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Top 9 Benefits of Using Managed Services to Save on Mail Costs

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At this session, we will be discussing the importance of gaining control of your mailing fleet and how managed services can help optimize savings and efficiency in your organization.
Here are the topics that will be explored:

1. Challenges – The challenges organizations with large mailing fleets face
2. Analysis and Visibility - How we conduct a thorough analysis of all mailing spend across your enterprise that will assist in providing reporting for IRS/FASB requirements
3. Equipment Savings Process – What we do to reduce mailing equipment costs by 60% without compromising vendor quality or service 
4. Eliminating Vendor Fees/Overcharges - Steps to finding mailing vendor fees and overcharges 
5. Lost Postage Recovery - Tracking down lost postage for closed locations, mergers and dormant accounts
6. Enterprise PC Postage – Deployment and management
Insight – How we provide specific recommendations for savings
7. Insight - How we provide a thorough consultation with specific recommendations for savings that will impact your organization
8. Best-in-Class Tools - Using the most innovative tools, resources available along with on-going maintenance and support
Industry Experts – How We Can Help - With over 230 combined years of experience, our team can provide insight and help simplify this complex category

Published in: Education
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Top 9 Benefits of Using Managed Services to Save on Mail Costs

  1. 1. Name (18pt) Top 9 Benefits of Using Managed Services to Save on Mail Costs
  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 121,000 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 nations top accounts. November 8, 2018 2
  3. 3. Topics That Will Be Explored: 1. Challenges – The challenges organizations with large mailing fleets face 2. Analysis and Visibility - How gaining a thorough understanding of this complex category will assist in providing reporting for IRS/FASB requirements 3. Equipment Savings Process – The process to reduce mailing equipment costs without compromising vendor quality or service 4. Eliminating Vendor Fees/Overcharges - Steps to finding mailing vendor fees and overcharges 5. Lost Postage Recovery - Tracking down lost postage for closed locations, mergers and dormant accounts 6. Enterprise PC Postage – Deployment and management 7. Insight – How we provide specific recommendations for savings 8. Best-in-Class Tools - Using the most innovative tools, resources available 9. Industry Experts – How We Can Help November 8, 2018 3
  4. 4. 4 Challenges of Managing Fleet Mailing Assets Areas for improvement Multiple postage accounts to fund and maintain Difficult to assess needs or requirements No centralized oversight No control of rogue spend Resources or Time to Execute No published pricing for comparison Poor Visibility Inconsistent prices for similar equipment Unclear invoices Connecting Devices to the Network
  5. 5. Mailing Spend Visibility • Most organizations lack complete information on their mailing spends including: – Equipment Inventory – Model, Serial Number, Description, Install Dates – Lease Details – Contract Number, Term, Amount, Items Covered and End of Lease Dates – Postage Spends – How much postage does each site use and what are the balances sitting in prepaid and advance accounts. – Other Mailing Costs – Meter Rental, Maintenance, Rate Change, Supplies. – Avoidable Fees – Late Fees, Finance Charges, Equipment Insurance, Loyalty Programs, Transaction Frees, Reset and Advance Fees • Lack of detail leads to significant overspending. Our average savings is 60% because we are managing this detail • Most organizations are spending thousands in fees and overcharges unknowingly. • Lack of controls lead to lost postage. • The Financial Accounting Standards Board (FASB) has established new lease rules (ASC 842) that require companies to record operating leases on the balance sheet as a liability vs. only declaring the expense on the income statement. – Must include the full future discounted value of the remaining lease obligations. – Public companies – Starts 12/15/18 – Non Public companies – Starts 12/15/19 – Will require that you have full visibility to all leases November 8, 2018 5
