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The Future of Business Mail

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The Future of Business Mail

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Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America. Everything you hear on the news is how mail is going away and becoming less relevant as a means of communication. The objective of this webinar was to go through what is actually happening today and where mail will go in the future.

Items We Covered:
1) Mail declines in different categories
2) The Impact of Rate Increases
3) Mailing Technology Changes
4) Future Predictions
5) Best Practices to Reduce Cost

Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America. Everything you hear on the news is how mail is going away and becoming less relevant as a means of communication. The objective of this webinar was to go through what is actually happening today and where mail will go in the future.

Items We Covered:
1) Mail declines in different categories
2) The Impact of Rate Increases
3) Mailing Technology Changes
4) Future Predictions
5) Best Practices to Reduce Cost

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The Future of Business Mail

  1. 1. The Future of Business Mail March 9, 2022
  2. 2. Adam Lewenberg - Background and Experience • President/CEO of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of over 181,000 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 largest accounts. • Not affiliated with any mailing vendor - Unbiased advice. March 9, 2022 2
  3. 3. What We’ll Cover: 1) Mail declines in different categories 2) The Impact of Rate Increases 3) Mailing Technology Changes 4) Future Predictions 5) Best Practices to Reduce Cost March 9, 2022 3
  4. 4. Mail Decline March 9, 2022 4 Year First Class® Mail - Single Piece % Change First Class® Mail Presort % Change Marketing Mail % Change Total % Change 2021 13,895,163 -9.2% 35,621,927 -1.8% 66,236,440 3.1% 115,753,530 0.1% 2020 15,172,441 -8.8% 36,246,494 -2.4% 64,180,125 -17.9% 115,599,060 -11.9% 2019 16,511,298 -5.7% 37,130,541 -1.9% 75,690,047 -2.1% 129,331,886 -2.5% 2018 17,460,477 -6.4% 37,833,487 -2.5% 77,305,661 -1.4% 132,599,625 -2.4% 2017 18,582,618 -6.0% 38,795,454 -3.0% 78,369,843 -3.3% 135,747,915 -3.6% 2016 19,705,721 -5.3% 39,943,145 -0.6% 80,929,933 1.0% 140,578,799 -0.3% 2015 20,741,368 -3.8% 40,174,244 0.0% 80,090,273 -0.4% 141,005,885 -0.8% 2014 21,524,319 -4.5% 40,193,317 -2.4% 80,374,260 -0.7% 142,091,896 -1.8% 2013 22,501,509 -6.3% 41,144,184 -3.4% 80,962,678 1.4% 144,608,371 -1.1% 2012 23,913,510 -8.9% 42,524,039 -4.6% 79,801,009 -6.1% 146,238,558 -6.1% 2011 26,035,071 -9.8% 44,494,498 -3.9% 84,691,971 2.6% 155,221,540 -1.4% 2010 28,584,912 -10.8% 46,225,386 -3.7% 82,524,693 -0.2% 157,334,991 -3.2% 2009 31,682,890 -11.6% 47,933,717 -8.3% 82,706,211 -19.8% 162,322,818 -14.8% 2008 35,355,570 -9.1% 51,935,871 3.8% 99,084,155 -4.5% 186,375,596 -3.1% 2007 38,565,956 49,978,441 103,516,112 192,060,509 Data in Thousands From USPS® REVENUE, PIECES, AND WEIGHT BY CLASSES OF MAIL AND SPECIAL SERVICES Reporting Primarily Outsourced Done In-House
  5. 5. Primary Uses of First-Class Mail® March 9, 2022 5 Invoices/Statements – This is the number one item that is mailed by businesses, and more are moving to email and web presentment. Larger organizations are getting smarter about consolidating or outsourcing this mail and moving to the First Class® Mail Presort category due to its lower postage rates. Checks – Many payments are moving to electronic ACH due to the speed and simplicity. Payroll checks and direct deposit statements have been eliminated at most companies forcing employees to access data on the web. Marketing Mailings – Many companies used to sit around a table and prepare promotional mailings, but this has been almost eliminated in the office environment. This mail has either converted to email marketing or has been sent to an outsource provider who has the proper equipment and staff to get the mail sent more efficiently at lower postage rates. Day to Day Mail – This is the final category that makes up the miscellaneous items that need to be sent out. This volume will continue to decline as more items are accepted electronically.
