Ship With PSI

1
April 2009 Open House and Expo
Presenter Jim Spates
2
Knowledge is Power

• Elite 8 - Learn and Save Methodologies
• 8 proven methods to reduce mailing and
• mailroom shipping costs

3
Knowledge is Power

• Reduce your carbon footprint
• Go Lean and Green! Its just better for
  everything and reduces costs
• Recycle ink cartridges for all printing devices
  including postage equipment. If you do not have
  a resource for postage meter cartridges, call us.
  We would be happy to stop by and pick them up
• Promote duplexing throughout your organization
  and gently remind the troops, consistently
• Consolidate like delivery addresses into one
  envelope. Save on material as well as postage

4
Knowledge is Power

• Reduce your carbon footprint
• Introduce reusable envelopes to mail items back
  forth to branch locations
• Use UPS mail back envelopes made of 100 recycled
  fiber and the envelopes are free
• Reduce the print margin from 1 ¼ to ¾. Doing
  so would save enough trees in one year to fill
  the state of Rhode Island
• Do not mail zero balance statements
• Research electronic mailing options email, efax,
  secure electronic invoicing and statement
  processing
• Promote and communicate your Lean and Green
  initiative to all of your internal and external
  clients

5
Knowledge is Power

• Reduce your carbon footprint

Send your ready to mail, ready to fax, or ready
to e-mail documents in one print stream
Mail Inserter
Printer
Document Control Systems analyze the data
and ensures full automatic control of print
output and digital distribution. this eliminates
hours of manually formatting files for delivery.
Archives
E-Mail
Fax
Mail Machine
6
Knowledge is Power

• Be Accountable
• Companies that do not charge back postage and
  overnight costs typically lose upwards of 26 of
  these costs (Morgan Stanley survey 2008)
• Do you currently capture some or all of the cost
  and chargeback's to internal clients?
• Doing so provides the following
• Senior management visibility to each departments
  spending habits
• Increased awareness of annual increases by all
  carriers USPS, UPS, FedEx. Avg increase of up
  to 8.5 depending on the make up of the mail
  piece or parcel
• Assigns ownership to an expense that typically
  gets overlooked and can be easily reduced in most
  cases
• Allows for more accurate budgeting of expenses

7
Knowledge is Power

• How to Deploy a Solution
• Design a mailroom request form requiring 1 week
  advance notice with description of contents and
  delivery objective for mailings of 50 pieces or
  more
• Research your mailing systems standard features
  and options that may be added to provide you with
  a department, class and volume breakdown Oh,
  we dont do any priority mail!
• Track and analyze monthly mail runs that are over
  200 pieces. Could they have gone out standard
  mail and received a 39 discount or could we have
  mailed it with our presort partner at a 9
  discount with faster delivery? Oh, we dont do
  bulk mailings, only monthly product notices!

8
Knowledge is Power

• How to Deploy a Solution
• Use free carrier systems reporting functions or
  research a vendor solution that captures
  overnight mail analysis reports It has to be
  there tomorrow!
• Analyze special services usage and research why
  they are being used It has to go Certified
  Return Receipt because I need to proved I mailed
  it!
• Be and hold people accountable for what they
  spend! You will be shocked how your costs will
  go down.

9
Knowledge is Power

• Design on a Dime
• or
• how to get your mail in shape before its too
  late?
• Impact Costs could be up to 39 higher due to
  the USPS shape based pricing that was instituted
  2 years ago.

10
Knowledge is Power

• Design on a Dime
• How has your budget been affected?
• Returned mail or mail received postage due is now
  in play
• Who in your organization is aware or is not aware
  of the SBP stipulation?
• What matters? (Review)
• Letter Flat Parcel
• Size Thickness Weight Rigidity
• Its how you make the bed hand folding versus
  machine foldRough rules of thumb

11
Knowledge is Power

• Design on a Dime
• Example
• Rough Rules of Thumb
• 8½ x 11, 20 lb. bond up to 10 pages use 10
  envelope
• 8½ x 11 with 9 return up to 8 pages use 10
  envelope
• 8½ x 11, 20 lb bond, up to 11 21 pages use 6
  x 9½ envelope
• 8½ x 11 with 9 return up to 9-19 pages use 6 x
  9½ envelope
• 8½ x 11, 20 lb bond, up to 21 up pages use 9
  x 12 flat envelope
• 8½ x 11, 20 lb bond with 9 return envelope, 19
  pages up, use 9 x 12 flat envelope
• Use of the IMS Page Calculator

