Postage Optimization: Take a Fresh Look
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Transcript of Postage Optimization: Take a Fresh Look
2014 Enterprise Client Summit
2014 EnterpriseClient SummitUnlock the Value ofYour Communications
2014 Enterprise Client Summit
Postage Optimization:Take A Fresh Look
Bruce Gresham Eric KemptonPB Presort Services PB Marketing
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Why take a fresh look at postage spend?
Postage accounts for 70-80% of final mail piece costFor every penny you save in postage, that is up to 5% you can add to your marginPostage: pass through vs. profit center• Strengthen
relationships• Rebates go to bottom
line
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Mail Piece Design
Data Analysis
PrintProduction
Inserting Mail Sorting
Mail Piece Lifecycle
Postage savings and workflow optimization can be gained during each stage of composition and production:
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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
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Mail Piece DesignAutomation 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
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Mail Piece DesignConsult 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
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Additional Resources
PB Customer Guide Mailpiece DesignDirect Mail Manual (DMM)
www.usps.pe.comRapid Information Bulletin Board System (RIBBS)
www.ribbs.usps.gov
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Data Analysis
Optimization Enablement tools:• Manifest Software• Predictive Presort• One Pass Solutions
House-holding
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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.
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Print Production
Make mailing part of your printing specificationsConsider the following:• Stock matters
– Do you really need 100# cover?– Ask if there is a “House” stock– Price fluctuates among brands
• Varnishes and coatings
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Data + Print Production
Variable/personalized printing
+
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Inserting
Automate manual tasksMeet SLAs fasterAchieve the lowest cost per thousandIncrease revenue with a wider range of applications
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Data + Printing + Inserting
++
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Mail Sorting
In-housePresort Services providerHybrid Strategy
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Mail sortation
Thinking beyond throughput
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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
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OCR Read Rate impact on your businessClient inputs:
Volume = 120,000/day90% 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 !
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* 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*
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OCR Read Rate impact on your business*
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Presort Services Provider
What to look for:• USPS Full Service compliant• Security for payables• National footprint• Delivery improvement
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Mail Exchange
Transport mail volume for targeted ZIP Codes to specific Operating Centers for final processingImproved delivery standards Thorough analysis of the mail volume at PBPS locations, in addition to a review of USPS service standards
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Industry Trend
Take a Hybrid Approach:• Direct present best qualifying mail via manifest
software or MLOCR sorter• Outsource residual mail
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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.
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Mail Piece Design
Data Analysis
PrintProduction
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
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Questions?
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Contact Information
Bruce GreshamVP Business Planning & StrategyPB Presort [email protected]
Eric KemptonSortation Solutions Marketing
Pitney [email protected]
203.796.3955
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Thank You
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Appendix
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USPS Incentives – 1 of 3
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USPS Incentives – 2 of 3
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USPS Incentives – 3 of 3