  6. 6. November 8, 2018 6 STEP 1 RAW DATA Provide any current mailing vendor reports and or an export from your accounts payable system of the transactions paid to the main mailing vendors (We will provide the list of vendor names). STEP 2 STEP 3 RESEARCH Postal Advocate will work with your vendors, enter data into vendor websites, collect postage volumes and fill in all needed information. ANALYSIS Full analysis of equipment savings, fees, overcharges and lost postage. This includes details on the current portfolio, leases and equipment utilization. STEP 4 CONSOLIDATION We will create a detailed equipment inventory, add end of lease dates, postage volumes, lease spend, fees, and spend ratios to provide complete visibility. SAVINGS SUMMARY Quantify the current and future savings. This process has created an average of 60% cost reductions for our clients. Ongoing visibility through our enterpriseAdvocate™ web platform. VISIBILITY STEPS TO VISIBILITY
  7. 7. Challenges With Mailing Equipment Purchasing 1. Huge price variances for similar models at different sites across your fleet November 8, 2018 7 Example: Model Pricing Variance Model Quantity Low High Average High/Low Ratio Total Expense Total if all at Low Rate Model A 9 $348 $701 $459 2.0 $4,133 $3,132 Model B 36 $345 $1,573 $801 4.6 $28,839 $12,420 Model C 26 $427 $2,063 $1,296 4.8 $33,703 $11,102 Model D 13 $1,427 $2,760 $2,019 1.9 $26,250 $18,551 Model E 26 $1,524 $4,467 $2,666 2.9 $69,325 $39,624 Model F 5 $3,251 $6,276 $5,352 1.9 $26,764 $16,255 Model G 5 $7,848 $9,931 $8,931 1.3 $44,655 $39,240 Total 120 $233,669 $140,324 Potential Savings $93,345
  8. 8. November 8, 2018 8 2. Expired or non existent Master Service Agreement 3. Lack of visibility to postage spends and usage levels. Companies buying the wrong levels of equipment. In many cases spending more on equipment than postage/usage. Spend Ratios Postage Range # of Sites Equipment Spend Postage Spend Spend Ratio >$12,000 per year 2 $26,600 $63,500 0.42 $1200-12,000 per year 64 $189,054 $155,441 1.22 <$1,200 per year 76 $120,291 $41,890 2.87 Challenges With Mailing Equipment Purchasing Main Cause – Reliance on mailing vendor to work with the locations to define requirements combined with declining mail volumes.
  9. 9. November 8, 2018 9 Challenges With Mailing Equipment Purchasing 4. Vendor inventory reporting is infrequent, unavailable and confusing 5. Lease portfolios with varying end dates often going into evergreen statuses. Lease Renewal Schedule Year Quantity Value Proposed Value Savings % Savings 2018 and Prior 43 $83,740 $25,320 $58,420 70% 2019 21 $41,468 $16,040 $25,428 61% 2020 37 $90,579 $32,286 $58,293 64% 2021 23 $63,909 $28,880 $35,029 55% 2022 2 $2,946 $780 $2,166 74% 2023 1 $1,268 $240 $1,028 81% Total 127 $283,910 $103,546 $180,364 64%
  10. 10. Mailing Fleet Asset Management Process November 8, 2018 10 Request/Build equipment inventory and costs. Match equipment to postage spends. 1 2
  11. 11. November 8, 2018 11 Customer Validation Email Reach out to locations to validate questionable charges. Work with vendors - Eliminating unneeded units and fees. 3 4 5 Document all cancellations, savings and notes. Personalized location asset validation:
  12. 12. Equipment Savings Process November 8, 2018 12 Customized Renewal Email Implement renewals, terminations and new equipment needs. Analyze current pricing and terms. Set standardized equipment rates and updated MSA’s. Document all new equipment, savings and notes. Work with locations to define needs and show options. 1 2 3 4 5 Postal Advocate Equipment Savings Stats Equipment Savings # of Transactions Total Savings % of Savings Equip Savings: New 452 926,008$ Equip Savings: Renewal 4879 27,998,030$ Equip Savings: Terminate 3012 2,971,917$ Other 2 2,225,044$ Total 8345 34,120,999$ 60%
  13. 13. Renewal Process November 8, 2018 13 Step 1 Work with location to define requirements Step 2 Request agreements from vendors, review and submit to client for approval Step 3 Notify location of equipment changes and next steps Step 4 Follow up with each location to make sure changes occurred
