postal advocate inc - why every company should be using managed services to save on mail costs
TRANSCRIPT
Background and ExperienceSpeaker: Adam Lewenberg
• President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada– Manage a portfolio of 58,000 pieces of mailing equipment for the largest
US companies.– Speak and teach nationally on mail savings and industry trends.
• Vice Co Chair- Boston Postal Customer Council and Mail Systems Management Association. CMDSS and MDC Certifications.
• Featured Writer for Mailing Systems Technology Magazine.• Worked for one of the largest mailing vendors for over 17 years
– Director of national sales for presort, tabletop inserters, addressing hardware/software and green offerings.
– Was one of the top 5 account managers nationally working with some of the nations top accounts.
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Benefits of a Managed Service Provider
Time Savings – Handle time consuming and repetitive administrative workInsight and Visibility – Provide a thorough spend analysis while you still maintain control and responsibilityExpertise – Knowledge and experience in the specific category that will allow for greater accuracy and detailBest-in-Class Tools – Complete visibility to spend using the most innovative tools, resources available and ongoing supportAllows you to focus on bottom line growth and profit
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Challenges of Managing Fleet Mailing AssetsM
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All this provides for HUGE SAVINGS OPPORTUNITIES!
Helping multi-locationorganizations streamline
their mailing costs
58,000 pieces ofequipment, managed
by Postal Advocate
Recovered over$2,000,000
in lost postage, vendorovercharges and fees
ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY
OVER $17,000,000 IN CLIENT SAVINGS
$559K54%
Average ClientSavings
Average EquipmentSavings
HOW WE DO IT• 200 + years of industry experience• Comprehensive web-based tool
providing visibility of all mail and equipment spend
• Time Savings - Assistance in fleet management
visit www.postaladvocate.com or call (888)977-MAIL(6245)
Challenges With Mailing Equipment Purchasing
1. Huge price variances for similar models at different sites across your fleet
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Example:Model Pricing Variance
Model Quantity Low High AverageHigh/Low
Ratio Total ExpenseTotal if all
at Low RateModel A 9 $348 $701 $459 2.0 $4,133 $3,132Model B 36 $345 $1,573 $801 4.6 $28,839 $12,420Model C 26 $427 $2,063 $1,296 4.8 $33,703 $11,102Model D 13 $1,427 $2,760 $2,019 1.9 $26,250 $18,551Model E 26 $1,524 $4,467 $2,666 2.9 $69,325 $39,624Model F 5 $3,251 $6,276 $5,352 1.9 $26,764 $16,255Model G 5 $7,848 $9,931 $8,931 1.3 $44,655 $39,240Total 120 $233,669 $140,324
Potential Savings $93,345
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2. Expired or non existent Master Service Agreement
3. Lack of visibility to postage spends and usage levels.Companies buying the wrong levels of equipment. In many cases spending more on equipment than postage/usage.
Spend Ratios
Postage Range # of SitesEquipment
SpendPostage Spend Spend Ratio
>$12,000 per year 2 $26,600 $63,500 0.42$1200-12,000 per year 64 $189,054 $155,441 1.22<$1,200 per year 76 $120,291 $41,890 2.87
Challenges With Mailing Equipment Purchasing
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Challenges With Mailing Equipment Purchasing
4. Vendor inventory reporting is infrequent, unavailable and confusing
5. Lease portfolios with varying end dates often going into evergreen statuses.
Lease Renewal DatesLease Expiration Year # of Sites Value
2013 or Before 19 $28,404
2014 9 $12,198
2015 34 $62,193
2016 26 $54,455
2017 19 $30,795
2018-20 22 $35,691
Total 129 $223,736
68% of your leases are coming up over the next
year.
Mailing Fleet Asset Management Process
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Request/Build equipment inventory and costs.
Match equipment to postage spends.
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Customer Validation Email
Reach out to locations to validate questionable charges.
Work with vendors - Eliminating unneeded units and fees.
345 Document all cancellations, savings and
notes.
Personalized site asset validation:
Equipment Savings Process
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Customized Renewal Email
Implement renewals, terminations and new equipment needs.
Analyze current pricing and terms.
Set Standardized equipment rates and updated MSA’s.
Document all new equipment, savings and notes.
Work with locations to define needs and show options.
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Postal Advocate Equipment Savings StatsSavings Type # of Transactions Total Savings % of SavingsEquip Savings: New 145 449,364.00$ Equip Savings: Renewal 1679 12,304,752.00$ Equip Savings: Terminate 619 1,230,697.00$ Total 2443 13,984,813.00$ 54%
Eliminate Mailing Vendor Avoidable Fees
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Monitor future invoices to validate they do not return.
Create online accounts on the vendors websites.
Link every location, account, meter and postage refill.
Document all savings and notes.
Identify avoidable fees and develop plans for their removal.
