BUSINESS CASE TEMPLATE
Provision of Mailing Services to
[insert organisation name]
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Business case - explanation
• This document will help postal procurement personnel to detail the potential
benefits (financial and non-financial) and costs involved in improving their postal
services
• It can be used to secure commitment from senior management for changes
required to improve performance
• It is intended to be a guide and will require completion and tailoring by individual
organisations
• It draws on the NAO report, “Improving the Efficiency of Postal Services in the
Public Sector”, which can be referred to for more information
• Note, use of [ ] denotes information that must be completed
by the user. Examples have been inserted into this document as a guide to
indicate the type of information you may wish to consider inputting.
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Business case - Contents
• Objectives and scope
• Summary (including quantified financial and non-financial benefits)
• Value levers
• Benefits (quantified, where possible, over time)
• Implementation tasks and project plan
• Key barriers
• “Reference” customers
• Methodology
• Assumptions
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Business case – Objectives and scope
• To reduce spend on postal services
• To increase the quality of postal services
• This work focuses on postal procurement and management covering mail
services
• The organisation may wish to take this opportunity to review related areas, such
as stationery, printing costs, and use of the Post Office network
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Business case – Summary
• Background: [highlight current spend, volume, suppliers, use of postal services
within the organisation]
• Potential areas of improvement: [summarise findings from business case
analysis]
• Potential benefits: [summarise financial and non-financial benefits over time]
• Implementation costs and timeline: [summarise implementation activities and
costs over time]
• Key risks: [overview of risks and mitigating actions to achieving potential
benefits]
• What next: [detail immediate next steps]
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Business case – Value levers
• [Use NAO postal efficiency improvement tree to highlight primary value levers]
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Business case – Benefits
Year 1 £
• Financial benefits
Year 2 £
Year 3 £
• [Methodology for gathering data and assessing benefits]:
 Benefits can be measured by taking a baseline figure for the Key Performance
Indicator (using data from a Mail Audit) and then re-measuring these at periodic
intervals

• For example, savings due to increased use of workshare products
(compared with use of standard tariff) can be measured in this way
• Non financial benefits:
 [summarise key service delivery benefits, eg. reduction in lost mail, quicker
delivery times, improved targeting of mail items]
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Business case – Implementation tasks and project plan
Tasks will likely be around the following topics:
[customer contact]
Processes [applications and forms]
[mail generation]
[printing] [data cleansing]
Technology [sorting] [Key Performance ]Indicators]
[integration of systems]
[postal requirements]
[centralised
Organisation [manage post with print, stationery]
supplier
[centralised print centres]
management]
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Business case – Implementation tasks and project plan
• Costs are estimated at:
Cost area Cost
Technology £
Process change £
New licenses £
• The project will begin in [month, year] and complete in [month, year], with benefits
beginning to be realised by [month, year].
Month Month
1
Task 3
Milestone
Task
Milestone
Task
Milestone
Task
Milestone
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Business case – Key barriers
[ e.g.Technology Can be mitigated through [action]
barrier]
[e.g.Internal resistance Can be mitigated through [action]
To change]
[Barrier 3]
Can be mitigated through [action]
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Business case – Reference customers
Other public and private sector organisations have made similar changes with
substantial rewards [reference case examples in NAO report and good
practice guide].
For example,
[Change, eg. replace first class [HM Revenue & [£1.3m estimated
with second class] Customs] savings]
[Improve accuracy and [National Savings & [Postage savings of
management of customer Investments] £20,000 + processing
address data] savings and improved
customer satisfaction]
[Large Local Authority] [Potential annual
[Audit of mail usage] savings of £50,000]
[ ]
[ ] [ ]
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Business case – Methodology and assumptions
• This business case has been created using the following sources:
• [OGCbuying.solutions, postal services team]
• [Discussions with existing postal suppliers]
• [Discussions with potential new postal suppliers]
• [regional procurement group]
• [National Audit Office report, “Improving Postal Services Procurement in
the Public Sector”]
• The main assumptions made for this business case are:
• [assumption 1]
• [assumption 2]
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