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Top Strategies - Enterprise Postage Management

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Top Strategies - Enterprise Postage Management

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Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America.

At this session, we discussed the challenges organizations have with enterprise postage management and carrier services, presenting different strategies to manage these categories and how to optimize savings and efficiency.

Here are the topics that we covered:
1. Challenges of managing enterprise postage
2. Visibility and Insight – Gathering all the data and reporting
3. Network Connections
4. Best in Class Processes
a. Billing
b. Postage Management
c. Web Access
5. Managing the Day-to-Day Requests – Adding new users, first line responders, password resets etc.
6. Expanding to a multi-carrier solution

Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America.

At this session, we discussed the challenges organizations have with enterprise postage management and carrier services, presenting different strategies to manage these categories and how to optimize savings and efficiency.

Here are the topics that we covered:
1. Challenges of managing enterprise postage
2. Visibility and Insight – Gathering all the data and reporting
3. Network Connections
4. Best in Class Processes
a. Billing
b. Postage Management
c. Web Access
5. Managing the Day-to-Day Requests – Adding new users, first line responders, password resets etc.
6. Expanding to a multi-carrier solution

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Top Strategies - Enterprise Postage Management

  1. 1. Top Strategies – Enterprise Postage Management Enterprise Postage and Shipping
  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 179,000 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’ largest accounts. September 21, 2022 2
  3. 3. What We’ll Cover: 1. Why do you need to care 2. Challenges of managing enterprise postage 3. Visibility and Insight – Gathering all the data and reporting 4. Technology Changes and Network Connections 5. Best in Class Processes 6. Billing 7. Postage Management 8. Web Access 9. Managing the Day-to-Day Requests – Adding new users, first line responders, password resets etc. 10. Expanding to a multi-carrier solution September 21, 2022 3
  4. 4. Why is Enterprise Postage Management Important? • Costs are increasing rapidly – 10-30% USPS increase in the past year – Largest on record. • Changing support model – More people working remote with limited postage access, forcing them to send overnight • Changing technology requirements. – October 2022 – The major vendor is eliminating analog support for meters. – June 2024 – 70% of all meters in the US need to be replaced to meet USPS requirements. – Huge enhancements in cloud-based postage that can drastically reduce costs. • One of the largest unmanaged spend categories in most organizations. Limited visibility. • Less internal expertise as more mail is outsourced. • Optimize postage funding - Most organizations are prefunding USPS accounts and meters without any balance management. • Huge opportunities for savings in the following areas: – Postage – Shipping Costs (UPS/FedEx) – Equipment – Outsource Services – Mail and print providers, presort services. September 21, 2022 4
  5. 5. Challenges of managing enterprise postage • No single group has visibility to the entire spend. • Most organizations lack the visibility to any of the categories above. • Limited oversight to any of the categories • Fragmented across multiple business units, departments or locations. • Lack of expertise to properly optimize the categories. • Limited systems besides excel spreadsheets to control the categories. • Labor intensive to find the right data and standardize it into a format that can be managed and maintained. September 21, 2022 5
  6. 6. Visibility and Insight – Most important step September 21, 2022 6 10-55% Savings 6-40% Savings 5-51% Savings 8-41% Savings 6-19% Savings Mail Equipment and Postage Home/Small Office USPS Permits Outsourced Mail Services Expedited Document and Parcel Accounts payable search Accounts payable search for USPS Accounts payable search for USPS Accounts payable search for main service providers. Request 1-6 months of invoice level data in excel. Vendor requested reports Credit card payable search for USPS Create logins on the USPS Customer Gateway Request copies of invoices Standardize the service levels to be able to compare each transaction. Service, Zone, Weight. Create logins to vendor websites Expense report search for USPS Link all found accounts Create logins on the vendors websites. Link all found locations Courier costs moving mail to hub locations Pull reports from system and create a master excel file to store the data. Itemize all mailings to see the services and work performed. Pull reports from system and create a master excel file to store the data. Create a master excel file to store the data and analyze usage. Create a master file that can be used to benchmark rates for the future. Items to look for: Items to look for: Items to look for: Items to look for: Items to look for: Contact end dates Quantity of trips to the USPS Spend per account Fees for different services Air shipments that would have the same or faster delivery via ground at lower costs. Equipment costs per device High spend users - Reduced postage with technology. Postage balances in accounts Benchmark one provider vs. another. 2D, 3D and Ground that would have lower costs with USPS. Postage spends per device Is their a need for web postage access? Renewal dates Potential to renegotiate or run an RFP. Accessorial fees that can be reduced. Postage balances in accounts Dormant postage accounts Additional surcharges billed after the fact and not calculated at time of shipment. Fees and overcharges Dormant postage accounts
  7. 7. We will do this for you at no cost or obligation: 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. 1-6 months of UPS and FedEx invoice details 6. Meet with us to review the results September 21, 2022 7
