Postage Optimization: Take a Fresh Look

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As mail volumes shift, it is important to review your postage optimization strategy to ensure you are getting the maximum postal discounts. This presentation will identify ways for you to save money on postage.

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Postage Optimization: Take a Fresh Look

  1. 1. 2014 Enterprise Client Summit 2014 Enterprise Client Summit Unlock the Value of Your Communications
  2. 2. 2014 Enterprise Client Summit Postage Optimization: Take A Fresh Look Bruce Gresham Eric Kempton PB Presort Services PB Marketing
  3. 3. 32014 Enterprise Client Summit Why take a fresh look at postage spend? Postage accounts for 70- 80% of final mail piece cost For every penny you save in postage, that is up to 5% you can add to your margin Postage: pass through vs. profit center • Strengthen relationships • Rebates go to bottom line
  4. 4. 42014 Enterprise Client Summit Mail Piece Design Data Analysis Print Production Inserting Mail Sorting Mail Piece Lifecycle Postage savings and workflow optimization can be gained during each stage of composition and production:
  5. 5. 52014 Enterprise Client Summit Mail Piece Design Mail piece design has a great impact on rates • First Class or Standard Class • Size, weight & paper stock options • Letter, self-mailer, postcard – A 5”x7” postcard costs the same as a 6.125” x 11.5” postcard
  6. 6. 62014 Enterprise Client Summit Mail Piece Design Automation compatible • Use Fonts between 10pt and 14pt • Black text printed on white background • Avoid script, bold and narrow fonts • Avoid glossy stock for the envelopes or glossy card stock for postcards
  7. 7. 72014 Enterprise Client Summit Mail Piece Design Consult with your printer • Size matters • 2-up, 4-up or 8-up • How many pieces can be combined on a sheet? Other Considerations • USPS Incentives • 2nd ounce rides free
  8. 8. 82014 Enterprise Client Summit Additional Resources PB Customer Guide Mailpiece Design Direct Mail Manual (DMM) www.usps.pe.com Rapid Information Bulletin Board System (RIBBS) www.ribbs.usps.gov
  9. 9. 92014 Enterprise Client Summit Data Analysis Optimization Enablement tools: • Manifest Software • Predictive Presort • One Pass Solutions House-holding
  10. 10. 102014 Enterprise Client Summit Mailing Compliance Mail Piece Lifecycle Tracking • Track pieces from composition through out for delivery • New mailing regulations: Consumer Financial Protection Bureau, Affordable Care Act, etc.
  11. 11. 112014 Enterprise Client Summit Print Production Make mailing part of your printing specifications Consider the following: • Stock matters – Do you really need 100# cover? – Ask if there is a “House” stock – Price fluctuates among brands • Varnishes and coatings
  12. 12. 122014 Enterprise Client Summit Data + Print Production Variable/personalized printing +
  13. 13. 132014 Enterprise Client Summit Inserting Automate manual tasks Meet SLAs faster Achieve the lowest cost per thousand Increase revenue with a wider range of applications
  14. 14. 142014 Enterprise Client Summit Data + Printing + Inserting ++
  15. 15. 152014 Enterprise Client Summit Mail Sorting In-house Presort Services provider Hybrid Strategy
  16. 16. 162014 Enterprise Client Summit Mail sortation Thinking beyond throughput
  17. 17. 172014 Enterprise Client Summit17 Existing Batch Read Rate Improvement 99% - 95% 1.50% 94% - 90% 4.60% 89% - 85% 7.70% 84% - 80% 9.90% 79% - 70% 12.90% 69% - 60% 17.60% 59% - 40% 18.20% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 99% - 95% 94% - 90% 89% - 85% 84% - 80% 79% - 70% 69% - 60% 59% - 40% Platinum Recognition Existing Batch Read Rates OCR Technology and sorting performance
  18. 18. 182014 Enterprise Client Summit18 OCR Read Rate impact on your business Client inputs: Volume = 120,000/day 90% Current Read rate 5% Read rate improvement Discount Class Distribution – 65% 5 digit – 20% 3 digit – 8% AADC – 7% MAADC Yields over $100,000 Annually !
  19. 19. 192014 Enterprise Client Summit * Example based on postage for 120,000 letter pieces per day, meant for illustration only. Does not include additional labor costs for manual handling of mail which is not resolved via sorter. OCR Read Rate impact on your business*
  20. 20. 202014 Enterprise Client Summit OCR Read Rate impact on your business*
  21. 21. 212014 Enterprise Client Summit Presort Services Provider What to look for: • USPS Full Service compliant • Security for payables • National footprint • Delivery improvement
  22. 22. 222014 Enterprise Client Summit Mail Exchange Transport mail volume for targeted ZIP Codes to specific Operating Centers for final processing Improved delivery standards Thorough analysis of the mail volume at PBPS locations, in addition to a review of USPS service standards
  23. 23. 232014 Enterprise Client Summit Industry Trend Take a Hybrid Approach: • Direct present best qualifying mail via manifest software or MLOCR sorter • Outsource residual mail
  24. 24. 242014 Enterprise Client Summit Business Mail Bundling A new service for Presort Services clients • PBPS processes your jobs as normal, bundling any mail that is sent to the top 500 Delivery Point zip codes. The majority of these Delivery Points tie to a business address that is typically a payment lock box center, hospital or insurance processing site. • Your mail will be bundled within Priority Flat Rate boxes with other major mailers. • A note to the package recipient will explain mail was bundled from several companies to enhance the delivery experience. • For permit mail only.
  25. 25. 252014 Enterprise Client Summit Mail Piece Design Data Analysis Print Production Inserting Mail Sorting Look at the entire mailpiece lifecycle as a whole • Each step in the process is related to another • Maximum optimization is achieved when all components are aligned Putting it all Together
  26. 26. 262014 Enterprise Client Summit Questions?
  27. 27. 272014 Enterprise Client Summit Contact Information Bruce Gresham VP Business Planning & Strategy PB Presort Services Bruce.Gresham@pb.com 704.726.6728 Eric Kempton Sortation Solutions Marketing Pitney Bowes Eric.Kempton@pb.com 203.796.3955
  28. 28. 2014 Enterprise Client Summit Thank You
  29. 29. 2014 Enterprise Client Summit Appendix
  30. 30. 302014 Enterprise Client Summit USPS Incentives – 1 of 3
  31. 31. 312014 Enterprise Client Summit USPS Incentives – 2 of 3
  32. 32. 322014 Enterprise Client Summit USPS Incentives – 3 of 3

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