  14. 14. Eliminate Mailing Vendor Avoidable Fees November 8, 2018 14 Monitor future invoices to validate they do not return. Create online accounts on the vendors websites. Link every location, account, meter and postage refill. Document all savings and notes. Identify avoidable fees and develop plans for their removal. ✓ ✓ ✓ ✓ ✓ 1 2 3 4 5 While simplifying the billing and payable process Postage Refill Fees - Rentals $0-20 each Postage Advance Fees Included or up to 1% of the Advance Postage Advance Late Fees 0-15% of the Advance Postage Advance Finance Charges 15% or higher APR Overlimit Credit Charge Varies by Vendor Annual Fee Rewards Program Varies by Vendor Lease Late Fees Varies by Vendor and Lease Value Insurance - Leases Only Varies by Vendor and Lease Value - Automatic enrollment unless proof insurance is provided. Mailing System Fees Postal Advocate Avoidable Fees Savings Stats Fee Savings # of Transactions TotalSavings Fee Savings: Late/FinCharges 121 124,455$ Fee Savings: Loyalty Prog 644 49,176$ Fee Savings: Remove Insurance 1112 175,435$ Other Total 1877 349,066$
  15. 15. Eliminate Mailing Vendor Overcharges November 8, 2018 15 Continue to monitor future bills looking for overcharges. Document all savings and notes. Identify transactions being overcharged. Format requests for refunds/credits. Validate refunds have been received. ✓ ✓ ✓ ✓ ✓ 1 2 3 4 5 We look at every invoice to make sure you are paying the correct rates. Typical Vendor Overcharges Invoices notgiving national accountdiscounts. Meter,maintenanceand ratechangecharges when included on a lease. Bills for equipmentfromclosed sites. Resetand advancepostagefees thatshould beincluded. Loyalty points thatgo undredeemed or cashed in for personal use. Postal Advocate Credit/Overcharges Savings Stats Vendor Credits # of Transactions Total Savings Vendor Credit: Equipment 3257 9,566,921$
  16. 16. Recover Lost Postage from Dormant Accounts November 8, 2018 16 Validate that funds have been received back. Document all savings and notes. Create online visibility to every postage account and refill. Format vendor requests to validate funds. Fill in refund request forms. ✓ ✓ ✓ ✓ ✓ 1 2 3 4 5 We track down postage from terminated or forgotten meter accounts. We have found over $5,250,000 in the last 24 months mostly residing with the mailing vendors. The majority of funds we find are still with the mailing vendors. Postal Advocate Lost Postage/Recovery Stats
  17. 17. Enterprise PC Postage Management 6 Key Areas of Deployment Management 1. Onboarding 2. Billing 3. Reporting and Visibility 4. Postage Management 5. Accessibility 6. Ongoing Management November 8, 2018 17 Reasons to consider PC Postage • Fastest growth segment of the mailing industry • Simple postage distribution across the enterprise • Lower cost than postage meters. • Better visibility to every piece of mail at every location. (Accounting and eliminating theft) • Easy to deploy • Does not have to connect to the network and can be managed in the cloud. • Additional postage discounts on Priority Mail and parcels. Included with some postage meters for these discounts. Mail Type Stamps Postage Meter PC Postage Savings % Savings 1 Ounce Letter $0.55 $0.50 $0.50 $0.05 9% 1 Ounce Certified Mail with Return Reciept $6.85 $5.60-6.80 $5.60 $1.25 18% 5 Ounce First Class Parcel $4.39-4.81 $4.39-4.81 $3.18-3.63 $1.18-1.21 25-28% 10 Ounce First Class Parcel $5.19-5.66 $5.19-5.66 $3.82-4.33 $1.33-1.37 23-27% 15 Ounce First Class Parcel $7.35-12.20 $7.35-12.20 $4.94-5.53 $2.41-6.67 33-55% Priority Mail 1LB $7.35-12.20 $7.35-12.20 $6.95-9.91 $.80-2.29 4-19% Priority Mail 5LB $9.80-34.80 $9.80-34.80 $7.81-28.84 $1.99-5.96 17-25% Priority Mail 10LB $13.10-59.90 $13.10-59.90 $9.38-50.38 $3.72-9.52 16-40% Priority Mail Express $25.60-56.10 $25.60-56.10 $22.74-49 $2.86-7.10 11-13% Prices lower than available through postage meters. January 27, 2019 Proposed USPS Rates
  18. 18. enterpriseAdvocate™ – Multi Location System - Dashboard November 8, 2018 18 The data above is for demonstrative purposes only. Data does not represent true spends and costs.
