The document discusses outsourced print and mail services and opportunities for cost savings. It begins with the speaker's background and experience in mail audits. The presentation then covers gaining visibility into mail spending, optimizing mail preparation and service providers, and key areas for savings such as postage, printing, and data management. It recommends conducting an RFP to find the best rates, consolidating volumes, and setting up ongoing reviews to further optimize spending on outsourced print and mail services.

1. The Largest Mail Savings Opportunity -
Outsourced Print and Mail Services

2. Background and Experience
Speaker: Adam Lewenberg
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of 160,000 pieces of mailing equipment for the largest
US companies.
– Speak and teach nationally on mail savings and industry trends.
• Former 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’ largest accounts.
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3. What We’ll Cover:
1. Gaining Visibility – The How To’s and Keys to Success
2. Optimize the Way You’re Sending Your Mail
3. Optimize Your Mail Service Providers
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4. Overview
• In the US, most of the production mail is processed
through an outsourced mailer who has the staff,
equipment and expertise. This outsourcing happened
for the following reasons:
– USPS® rules got more difficult for automation discounts.
– Less mail expertise internally
– Improved levels of automation externally
Key Issues:
• Least understood category
• Lowest level of visibility
• Highest area of opportunity for overspending
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5. Key Challenges with Outsourced Print and Mail Services
1) Lack of visibility
2) Variability in the rates paid for service fees and postage
3) Inconsistent level of detail provided on invoices
4) Lack of knowledge internally to leverage with suppliers
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6. Lack of Visibility
The biggest issue is this category can be from
fragmented spends across multiple departments.
• Statement and transaction print documents –
Accounts Receivable
• Advertising based projects - Marketing
• Customer service information announcements –
Customer Service/Operations
• Internal staff mailings - Human Resources
Increased difficulty with large organizations with
multiple locations, business units, divisions and
departments.
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7. Postal Advocate – Process to Gain Visibility
• Start with Accounts Payable – Most outside mailings will have the postage funded by
USPS permits that are paid directly vs. paying the mail service for the postage. Do a
search of USPS spends and look for larger amounts that could be for outside mailing
projects.
• Reach out to the largest departments to see what service providers are being used.
For instance: Accounts Receivable, Marketing, Customer Service and Human
Resources
• Get copies of invoices to see the detail on what is being charged.
• Reach out to the vendors to see if they have web portals that can provide more detail.
• Go to procurement to see if there are contracts in place with these vendors with defined
rates.
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8. Invoice Detail Issue
• Every vendor provides different levels of detail on their invoices. Some
charge at the job level while others break down each fee.
• We recommend that you require vendors to provide the detail by fee so that
you can understand what you are paying to compare the rates
• If it is not on the invoice, request the detail on web portals or in emailed
backup detail reports.
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By Job By Fee

9. Service Fee Variability
• You will find huge variations in what is charged from one service provider to
another. These are the factors that have the greatest impact:
– Was the job put out to bid or was in an add on project to an existing provider?
– Does the vendor have a master service agreement for continual work at specific
rates?
– What is the quantity and frequency of the mailing?
– What are the data processing charges?
– What type of stock is used for paper and envelopes?
– How is it printed – Type of printing technology and color or black and white?
– How was the piece prepared and could it all be automated or was their hand work
or high levels of personalization that was required?
– How was it mailed and what level of postal automation was used?
– What third party services were used for presorting, mail forwarding or shipping?
– What was needed from the data besides mailing:
• Emailing, texting or faxing
• Data storage and web presentment
• Because of the difficulties in comparing jobs, most organizations have little
control or knowledge of best rates.
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10. Mailing Categories
Mailing Categories Description
Cost High to Low 1-5 (5
being the highest)
Material Paper, envelopes, Pre-printed stock. 3
Data Processing The cost to receive data files and turn it into its final version. 2
Mail Automation
Processing the mail list through postal software to meet the USPS®
requirements.
2
Printing Putting images onto paper 4
Mail Preparation Folding, Inserting, tabbing, inkjetting addresses, hand processing into final form. 4
Postage USPS costs to mail the item. This also includes Presort services. 5
Email The cost to divert the document to be emailed vs. printed. 2
Transportation
Moving mail to the USPS or closer to its final destination to reduce postage
costs.
1
Data Storage
Image creation, storage and retrieval typically for backup or to have e-
presentment.
3
Miscellaneous Other charges based on the specifics of your project. 1
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We have developed a process that can simplify this by the following:
• Gain access to the fee level detail for all invoices.
• Log each line item to one of the categories above along with subcategories based
on the types of services used.
• Maintain the data over periods of time to be able to compare vendors and services.
• Benchmark rates and use the data for further negotiations and vendor selections.

