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How To Manage PC Postage and Carrier Services Across Your Enterprise

Postal Advocate will be discussing the challenges organizations have managing PC postage and carrier services, presenting different strategies to manage these categories and how to optimize savings and efficiency. What's Covered: - Challenges of Managing Enterprise PC Postage and Carrier Services - Visibility and Insight – Gathering all the data and reporting of all vendors and carriers - Reporting – Creating a standardized dashboard and reporting format - Key Area of Savings to Look For - How We Can Help

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How To Manage PC Postage and Carrier
Services Across Your Enterprise
Adam Lewenberg - Background and Experience
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of over 134,000 pieces of mailing and shipping
equipment for the largest US companies.
– Speak and teach nationally on mail savings and industry trends.
• Former Industry Co Chair- Boston Postal Customer Council/Mail Systems
Management Association member. 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 nation's top accounts.
• Not affiliated with any mailing vendor - Unbiased advice.
September 18, 2019 2
What We’re Covering
1. Challenges of Managing Enterprise PC Postage and Carrier
Services
2. Visibility and Insight – Gathering all the data and reporting of
all vendors and carriers
3. Reporting – Creating a standardized dashboard and reporting
format
4. Key Area of Savings to Look For
5. How We Can Help
September 18, 2019 3
September 18, 2019 4
Multiple Locations and Workplaces
With the footprint of traditional offices decreasing and the increased
popularity of satellite office locations, remote/agile employees,
maintaining shipping and mailing process controls can be extremely
challenging
• Difficult to enforce rules on how items are shipped
• Maintaining active user list
• Identifying rogue accounts
• Agile/remote and travelling users
September 18, 2019 5
Multiple Technologies and Processes
To add to the challenge:
• The use of several different systems such as multi-carrier systems,
airbills, proprietary carrier systems, etc to process packages,
documents and letters makes it almost impossible to track
September 18, 2019 6
Ad

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How To Manage PC Postage and Carrier Services Across Your Enterprise

  • 1. How To Manage PC Postage and Carrier Services Across Your Enterprise
  • 2. Adam Lewenberg - Background and Experience • President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of over 134,000 pieces of mailing and shipping equipment for the largest US companies. – Speak and teach nationally on mail savings and industry trends. • Former Industry Co Chair- Boston Postal Customer Council/Mail Systems Management Association member. 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 nation's top accounts. • Not affiliated with any mailing vendor - Unbiased advice. September 18, 2019 2
  • 3. What We’re Covering 1. Challenges of Managing Enterprise PC Postage and Carrier Services 2. Visibility and Insight – Gathering all the data and reporting of all vendors and carriers 3. Reporting – Creating a standardized dashboard and reporting format 4. Key Area of Savings to Look For 5. How We Can Help September 18, 2019 3
  • 5. Multiple Locations and Workplaces With the footprint of traditional offices decreasing and the increased popularity of satellite office locations, remote/agile employees, maintaining shipping and mailing process controls can be extremely challenging • Difficult to enforce rules on how items are shipped • Maintaining active user list • Identifying rogue accounts • Agile/remote and travelling users September 18, 2019 5
  • 6. Multiple Technologies and Processes To add to the challenge: • The use of several different systems such as multi-carrier systems, airbills, proprietary carrier systems, etc to process packages, documents and letters makes it almost impossible to track September 18, 2019 6
  • 7. Fragmented/Incomplete Data and Limited Visibility • Managing reports received from different carriers in various formats • Sporadic reporting from the different vendors and carriers with often incomplete information • Invoices not matching the reporting • Difficulty matching all shipping and mail spend and tying back to the different location cost centers/GL codes • Inability to analyze the data to ensure compliance of discounts set out in your agreements • Negotiating better rates and agreements for the future September 18, 2019 7
  • 8. Rising Costs and Increases • Prices for shipping can be volatile, especially since they are often tied to the cost of fuel • Other reasons for price hikes – annual rate increases, seasonal rates, duty and tariff increases, etc September 18, 2019 8
  • 9. Untrained Operators Making Shipping Decisions Two Types of Shippers Professional • Trained around shipping process • Core part of their job responsibility • Systems and tools provided to optimize • Traffic management reviews • Primarily ground services for packages • Continual education and improvement Casual Users • No formal training • Only done when needed • Typically use free carrier tools or airballs • Little oversight and support • Primarily overnight services for documents • No formal education around best practices September 18, 2019 9 This group can make up most of a companies shipping spend and needs the most support!
