Successfully reported this slideshow.
Your SlideShare is downloading. ×

Enterprise Mail & Shipping Savings Strategies for 2022

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad

Check these out next

1 of 23 Ad

Enterprise Mail & Shipping Savings Strategies for 2022

Download to read offline

Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America. This webinar focused on the different rate increases across all carriers and how it will impact your organization.

Items We Covered:
1) Rate increases for all Carriers
2) Savings areas to consider to reduce the impact of the increases
3) Details of accessorial charges and what you need to know
4) Rate Shopping savings opportunities
5) Visibility – This is the key to optimizing your mailing & shipping portfolio
6) Best practices and tips

Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America. This webinar focused on the different rate increases across all carriers and how it will impact your organization.

Items We Covered:
1) Rate increases for all Carriers
2) Savings areas to consider to reduce the impact of the increases
3) Details of accessorial charges and what you need to know
4) Rate Shopping savings opportunities
5) Visibility – This is the key to optimizing your mailing & shipping portfolio
6) Best practices and tips

Advertisement
Advertisement

More Related Content

Similar to Enterprise Mail & Shipping Savings Strategies for 2022 (20)

More from Postal Advocate Inc. (16)

Advertisement

Recently uploaded (20)

Enterprise Mail & Shipping Savings Strategies for 2022

  1. 1. Enterprise Mail & Shipping Savings Strategies for 2022
  2. 2. Background and Experience Speaker: Adam Lewenberg • President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of 160,000 pieces of mailing equipment for the largest US companies. – Speak and teach nationally on mail savings and industry trends. • Former Industry Co Chair- Boston Postal Customer Council and Mail Systems Management Association. CMDSS and MDC Certifications. • Featured Writer for Mailing Systems Technology Magazine. • Worked for one of the largest mailing vendors for over 17 years – Director of national sales for presort, tabletop inserters, addressing hardware/software and green offerings. – Was one of the top 5 account managers nationally working with some of the largest accounts. January 19, 2022 2
  3. 3. What We’ll Cover: 1) Rate increases for all Carriers 2) Savings areas to consider to reduce the impact of the increases 3) Details of accessorial charges and what you need to know 4) Rate Shopping savings opportunities 5) Visibility – This is the key to optimizing your mailing & shipping portfolio 6) Best practices and tips January 19, 2022 3
  4. 4. Rate Increases for All Carriers • Both UPS® and FedEx® announced that they were having a 5.9% increase, but this is overall • Based on the multiple factors, the actual increase could be significantly higher • The USPS® stated that their Priority Mail® rates were going up 2.7%, but again this is overall. January 19, 2022 4
  5. 5. Increases – In Detail UPS® Next Day 8:30 AM Next Day 10:30 AM Next Day End of Day Two Day AM Two Day Three Day Ground 1-10 LB - Zone 2-4 (Inc Letter) 4.8% 7.4% 6.9% 6.5% 4.9% 9.9% 7.0% 1-10 LB - Zone 5-8 (Inc Letter) 4.7% 6.0% 5.8% 6.5% 4.9% 9.9% 7.0% 11-25 LB - Zone 2-4 5.7% 7.5% 7.1% 6.5% 4.9% 9.9% 5.9% 11-25 LB - Zone 5-8 5.3% 6.1% 5.8% 6.5% 4.9% 9.9% 5.8% 26-150 LB - Zone 2-4 5.2% 5.8% 6.3% 6.5% 4.8% 9.8% 5.5% 26-150 LB - Zone 5-8 6.2% 6.4% 5.9% 6.5% 4.9% 9.9% 5.8% FedEx® Next Day 8:30 AM Next Day 10:30 AM Next Day End of Day Two Day AM Two Day Three Day Ground 1-10 LB - Zone 2-4 (Inc Letter) 4.4% 7.4% 7.4% 9.7% 4.9% 9.9% 7.0% 1-10 LB - Zone 5-8 (Inc Letter) 4.6% 6.0% 6.0% 8.4% 4.9% 9.9% 7.0% 11-25 LB - Zone 2-4 5.6% 7.5% 7.5% 9.0% 4.9% 9.8% 6.4% 11-25 LB - Zone 5-8 5.3% 6.1% 6.1% 8.1% 4.9% 9.9% 6.0% 26-150 LB - Zone 2-4 5.2% 5.8% 6.5% 8.4% 4.8% 8.8% 5.6% 26-150 LB - Zone 5-8 6.1% 6.4% 6.1% 6.9% 4.9% 9.9% 6.1% USPS® Priority Mail® Express Priority Mail® 1-10 LB - Zone 2-4 (Inc Letter) 5.0% 3.0% 1-10 LB - Zone 5-8 (Inc Letter) 9.0% 2.0% 11-25 LB - Zone 2-4 5.0% -14.0% 11-25 LB - Zone 5-8 10.0% -18.0% 26-150 LB - Zone 2-4 10.0% 10.0% 26-150 LB - Zone 5-8 13.0% 12.0% Exceeded the overall UPS and FedEx 5.9% increase and USPS 2.7% increase January 19, 2022 5
