Mail Services White Paper The Era of Specialization: Squeezing time and money out of your domestic and international mail delivery. EXECUTIVE SUMMARY Individuals responsible for mail and shipping logistics often find themselves stuck between two dynamic forces. On the one hand, rising costs for domestic and international delivery create pressing budget demands. While at the same time, both customers and management are calling for faster delivery, improved reporting and higher degrees of personalization and privacy. Over the past few years, many companies have taken steps to upgrade their internal operations, lower costs and strengthen the flow of communication. And with such high stakes, it’s no wonder that savvy managers are looking for additional ways to improve their operations. Given the complexity of the mailstream, however, there are certain areas where even the best in-house solution can only get you so far – where squeezing those extra dollars and days out of your mailstream requires a degree of specialization that few companies can afford to build in-house. This White Paper will examine two such areas: domestic presort and international mail delivery. In both examples, you’ll discover the intrinsic value-added characteristics of a dedicated service firm and how you can leverage these benefits to your advantage. Plus, we’ll outline the seven factors you should consider in selecting such a firm, including: ■ ■ ■ ■ ■ ■ ■ Nationwide and global networks Automation technology Advanced software Volume-driven savings Specialized workflow Proprietary reporting Postal relationships In an era where the significance of time and money are magnified, working with a mailstream specialist is a smart way to squeeze even more value for your business. 2 A FOCUSED APPROACH TO EFFICIENCY AND SAVINGS With postage and delivery costs accounting for as much as 70% of mailstream expenses, specialists in the fields of International Mail Processing and Domestic Presort can offer new-found benefits for many mailers. In fact, such service providers can often improve your bottom line with no up-front investment of time or money. To determine whether such an approach is right for your business, you should consider how your current operations (or current outsourcer) stack up against the seven key attributes of a top service provider. Nationwide and global networks ensure uninterrupted service. Location is important by itself. Operating facilities near your mail-producing offices add convenience. And facilities near major international gateway airports and other USPS bulk mail centers make it easier to expedite delivery. In the post-9/11, post-Katrina environment, however, one of the biggest advantages of a global network may actually be in terms of business continuity. Having redundant operations – with excess capacity – provides the disaster recovery infrastructure needed to keep your mailstream flowing, regardless of any local or regional events. Automation increases efficiency, lowers cost. If you run the same job at the same quantity day after day, chances are you could maximize speed and productivity by investing in your own mail processing equipment. If you’re like many companies, however, your specific needs – and mail volumes – fluctuate over time. Helping you manage these fluctuations is one area where a mail specialist can help decrease your operating expenses. The right servicing firm can match the right technology to your unique requirements – regardless of mail volume. Whether that means sorting at speeds of 36,000 pieces per hour or scanning with the most accurate multi-line optical character reader, the right equipment improves mailpiece integrity, increases productivity and decreases your mail processing costs. Mail Services White Paper Advanced software improves deliverability for less. Software solutions are being introduced at an increasingly rapid pace, with each new application providing a lift in deliverability, speed, address quality or discounts earned. Proprietary reporting gives you visibility into the mailstream. In a world where knowledge is power, piece-level tracking and online reporting are becoming increasingly essential. Working with a specialist in this field, you’ll benefit from the latest barcode functionality, the most accurate move updates and corrections “on the fly” – services which are often included as part of a core offering. When you consider that for each 1% increase in coding rates your postage costs may decrease by 0.28% or more – even small gains add up fast. With the most advanced solutions, service providers can let you monitor individual mailpieces through the entire postal system – or gain advance notice of “global hot spots” and other potential disruptions. Such insights, combined with proper spend-management tools, can make it easier for you to administer your mailstream on a more proactive basis. Sheer volume provides for otherwise unobtainable discounts. In-depth postal know-how put you in the driver’s seat. Working with a large, established player in this field is comforting – and it is also far more economical. The seventh attribute of a top service provider – and perhaps one of the most important – is the depth of one’s credibility with the USPS, International Postal Administrators and other private and public carriers—as well as a deep understanding of how they work. Whether your mail is destined for