Volume II, Issue II Spring 2013

Parcel Select Case Study

Background

A leading fulfillment and direct marketing company needed help controlling shipping and labor costs on a monthly hand-raiser fulfillment, but also needed package tracking and delivery within a 5-8 day window.

Challenges

UPS provided quick delivery and tracking capabilities, but the costs were too high. Discount package carriers, like UPSMI, DHL, and Smart Post provided low pricing, but missed on the delivery expectations, trackability, or caused additional sort labor by the mailer.

ODMS Solution

To eliminate these challenges, ODMS presented the mailer with an expedited discount parcel service, using USPS Parcel Select and expedited drop shipping to NDCs/SCFs.

Results

Reduced Labor

  • Labor costs were reduced, as ODMS absorbed the responsibility of printing the 50,000+ labels.
  • Labels were generated in sequence order to meet lot and expiration needs of the product.
  • Labor was decreased as parcels were sorted by ODMS staff.

Delivery Timing

  • April results yielded a nationwide average 5.7 business day/6.7 postal day delivery.
  • May results yielded a nationwide average 5.8 business day/6.8 postal day delivery.

Shipping Costs

  • Compared to the discount package carriers, shipping costs were reduced by 9%.
  • Compared to UPS, shipping costs were reduced by 31%.
Is Parcel Select Right For You?

Parcel select is ideal for:

  • Push Marketing
  • Sampling
  • High Volume Mailings (greater than 10,000 pieces)

Parcel Select is a viable option for parcels up to 70 lbs. Call 888.954.6245 today to see if Parcel Select is right for you!

 

USPS Facility Consolidation Update

The United States Postal Service has made several adjustments in order to instill a stable financial future including the consolidation of its 461 mail processing facilities and attempting to alter its delivery schedule.

The first portion of the network realignment merged up to 140 processing locations through February of 2013. According to the USPS most recent documentation, there are five facilities in Michigan that have been, or are in the process of being absorbed by larger postal locations. Processing and distribution facilities including those in Gaylord, Lansing, Saginaw, as well as the Jackson Customer Service Mail Processing Center are being consolidated with facilities in Traverse City, Detroit, Grand Rapids, and the Michigan Metroplex in Pontiac. Phase 2 will be conducted in 2014 and will consist of the consolidation of only 89 more locations. Essentially, the Post Office is taking efforts to become more efficient.

As a mailer, should you be concerned? No. This consolidation plan is being implemented over an ample amount of time to ensure a smooth transition with postal employees and customers. Further, consolidating these smaller processing and distribution centers makes it easier for ODMS to obtain SCF delivery penetration. This reorganization of the USPS’s processing network is predicted to save the nearly $1.2 billion annually through 2013 and a $2.1 billion by 2014.

The Postmaster General, Patrick Donahoe, argued that the steep decrease in First Class Mail was not the cause of the USPS’s financial woes; however, the laws that obstruct the USPS from responding to changes in customer behavior patterns were. He is pleading Congress for the USPS to gain flexibility in order to decrease costs, increase revenue, and the ability to adjust to a transforming marketplace. As stated in the USPS’s April 17th press release, the Postmaster outlined the USPS’s needs:

  • The ability to develop and price products quickly.
  • The ability to control healthcare and retirement costs.
  • The ability to switch to a defined contribution retirement system for new employees.
  • The ability to quickly realign mail processing, delivery and retail networks.
  • A more streamlined governance model.
  • More flexibility in the way the Postal Service leverages its workforce.

 

Employee Profile: Colleen Chittam

Colleen Chittam, Account Manager, possesses 11 years of experience in the mailing industry and has been a member of the ODMS team since August 2011. She specializes in new account development and ongoing customer service. She has worked with customers in the Financial, Non-Profit, Educational, Insurance, and Healthcare segments. Colleen, a certified Mailpiece Design Professional (MDP), assists clients with Postal regulations and changes, postage rates, mail piece classifications, as well as mail piece standards and qualifications. Colleen resides in Rochester Hills, with her husband Michael. She is an avid golfer, health enthusiast, and enjoys watercolor painting and interior decorating. If you would like to contact Colleen, you may do so by calling (888) 954-6245 or emailing her directly at colleenchittam@odmailservices.com

On June 6, 2013, posted in: Newsletters by
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