  6. 6. Comparing Costs January 19, 2022 6 Weight Overnight 2 Day 3 Day Ground USPSPriorityMail® USPSFirst-Class® Parcel Zone 2 - Local within 250 miles (Delivery Time Days) 1 2 3 1 1-2 1-3 0.5 LB Ltr $26.00 $21.00 $13.50 $9.50 $7.37 $3.76 1 LB $29.00 $21.00 $13.50 $9.50 $7.37 $5.49 Zone 4 - Half way across country (Delivery Time Days) 1 2 3 2-3 2-3 2-3 0.5 LB Ltr $39.00 $23.00 $17.00 $10.50 $7.75 $3.81 1 LB $55.00 $23.00 $17.00 $10.50 $7.75 $5.57 Zone 8 - Coastto Coast 1 2 3 5 2-3 2-3 0.5 LB Ltr $50.00 $35.00 $30.00 $12.00 $7.75 $4.15 1 LB $76.00 $35.00 $30.00 $12.00 $9.68 $6.28 Other Charges Fuel Surcharge 9-12% 9-12% 9-12% 9-12% 0% 0% Residential Fee $5.35 $5.35 $5.35 $4.85 $0 $0 Delivery Area Surcharges $3.55-6.50 $3.55-6.50 $3.55-6.50 $3.40-6.50 $0 $0 Saturday Delivery Fee $16.00 $16.00 $16.00 $4.00 $0 $0 Address Correction Fee $18-19.50 $18-19.50 $18-19.50 $18-19.50 $0 $0 Discounts Varies by Client Varies by Client Varies by Client Varies by Client Minimum Service Fees Varies by Client Varies by Client Varies by Client Varies by Client
  7. 7. Example 1: Ground - Residential • Lightweight Item to Residential Area • The list price of the Ground shipment is $11.13 and even though the client has a 60% Ground discount, they have a minimum Service Charge of $7 negating $2.25 ($7-4.45) of their discount. • Add the Fuel Surcharge of 12%, the $5.20 Residential Fee and the $4.80 Delivery Area Surcharge. – Ground – 3-4 day delivery - $17.84 – Priority Mail – 2-3 day delivery - $8.12 • The item is $9.72 more than sending Priority Mail® from the USPS that would have the same or faster delivery. Example 1 Service Ground - Residential Weight 1LB Zone 5 Expected Delivery 3 Days Rate $11.13 Discount (Based on Clients Contract) 60% Rate with Discount $4.45 Minimum Service Charge (Based on Clients Contract) $7.00 Actual Rate $7.00 Fuel $0.84 $5.20 - Residential Fee $4.80 - Delivery Area Surcharge Total $17.84 Alternative Service USPS Priority Mail® Expected Delivery 2-3 Days Rate $8.12 Discount (Based on Clients Contract) 0% Rate with Discount $8.12 Minimum Service Charge (Based on Clients Contract) not applicable Actual Rate $8.12 Fuel $0.00 Other Fees $0.00 Total $8.12 Savings $9.72 January 19, 2022 7
  8. 8. Example 2: Next Day End of Day • Next Day letter in Zone 2 (Local – Less than 150 Miles) to delivery by end of day. • Minimum Service Fee impacts how big the discount can be negating $4.13 of their discount ($11-6.87). – Air Rate - $12.32 – Ground - $7.84 (Same delivery time Guaranteed) Savings - $4.48 Example 2 Service Next Day End of Day Weight Letter Zone 2 Expected Delivery 1 Day Rate $27.48 Discount (Based on Clients Contract) 75% Rate with Discount $6.87 Minimum Service Charge (Based on Clients Contract) $11.00 Actual Rate $11.00 Fuel $1.32 Total $12.32 Alternative Service Ground Expected Delivery Guaranted next day to Zone 2 Rate $9.36 Discount (Based on Clients Contract) 60% Rate with Discount $3.74 Minimum Service Charge (Based on Clients Contract) $7.00 Actual Rate $7.00 Fuel $0.84 Other Fees $0.00 Total $7.84 Savings $4.48 January 19, 2022 8
  9. 9. Rate of an Item - Factors 1. The service level (Based on delivery objectives) 2. The zone it is going (Distance away from where it is being sent) 3. The Weight 4. Dimensions 5. Minimum Service fees 6. Accessorial Charges 7. Fuel Surcharges – 9-12% January 19, 2022 9
  10. 10. Dimensional Rates • UPS and FedEx will dimensionally rate items starting at about a 6” cube • The formula is Length x Width x Height (In inches)/139. • The USPS does not dimensionally rate items until the L x W x H is greater than 1728 or one cubic foot and they divide the number by 166 (Instead of 139) making them lower calculated weights. January 19, 2022 10 Dimensions Actual Weight UPS/FedEx USPS Difference 6"L x 6"W x 6"H 1 LB 2 LB Actual Weight 1 LB 12"L x 12"W x 12"H 4 LB 13 LB Actual Weight 9 LB 16"L x 16"W x 16"H 15 LB 30 LB 25 LB 5 LB 20"L x 20"W x 20"H 20 LB 42 LB 36 LB 6 LB