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While simplifying the billing and payable process
PostageRefil l Fees - Rentals $0-20 each
Postage Advance Fees Included or up to 1% of the Advance
Postage Advance Late Fees 0-15% of the Advance
Postage Advance Finance Charges 15% or higher APR
Overlimit Credit Charge Varies by Vendor
Annual Fee Rewards Program Varies by Vendor
LeaseLate Fees Varies by Vendor and Lease Value
Insurance - Leases Only
Varies by Vendor and Lease Value - Automatic enrollment unless proof
insurance is provided.
Mailing System FeesPostal Advocate Avoidable Fees
Savings Stats
Savings Type # of Transactions Total SavingsFee Savings: Late/Fin Charges 75 86,867.00$ Fee Savings: Loyalty Prog 271 20,630.00$ Fee Savings: Remove Insurance 883 191,672.00$ Other 11 90,884.00$ Total 1240 390,053.00$
Eliminate Mailing Vendor Overcharges
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Continue to monitor future bills looking for overcharges.
Document all savings and notes.
Identify transactions being overcharged.
Format requests for refunds/credits.
Validate refunds have been received.
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We look at every invoice to make sure you are paying the correct rates.
Typical Vendor OverchargesInvoices not giving national account discounts.Meter, maintenance and rate change charges when included on a lease.Bil ls for equipment from closed sites.Reset and advance postage fees that should be included.Loyalty points that go undredeemed or cashed in for personal use.
Postal Advocate Credit/Overcharges Savings Stats
Savings Type # of Transactions Total SavingsVendor Credit: Equipment 296 633,858.00$
Recover Lost Postage from Dormant Accounts
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Validate that funds have been received back.
Document all savings and notes.
Create online visibility to every postage account and refill.
Format vendor requests to validate funds.
Fill in refund request forms.
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We track down postage from terminated or forgotten meter accounts.
We have found over $2,000,000 in the last 24 months mostly residing
with the mailing vendors.
The majority of funds we find are still with the mailing vendors.
Postal Advocate Lost Postage/Recovery Stats
enterprise Advocate – Enterprise Asset Management System -Dashboard
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Highlights• Easy access to all mail spends.• Visibility to fees and savings.• All account numbers are stored in one place.• Simple to drill down to an individual location or invoice.
Spend Ratio Site equipment
cost compared to the postage usage
*The data above is for demonstrative purposes only. Data does not represent true spends and costs.
enterprise Advocate - Dashboard
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*The data above is for demonstrative purposes only. Data does not represent true spends and costs.
enterprise Advocate - Dashboard
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Highlights• Complete visibility to all
mailing spends by location.
• Detail for multiple vendors.
• All account numbers are stored in one simple to access place.
*The data above is for demonstrative purposes only. Data does not represent true spends and costs.
Postal Advocate - No Risk Savings Model
We will do a detailed no cost or obligation analysis outlining savings potential
• Fees – 40% of any documented savings (10% for State Unclaimed Funds)– Only when the savings has been
implemented or funds recovered.– Detailed savings statements and
invoices documenting each transaction.
– Online visibility to all savings and fees.
– No cost web based enterprise asset management system.
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No Cost or Obligation Mail Audit• Completed in 2-3 weeks• Outlines spend and specific savings opportunities• Minimal customer involvement
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Savings Summary Locations Meter RentalsMaintenance Agreements
On Call Maintenance Lease Total Postage Spend Ratio
0.00
Item Current 2015 2016 2017 SavingsCombined Savings
Equipment Costs
Avoidable Fees(Late Fees, Finance Charges, Equip Insurance, Loyalty Plans)
Contract Violations (Supply, maintenance, meter discounts, overcharges)
Lost Postage Funds (Meter Accounts)
Lost USPS Permit Funds
Total $0 $0 $0 $0 $0 $0
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RISK-FREE NO COST SAVINGS
ANALYSIS3 STEPS
COLLECT11 STEPS
ANALYSIS23 STEPS
CREATE PLAN4 STEPS
IDENTIFY LOST POSTAGE
8 STEPS
CREATE VISIBILITY
4 STEPS
DEFINING SAVINGS IMPLEMENTATION
STEPS7 STEPS
DEFINE ONGOING EAM
STEPS14 STEPS
CLIENT
POSTAL ADVOCATE 74-POINT ENTERPRISE ASSET MANAGEMENT AUDIT PROCESS
Summary
Visibility: We will provide you a web dashboard to all mail spends, applications and pricing.
Savings: We will be monitoring your account looking for savings in equipment and fees.
Recovery: We will find and recover any lost funds or overpayments from dormant/orphaned accounts.
Simplicity: We will make mail related spends easy to manage.
Support: We represent the best in the industry and will act as your advocate on all mail related questions.
Risk Free: You only pay us when we can document specific savings.
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