6 Pages 6 Pages 7 Pages Of 20lb. – Over ¼”
Manual Shape Classification Equals the ability to rate your mail – It’s an option…But certainly not the best one! SBP Mail Rate Classification Guide Electronic Scale or Weighing Platform Lots Of Time And Patience + +
Semi-Auto Shape Determination
Automate With Dynamic Weighing
Increases Accuracy – eliminates guessing
Uses a 4 Point Detection System to automatically measure the length, width, thickness, and weight to accurately rate mail!
Saves time, and increases productivity!
3. Automate – Shape/Rate Classification
Is your Mail Machine SBP compliant?
Fold & Save
Folder Inserter Savings
40% Postal Savings,
Plus Labor Savings
6” x 9.5” + = $0.97 6 Pages Folded in ½ + = $0.58 Save $390 Per. Thousand! 6 Pages 6 Pages 6 Pages 6 Pages 6 Pages 6 Pages 6 Pages Of 20lb. 9” x 12” Flat
4. Address Quality – Important?
Costs the USPS 2 Billion /Yr to Return/Dispose
17% of Consumers and Businesses move every year
24% of all mail have some kind of address problem
2.72% of mail is never delivered
17% of all mail is delayed
1.5 million new addresses every year.
Stats courtesy of Datatech Smartsoft 2006 and confirmed by USPS
My Mail is OK – you hope…
Postmaster General has stated by 2010 UAA Mail will have to be reduced by 50%
CASS – DPV – LACSlink – Corrects the Physical portion of the Address
NCOA or NCOA-Link can correct the Personal element of the address
AEC and AECII – product of the USPS to fix the worst of the worst
Ancillary Endorsements or ACS to keep it current.
CASS now required to incorporate DPV and LACSlink ™
What's the difference?
CASS – standardizes addresses to a range. It can assign zip+4 to an incorrect Primary #.
DPV – think of it as CASS on Steroids. It can verify, standardize and correct down to the actual Delivery Point.
Process will include conversion of Rural Route and box #s to city-style addresses using LACS Link ™.
This will improve the deliverability, reduce waste while improving the efficiency of Direct Mail
Address Quality – Things to ask your Vendor
Required now for Presorted First Class, on November 23, 2008 it will be required for Automation Standard. It will need to be done every 95 days.
Fixing data before it enters your Database
NCOA Link – 18 vs. 48 month
Off-line vs. In-Line
Is it “Virtually Painless ”
Address Correction – Ancillary Endorsements vs. ACS MAY 14, 2007 TODAY ADDRESS CORRECTION SERVICE FREE $0.05 $0.02 $0.15 N/A N/A Automated w/ Intelligent Mail ® Barcode First-Class Mail ® letters - first two notices Additional notices Standard Mail ® letters - first two notices Additional notices $0.06 $0.25 $0.21 Electronic – via ACS First-Class Mail ® Other classes $0.50 $0.75 Manual – Ancillary Endorsement
ADDRESS CORRECTION SERVICES
Intelligent Mail Barcode™! – The Postal Service Finally Chooses A Name!
OneCode Confirm: Combines Planet Code and DPBC into one Intelligent Barcode!
OneCode ACS: Combines ACS and DPBC into one Intelligent Barcode.
With new rate structure,
ACS is less expensive!
Less junk on the mailpiece
Not required until 2009
5. Group - Become More Efficient
Increase mailing efficiency by:
Grouping documents into one envelope to dramatically cut postage costs. One flat at $0.97 is still less than two or three mail pieces sent at $0.58 each. Better yet, fold in half and use 6” x 9.5” Envelope to keep it under ¼” thick – Letter Rate.
Switch from single sided printing to double sided printing. This allows you mail fewer pages which will cost you less.
Maximize each ounce. Add a marketing piece or two, If you have room to spare in an envelope; considering its weight and thickness. Under the new SBP rates, it could actually cost you less (i.e. a 2 oz. letter is $0.63, as of May 14th it will be $0.58)
Opportunity to Group
Have a customer who sends multiple pieces to the same location every day?
Accumulate mail to: Major Customers, Representatives, Branches, Outlets, Franchisees etc. and send on Periodic Basis
Grouping Automatically Via IDM Software
Allow the customer the ability to create intelligent custom documents w/o changing platforms.
Merge Multiple Print Streams, CASS and Presort documents.
Add OMR (Accumulation) Marks for Automatic Folder/Inserter
Divert selected documents to distribute via fax, e-mail or E-File.
Index and archive all methods of distribution
Postal accounting options include:
Standard mailing system accounting (simple piece and postage tracking for a relatively small number of departments).
Online reporting capability which provides the ability to view postage spent by department, mail classes and timeframe.
Advanced accounting systems with unlimited departments, advanced budgeting, account consolidation and more.