  11. 11. Accessorial Fees • 20-30% of clients bill is made up of accessorial charges, also called value added services. • The rates of these fees have also gone up considerably and need to be factored. • The chart shows a subset of some of the most common fees that the USPS does not charge for and can make them less money. – Residential Delivery – Most common! – Delivery Area Surcharges (DAS) - 61% of all zip codes in the US are assessed these fees. These zip codes are viewed as less densely populated areas where the carriers charge $3.40 to $6.50 added to the cost of the parcel. January 19, 2022 11 Accessorial Fee UPS 2022 UPS 2021 UPS % Increase FedEx 22 FedEx 21 FedEx % Increase Residential Surcharge - Air $5.35 $5.00 7% $5.30 $4.95 7% Residential Surcharge - Ground $4.85 $4.45 9% $5.20 $4.80 8% DAS - Ground Commercial $3.40 $3.10 10% $3.40 $3.10 10% DAS - Ground Residential $4.80 $4.30 12% $4.80 $4.40 9% DAS - Ground Commercial Extended $4.10 $3.70 11% $4.10 $3.70 11% DAS - Ground Residential Extended $6.50 $5.90 10% $6.50 $5.90 10% DAS - Air Commercial $3.55 $3.25 9% $3.55 $3.25 9% DAS - Air Residential $5.20 $4.70 11% $5.20 $4.70 11% DAS - Air Commercial Extended $4.25 $3.85 10% $4.25 $3.85 10% DAS - Air Residential Extended $6.50 $5.90 10% $6.50 $5.90 10% Saturday Delivery (Air) $16.00 $16.00 0% $16.00 $16.00 0% Address Correction $18.00 $18.00 0% $19.50 $18.00 8%
  12. 12. Address Validation • The carriers charge $18 for each address correction. • Oftentimes, the same address is charged this fee over and over because it is not edited in the database. • Set a process to communicate address changes with the senders to make sure they make changes in their databases for the future. • Work towards having centralized office databases for internal packages. • Monitor the change in behavior over time through reports and internal communications. January 19, 2022 12 Frequency Count of Address Correction Count Fee 1 647 $11,646.00 2 140 $2,520.00 3 84 $1,512.00 4 44 $792.00 5 45 $810.00 6 6 $108.00 8 24 $432.00 9 18 $324.00 10 10 $180.00 13 26 $468.00 14 14 $252.00 Grand Total 1058 $19,044.00 Address Correction Summary
  13. 13. Carrier Provided vs. Multi Carrier Shipping Systems • The best way to reduce expenses is to have ways to compare the rates across multiple carriers and service levels at the point of shipment. • You need to have the right tools in place that help your end users make the best decisions on a package-by-package basis because there are too many factors to make unilateral decisions. January 19, 2022 13 Category Free Carrier Provided Shipping Systems Multi Carrier Shipping Systems Impact Carriers to compare and process Single Multiple - UPS, FedEx, DHL, USPS, LTL, Courier 4-12% Savings by rate shopping. Increased leverage in carrier negotiations. Compare Air to Ground on the same screen No Yes Largest area of savings due to guaranteed Ground next day, two day delivery to local zones. Automatically flag as a residential delivery No Some systems Automatically adds the $5 residential fees which are needed for better comparisons. Ability to process USPS Priority Mail® and First-Class® Parcel No Yes Best for light weight items going to residences or rural zip codes. Prices start at $3! Ability to print USPS Stamps No Some systems Ability to send a $.53 letter from the same platform forcing premium services only for required items. USPS Certified Mail capabilities No Some systems Can store up to 7 years of signature history and save $1.25 per return receipt. Single Sign On capable No Some systems Eliminate password management and non active employees from shipping.
  14. 14. Multi Carrier System Central Administration – Keys To Success With users spread out at different locations, working remotely and with different needs, how do you implement and manage these systems to ensure success? Requires Central Administration 1. Defining requirements 2. System implementation 3. Training 4. Onboarding users 5. Managing user access 6. Case and issue management 7. Monitoring usage 8. Reporting on key metrics 9. Quantifying savings 10.Expanding and promoting usage January 19, 2022 14