  6. 6. Future of Office Mail and Parcel March 9, 2022 6 31.7 Million businesses in the US 4,300 Companies with over 25 locations totaling 2,574,547 locations Estimated 700,000 postage meters left in the US, 20% in enterprise accounts (140,000). Estimated 5% of enterprise account locations have meters. Limited access to mail services at the majority of locations. Lots of acquisition activity and equity funding adding to growth in the enterprise sector. Companies need to support small office and remote workers with mail and parcel needs but do not want to pay on a per location basis for services. Carriers are raising rates at the fastest levels in history. USPS is having multiple rate increases annually. Need for clients to have multi carrier rate shopping options. Most organizations have visibility to UPS and FedEx but limited USPS data. Free tools do not have single sign on and difficult to control users. Need better access to USPS services. It is easier for many locations to send a $10 FedEx than an $.53 stamp. Mail vendors need more flexible offerings to be able to capitalize on this market including: • Acquisition models • Added value services Biggest growth is going to be in multi carrier model with standardization and control across the enterprise. Solutions Need: - Cloud access - Limited IT resources - Simple to implement/maintain - Control users with full visibility - Save money – Positive ROI
  7. 7. The Impact of Rate Increases USPS® – Largest increase in 10 years last August at 6-10% – Stated there will be 2 rate increases annually. – Rates tied to inflation which will make this years’ some of the largest. UPS®/FedEx® – 6% increase in 2022 – Carriers are renegotiating their rates with clients with huge increases. – Client has less leverage in contract negotiations due to limited competition and carriers operating at full output. – 13-15% Fuel Surcharges March 9, 2022 7 Customers will need rate shopping tools that compare costs and service levels throughout all providers as the only way to control costs.
  8. 8. August 29, 2021 - Largest USPS Increase in 10 years! • Two rate changes in one year. USPS has stated this will happen every year in the future March 9, 2022 8 Date First-Class Mail® Retail Letters First-Class Mail® Metered Letters First-Class Mail® Flats First-Class Mail® Auto Letters First-Class Mail® Auto Flats Marketing- Mail® Letters Marketing- Mail® Flats 8/29/2021 6% 4% 16% 8% 17% 8% 9% 1/24/2021 0% 2% 0% 2% 7% 1% 9% Combined 2021 6% 6% 16% 9% 25% 9% 18% 1/26/2020 0% 0% 0% 2% -4% 2% 4% 1/27/2019 10% 6% 0% 1% 2% 2% 5% 1/21/2018 2% 2% 2% 1% -2% 0% 5% 1/22/2017 4% -1% 4% 0% 0% -1% 2% 4/10/2016 -4% -4% -4% -4% -5% -4% -4% 5/31/2015 0% 1% 0% 2% 2% 1% 2% 1/26/2014 7% 5% 7% 6% 7% 6% 6% 1/27/2013 2% 2% 2% 2% 2% 2% 2% 1/12/2012 2% 2% 2% 3% 4% 2% 2% Highest Volume
  9. 9. Increases – Parcel 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 March 9, 2022 9
  10. 10. Mailing Technology Changes • More online postage accounts than postage meters. • Multiple options to process USPS, UPS and FedEx on single cloud based platform. • New solutions have Single Sign On to make controlling users easy. • Systems are either sold by location or enterprise. • Based on USPS compliance deadlines, approximately 70% of the postage meters in the US will need to be updated by 2024. We think many will move to online postage solutions. • Everything is moving to the cloud for its ease of deployment, access and management. March 9, 2022 10
  11. 11. Online Postage • Most common remote mailing solution • Subscription model • Print from any computer with an internet connection and a printer. – 4” x 6” - Shipping labels • Regular paper (To be taped to the item or use labelope) • Avery type labels (Purchased from office supply provider) – Postage stamps • Directly onto envelope (Along with destination and return address) • Stamp Sheets (Most common) – Purchased from Online Postage provider. • Vendor provided label printer March 9, 2022 11