  19. 19. enterpriseAdvocate™ – Multi Location System - Dashboard November 8, 2018 19 Highlights • Simple access to all mail spends. • Visibility to fees and savings. • All account numbers are stored in one place. • Simple to drill down to an individual location or invoice. The data above is for demonstrative purposes only. Data does not represent true spends and costs. Spend Ratio What are we spending on the equipment compared to the postage used.
  20. 20. enterpriseAdvocate™ – Location View November 8, 2018 20
  21. 21. Benefits of a Managed Service Provider Time Savings – Handle time consuming and repetitive administrative work Insight and Visibility – Provide a thorough spend analysis while you still maintain control and responsibility Expertise – Knowledge and experience in the specific category that will allow for greater accuracy and detail Best-in-Class Tools – Complete visibility to spend using the most innovative tools, resources available and ongoing support Allows you to focus on bottom line growth and profit November 8, 2018 21
  22. 22. Postal Advocate - No Risk Savings Model We will do a detailed no cost or obligation analysis outlining savings potential • Fees – 40% of any documented savings (10% for State Unclaimed Funds) – Only when the savings has been implemented or funds recovered. – Detailed savings statements and invoices documenting each transaction. – Online visibility to all savings and fees. – No cost web based enterprise asset management system. November 8, 2018 22
  23. 23. No Cost or Obligation Mail Audit • Completed in 2-3 weeks • Outlines spend and specific savings opportunities • Minimal customer involvement November 8, 2018 23 Savings Summary Locations Meter Rentals Maintenance Agreements On Call Maintenance Lease Total Postage Spend Ratio 0.00 Item Current 2015 2016 2017 Savings Combined Savings Equipment Costs Avoidable Fees (Late Fees, Finance Charges, Equip Insurance, Loyalty Plans) Contract Violations (Supply, maintenance, meter discounts, overcharges) Lost Postage Funds (Meter Accounts) Lost USPS Permit Funds Total $0 $0 $0 $0 $0 $0
  24. 24. What we need for the mail analysis: 1. Letter of Authority – Giving us the approval to research your mailing spends. 2. Any mail equipment reports you may have – Current or Historical. 3. Accounts Payable Export of Mailing Vendor Transactions – Postal Advocate will provide a listing of vendor names. 4. Providing PDF copies of specific invoices requested from the Accounts Payable Export – We will try to limit this. 5. Meet with us to review the results November 8, 2018 24
  25. 25. November 8, 2018 25 POSTAL ADVOCATE ENTERPRISE ASSET MANAGEMENT AUDIT PROCESS
  26. 26. If you want help from the experts • We work for you and have no vendor affiliations. • We are averaging 60% (Range 37-92%) equipment savings for the largest companies in the US/Canada. This totals over $43.5 million since 2013. • We helped our clients save and recover millions in fees, overcharges and lost postage. • We have over 230 years of industry experience on our team and know every way to save money around this spend. • We manage your inventory and bills while giving you a complete web based dashboard. • We don’t charge for our services and only share in a small piece of any documented savings or recovery. November 8, 2018 26
  27. 27. Summary ✓ Visibility: We will provide you a web dashboard to all mail spends, applications and pricing. ✓ Savings: We will be monitoring your account looking for savings in equipment and fees. ✓ Recovery: We will find and recover any lost funds or overpayments from dormant/orphaned accounts. ✓ Simplicity: We will make mail related spends easy to manage. ✓ Support: We represent the best in the industry and will act as your advocate on all mail related questions. ✓ Risk Free: You only pay us when we can document specific savings. November 8, 2018 27
  28. 28. Upcoming Webinars January 2019 USPS® Rate Change – What You Need To Know Dates: Wednesday Dec 12, 2018 Wednesday Jan 16, 2018 Wednesday Jan 23, 2018 Time: 11:00 AM EST Go to www.postaladvocate.com to register November 8, 2018 28
  29. 29. Helping multi-location organizations streamline their mailing costs Over 121,000 pieces of equipment, managed by Postal Advocate Recovered over $15,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $43,500,000 IN CLIENT SAVINGS $1.3M 60% Average Client Savings Average Equipment Savings HOW WE DO IT • 230+ 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)
  30. 30. Contact info: (20pt) November 8, 2018 30 Questions?

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