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How Large Organizations Can Save on Mailing Fleet Costs

How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

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Page 1: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

How Large Organizations Can Save on Mailing Fleet Costs

Page 2: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Adam Lewenberg - Background and Experience

• President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada– Manage a portfolio of 85,000 pieces of mailing equipment for the largest

US companies.– Speak and teach nationally on mail savings and industry trends.

• Industry Co Chair- Boston Postal Customer Council/Mail Systems Management Association member. 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.

• Not affiliated with any mailing vendor - Unbiased advice.

September 20, 2017 2

Page 3: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

What We’re Covering1. Challenges – The challenges organizations with large mailing fleets face2. Visibility and Analysis – How gaining a thorough understanding of this

complex category will save time, reduce costs and increase efficiency across your fleet

3. Equipment Savings Process – The process to reduce mailing equipment costs without compromising vendor quality or service

4. Eliminating Vendor Fees/Overcharges – Steps to finding mailing vendor fees and overcharges

5. Lost Postage Recovery – Tracking down lost postage for closed locations, mergers and dormant accounts

6. Developing an Equipment Purchasing Strategy7. How We Can Help - Best-in-Class Tools – Complete visibility to spend

using the most innovative tools, resources available along with on-going maintenance and support

September 20, 2017 3

Page 4: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

4

Challenges of Managing Fleet Mailing AssetsAreas for improvement

Multiple postage

accounts to fund and maintain

Difficult to assess needs

or requirements

No centralized oversight

No control of rogue spend

Resources or Time to Execute

No published pricing for

comparison

Poor Visibility

Inconsistent prices for

similar equipment

Unclearinvoices

Connecting Devices to

the Network

Page 5: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Challenges With Mailing Equipment Purchasing

1. Huge price variances for similar models at different locations across your fleet

September 20, 2017 5

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

Page 6: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

September 20, 2017 6

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

Main Cause – Reliance on mailing vendor to work with the locations to define requirements combined with declining mail volumes.

Page 7: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

September 20, 2017 7

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.

Page 8: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Equipment Savings Process

September 20, 2017 8

Optimized Mailing Fleet Asset Management1. Gain visibility to your equipment and spends.2. Validate questionable charges.3. Negotiate enterprise pricing and terms.4. Work with locations on equipment changes.5. Eliminate fees and overcharges6. Maintain postage balances and claim lost funds.7. Continual review to ensure savings.

This process leads to 30-70% savings!

Page 9: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Analysis and Visibility

• Get reports from your vendors that list:– Account Numbers (Install, Lease, Prepaid and Advance Postage)– Lease Information – Rate, Term, End of Lease, Items covered.– Meter rentals and maintenance agreements.– Model, serial number and description of every item.

• Go to accounts payable and pull spend reports from the main mail vendors and USPS.

• Enter your account numbers on the vendor websites.• Monitor your inventory, invoices and postage balances online

(Recommended to do this monthly).• Find all active locations with equipment.• Set up a schedule for continual review.

September 20, 2017 9

Page 10: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Eliminating Vendor Fees/Overcharges• Pay bills on time.• Look at each invoice and validate all

chargeable items.• Cancel vendor equipment insurance.• Terminate chargeable loyalty programs.• Make sure postage refill and advance

charges are included or monitored.

September 20, 2017 10

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 Fees

We find companies paying tens of thousands in fees and overcharges that can be recovered or eliminated

for the future.Postal Advocate Avoidable Fees and

Overcharges Savings Stats4266 Transactions - $5,473,438

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.

Page 11: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Lost Postage Recovery

• We have found over $2,460,000 in lost postage sitting in dormant postage accounts. Plus over 27,000 transactions turned over to the states. This happens because:– Offices close, merge or just turn in their meters.– The money is expensed once sent in for postage.– The advance account is used when funds sit idle in the prepaid.

• Steps to find money.– Find account numbers of your current and past meters.– Enter these account numbers online on the vendors website to see if

any data is available.– Contact your meter vendor to validate funds available.– Check the unclaimed funds databases to see if funds were turned in.

Postal Advocate can research these funds and help you get them returned.

September 20, 2017 11

Page 12: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Developing an Equipment Purchasing Strategy

• Use national spend to negotiate better rates.

• Consider running a bid between the main mailing vendors. (Pitney Bowes, Neopost, FP, Stamps.com)

• Negotiate Master Service Agreement and Terms.

• Define the order process inside your organization.– Purchase vs. lease vs. rental?– How are the equipment needs defined?

– Where are approvals done?– How can the policies be enforced?

September 20, 2017 12

How Postal Advocate Can Help

We can pull this spend together for the US and Canada.

We have bid templates ready that we have used to negotiated for the largest mailing fleets.

We can add and review terms to protect you for the future.

We can guide you through your options.

Postal Advocate will work with your locations to show options and help implement changes.

Postal Advocate will manage this process to ensure rules are being followed.

Page 13: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

How Postal Advocate Can Help

• We can work with all vendor’s data and can build this visibility.

• We maintain this data in our enterpriseAdvocate System and provide you access.