  • 10. 2. Visibility and Insight • Consolidate your carriers wherever possible to gain contracting leverage • Consolidate billing to get one invoice for all your account numbers and locations within a carrier • Request package level detail on all transactions for all carriers to backup spends • Limit the number of carrier accounts • Pull in USPS spends throughout your locations • Work with your vendors on account consolidation September 18, 2019 10
  • 11. 3. Reporting, Data Analysis and Auditing • Creating a standardized dashboard and reporting format that includes: – Cost center chargeback details – Spends by location and service levels – Specific areas of focus – 8:30 delivery, pick up fees. • Promote the top areas where savings can occur and create education and follow up. • Update this dashboard monthly to find changes in behaviors • Set benchmarks and segment the data so you can see where the spend is by group/location etc. • Look for overcharges/errors/contract compliance issues – Accessorial – Contract Compliance – Validate discounts according to your contracted rates with the vendors – Duplication of Invoices • Late Deliveries • Improper residential fees September 18, 2019 11
  • 12. Who in your organization is managing the data? UPS.com UPS CampusShip FedEx.com DHL.com Stamps.com PB SendPro Multi Carrier Systems BILLING Generating monthly invoices (Subscription, postage adds and supplies) • • • • • • • Validating charges are correct • • • • • • • Customized internal billing to chargeback each cost center based on usage and service fees • • • • • • • Managing the differences between postage added to each license to the actual postage processed • • • REPORTING Creating ongoing reporting requirements • • • • • • • Managing reports are being run and sent at specific time periods • • • • • • • Creating cost center chargeback reporting for AP/Accounting Dept • • • • • • • Defining thresholds that require attention and managing these exceptions • • • • • • • Creating custom reports - ongoing or ad hoc • • • • • • • VISIBILITY Providing online inventory of all locations and account numbers. • • • • • • • Updating spend data for each location • • • • • • • Managing contract terms and end dates • • • • • • • POSTAGE MANAGEMENT Managing postage access and refill amounts • • • Minimizing prepaid funds • • • Validating proper postage chargeback • • • Recovering unused funds from closed accounts • • •
  • 13. 5. Managing the Day-to-Day Requests September 18, 2019 13 UPS.com UPS CampusShip FedEx.com DHL.com Stamps.com PB SendPro Multi Carrier Systems ONGOING MANAGEMENT Managing location, user rights and access • • • • • • • Answering help questions • • • • • • • Promoting system internally • • • • • • • Adding new locations • • • • • • • Adding new users • • • • • • • Managing passwords, cost centers and address changes • • • • • • • Ongoing training and information • • • • • • • Simplifying supply ordering • • • • • • • Reaching out to contacts with no activity • • • • • • • Purging inactive accounts and users • • • • • • • Handling postage refund requests • • • • What resources do you have internally making sure your users are supported? • What level of training does your support staff have to manage these issues? • How do users make requests and ensure they are completed? • What documentation and reporting do you have about the requests throughout your locations?
  • 15. 4. Key Area of Savings • All require the following: – Identify the spends – Group by location – Distribute the data to the needed stakeholders – Create education and support to implement changed behaviors – Report on the changes over time – Continually reinforce wins September 18, 2019 15
  • 16. Convert 8:30 to 10:30 delivery September 18, 2019 16 • Most organizations are not receiving the same discounts on 8:30 delivery as you do on 10:30 • Are there any controls that you want to set up in shipping system or the location level about who can use this service? • Visibility to the largest users of 8:30 service • Would need to have educational programs that we would run on where this makes sense • Web links would need to be maintained in your internal intranet where offices could reference best practices • Reporting would need to be created to see the change in behavior over time 1LB UPS Next Day 8:30 UPS Next Day 10:30 Difference FedEx Next Day 8:30 FedEx Next Day 10:30 Difference Zone 2 $59.47 $29.47 $30.00 $59.18 $29.18 $30.00 Zone 4 $86.51 $56.51 $30.00 $85.95 $55.95 $30.00 Zone 6 $96.65 $66.65 $30.00 $95.99 $65.99 $30.00 Zone 8 $105.51 $75.51 $30.00 $104.79 $74.79 $30.00
