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Service provides real-time tracking of mail from desktop.

Mail tracking system provides web-based data generated from scan of mailing upon introduction into USPS system. Entire lifecycle of mailing can be tracked by state, zip code, and individual piece, with subsequent scans of nationally-routed mail transmitted to mail-tracking server for viewing. Service incorporates existing automated barcode with tracking code, and is available for Automated First Class and Standard Class mailings.

Embracing this new, low cost technology, Mailex offers this tracking service to every mailer by incorporating the existing automated barcode with the tracking code.

Large and small mailers can now take advantage of this technology. Prior to this break-though, USPS had offered a confirmation service for a minimum annual investment of USD25,000, placing mail tracking out of reach for most businesses. Low-cost tracking is now available for all Automated First Class and Standard Class mailings.

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The bright side to postal rate increase

You might ask, “How on Earth could the impending increase in postage be a good thing?” Think of it as a challenge that will precipitate positive industry changes – primarily, better efficiencies and profitability.

We have all heard shocking statistics regarding mail-related inefficiencies. The U.S. Postal Service handles about 10 billion undeliverable-as-addressed mail pieces per year, resulting in approximately USD1.6 billion in loss for the USPS and more than USD6 billion in waste for mailers.

Progressive companies have already begun to implement ways to improve their mail stream management practices, to make mail communications less costly and more effective than before and help reduce the impact of postage increases in the process. Some best practices to consider are:

Cleanse address data. The USPS will become more stringent on discounts offered to mailers that do not maintain the accuracy of their address lists in compliance with USPS regulations.

Presort for savings. Presorting mail before it enters the USPS network can reap double-digit percentage postage discounts.

Push the [smaller] envelope. The anticipated rates would give mailers a strong financial incentive to switch from flat (9×12-inch) envelopes to smaller (6×9-inch) envelopes, reflecting the new USPS rates for processing the smaller envelopes.

Investing in folding and inserting systems will make sense for more organizations under the proposed new rules. As parcels also would be affected by shape-based pricing, mailers need to re-evaluate current packaging practices.

Merge marketing and operational communications. Integrating your marketing efforts with your operational communications will help to improve your overall marketing effectiveness and increase operational efficiencies which, in turn, will help to offset the postage rate hike.

Look at the bright side. The proposed price changes are a good opportunity to improve the entire mail stream process within an organization. Adopting best practices can dramatically impact your costs, response rates and ROI.

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New GLS network partner in Bulgaria

The GLS Group is expanding its European network through a network partnership in Bulgaria: Interlogistica Ltd., headquartered in Varna, started realising nationwide distribution for all GLS companies in February 2007. The network of GLS, one of the three largest CEP service providers in Europe, now covers 35 states.

Interlogistica is among the leading CEP service providers on the Bulgarian market. Through its national network of locations, the company ensures distribution throughout the country. With two hubs in Sofia and Varna, which also serve as depots, as well as 19 other depots, Interlogistica provides a 24-hour-service for 98 per cent of Bulgaria’s surface area. In peripheral zones, delivery is made within 48 hours. 78 delivery vehicles as well as seven long distance trucks are in use in Bulgaria. In addition, the company offers general cargo transports as well as air and sea freight services.

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Postcomm calls for radical action over Royal Mail's costs

Postcomm has today responded to Royal Mail’s statement on the future of the UK postal industry.

Postcomm Chairman Nigel Stapleton said:

“Royal Mail is using an attack on the regulatory structure as a smokescreen for its own lack of progress in tackling their high labour costs. Since Single Daily Delivery was introduced in 2004, every initiative that the company has taken to improve efficiency has been absorbed either by higher wage rates or increased pension costs. Royal Mail has failed to bring its costs into line as would be expected of an efficient mail operator.

“Royal Mail has not asked us for an increase of 6p on the price of a stamp, and competition and regulation are not threatening the Universal Service. Royal Mail remains the dominant player and retains well over 90 per cent of the addressed letters market, and still delivers more than 99 per cent of all mail in the UK. It has a unique VAT advantage which acts as a significant barrier to competition for new entrants. Competition has taken less volume away from Royal Mail than was predicted a year ago and, on 95 per cent of the volume they have lost, they retain more than 70 per cent of the revenue to cover their costs of delivering over the final mile.”

