--------------------------------------------------------------------------------------------------------------------
Mail: Journal of Communications Distributions
Trends in the Mail Industry
By: Mark Sheffield,
The American mailing industry and the businesses they serve have been forced to rethink and make adjustments to mailing processes in light of events over the past few years that have impacted the way America conducts business. Specifically, American businesses 1) have embraced e-commerce and subsequently increased their expectations of technology, 2) were subjected to the fallout of international terrorism attacks, and 3) saw the economy rise and fall in roller-coaster fashion, subsequently forcing businesses to find ways to cut costs.
The print and mail industry has reacted in several different ways -- mergers and acquisitions, some "unlikely" alliances and agreements, the entry of newcomers into a niche markets, and service providers focusing on enhancing value propositions.
Overall, these events have impacted this industry in four fundamental aspects: security, reliability, value-add services, and savings potential. The ability to proactively respond will continue to be the primary focus of the industry for the coming year.
The first area of impact is security - the area most top of mind since the attack of September 11, 2001 .
Prior to that date, efficiency in distribution was a primary business concern, with security important but rarely questioned to any degree. Finding ways to more quickly and cost effectively induct mail into the U.S. Postal Service for final delivery was the focus. The safety aspect was minimal -- security of the mail was expected and generally accepted.
That has changed dramatically. Today, businesses question service providers about their ability to provide a safe and secure mailing environment. Today, the mailing industry must react to tougher airline restrictions and increasing safety surcharges. We must be aware of the security at our facilities and the security of our processes. The mailing industry is relying more than ever on technology to do that and must, therefore, continue to develop technology applications that address security issues, as well as information flow and the secure transfer of data.
Second is reliability - a close second to safety. The need is across the entire system, with the expectation by all to deliver goods day after day, year after year, and do it on time.
There have been some successes in this area, and the industry continues its focus here. For example, the U.S. Postal Service addressed this several years ago when the work share programs were introduced. In effect, the work share programs distribute some of the workload to private industry specialists. This is an excellent example of the principle of collaboration -- where efficiencies are optimized when collective strengths are utilized.
Another area where there has been some success, but must remain a focus is investing in technology, including developing technology solutions that enhance reliability. Examples of successful efforts to date include CASS certification, ZIP + 4, and enhanced sortation equipment.
Looking forward, the industry must continue to find ways to further streamline the process from customer pick-up to final delivery to the consumer. Solutions will most likely involve outsourcing. Today, there are both more and better outsource options, and the mailer's desire to outsource is heightened as the outsourcing value begins to be realized. The value proposition becomes even greater as suppliers offer integrated solutions, especially when collaborative solutions involve providers who are financially secure.
Closely related is a third area of impact -- providing value-add services. In this increasingly competitive environment, the mailing industry has evaluated and offered new services in order to enhance the value-add. We expect this trend to continue. As the pace of information flow continues to accelerate via various alternative and enhanced methods of communication, the mailing industry has to continue creating value-adds that are unique to our industry. The demand is there and suppliers must respond.
The final area of impact is the savings potential. Every mailer is addressing how to save costs in a down economy. Even if the impending postal rate increases are delayed until 2006, print, mail and distribution managers still face many challenges. They must lower operational costs to offset recent increases, be accountable through productivity and raise performance levels of existing staff through increased training.
There are several opportunities for the mailing industry, including the U.S. Postal Service, to enhance services while controlling costs.
The first is the work share programs of the U. S. Postal Service. Created to help them reduce costs, the programs allow private enterprises, such as UPS Mail Innovations, to share in the upstream mail activities of collection, sortation and distribution. This has already opened the door to private businesses that can leverage their expertise and existing transportation infrastructure, which ultimately should benefit the mailer.
For example, UPS Mail Innovations expedites First Class and Standard business communication mail into the U.S. Postal Service system for final delivery. This is possible because UPS Mail Innovations both utilizes the discount programs and leverages its own advanced nationwide network that provides print production processes and interim transportation to U.S. Postal Service facilities. This allows UPS Mail Innovations to provide large volume mailers a way to reduce costs while enhancing delivery times.
It is a win-win-win for UPS Mail Innovations, mailing customers and the U.S. Postal Service. Through effective utilization of these programs, UPS Mail Innovations has been able to create a market niche where customers receive enhanced print and mailing services with significant savings, and the U. S. Postal Service realizes cost savings in pick-up, transportation, and sortation.
The second opportunity is outsourcing. As mentioned earlier, today businesses are more readily considering outsourcing part or all of the mail production and distribution process. Although the degree of outsourcing of business processes varies widely, businesses are experiencing tangible results: reduced mailing costs and reduced capital infrastructure. In addition, outsourcing allows businesses to focus on core products and services, re-deploy internal resources and minimize their investment in new technology.
Another important consideration today is that more businesses are reviewing contingency and disaster recovery planning. To them, outsourcing is an efficient alternative or back up to in-house production and interim transportation.
Both of these opportunities further recognize the importance of the role of collaboration in a global economy. Improving business processes both increases efficiencies and the use of resources. Finding ways to reduce mail production and interim distribution times is a key factor to enhancing a company's financial performance, and critical in our industry. We can expect more focus on reducing costs, and more demand from businesses to provide more technologically sophisticated and innovative solutions from the mail industry.
--------------------------------------------------------------------------------------------------------------------
UPU: ETOEs Items Should Be Treated as Commercial
September 28, 2004
Melissa Campanelli, DM News
"A proposal that items sent from ETOEs, or extraterritorial offices of exchange, should be treated as commercial items not subject to the UPU Acts was adopted at the Universal Postal Union’s 23rd Congress meeting in Bucharest, Romania. The proposal was approved because ETOEs do not fulfill the universal service obligations set out in the UPU Acts, according to the Congress. ETOEs are offices set up by countries outside their national territories for the international exchange of mail. The offices allow international direct mailers to mail through an international postal administration without leaving their host country. There are about 100 registered ETOEs worldwide. The proposal, adopted on Sept. 23, means that items sent from ETOEs should be treated as commercial items not subject to the UPU Acts, unless the destination Post has announced that it agrees to apply the Acts to items received from ETOEs. Some postal organizations accept and deliver items dispatched by ETOEs for terminal dues or under direct entry arrangements at applicable domestic postage rates. But others refuse to accept such dispatches, arguing that ETOEs should be regarded as commercial services rather than as treaty-based services fulfilling a country's obligations under the UPU Acts. The delegates to the Congress also adopted a proposal that all public postal operators seeking to establish an ETOE in another UPU member country should obtain prior approval from the host country. The UPU Council of Administration adopted a similar interim resolution in late 2003. A proposal that was adopted on Sept. 25 legally defined the Electronic Postmark, formally recognizing it as a new optional postal service. The Electronic Postmark acts as valid, legal evidence of who signed what and when. The amendment paves the way for the UPU to define the Electronic Postmark as a new optional postal service that postal organizations around the world can offer."
Click Here for SkyPostal Alerts >
|
