UPS still testing presort partnership with no plans to expand the test

United Parcel Service is still testing the presort partnership it launched in May 2001, but it has no plans to expand the test in the near term. At the moment, UPS Mail Innovations is focused on integrating the acquisitions it made in the mailing business, hybrid mailer Mail2000 and flat consolidator RMX, into the overall UPS structure. UPS Mail Innovations is the name of the UPS Supply Chains Solution group that operates Mail Technologies (formerly Mail 2000) and Expedited Mail Service (formerly RMX). UPS bought Mail2000 in March for a reported $100 million, and RMX shortly thereafter for an undisclosed
amount. When asked if Mail2000 was profitable, Mary Shrepfer, director of marketing for UPS Mail Innovations, would only say that the “the overall business unit [UPS Supply Chains Solution] was profitable.” This business unit includes all nonpackage products and services. UPS does not release financial
information on individual operations. Shrepfer said UPS Mail Innovations continues to test UPS Presort in the Atlanta area, but it dropped its test in Dallas after presort partner PSI Group was bought by Pitney Bowes. UPS Presort is a contract service in which UPS partners with a presort service bureau to collect mail from small and mid-sized companies that might not have enough volume on their own to utilize a presorter. UPS acts as the consolidator and brings the mail from multiple companies to the presort partner. Shrepfer said UPS might look to expand this service in the long term. The company remains excited about the potential in the mail market. It sees further opportunity in the upstream work share activities of the mailing industry. “We see an opportunity to expand our core capabilities, which are collection, sortation and distribution,” Shrepfer said, adding that the company can leverage the UPS name with its valued customers. (UPS’ corporate strategy team tells us the company has no interest in delivering mail should the monopoly one day
be lifted.) Despite its activity in the mailing industry, UPS Mail Innovations will not have a booth at the upcoming National Postal Forum, although it will have one at MAILCOM. Mary Shrepfer will be at the forum and looking to make contact with customers or partners. You are encouraged to make contact with her via the company’s website, www.mailinnovations.com.

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