  12. 12. Online Postage – Fastest growth segment of the mailing industry • Inexpensive compared to postage meters and typical costs range from $10-30 per month. • Cloud based and can be accessed from any device. • Easy to deploy and use – Within a week or two, you can receive your login credentials, a scale and starter labels. There are simple online tutorials to get you started quickly. • Visibility to all history and package tracking statuses. • Some systems have multiple carrier options to process UPS®/FedEx® • Significant postage savings – Some newer postage meters may come with a Online Postage subscription to get these rates. (Some newer mailing systems are including Online Postage to get these discounts). March 9, 2022 12 Mail Type Stamps Postage Meter PC Postage Savings % Savings 1 Ounce Letter $0.58 $0.53 $0.53 $0.05 9% 1 Ounce Certified Mail with Return Reciept $7.38 $6.13-7.33 $6.13 $1.25 17% 5 Ounce First Class Parcel $4.80-5.20 4.80-5.20 $3.46-3.85 $1.34-1.35 26-28% 10 Ounce First Class Parcel $5.50-5.95 $5.50-5.95 $4.04-4.68 $1.16-1.27 21-22% 15 Ounce First Class Parcel $7.70-16.85 $7.70-16.85 $5.19-5.98 $2.51-10.87 33-65% Priority Mail 1LB $7.70-16.85 $7.70-16.85 $7.16-14.25 $.54-2.60 7-15% Priority Mail 5LB $10.60-47.95 $10.60-47.95 $8.20-41.46 $2.40-6.49 14-23% Priority Mail 10LB $14.15-82.60 $14.15-82.60 $10.15-72.43 $4-10.17 12-28% Priority Mail Express $26.75-62.85 $26.75-62.85 $23-54.05 $3.75-8.80 14% Prices lower than available through postage meters.
  13. 13. Cloud-Based Enterprise Options – Online Postage Enterprise Online Postage is the same as standard Online Postage with the main difference being how multiple locations can be controlled under a central administration license. This offers the following benefits: • Simplicity of onboarding new users • Reporting on all location and user activities from a central dashboard. • Managing billing for subscriptions, supplies and postage • Controlling user access (This includes removing users who are no longer active) • Single Sign On - Some systems have this option to link to an active directory to eliminate password management. • If you have more than 10 locations using Online Postage, we recommend having them controlled through an enterprise license. March 9, 2022 13
  14. 14. Multi-Carrier Enterprise Mail and Shipping • Similar to enterprise Online Postage but more focused on the shipping – More robust rate shopping between carriers and service levels. – Create rules that can be enforced automatically. • Example: Only director levels have the ability to do 8:30AM shipments that cost an additional $25 each. • Example: Intercompany shipments default to 2 day or ground shipments. – Improved user management and reporting options. – Enhanced single sign-on (SSO) – Some systems provide the option to print postage stamps on the same platform as packages. March 9, 2022 14
  15. 15. Why is it easier for a company to send a $10 Overnight item than a $.53 letter? March 9, 2022 15 UPS/FedEx USPS USPS Current Current Proposed Cost to Mail an Item Typically starts at about $10 Letters can be mailed for $.53 Letters can be mailed for $.53 Technology Uniform web access - CampusShip (UPS), UPS.com, FedEx.com Varies by location - Postage Meters, PC Postage, go to the Post Office to purchase Stamps (Majority of users) Uniform web access Where can they mail: - Large Corporate offices Uniform web access Postage Meters Postage Meters - Other company locations Uniform web access Some will have postage meters or PC Postage and others will need to go to the Post Office to purchase Stamps Uniform web access - Remote workers Uniform web access Go to the Post Office to purchase Stamps Uniform web access Visibility Complete visibility on consolidated invoices and dashboards Limited and fragmented view to the mail spends. Complete visibility on consolidated invoices and dashboards Funding for Charges Pay after use Typically prepay to fill a meter/pc postage or to purchase stamps. Pay after use Chargeback Allocated by internal cost centers from consolidated invoices Fragmented based on the locations metering technology, payment method (check, credit card or expense report) Allocated by internal cost centers from consolidated invoices
  16. 16. Comparing Costs March 9, 2022 16 Weight Overnight 2 Day 3 Day Ground USPS Priority Mail® USPS First-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 - Coast to Coast 1 2 3 2-3 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 13-15% 13-15% 13-15% 13-15% 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 Top Rate Shopping Strategies • Compare Air to Guaranteed Ground Service. • Consider USPS® for light weight residential or rural zip codes. • Create rules around 8:30 AM delivery to push for 10:30 or end of day service. • Make sure items are properly coded as Letter vs. Parcel. • If it is a Parcel, make sure the dimensions are entered up front.