Poughkeepsie or Peking, you will pay far less money when your mail is concentrated in a specific geography. When you work with a specialist that handles billions of mailpieces, your mail counts are added together with the mail counts of other leading companies to achieve discount levels that no single company could achieve on its own. When you consider that geographic density could lower postage expenses by 20% or more – without sacrificing delivery time – the advantages of a high-volume operation become quite clear. Specialized workflows add speed and security. While saving money is important, it is not the only variable to consider. Experienced managers have uncovered best-practice processes that can improve mailpiece quality, decrease the incidence of return mail and manage “in home” delivery dates with speed and precision. Having on-site postal quality inspections – before you mail is inducted into the postal service – is one advantage. The ability to coordinate and drop-ship containers closer to the end-point is another. And for many mailers, enhancements to quality and security are essential. When considering alternatives, you should inquire about MPTQM Certification (Mail Processing Total Quality Management), Six Sigma processes and overall information security. This credibility, whether expressed as USPS partnerships, Postal Qualified Wholesalers or Global Networks, go far beyond “who you know”. They impact what you can do. Imagine, for example, that your outgoing mail has a space reserved on the next outbound flight (even before it leaves the shop). Perhaps you want to gain an understanding of new postal technologies before they come to market. Or need someone to advocate your cause during a postal policy discussion. Or require that your mail have the “look and feel” of a local country. With the right service provider, you can achieve all that and more. PITNEY BOWES: YOUR CHOICE FOR WORLDCLASS MAIL SSERVICES When it comes to International Mail Processing and Domestic Presort, no one provides more value than Pitney Bowes. With 34 operating centers in the U.S. alone, Pitney Bowes Mail Services adds efficiency, quality and savings to over 20 billion mailpieces a year. With the most sophisticated security and mailpiece integrity processes in place, it’s no wonder that more of the world’s leading corporations and service bureaus rely on Pitney Bowes. 3 Understanding the value of experience and expertise, Pitney Bowes adds an added layer of specialization by handling mail through two distinct operations: Pitney Bowes IMEX and Pitney Bowes PSI. INTERNATIONAL EXPERTISE Pitney Bowes IMEX delivers any instrument, to any market, at anytime. With an unrivaled track record in global mail preparation, Pitney Bowes IMEX offers enhanced international mail processing capabilities that can meet virtually any need. Three strategically located processing centers provide IMEX clients with a secure gateway to the international mailstream. Through the proprietary PostTracSM management system, clients can monitor and track jobs through the entire process. Services include: ■ International Mail Consolidation ■ International Publication Services ■ Worldwide Direct Entry ■ In-market Direct Mail Distribution ■ Freight and Courier Services ■ Fulfillment Services To find out more, call 1-800-521-0080 or visit www.imex.pb.com. With a national network that includes over 30 operating facilities, Pitney Bowes PSI has become the nation’s most trusted resource for critical mail processing. PSI clients enjoy advanced on-line reporting, total quality management and even free mail pick up. Core services include: ■ First-Class Presort ■ Standard Mail Presort ■ Move Update Services ■ Piece-level Tracking and Delivery Confirmation To find out more, call 1-800-660-6501 or visit www.psigroupinc.com. CONCLUSION We live in an era of specialization – and whether it’s a relief pitcher in baseball, a trained pastry chef or a cardiothoracic surgeon—we can appreciate that level of heightened performance in our everyday lives. So too it is in the mailstream, where performance is measured in terms of quality, speed, security, reliability and cost-savings. In fields such as International Mail Processing and Domestic Presort, a dedicated service firm can be the difference between good and great – with insights on ways to squeeze more time and money out of mail delivery, while generating added value for your business. DOMESTIC PRESORT LEADERSHIP Pitney Bowes PSI creates an environment where every penny counts. Every year, Pitney Bowes PSI helps companies save millions of dollars on postage—with no effort and no investments. Their unique approach to mail presort services, which includes high-speed automation, intelligent workflow and high-volume discounts, has enabled PSI to create the largest workshare partnership arrangement with the USPS. The end result: postal discounts that no single mailer could achieve independently. Pitney Bowes Inc. 1 Elmcroft Road Stamford, CT 06926-0700 For more information about our products and services, please log onto our web site: www.pb.com Pitney Bowes and the Pitney Bowes Process Bar are registered trademarks of Pitney Bowes. All other trademarks are the property of their respective owners. ©2007 Pitney Bowes Inc. • All Rights Reserved An Equal Opportunity Employer. • Printed in U.S.A. • WPP1022/0307PB 4
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