  • 17. Convert 1LB Package to Letter • Locations may be using the wrong packaging or logging the items incorrectly with significant cost differences. • Would need to have educational programs that we could run on where this makes sense. • Web links would need to be maintained on your intranet where offices could reference best practices. • Reporting would need to be created to see the change in behavior over time. September 18, 2019 17 Zone 4 UPS 1LB Rate UPS Letter Rate Difference FedEx 1LB Rate FedEx Letter Rate Difference Next Day 10:30 $56.51 $37.45 $19.06 $55.95 $37.09 $18.86 Next Day 2:30 $50.87 $35.84 $15.03 $49.87 $35.49 $14.38
  • 18. Convert Air to Ground • Guaranteed next day delivery in Zone 2 • Guaranteed 2-day delivery in zone 3 and some of 4 • Could replace the majority of 3D • Need to provide packaging – would need items that could be ordered from your office store supplies catalog • Would need to have educational programs that we would run on where this service makes sense • Web links would need to be maintained on internal intranet where offices could reference best practices • Reporting would need to be created to see the change in behavior over time September 18, 2019 18 1LB Next Day 10:30 Next Day 2:30 2Day AM 2Day 2:30 3D Ground Zone 2 $29.18 $27.18 $19.71 $18.22 $16.07 $7.85 Zone 3 $43.20 $37.04 $20.52 $18.99 $16.24 $8.23 Zone 4 $55.95 $49.87 $22.29 $19.80 $16.41 $8.96
  • 19. Pickup Fees • Most carriers charge weekly pickup fees. • These fees can vary based on the number of days per week that you have pickup and your weekly spend. • These fees can add up when you have multiple locations. • The carriers may offer discounts, but this will mainly be for the greater than $75 per week shipper that may not cover most of your locations. • Many locations may have low volumes and could find other pickup options such as drop box, on call schedules etc. • This fee needs to be managed to validate you have the best practices happening throughout your organization – Every location may not need a daily pickup! UPS 19 FedEx 19 Daily On-Route pickup - weekly Charge <$75 $27.00 $29.00 Daily On-Route pickup - weekly Charge >$75 $13.50 $14.50 50 Locations with daily pickup 50% >$75, 50% Below $52,650 $56,550 100 Locations with daily pickup 50% >$75, 50% Below $105,300 $113,100 250 Locations with daily pickup 50% >$75, 50% Below $263,250 $282,750 500 Locations with daily pickup 50% >$75, 50% Below $526,500 $565,500
  • 20. USPS as a Secondary Option • Here are the areas where the costs are lower: – Residential light weight items less than 3LB’s. – Delivery area surcharge items. – Dimensional rated items (USPS has a different calculation that lowers the weight). – Less than 1LB items where USPS has rates less than $6 for First Class Parcel. (Would need to provide the envelopes.) – USPS does not have fuel surcharges, Saturday delivery and other fees that you pay with UPS. • Would need educational programs and reporting. • Could use PC Postage programs for locations that could benefit the most. September 18, 2019 20 Zone 4 Rate Comparison USPS Expedited Carrier Expedited Carrier Expedited Carrier Weight Priority 1-3 Day Two Day 3:00 Three Day Ground 1-5 Day .5 LB $3.22 $19.80 $16.41 $8.96 1 LB $7.49 $19.80 $16.41 $8.96 5 LB $11.67 $25.63 $21.27 $11.42 Delivery Time Range and to Zone 4 1-3 Day, 2-3 Day 2 Day 3 Day 1-5 Day, 3 Day Rates based research done on 09/18/19 Residential Surcharge N/A $4.40 $4.40 $3.80 Delivery Area Surcharge (23,500 Zip Codes Qualify) N/A $2.70-4.65 $2.70-4.65 $2.70-4.65 Fuel Surcharge N/A 7.0% 7.0% 7.0% Address Corrections N/A $16.00 $16.00 $16.00 Saturday Delivery N/A $16.00 $16.00 $16.00