  17. 17. 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. March 9, 2022 17 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.
  18. 18. Remote Printing Remote workers will need online tools to print larger volume documents at locations with the proper staff and technology. This is done with online tools that work through virtual print drivers or customized integration on larger jobs. Two Main Options 1. Onsite production facilities (In-house) – Software needed to control the process and workflow. 2. Professional mail service providers (Outsource) – Per job or Subscription services available. March 9, 2022 18
  19. 19. How Remote Printing Works • Print Driver - Launches the user interface • Dialog box shows your document with a box to highlight where the address appears. – The address needs to be in the designated area, or a cover page can be generated. – Addresses can be moved to fit a flexible area. • Variable page printing is managed by highlighting a changing variable Example: Invoice Number • Additional pages can be attached by adding files. Example – Special offer sheet • Templates can be saved to re-run in the future. • Jobs are sent to a virtual print cue where a central area prints and manages the output. March 9, 2022 19
  20. 20. Benefits of Remote Printing • Flexibility with output – Through the newest tools, they give the flexibility on how the item is sent. This can include paper, or electronic client delivery as an email, fax or text. • Mail Integrity - Placing 2D barcodes on each page to make sure the proper number of sheets are being inserted. This is especially important in variable page mailings like invoices or statements. • Address Validation - To ensure that each piece matches the USPS database. • Mail moves faster from central automated processes. • Mail tracking capabilities. • Documents are archived for retrieval in a central repository. • Postage discounts – As you can see in the chart below, moving mail from single piece rates to automation with barcodes provides huge savings. March 9, 2022 20 Mail Piece Examples First-Class Mail® Retail Single Piece First-Class Mail® Metered Single Piece Typical Presort Service - First- Class Mail® First-Class Mail® - Automation Marketing Mail® - Automation Marketing Mail® Non Profit- Automation 1 Ounce #10 Envelope $0.58 $0.53 $.461-.494 $.426-.485 $.277-.33 $.146-.199 3 Ounce Newsletter (6X9) $0.98 $0.93 $.461-.494 $.426-.485 $.277-.33 $.146-.199 8 Ounce Flat (9X12) $2.56 $2.56 $2.291-2.40 $1.955-2.291 $.745-1.061 $.503-.819 Post Card $0.40 $0.40 $0.335 $.306-.326 n/a n/a Single Piece Rates Automation Mail with Barcodes
  21. 21. Onsite or Offsite? Things to Consider: 1. Do you have any internal production facilities that can process mail for the field locations? 2. Is there a risk to outsourcing your mail from a client or compliance requirements? 3. What is the cost difference of insource vs. outsourced mailings? 4. How is a solution going to be managed? 5. Could there be a hybrid model where offsite mail services are used for specific jobs, to manage peak periods or for disaster recovery? March 9, 2022 21
  22. 22. Outsourced Print and Mail Services • In the US, most (We estimate over 75%) of the mail is processed through an outsourced mailer who has the staff, equipment and expertise. This outsourcing happened for the following reasons: – USPS® rules got more difficult for automation discounts. – Less mail expertise internally – Improved levels of automation externally March 9, 2022 22
  23. 23. Key Challenges with Outsourced Print and Mail Services 1) Lack of visibility 2) Variability in the rates paid for service fees and postage 3) Inconsistent level of detail provided on invoices 4) Lack of knowledge internally to leverage with suppliers March 9, 2022 23
  24. 24. Invoice Detail Issue • Every vendor provides different levels of detail on their invoices. Some charge at the job level while others break down each fee. • We recommend that you require vendors to provide the detail by fee so that you can understand what you are paying to compare the rates • If it is not on the invoice, request the detail on web portals or in emailed backup detail reports. March 9, 2022 24 By Job By Fee