12
Knowledge is Power

• Design on a Dime
• Consider
• Duplex Printing. Lighter Greener
• Specialized packaging for CDs, parcels, flats
  Conformer Expansion Envelope
• Conduct a meeting with your marketing and design
  team to help promote these requirements and be
  involved in the approval process of future mail
  pieces
• Get buy-in from senior management to require
  the use of the IMS Postage Guide and deploy on
  all users desktop or network folder

13
Knowledge is Power

• Actual Case Study
• Our client mails 1,200 to 1,300 multi-page
  invoices to their customer base consisting of 2
  26 pages (8½ x 11 in 9 x 12 flat envelope). We
  re-weighed each piece after mail was processed
  and sorted by weight.
• We hand-counted each category from 1.02 to 4.02
  and put the results into Excel...

14
Knowledge is Power
Case Study Monthly Mail Volume
Savings
Total
Should Have Mailed _at_
Piece Count
Total
Mailed _at_
Piece Count
27.47
28.14
0.42
67
55.61
0.83
67
311.60
448.40
0.59
760
760.00
1.00
760
148.42
275.12
0.76
362
423.54
1.17
362
36.90
83.70
0.93
90
120.60
1.34
90
524.39
835.36
1279
1,359.75
1279
Annual Postage Prior to Mail Optimization 16,317
.00
Annual Total After Mail Optimization 10,024.30
Annual Savings 6,292.68
15
Knowledge is Power

• Actual Case Study Results
• 38 savings in postage
• Reduction in material costs
• Leaner and Greener
• 2 hours in manpower to execute the study
• Collect - quantify - report

16
Knowledge is Power

• Work Sharing
• Definition Judy Spates assigns work list and
  posts on refrigerator in kitchen (also known as
  Honey Do)
• Jim Spates completes work list
• Or
• Present automation compatible mail that meets the
  USPS standards to earn a discount and speed
  deliverability

17
Knowledge is Power

• Work Sharing
• Components
• Volume 500 1st Class / 200 or 50 lbs standard
  mail
• Complete Correct Address
• CASS-PAVE N.C.O.A Certified in the last 95 days
• Pre-sorted trayed to the finest level
• Preparation of a 3602 Postage mailing statement
• Delivery to the USPS

18
Knowledge is Power

• Work Sharing
• Potential Savings from 0.42 cents 1 oz piece
  rate
• Mixed AADC 3-Digit Automation Non
  Profit
• 9 15 74
• 38.00/K 63.00/K 310.00/K
• Certified software and some tray preparation is
  required along with documentation and delivery to
  the USPS.

19
Knowledge is Power

• Work Sharing Outsource
• Local Option - Access Direct Presort Bureau,
  Farmingdale NY
• Client meters mail at a reduced agreed upon rate.
  Presort firm co-mingles the mail with other firms
  in the same fashion as the USPS.
• Mail is labeled and scheduled for the correct
  flight or truck via Postal One, then delivered
  accordingly to the USPS.
• Mail is typically injected into the mail stream
  next day, yet you gain 1 to 2 days transit time
  due to sorting and reservation function of Postal
  One.
• PCH Test Study of Postal One substantiates this
  claim over the last 2 ½ years

20
Knowledge is Power

• Work Sharing Outsource
• Potential savings from 0.42 cent 1 oz piece
  rate
• Low Mid High
• 26.00/K 38.00/K 51.00/K
• Access will pick up mail at your facility based
  on volume at
• no charge or allow you to drop off at their
  Farmingdale site.

21
Knowledge is Power

• Work Sharing Outsource
• Access Direct is ideal for
• Monthly Statements
• Daily Invoices
• Quarterly Newsletters
• Occasional Promotional Mailings

22
Elite 8 Learn Save

• Negotiate carrier contracts
• Volume is not a factor, even the smallest
  mailer/shipper can get a discount. Sometimes you
  just need to ask.
• Collect data
• Review carrier invoices to get a feel for volume
  package types
• Educate yourself on accessorial definitions
  carrier websites provide detailed description of
  accessorials
• Speak to your internal external clients. Get a
  feel for their level of satisfaction
  relationship with your carrier.

23
Knowledge is Power

• Negotiate carrier contracts
• Request detail data from all carriers.
• We are conducting a study of our mailing
  shipping costs and would ask that you provide us
  with
• Copy of contract currently in place
• 12 months detail on piece volume by class,
  weight, zone, accessorial charges and shipments
  delivered late.
• Once the data is collected, review analyze the
  results (we can assist if you like)

24
Knowledge is Power

• Negotiate carrier contracts
• Look for the following
• MPC (Minimum Package Charge) 4.57 commercial
• Discount Level by Class Weight
• Favorite trick Carriers show huge discounts for
  classes and weight categories you dont use
• No Discount for Value Added Services
• English No discount on accessorial up charges
• Insurance Address Correction Residential
  Delivery - Fuel Surcharge Delivery Area
  Surcharges DIM rated packages (L x W
  x H / 194 etc. etc. etc.)