6. Track & Control Costs
USPS compliance - It’s My Responsibility to know it.
Postage Meter – Digital Mandate
Address Quality – NCOA, CASS, DPV
Mail piece Design – DMM200 – An Introduction to Mailing for Businesses and Organizations
Ancillary Endorsements – Choose Wisely
Pub 95 – Quick Service Guide – Jan ’06
MQC Training / Certification
Incoming Mail – Study and learn from others – The Good, the Bad and the Ugly
Put yourself in the Recipients shoes – would you be inclined to open and/or read it?
Postage Options – Stamp vs. Meter vs Preprinted Indicia.
Permit Imprint Option
Pre-Cancelled Stamps - Options
Metered Mail Option
How to make Std mail look like 1 st class
Don’t print Endorsement line on every piece.
Avoid Carrier Route for Small to Med size mailings.
If Using stamps, use your own Cancellation over them – see Example
Separate Barcode from Address block
For Personalized Message – Use Script Font in Blue ink.
Other Examples – Its all about the motivation to open
Best Practices Notice the Pkg and Seq. Marks Notice the very small Vertical classification dye Price paid -1/2 of FC Notice the verbiage
Latest Technology Why is this important?
Budget reduction – doing more with less
Obsolescence – Time marches on
– New Projects, Consolidated Mail
Change is a good thing
OK, So What's New Today? Digital Mailing Machines – Do I have to change?
Shape and Weight Detection –”in motion”
Print Quality, Step Mail
Speed Increases, in motion vs. batch
Ad & Mailing Dies,
Macros – Jobs and Departments
Folding and Inserting – Easy or Frustrating?
Accumulate before Folding
Knife Blade vs. Buckle chute
Bottom Flap Envelopes vs. 3 fold chambers
Envelope construction – Side Seam vs. Diagonal
Addressing Systems – Which model is right for me?
Faster, Higher Quality output
HP thermal inkjet - Can now Print on Aqueous Coated Materials
Fixed vs. Shuttle
It all depends on how much you want to do and on what material.
Performance Benchmarks - Importance:
Data is used for creating Work Standards
Data is used for Budgets and Forecasts
Justifying Wage and Benefit Increases
Justifying New Technology
Performance Benchmarks - How?
At a Minimum you should record and document:
Incoming Mail – Daily pieces or Number of Tubs
Outgoing Mail - Daily pieces or Trays & $ Spent.
Incoming Mail – Document by Pick up
Early Morning P.O. Pick up - pieces/ Number of Tubs Late Morning P.O. Pick up - pieces/ Number of Tubs
Carrier and Courier Deliveries: Fed Ex, UPS, Express Mail etc
Use Inbound Tracking and Receiving System to Document Detail
Outgoing – Capture by Department and Class – report capability by date range with detail for all Carriers.
Use a Multi-Carrier Manifesting System
Additional features: Internet Tracking Capability, integrated Delivery Confirmation for Priority Mail, Email Notification, 3877 Firm Mailer Book, Carrier Performance reporting, Shape Advisor, Best Way Rate Shopping
Rates shipping performance
Includes fuel charge
Can weight air vs ground
Report Card - GPA
G2 Report card SWC
Shoulda, Woulda, Coulda
Show total cost savings potential
Provide a quick way to find potential savings
Shows Costs & opportunities to save!
G2 Report Card Ground Hog
Analyses packages that were sent air that would have arrived the same time using ground
Show savings of using ground instead of using air
Ground Hog! Find "lost $"
G2 Report Card Ship Profile no graph
To profile shipping activity for use in better understanding actual shipping useage
Will be used in evaluating carrier RFP - FUTURE
G2 Report Card Ship Profile with Graphs
Easy to view and compare carriers
Easy to view and compare zones and services
The Carrier Performance Report
Product Cycle Speeds vs. Reality Don’t base your expectations on what the brochure claims the machine can do! Real World include:
Operator Skill Level
Time to Stage Materials – Room to work
Time to Load Hoppers –
High Capacity Feeder vs. Std
Time to Empty – Tray vs. conveyors
Interruptions and Breaks
Product Cycle Speeds vs. Reality Don’t base your expectations on what the brochure claims the machine can do! Averages – Real World vs. Educated Guess
Folders – Based upon Paper already Jogged, or one nearby.