  25. 25. Service Fee Variability March 9, 2022 25 Was the job put out to bid or was in an add on project to an existing provider? Does the vendor have a master service agreement for continual work at specific rates? What is the quantity and frequency of the mailing? What are the data processing charges? What type of stock is used for paper and envelopes? How is it printed – Type of printing technology and color or black and white? How was the piece prepared and could it all be automated or was their hand work or high levels of personalization that was required? How was it mailed and what level of postal automation was used? What third party services were used for presorting, mail forwarding or shipping? What was needed from the data besides mailing: You will find huge variations in what is charged from one service provider to another. These are the factors that have the greatest impact: Because of the difficulties in comparing jobs, most organizations have little control or knowledge of best rates.
  26. 26. Mailing Categories Mailing Categories Description Cost High to Low 1-5 (5 being the highest) Material Paper, envelopes, Pre-printed stock. 3 Data Processing The cost to receive data files and turn it into its final version. 2 Mail Automation Processing the mail list through postal software to meet the USPS® requirements. 2 Printing Putting images onto paper 4 Mail Preparation Folding, Inserting, tabbing, inkjetting addresses, hand processing into final form. 4 Postage USPS costs to mail the item. This also includes Presort services. 5 Email The cost to divert the document to be emailed vs. printed. 2 Transportation Moving mail to the USPS or closer to its final destination to reduce postage costs. 1 Data Storage Image creation, storage and retrieval typically for backup or to have e- presentment. 3 Miscellaneous Other charges based on the specifics of your project. 1 March 9, 2022 26 We have developed a process that can simplify this by the following: • Gain access to the fee level detail for all invoices. • Log each line item to one of the categories above along with subcategories based on the types of services used. • Maintain the data over periods of time to be able to compare vendors and services. • Benchmark rates and use the data for further negotiations and vendor selections.
  27. 27. Vendor Strategies We recommend running an RFP (Request for Proposal) to find the best rates and service levels for your mailings. • Build a defined template where it is easy to compare rates on the main mail expenses. • Include vendors that meet the following criteria: – Can support your customers geographic areas at the lowest costs: • If all mail is local – find a local or regional providers • If mail is nationwide, look for providers that are in the middle of the country or at desirable postal hubs that can reach the majority of the country in 2-3 day delivery. – Are close to a major presort center. – Are in low cost of living areas who can pass on the savings in rates. – Have the highest level of technology to support your needs. – Specialize in your main classes of mail or industry vertical – Example: Bank Statements – Have the value-added services you need. • Compare the responders and request references. • Review account management processes for customer service and issue resolution. • Look for discounts by consolidating higher volumes of mail into fewer suppliers. March 9, 2022 27 Year First Class® Mail Presort % Change Marketing Mail % Change 2020 36,246,494 -2.4% 64,180,125 -17.9% 2019 37,130,541 -1.9% 75,690,047 -2.1% 2018 37,833,487 -2.5% 77,305,661 -1.4% 2017 38,795,454 -3.0% 78,369,843 -3.3% 2016 39,943,145 -0.6% 80,929,933 1.0% 2015 40,174,244 0.0% 80,090,273 -0.4% 2014 40,193,317 -2.4% 80,374,260 -0.7% 2013 41,144,184 -3.4% 80,962,678 1.4% 2012 42,524,039 -4.6% 79,801,009 -6.1% 2011 44,494,498 -3.9% 84,691,971 2.6% 2010 46,225,386 -3.7% 82,524,693 -0.2% 2009 47,933,717 -8.3% 82,706,211 -19.8% 2008 51,935,871 3.8% 99,084,155 -4.5% 2007 49,978,441 0.2% 103,516,112 1.0% 2006 49,862,002 102,459,559 Data in Thousands From USPS REVENUE, PIECES, AND WEIGHT BY CLASSES OF MAIL AND SPECIAL SERVICES Reporting Mail declines leads to more competition