  8. 8. Data Controlled Centrally September 21, 2022 8 Reporting needs to contain: • All locations, account numbers and agreement terms. • Equipment and postage details. • Notes and contacts with activity management plan.
  9. 9. Spend Management Strategies • Mailing Equipment – Move to one or two vendors that can provide higher level support, centralized billing and national account prices. • Postage - Meters – Consolidate to master accounts with vendors. Manage balances in accounts. Develop a prepay or advance strategy to eliminate fees or high balances. • USPS Accounts – Link all accounts to USPS Gateway. Set up Enterprise Payment System (EPS) for consolidated payment. Review the transactions and balances from each account. • Outsource Providers – Decide if you are going to use their permits or your own. Manage the balances and have details to the spends. Validate that the invoices match your contracts and are in line with industry rates. • UPS and FedEx – Maintain the detail of the spend and fees to see what savings can be implemented. September 21, 2022 9
  10. 10. Eliminating Vendor Fees/Overcharges • Pay bills on time. • Look at each invoice and validate all chargeable items. • Cancel vendor equipment insurance. • Terminate chargeable loyalty programs. • Make sure postage refill and advance charges are included or monitored. September 21, 2022 10 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 We find companies paying tens of thousands in fees and overcharges that can be recovered or eliminated for the future. Postal Advocate Avoidable Fees and Overcharges Savings Stats 6100 Transactions - $19,029,692 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.
  11. 11. Lost Postage Recovery • We have found over $12,675,521 in lost postage sitting in dormant postage accounts. Plus maintain a database of over 55,000 transactions turned over to the states. This happens because: – Offices close, merge or just turn in their meters. – The money is expensed once sent in for postage. – The advance account is used when funds sit idle in the prepaid. • Steps to find money. – Find account numbers of your current and past meters. – Enter these account numbers online on the vendors website to see if any data is available. – Contact your meter vendor to validate funds available. – Check the unclaimed funds databases to see if funds were turned in. Postal Advocate can research these funds and help you get them returned. September 21, 2022 11
  12. 12. USPS Technology Changes and Network Connections • USPS announced that as of 6/24 all meters need to be constantly connected to their data centers vs. only when the meter is being refilled. • 70% (Estimate) of the mailing systems will need to be replaced by 2024. • 10% (Estimate) of the additional mailing systems will need to be replaced by 2026/7 • 20% (Estimate) of units are currently compliant • This will be an issue for some IT departments hesitant to put meters onto their networks and will increase traffic. • Options for connections will be the following: – Connect to network – Vendor provided mobile connectors - $5-50 per month per device. – Company provided mobile or external network connections. September 21, 2022 12
  13. 13. Why is it easier for a company to send a $10 Overnight item than a $.57 letter? 13 UPS/FedEx USPS USPS Current Current Proposed Cost to Mail an Item Typically starts at about $10 Letters can be mailed for $.57 Letters can be mailed for $.57 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
  14. 14. Enterprise Web Postage - The Future of Mail • Will work for all locations and work from home staff. • Users can log in from any PC and process postage. – Each office would have an electronic scale – Postage would be printed on stamp sheets right from their local or network printer. • Postage can be charged back by location and cost center. • Users could have single sign on to automatically be logged into the application. • Office closures and divestitures would be handled automatically through the single sign on process. • There is no hardware or inventory to manage because the scales are disposable items. • Invoicing would be streamlined in a defined chargeback process to the locations. • Complete postage visibility to every piece of mail being processed. This would provide control and eliminate theft. • 5-68% Postage savings on many mail classes over postage meters or buying stamps at the Post Office. • Can eliminate the majority of the low to medium volume postage meters inside your organization – Huge savings! September 21, 2022 14
  15. 15. FedEx and UPS Expansion • Eliminate CampusShip and FedEx.com and have all items done through one system. • Single Sign On for all users vs. CampusShip password management. • Compare air to ground shipments from one screen. • Compare UPS, FedEx to USPS on every package. • Residential indicators to show the true cost of a shipment. • Corporate address book management. • Profile management to control how users can ship. • Give users a way to send a $.57 stamp vs. an overnight envelope. September 21, 2022 15
  16. 16. 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 16
  17. 17. Postal Advocate – Case Management System September 21, 2022 17 • 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.
  18. 18. Summary • There have been large changes in the way we work, where and how mail is generated. • Costs are increasing rapidly, the USPS is forcing equipment changes, and there is new web-based technology that can better support your community. • There are large savings by having control of your enterprise postage and parcel spends. • The data needs to be consolidated into a form that it can be managed for the future. • With the right controls and systems, there are efficiency and costs savings that can benefit the entire enterprise. September 21, 2022 18
  19. 19. Helping multi-location organizations streamline their mailing costs Over 179,000 pieces of equipment, managed by Postal Advocate Recovered over $27,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $76,000,000 IN CLIENT SAVINGS $1.9M 55% Average Client Savings Average Equipment Savings HOW WE DO IT • 215+ 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 Letter of Authority/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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