25
Knowledge is Power

• Negotiate carrier contracts
• Refunds due and never collected (common)
• Request a new proposal based on your findings
• Engage multiple carriers even the Post Office
  is discounting these days
• Engage a 3rd party professional if your volumes
  exceed 200K/year. Tony Nuzzio from ICC Logistics
  will address this subject later today.

26
Knowledge is Power

• Rate Shop Rate Shop Rate Shop
• We have experienced a significant abuse of
  carrier service levels and you need to put a stop
  to it! Morgan Stanley carrier survey 2008 states
  that you may recover up to 38 of your cost if
  you rate shop intelligently.
• What does rate shop actually mean?

27
Knowledge is Power

• Rate Shop Rate Shop Rate Shop
• Compare base rates after discounts between
  carriers
• Compare accessorial up charges after discounts
  between carriers (residential insurance fuel
  surcharge DIM rated)
• Compare time in transit goals vs. total rate
  between carriers
• Compare what we want to what the client expects
  (the sales guy again!)
• Fulfill our SLAs (Service Level Agreement)
• Clarify who pays the freight

28
Knowledge is Power

• How can you accomplish effective rate shopping?
• Document your SLAs
• If there arent any, build it for both internal
  external clients
• Educate your team the sales guy may not know
  about the 300 mile rule. Ground - next day
  definite
• Engage multiply carriers do not keep all your
  eggs in one basket
• Deploy a quick reference guide within your
  organization

29
Knowledge is Power

• Example
• 1 lb Letter going from
• Hauppauge NY
• to Hackensack NJ

Ground Fuel Surcharge 2.5 Air Fuel Surcharge
11.5
30
Knowledge is Power

• Dont need a guaranty
• but want the same look
• and feelTry
• USPS Priority Mail at 4.95
• 4.80 with Electronic
• Delivery Confirmation
• (PC Postage)

31
Knowledge is Power

• Carrier Tools
• UPS Worldship Web Site API Airbills
• FedEx Campus Ship FedEx Café USPS Web Site
• Stand alone applications do not allow for
  automated rate
• shopping quite purposefully
• You can, through proper education and policing,
  help curb the
• abuse

32
Knowledge is Power

• Build and Use a Shipment Request Form
• To
• From
• Department
• Contents
• Delivery Requirement/Time in Transit
• Tracking Requirement
• Research Vendor solutions that work with free
  carrier
• systems, giving you multiple options

33
Knowledge is Power

• Research Vendor solutions that provide multiple
  carrier
• options in one integrated, intelligent box

34
Knowledge is Power

• Address Hygiene
• What is the impact?
• Return mail costs your organization plenty
• .50 manual return no automation
• .42 outgoing postage
• .15 material envelope etc.
• Sub 1.07 each (107.00 per 100)
• 8.00 UPS/FedEx incorrect or incomplete
  address
• (8.00 ground, 12.00 air)
• 1.95 added to bill due to address not being
  classified as residential in your database
• Sub 11.02 each (1,102.00 per 100)

35
Knowledge is Power

• Address Hygiene
• The Real Cost
• fuggedaboutit
• Lost sales/relationship opportunity
• Significant reduction in cash flow
• Re-ship due to client move or extremely poor
  address quality
• priceless

36
Knowledge is Power

• Address Hygiene
• Corrective Measures
• Go to where the address is born
• Order entry
• Web interface
• Phone orders
• Fax to data entry
• CRM
• Customer Service Database
• FedEx Cafe
• UPS Worldship

37
Knowledge is Power

• Address Hygiene
• Multiple Data Bases let me count the ways!
• Invest in or share address hygiene tools such as
  (Satori Capture) to cleanse an address where its
  born.
• Deploy a Customer Communication Management (CCM)
  initiative

38
Knowledge is Power

• Take Ownership and Educate
• Assess your operation and select one additional
  target per month to deploy
• Add additional value to your organization in
  difficult economic times
• Share the resources amongst the masses We
  dont know what we dont know
• Promote the importance of mailing shipping
  accuracy CCM Customer
  Communications Management
• Use IMS as a Resource

39
Knowledge is Power

• Thank You
• For Attending