Mailing/Fulfillment - Postal Trends

There is an age-old procurement debate over the merits of sourcing with a single supplier vs. multiple suppliers. In the world of parcel carrier services, which is best?

Those in favor of single sourcing — or limiting the number of suppliers for a particular service or commodity to as few as possible — believe there are enormous advantages gained, including reduced costs and improved efficiencies. There's less management, less complexity, and economies of scale are leveraged to get the best deal possible.

Labor costs have increased by 10% to 15% during the past five years, according to our research. But the measure of true productivity (units of work measured over a time period) has remained relatively flat. That means there's been an increase in the labor cost per unit of work performed.

And when you consider that employee turnover rates of 25% or higher are not uncommon, it's clear you need to make the most of your return on investment in the operations labor force. If you can better manage your labor cost, you will improve the bottom line.

With the 2010 FedEx and UPS general rate increases now implemented, many shippers are feeling the squeeze on their transportation dollars.

Needless to say, improvements to your carrier pricing can ensure greater profitability and marketplace competitiveness. While there are many strategies shippers can use to reduce shipping costs, we'll focus on carrier contract negotiations. Here are five key areas to consider.

MINE YOUR DISTRIBUTION DATA
Before stepping up to the negotiating table, develop reports to understand service usage, seasonality, weight ranges, zonal distribution, nonfreight (accessorial) charges, cost per shipment, residential/commercial mix and other metrics.

Has your parcel carrier rep ever said that you have the best rates in his/her territory? That they can't believe their pricing department authorized pricing so low?

Technology automates production and amplifies impact of complex, targeted multipart direct mail programs.

An efficient operation isn’t a luxury; it’s a necessity these days. In the fulfillment business, this means putting material handling processes under the microscope to identify areas of inefficiencies that need to be tweaked or even completely overhauled to improve operating costs.

PRESIDENT DWIGHT D. Eisenhower had a dream of developing a program that would promote international understanding and friendship. So in 1956, Eisenhower founded People to People, basing the organization on his idea that direct contact between ordinary citizens from different parts of the world can encourage cultural understanding and world peace. Eight U.S. Presidents have served as the honorary chairman of People to People International.

James Euchner, Pitney Bowes Vice President of Advanced Technology & Chief eBusiness Officer discusses Pitney Bowes’ customer-focused innovation.

Printers that are offering mail processing and fulfillment services, or are considering it, should make plans to attend Graph Expo in Chicago, September 9-12 (www.gasc.org). A Mailing & Fulfillment Center will be in full operation, giving you a chance to see all the latest equipment and software in action. In addition, a special theater will be set up offering numerous educational sessions. Here’s the schedule: SUNDAY, SEPTEMBER 9 11:00 am – 12:00 noon What You Need to Know About Cameras and Matching Systems 12:30 – 1:30 pm What Have They Done to My Barcode? 2:00 – 3:00 pm Become a Direct Mail Champion –

INCREASINGLY, PRINTERS are entering the fulfillment business sector to make their operations more viable in the future. However, most printers are not reaping the rewards of establishing a fulfillment operation. Here are several facts to substantiate this premise: n 88 percent of printers adopted fulfillment at their clients’ request. Many of those 88 percent admit they were placed in a defensive posture to keep the printing. n 50 percent of the printers surveyed in 2006 did not know if they were making a profit in their fulfillment operations. And 25 percent did not have a separate P&L. The cost of entry for fulfillment is