Why Mailing Fleet Asset Management Is So Important (Your Roadmap to 30 70% Savings) Presentation

Why Mailing Fleet Asset Management is So Important (Your Roadmap to 30-70% Savings)

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 58,000 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 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.

February 10, 2016 2

Equipment Savings Process

February 10, 2016 3

Current Challenges

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!

February 10, 2016 4

Challenges of Managing Fleet Mailing AssetsM

AILI

NG

SPE

ND

–LO

W

PRIO

RIT

Y

LAC

K O

F U

ND

ERST

SAN

DIN

G

OF

MAI

L C

ATEG

ORY

NO

CEN

TRAL

IZED

O

VER

SIG

HT

NO

CO

NTR

OL

OF

RO

GU

E SP

END

DIF

FIC

ULT

TO

AS

SESS

NEE

DS

OR

R

EQU

IREM

ENTS

NO

PU

BLI

SHED

PR

ICIN

G F

OR

C

OM

PAR

ISO

N

INC

ON

SIST

ENT

PRIC

ES F

OR

SIM

ILAR

EQ

UIP

MEN

T

POO

R V

ISIB

ILIT

Y

CO

NFU

SIN

G

INVO

ICES

MU

LTIP

LE P

OST

AGE

ACC

OU

NTS

TO

FU

ND

AN

D M

AIN

TAIN

VEN

DO

R H

AS T

HE

ADVA

NTA

GE

IN

NEG

OTI

ATIO

NS

All this provides for HUGE SAVINGS OPPORTUNITIES!

Challenges With Mailing Equipment Purchasing

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

February 10, 2016 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

February 10, 2016 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


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

February 10, 2016 7


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.

Visibility and OversightMost important step• 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.

February 10, 2016 8

How Postal Advocate can help

• We can work with all vendors 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.

February 10, 2016 9

enterprise Advocate – Fleet Asset Management System -Dashboard

February 10, 2016 10

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– Multi Location System


Highlights• Complete visibility to all

mailing spends by location.

• Can see 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.

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.


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.

Postal Advocate Validation Process


1. Find suspect equipment and charges.

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

3. Implement changes and cancellations.

Develop an Equipment Purchasing StrategyHow Postal Advocate Can Help

• Use national spend to negotiate better rates.– We can pull this spend together for the US and Canada.

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

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

• Negotiate Master Service Agreement and Terms.– We can add and review terms to protect you for the future.

• Define the order process inside your organization.– Purchase vs. lease vs. rental?

• We can guide you through your options.

– How are the equipment needs defined?• Postal Advocate will work with your sites to show options and help implement changes.

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

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


Choose the right system for each location


Low Mid HighTypical Monthly Postage Use <$500 $500-5,000 >$5,000

Equipment Speed 15-45 Letters/Min 50-180 Letters/Min 70-310 Letters/Min

Feeding Hand Feed Hand or Auto Feed Auto Feed

Sealing Some Models Included Included

Meter Tapes For Oversized Items

Strip Tape Sheets (Fed like an envelope)

Strip Tape Dispenser

Strip Tape or Roll Tape Dispenser

Weighing (External Scale) 2-10LB 2-149LB 2-149LB

Weighing (Internal Scale) N/A Higher end models Optional

Postal Accounting Summary Info onlySummary or

Transaction LevelSummary or

Transaction Level

Additional Printing CapabilitySimple Meter Ads

and EndorsementsSimple Meter Ads

and Endorsements

Optional - Customized return

address and Graphics Printing

Space Requirements - LxWxH < 29"x18"x13"30"x15"x12"-80"x25"x24"

58"x23"x17"-104"x23"x33"

Typical Supply Costs - Ink and Tape (Per Impression)

Ink - $.01-.06, Tape $.05-.13

Ink - $.003-.03, Tape $.04-.08

Ink - $.003-.005, Tape $.01-.04

Typical Monthly Lease Price $25-125 $125-500 >$500

Mailing System Type

Additional Equipment Guides can be found on our blog: www.postaladvocate.com/blog• Inserters• Addressing Systems• Envelope Printers• Mail Automation Software• Incoming Tracking Systems• Shipping Systems• PC Postage• Letter Openers and Extractors• Mail Accounting Systems

http://www.postaladvocate.com/blog

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?


Postal AdvocateEquipment Renewal Process


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 Stats

Renewal Email


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.

Step 2: Equipment Change Request Form


Step 3: Equipment Ordered Validation with Instructions


Step 4: Client Validates Completed Request


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.


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 Stats

1536 Transactions - $1,023,911

Postage Funding – Prepay or Advance

• Prepay Advantages – No fees• Advance Advantages – Convenience• Don’t be fooled by earning interest on prepaid balances.• Choose one postage payment method and stick with it - don’t flip

flop.• Check balances in the meter and in the postage account.• Think twice about ACH.• Consolidate into master accounts whenever possible.• Postal Advocate can help manage your postage accounts to ensure

optimal funding.


Lost Postage Recovery

• We have found over $2,200,000 in lost postage sitting in dormant postage accounts. Plus over 21,000 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 quickly.


Cash in Loyalty Points

• Pitney Bowes has a rewards program that gives you points for purchasing postage, supplies or other services that can be linked to the Purchase Power account.

• These points oftentimes sit idle or are not understood.• Points can be turned in for:

– Purchase power credits that can be used for postage and supplies.– Personal gifts

Postal Advocate can help cash in these points for you before they expire!


Supplies Strategies

• Buy in bulk – Most vendors will give you published discounts if you buy multiple ink cartridges and meter tapes.

• Check third party non OEM (Low Volume) – There are many companies out there offering non mailing vendor based supplies that may be a consideration. The major office supply stores are also carry this ink for low end meters. Find out from your manufacturer if there is any binding agreement where you are required to use their supplies.

• Ask for discounts – If you have multiple sites or are buying large amounts of supplies, ask if you are eligible for any additional discounts. It never hurts to ask.


Low Mid HighTypical Supply Costs - Ink and Tape (Per Impression)

Ink - $.01-.06, Tape $.05-.13

Ink - $.003-.03, Tape $.04-.08

Ink - $.003-.005, Tape $.01-.04

Mailing System Type

Helping multi-locationorganizations streamline

their mailing costs

58,000 pieces ofequipment, managed

by Postal Advocate

Recovered over$2,200,000

in lost postage, vendorovercharges and fees

ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY

OVER $20,000,000 IN CLIENT SAVINGS

$559K57%

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)

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 sites -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

Free No Obligation Mailing Fleet Analysis

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


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

Equipment Savings Process


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!

Contact info: (20pt)


Questions?

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

Business

Why Mailing Fleet Asset Management Is So Important (Your Roadmap to 30 70% Savings) Presentation