• We update this data monthly.• We use this data to drive savings through your portfolio.

September 20, 2017 13

Page 14: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Enterprise Advocate – Multi Location System - Dashboard

September 20, 2017 14

The data above is for demonstrative purposes only. Data does not represent true spends and costs.

Page 15: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Enterprise Advocate – Multi Location System - Dashboard

September 20, 2017 15

Highlights• Simple 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.

The data above is for demonstrative purposes only. Data does not represent true spends and costs.

Spend Ratio What are we

spending on the equipment

compared to the postage used.

Page 16: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Enterprise Advocate – Location View

September 20, 2017 16

Page 17: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Validate Equipment Spends with LocationsWe typically find 5-15% of a mailing fleet is not needed and can be returned.• Bills often sent to accounts payable with limited review.• Locations not surveyed about the equipment at the site.• Little understanding of the equipment listed on bills and reports.• Vendors have little incentive to validate suspect equipment because of lost

revenue.• Equipment may be sitting in storage with charges accruing.

September 20, 2017 17

Criteria for Search:• Meters not filled for over 6 months.• Expired leases.• Maintenance and meter rentals.• Equipment over 5 years old.• Folders, inserters, openers, shipping

and tracking systems.

Page 18: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Postal Advocate Validation Process

September 20, 2017 18

1. Find suspect equipment and charges.

2. Contact the location to validate needs. (See below).

3. Implement changes and cancellations.

Page 19: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Renewal Process

• Who works with the locations to define the needs and provide options? (Vendor, staff)

• What review process is set up to make sure it is the right solution?• How do you protect against:

– Evergreen clauses– Remaining balances – Unauthorized lease extensions – Unneeded equipment or wrongly sized models– Locations not getting national account discounts

• Who follows up with each location to make sure new equipment is set up and the old equipment was removed?

September 20, 2017 19

Page 20: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Postal AdvocateEquipment Renewal Process

September 20, 2017 20

Step 1: 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.

1

2

3

4

5

Postal Advocate Equipment Savings StatsSavings Type

# of Transactions Total Savings % of Savings

Equip Savings: New 358 804,045$ Equip Savings: Renewal 4113 26,403,748$ Equip Savings: Terminate 2375 1,928,986$

Total 6846 29,136,779$ 60%

Page 21: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Customized Renewal Email

September 20, 2017 21

Detailed Location Information

Company Defined Purchasing Process.

Compare Current Equipment and Costs to new options.

Detailed description on all equipment.

Web, PDF and Video links for more information.

Page 22: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Step 2: Equipment Change Request Form

September 20, 2017 22

Page 23: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Step 3: Equipment Ordered Validation with Instructions

September 20, 2017 23

Page 24: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Step 4: Client Validates Completed Request

September 20, 2017 24

Page 25: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Helping multi-locationorganizations streamline

their mailing costs

Over 85,000 pieces ofequipment, managed

by Postal Advocate

Recovered over$7,994,875

in lost postage, vendorovercharges and fees

ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY

OVER $32,000,000 IN CLIENT SAVINGS

$893K60%

Average ClientSavings

Average EquipmentSavings

HOW WE DO IT• 240+ 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)

Page 26: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Sign Limited AgencyAgreement/Kick-Off Call.

Provide copies of vendor invoices, AP export,

location list, equipment inventory list.

Present savings opportunities and get client approval.

Postal Advocate provides ongoing support,

manages renewals, billingand vendor compliance.

Provide enterprise visibility of all spend, costs and

documented savings through enterpriseAdvocate.

Provide client log-in.

1 2

3

4 5 6

HOW ITWORKS

Work with current vendor to build population report, contract terms/start/end dates,

postage volumes, costs.

Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage.

Identify savings opportunities.

Submit vendor credit requests, lost postage forms and

eliminate avoidable fees.

Negotiate pricing. Create catalog.

Work with locations -asset validation, rightsize, termination…

Full implementation of savings.

visit www.postaladvocate.com or call (888)977-MAIL(6245)

Conduct Analysis

NO COST – AUDIT PHASE CONTRACTED CLIENT

Page 27: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit
Page 28: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Free No Obligation Mailing Fleet Analysis

• Completed in 2-3 weeks• Outlines, spend and specific savings opportunities• Minimal client involvement

September 20, 2017 28

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

Page 29: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Fleet Cost Savings Process

September 20, 2017 29

Summary

Optimized Mailing Fleet Asset Management1. Gain visibility to your equipment and spends.2. Validate questionable charges.3. Negotiate enterprise pricing and terms.4. Work with locations on equipment changes.5. Eliminate fees and overcharges6. Maintain postage balances and claim lost funds.7. Continual review to ensure savings.

This process leads to 30-70% savings!

Page 30: How Large Organizations Can Save on Mailing Fleet Costs · How Large Organizations Can Save on Mailing Fleet Costs. ... • President of Postal Advocate Inc. – The only mail audit

Contact info: (20pt)

September 20, 2017 30

Questions?

Contact: Adam Lewenberg - President888-977-MAIL X [email protected]