  28. 28. Presort Service Savings March 9, 2022 28 Providing visibility to where you are using presort today along with the classes of mail (First Class, Marketing Mail or International), sizes processed (Letters, flats, post cards and parcels) rates charged, volumes processed, and service standards used. Increasing the scope of Presort – Finding additional locations, classes of mail and outsourced mailings that can qualify for presort. Reducing Rates - We do this by either creating leverage positions with existing providers or performing a request for proposal to see what other service providers can support your needs. We have a database of all service providers nationally and have the top experts in the country helping manage this category. Audit Invoices - Continual audit of all presort invoices to validate that you are being billed at contract rates. We apply for refunds where applicable. Rate Change – Each year the USPS changes rates which may be altering the profitability of your mail. Small % shifts between the rate categories can lead to huge profits for presort service providers. When rates are not in their favor, they are typically passed onto the client through their annual rate addendums. enterpriseAdvocate provides a central repository for all mailings. We will document all presort invoices in our system to validate fees and to see changes over time. This data can be shared in a secure environment to those that require access.
  29. 29. 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 • Change Management - Support may be needed on implementation and promoting use inside your organization. • 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 March 9, 2022 29
  30. 30. 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 March 9, 2022 30
  31. 31. Case Management – Most important aspect of managing enterprise March 9, 2022 31 • Client specific landing page • Customized messages and links for common questions. • Drop down menu for common carrier requests • Once the case is submitted: • Email is sent to the requestor with a case number including Postal Advocate customer service • Activity is created and notes are entered into the 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.
  32. 32. Summary – Enterprise Mail Management March 9, 2022 32 Mail Equipment and Postage Gain visibility and drive savings on the cost of mailing equipment and metered postage run through your locations Home and Small Office Mail Create a simplified process of distributing, printing and accounting for postage generated in small offices, remote staff or while travelling for business. USPS® Permit Accounts Simplify the oversight, visibility and access to postage processed through direct USPS® accounts used for large mailing projects and Business Reply Mail. Find ways to reduce the costs on the accounts and the postage generated. Outsourced Mail Services Gain centralized visibility to outsourced mailings and Presort service providers. Drive savings and optimize contracts. Expedited Document and Parcel Shipping Implement the proper tools and oversight to allow your users to send overnights and parcels at the lowest costs with the fastest delivery times.
  33. 33. 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: – 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. – 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. • Current issues and challenges • We typically turn this around in 2-3 weeks at no charge or obligation. March 9, 2022 33
  34. 34. Summary • Essential mail is moving electronic but at a slow rate. • Mail is becoming more efficient, moving away from single piece to other discount mail classes, most of which is outsourced. • Promotional targeted mail is still an effective means to reach clients, but generic content like newsletters and announcements are moving to email. • Technology is moving to the cloud where mail can be generated either physically with online postage or can be moved to production facilities where it can be sent in the most efficient ways. • Single piece mail volumes will continue to decline at 6-9% annually. Production mail will decline at slower rates • Postal and Shipping rates will increase at faster levels with a need to rate shop for the most optimal service. • There is a need to have enterprise-wide visibility to mail and parcel spends to be able to control costs and optimize services. March 9, 2022 34
  35. 35. 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)
  36. 36. 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
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