“The decline in Royal Mail’s profits is not due to competition from other postal operators. It has two root causes: Royal Mail’s inability to control its costs, and its need to finance their growing pension fund deficit. In the six months to 30th September 2006, Royal Mail raised its prices on average by over 4 per cent, but this generated only 1 per cent in additional revenues to cover labour and pension costs.”

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FedEx to modernize retirement plans

FedEx Corporation announced new measures it is taking to modernize its retirement plans for most of its employees. These measures will take place in the coming year and are in direct response to recent legislative, regulatory and demographic changes that continue to dramatically reshape U.S. retirement benefit needs.

FedEx will continue to offer highly competitive retirement benefits funded entirely by the company and will also enhance its 401(k) plans. The company expects to spend about the same amount on its employees’ retirement plans over the long run as it would have spent under the current design and current rules.
Under the new program, most eligible employees who participate in a pension plan will begin accruing future benefits under a cash balance formula, which FedEx calls the Portable Pension Account, effective June 1, 2008. Any benefits already accrued under a traditional pension benefit formula will be capped as of May 31, 2008 and will be payable monthly at retirement. These changes will not affect the benefits of current retirees.

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Royal Mail calls for radical review of postal market regulation

Falling mail volumes and intensifying competition are putting massive pressures on Royal Mail’s ability to keep delivering a one-price-goes-anywhere service for every customer, the company said today. It urged the postal regulator to allow Royal Mail to compete freely and fairly while ensuring everyone can continue to post to the UK’s 27 million addresses at uniform, affordable prices.

Royal Mail’s comments came as it published its detailed response to Postcomm’s strategy review on the future of the UK postal industry. Royal Mail’s response proposes four steps which Postcomm should take to create a fairer market:

• The one-price-goes-anywhere Universal Service should be re-focused specifically on stamped mail rather than including business products.
• Cross-subsidies should be removed to create transparency for business customers and to ensure that competition is sustainable.
• Business mail services should be fully deregulated because competition has now replaced the need for regulatory constraints.
• Operational integration of the postal network should continue as separation would create confusion, introduce complex and costly interfaces, endanger quality of service and jeopardise Royal Mail’s modernisation programme.

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Royal Mail seeks 6p rise on stamps

Royal Mail is to call for a 6p rise in UK first and second class stamp prices under a radical relaxation of regulatory controls the state-owned postal operator will argue is necessary to its survival. Businesses would also lose the legal right to have franked mail delivered to every address in the UK according to the proposals, which Royal Mail will this week put to Postcomm, its regulator. Royal Mail wants this “universal service obligation” (USO) to apply to stamped mail only.

The operator is also calling for an end to all regulatory controls on bulk business mail, such as lucrative junk mailings. The proposals will anger small businesses, which benefit from existing price controls. Royal Mail’s relatively high prices for bulk mailings cross-subsidise other services, such as the 6p loss incurred on each stamped letter. But Adam Crozier, Royal Mail’s chief executive, said the changes were needed to ensure the company’s financial viability and hence its ability to continue to deliver post to far-flung and unprofitable corners of the UK.

Royal Mail argued yesterday that Postcomm should rethink its proposed price controls for 2008 and beyond because the impact of competition in the UK has been “faster and greater” than the regulator expected. The UK is acting as a test bed for the proposed liberalisation of other major European postal markets. Its price controls are allowing competitors from those markets – such as Germany’s Deutsche Post and the Netherlands’ TNT – to cherrypick the best UK business, the UK operator believes.

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USPS: Move update will be required for standard mail

The buzz at the quarterly Mailers’ Technical Advisory Committee meeting last week at postal headquarters was a surprising announcement by Postmaster General John E. Potter: The agency will expand its Move Update rules to include advertising mail and change the frequency of the program.

Under current rules for Move Update, which is designed to reduce undeliverable-as-addressed mail, First-Class mailers can receive automation or presort rates when they update addresses every 180 days using the Address Change Service, NCOALink or another USPS-approved service. Now the program will be expanded.

Mr. Potter said there would be serious consequences for people who don’t use the Move Update system, although he did not elaborate.

A key reason for the change, according to Mr. Potter, was to make sure that the people who want to receive mail are receiving it — and that those who don’t aren’t receiving it — given the current rash of do-not-mail bills that have cropped up in nine states this year.

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Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

 

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