33% of Cycle Speed, Tray
85% with conveyor
Tabber, Labeler, Ink Jet Printer
33% of Cycle Speed, -Due to Material Staging
50% with conveyor -
Mail Machines – Based upon Mail already Staged / Trayed
50% of Cycle Speed, Tray
75% with conveyor
How to calculate ROI – First Figure out Gross Potential Savings Note : this is based upon the assumption that the bulk of the mailing will qualify for 5 Digit Sortation. Dropping 4 mailings of 2,000 per month at Carmel Mtn Ranch $20,832.00 $1,736.00 Savings $16,608.00 $1,384.00 $0.173 Proposed "Automation" rate of $.173 $37,440.00 $3,120.00 $0.39 Current method - # of pieces at First Class rate of $.39 96,000 8,000 Average Number of Pieces Yearly Monthly Units Postage Savings Automation Compatible Mailings Due to Work share Incentives by Preparing SAVINGS ANALYSIS
$6,048.00 $504.00 Savings $672.00 $56.00 2,000 Automatic - 4,000 per hour (based on 2 tabs/passes) $6,720.00 $560.00 200 Manual - 200 per hour Tabbing $6,552.00 $546.00 Savings $168.00 $14.00 8,000 Automatic - 8,000 per hour $6,720.00 $560.00 200 Manual - 200 per hour Folding $3,920.00 $326.67 Savings $560.00 $46.67 2,400 Automated - Direct Impression Printer at 2400 per hr. $4,480.00 $373.33 300 average labor rate w/overhead at $14 per hour Manual application based upon 300 per hour and an Label Affixing $14.00 Labor Rate Per Hour Yearly Monthly Units Labor Savings
Yearly Monthly Units Labor Savings - Continued $38,733.33 $3,227.78 TOTAL $20,832.00 $1,736.00 Total Postage Savings $17,901.33 $1,491.78 Total labor Savings ($336.00) ($28.00) Savings ($336.00) ($28.00) 2 Software Generated - 30 minutes per mailing (2 Hours/ Month) $0.00 $0.00 0 Manual - 4 hours - N/A paying First Class Presorting, Reports, etc ($672.00) ($56.00) Savings ($672.00) ($56.00) 4 Proposed Method (1 Hour per mailing X 4 Mailings) $0.00 $0.00 0 Current Method N/A Delivery & Presentation to Bulk Mail Acceptance Facility $2,389.33 $199.11 Savings $298.67 $24.89 4,500 Automatic - 4,500 per hour $2,688.00 $224.00 500 Manual - 500 per hour Postage
Payback Period (non discounted, no EMA)
Payback Period = Total Costs / Monthly Savings
In this example:
Proposed Monthly lease = $328 per month or $16,000 if Purchased.
Purchase “Payback Period” is 5 months $16,000/$3228
Lease Payback Period is .1 months $328/3227
Why Calculate your “Return on Investment”
The ROI is another way of looking at the investment by considering the cost in relation to the "profit" or return on an investment
ROI = Savings/Costs x 100
807% Purchase ROI = Savings/Cost x 100 = $ 193,665 $24,000 5 Year Total $ 38,733 $ 1,600 Maintenance 5 $ 38,733 $ 1,600 Maintenance 4 $ 38,733 $ 1,600 Maintenance 3 $ 38,733 $ 1,600 Maintenance 2 $ 1,600 Maintenance 1 $ 38,733 $16,000 Equipment Purchase 1 Net Annual Savings Cost Description Year Purchase ROI - Non Discounted
653% Lease ROI = Savings/Cost x 100 $ 154,932 $23,744 5 Year Total $ 1,600 Maintenance 5 $ 38,733 $ 3,936 Yearly Lease Expense 5 $ 1,600 Maintenance 4 $ 38,733 $ 3,936 Yearly Lease Expense 4 $ 1,600 Maintenance 3 $ 38,733 $ 3,936 Yearly Lease Expense 3 $ 1,600 Maintenance 2 $ 38,733 $ 3,936 Yearly Lease Expense 2 $ 1,600 Maintenance 1 Net Annual Savings Cost Description Year Lease ROI - Non Discounted
Why Modular Furniture is better than built in cabinetry
Design Goals – Ergonomics, Security, Separation, Supervision, Performance and Space Utilization
Why its best to not sort Mail off a 30”h Table
Determine Size of Shelf before design
VSI vs. # of openings
Compromises – When Budgets, Space and Goals conflict
Which Tables should be open vs. Cabinets
What about Specialty Risers? Plexiglas Backs?
How easy it to adjust shelves and change
Index / Labels
Is there a “Production Workflow” to the design?
Is there enough room – Equip, Materials, etc
Metal vs. Wood
Is that really the color you want to live with?
Work-flow design (con’t)
Managing a Growing Mail Center
Shape Based Pricing – 6 ways to save $
Product cycle speeds vs. Reality
How to calculate Payback and ROI
Mail Center - Work-flow design
Contact Info: Gordon Glazer, CMDSM, CMDSS, MQC
San Diego Postal and Shipping Equipment
12255 Crosthwaite Circle
Poway, CA 92064-6883
Servicing San Diego County Mail Centers Reliably Since 1986 www.sdpostal.com