  • 21. Savings Tips - Move to Commercial Rates • Huge discounts over retail rates. • Free tracking on usps.com. • Need to process through a PC Postage solution to get the discounts. (Click-N-Ship from the USPS does not allow for Commercial Rates – Only Retail) • Multiple vendor options to process packages • Requires the operator to enter the address and submit to the USPS electronically and create a shipping label vs. meter tape. September 18, 2019 21 18% Average Savings 13% Average Savings Retail Commercial Base Commercial Plus Weight LB's 1/27/2019 1/27/2019 % Savings over Retail 1/27/2019 % Savings over Base 1 $7.35-12.20 $6.95-9.91 5-19% (8% Avg) $6.95-9.91 0% 5 $9.80-34.80 $7.81-28.84 17-25% (21% Avg) $7.81-28.84 0% 10 $13.10-59.90 $9.38-50.38 16-40% (24% Avg) $9.38-50.38 0% 25 $23.35-113.95 $18.04-91.15 17-26% (21% Avg) $18.04-91.15 0% 50 $33.70-180.50 $27.25-144.32 17-22% (19% Avg) $27.25-144.32 0% Flat Rate Envelopes $7.35 $6.95 5% $6.95 0% Small Flat Rate Box $7.90 $7.50 5% $7.50 0% Medium Flat Rate Boxes $14.35 $12.80 11% $12.80 0% Large Flat Rate Boxes $19.95 $17.60 12% $17.60 0% Retail Commercial Base Weight LB's 1/27/2019 1/27/2019 % Savings over Retail 1 $25.60-56.10 $22.74-49 11-13% (12% Avg) 5 $27.05-91 $23.91-77.47 12-15% (13% Avg) 10 $40.75-134.20 $35.99-114.12 12-15% (13% Avg) 25 $73.85-227.60 $64.69-195.84 12-14% (13% Avg) 50 $130.85-420.90 $114.61-362.2 12-14% (13% Avg) Flat Rate Envelopes $25.50 $22.68 11% USPS Priority Mail® USPS Priority Mail® Express
  • 22. First-Class Mail® Package Service September 18, 2019 22 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day delivery Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial Savings Up to 4 $3.66-4.06 $2.66-3.09 24-27% 5 $4.39-4.81 $3.18-3.63 25-28% 6 $4.39-4.81 $3.18-3.63 25-28% 7 $4.39-4.81 $3.18-3.63 25-28% 8 $4.39-4.81 $3.18-3.63 25-28% 9 $5.19-5.66 $3.82-4.33 23-26% 10 $5.19-5.66 $3.82-4.33 23-26% 11 $5.19-5.66 $3.82-4.33 23-26% 12 $5.19-5.66 $3.82-4.33 23-26% 13 $5.71-6.27 $4.94-5.53 12-13% 14 $7.35-9.30 $4.94-5.53 33-41% 15 $7.35-9.30 $4.94-5.53 33-41% 15.999 $7.35-9.30 $4.94-5.53 33-41% Convert from Retail to Commercial
  • 23. Certified Mail with Electronic Return Receipt (ERR) • Save $1.20 by switching to an electronic version. September 18, 2019 23
  • 24. Consider Multi Carrier Web Based Enterprise Systems • Employee-level access • Multi-carrier rate shopping • Single Sign On for simple user management and control • USPS capabilities including • Commercial rates • Electronic Return Receipt • Optional stamp printing • Simplifies visibility and oversight Empowered Employees
  • 25. Why is it easier for a company to send a $10 Overnight item than a $.55 letter? • Use CampusShip or Fedex.com • Simple to use and defined process across the organization. • All users can ship from any location at any time. – Includes home office and traveling users. • All charges are summarized by cost center and downloadable into an excel file for uploads. • Multiple ways to process. – Postage Meters – PC Postage – End users purchasing Stamps • No defined process across the organization. • The location determines how mail gets processed based on purchased technology. – The majority of locations will need to drive to the USPS to purchase stamps and will not have the correct denominations for heavier items. • Limited visibility to postage spends. Fragmented process between vendors, petty cash and credit cards. September 18, 2019 25
  • 26. New System Onboarding • The success of the onboarding plan will determine the systems internal acceptance and optimization. • Do you have the right internal resources? September 18, 2019 26 UPS.com UPS CampusShip FedEx.com DHL.com Stamps.com PB SendPro Multi Carrier Systems ONBOARDING • • • • • • • Create rollout plan • • • • • • • Working through IT Issues • • • • • • • Setting up system to client specifications • • • • • • • Adding users • • • • • • • Adding cost centers • • • • • • • Ordering scales, label printers and starter supplies • • • • • • • Sending out first time user email and instructions • • • • • • • Running Educational Webinars • • • • • • • Validating first time use - activation and training • • • • • • • Assisting with current equipment returns • • • • • • •
  • 27. 5. How We Can Help We can: • Compile the data and put it in a detailed dashboard • Do a detailed audit to provide cost reduction/savings opportunities • Manage the day-to-day requests in our web self-serve case management system • Help educate the locations on transportation/carrier best practices to optimize shipping spend controls September 18, 2019 27
  • 28. Using Best In Class Tools and Resources • Work with all vendors’ data and build this visibility • Maintain this data in a multi-vendor multi-location system • Update this data monthly and when big changes in your portfolio happen • Use this data to drive savings through your portfolio September 18, 2019 28
  • 30. September 18, 2019 30 Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com Questions?