  15. 15. Case Management – Most important aspect of managing enterprise January 19, 2022 15 • Dedicated client specific landing page • Customized messages and links for common questions. • Pull down menu for common carrier requests • Once the case is submitted: • Email is sent to Postal Advocate to start the process • Email is sent to the requestor with a case number • Activity is created and notes are entered into their location record. • Resolutions are taken care of by Postal Advocate with communication to the location and closure to the activity. • All cases, activities, contacts and notes are stored for reporting and archiving.
  16. 16. Best Practices • Enterprise options should be used where possible to give you room to grow and expand. • Analysis needs to be done to justify these solutions which involves getting details to the core data of the current applications. – Mail volumes – Package spends – Savings areas • Support may be needed on implementation and promoting use inside your organization. (Change management) • Ongoing support may be needed to manage the administration aspects of these systems. The core areas are: – First responder to questions – User administration – Reporting of activities and spends – Billing validation of the system and usage January 19, 2022 16
  17. 17. The Analysis The only way to see if these solutions make sense is to do a detailed analysis of the current spends. Here is our process for conducting an analysis. • Need the details to the current spends including: – Shipping Spends • One month of electronic invoice detail for UPS and FedEx • File should have line-item detail by tracking number. • Should include accessorial charges. – Mailing equipment and postage • Any current mailing vendor provided reports. • Accounts payable export of the key mailing vendor names including USPS. • Limited request of PDF invoices from the AP export file. • Log information to the vendor’s websites to gain full detail. • Current issues and challenges • We typically turn this around in 2-3 weeks at no charge or obligation. January 19, 2022 17
  18. 18. Summary • Prices are going to keep going up at faster rates with the growth in the shipping space and limited number of suppliers. • There are too many factors in calculating a shipping price to rely only on free carrier provided solutions. • Need ways to compare rates side by side to make the best decisions. • More and more people will be working remotely in the future. • Cloud-based tools are needed to support their mail and shipping needs. • Multi-carrier tools are available to rate shop for the lowest costs to send. • PC Postage can provide a way to mail from anywhere with an internet connection and printer. • Enterprise versions are available to manage all users on a single platform. • All of these solutions create efficiencies and savings. January 19, 2022 18
  19. 19. Helping multi-location organizations streamline their mailing costs Over 181,000 pieces of equipment, managed by Postal Advocate Recovered over $24,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $68,000,000 IN CLIENT SAVINGS $1.9M 58% Average Client Savings Average Equipment Savings HOW WE DO IT • 220+ years of industry experience • Comprehensive web-based tool providing visibility of all mail and equipment spend • Time Savings - Assistance in fleet management visit www.postaladvocate.com or call (888)977-MAIL(6245)
  20. 20. Sign Limited Agency Agreement/Kick-Off Call. Provide copies of vendor invoices, AP export, location list, equipment inventory list. Present savings opportunities and get client approval. Postal Advocate provides ongoing support, manages renewals, billing and vendor compliance. Provide enterprise visibility of all spend, costs and documented savings through enterpriseAdvocate. Provide client log-in. 1 2 3 4 5 6 HOW IT WORKS Work with current vendor to build population report, contract terms/start/end dates, postage volumes, costs. Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage. Identify savings opportunities. Submit vendor credit requests, lost postage forms and eliminate avoidable fees. Negotiate pricing. Create catalog. Work with locations - asset validation, rightsize, termination… Full implementation of savings. visit www.postaladvocate.com or call (888)977-MAIL(6245) Conduct Analysis NO COST – AUDIT PHASE CONTRACTED CLIENT
  21. 21. January 19, 2022 22
  22. 22. January 19, 2022 23

×