11. Key Areas of Savings
1. Postage – Largest Area
2. Printing
3. Image Creation/Storage and
Presentment
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12. Postage – Largest Expense Area
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• First Class® Mail - Personalized in correspondence – Invoice, check, confirmation
statement – 1 - 5 day delivery
• Marketing Mail – Everyone getting the same message outside of basic
personalization – Advertising, newsletter, giving request – 4 – 12 day delivery.
• Need to push your service providers for the highest levels of automation.
Mail Piece Examples
First-Class Mail®
Retail Single Piece
First-Class Mail®
Metered Single
Piece
Typical Presort
Service - First-
Class Mail®
First-Class
Mail® -
Automation
Marketing Mail®
- Automation
Marketing
Mail® Non
Profit-
Automation
1 Ounce #10 Envelope $0.55 $0.51 $.428-.46 $.398-.45 $.259-.304 $.138-.183
3 Ounce Newsletter (6x9) $0.95 $0.91 $.428-.46 $.398-.45 $.259-.304 $.138-.183
8 Ounce Flat (9x12) $2.40 $2.40 $2.17-2.27 $1.86-2.17 $.70-.98 $.47-.75
Postcard $0.36 $0.36 $0.293 $.269-.285 n/a n/a
Single Piece Rates Automation Mail with Barcodes

13. Nuts and Bolts of Postal Discounting
Methods for automation
• Third Party Presort Service
• Inhouse Software – One job at a time
• Inhouse Software – Commingled jobs – Best discounts – typically only the largest shops provide.
• Marketing Mail third party forwarding service
• Marketing Mail internal transportation department forwarding directly
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From USPS
Notice 123
Effective
1/24/21
First Class® Mail
Marketing Mail™

14. Printing
• Second biggest cost area
• Technology used can have a big impact on cost - Cut sheet, roll feed, laser, ink jet,
color or monochrome.
• What level of print suppression is used to move documents to email or web
presentment?
• Can jobs be presented together vs as independent jobs?
• Are discounts offered for duplexing?
• New virtual printers can allow you to send jobs from user’s desktops to a continuous
workflow. Allows for lower volume print.
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15. Data Management
Huge costs can be in the way your data is managed. This could be in the
following areas:
– Accepting data files.
– Formatting data to the vendors workflow.
– Formatting the documents with your customer logic.
– Mail Automation processing to comply with USPS requirements.
– Email, fax or texting of your documents.
– Image creation and storage of your files.
– Web presentment of the stored images on custom portals.
Client Example:
– Sending invoices and paying $.004 to create backup images of each printed page.
– Paying $.004 per image per month for every stored image. Stored images for 24 months.
They have been using this service for 5 years and have 3,600,000 images stored.
– Sending 75,000 invoices per month which was 150,000 images.
• Monthly Image Creation = $600
• Monthly Image Storage = $14,400
• Total Annual Cost $180,000 or $.20 per invoice mailed!
• With proper bidding this fee was cut in half and the storage model was changed to 18
months. Annual savings = $133,200
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16. Vendor Strategies
We recommend running an RFP (Request for Proposal) to find the
best rates and service levels for your mailings.
• Build a defined template where it is easy to compare rates on the
main mail expenses.
• Include vendors that meet the following criteria:
– Can support your customers geographic areas at the lowest costs:
• If all mail is local – find a local or regional providers
• If mail is nationwide, look for providers that are in the middle of the country or at
desirable postal hubs that can reach the majority of the country in 2-3 day delivery.
– Are close to a major presort center.
– Are in low cost of living areas who can pass on the savings in rates.
– Have the highest level of technology to support your needs.
– Specialize in your main classes of mail or industry vertical – Example:
Bank Statements
– Have the value-added services you need.
• Compare the responders and request references.
• Review account management processes for customer service
and issue resolution.
• Look for discounts by consolidating higher volumes of mail into
fewer suppliers.
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Year
First Class®
Mail Presort % Change
Marketing
Mail % Change
2020 36,246,494 -2.4% 64,180,125 -17.9%
2019 37,130,541 -1.9% 75,690,047 -2.1%
2018 37,833,487 -2.5% 77,305,661 -1.4%
2017 38,795,454 -3.0% 78,369,843 -3.3%
2016 39,943,145 -0.6% 80,929,933 1.0%
2015 40,174,244 0.0% 80,090,273 -0.4%
2014 40,193,317 -2.4% 80,374,260 -0.7%
2013 41,144,184 -3.4% 80,962,678 1.4%
2012 42,524,039 -4.6% 79,801,009 -6.1%
2011 44,494,498 -3.9% 84,691,971 2.6%
2010 46,225,386 -3.7% 82,524,693 -0.2%
2009 47,933,717 -8.3% 82,706,211 -19.8%
2008 51,935,871 3.8% 99,084,155 -4.5%
2007 49,978,441 0.2% 103,516,112 1.0%
2006 49,862,002 102,459,559
Data in Thousands
From USPS REVENUE, PIECES, AND WEIGHT BY CLASSES OF MAIL AND SPECIAL
SERVICES Reporting
Mail declines leads to
more competition

17. Marketing Agencies and Consolidators
There is a trend to use marketing agencies or consolidators for your
Marketing/Promotional mail. They manage the creative and distribute the
printing and mailing to service providers that they have vetted.
• Potential issues:
– Are you getting the best rates?
– Are you getting any economies of scale or are they splitting the work among multiple
providers?
– Do you have any control over the mailings?
– Do you have any visibility to the fees or is it aggregated on summary bills?
– Are you assured that you are getting the best services available?
• Solution: Use the Marketing Agencies for the creative; but manage the output
through mail and print services that are controlled directly.
– By combining mailings under one agreement, you can be assured that you are mailing at the
lowest rates.
– You can customize the service to what is needed from a mail, print and retention strategy.
– You can get higher levels of vendor support due to the size and scope of your relationship.
– Larger mailers have higher levels of automation that can provide lower postage rates,
distributed print across facilities and can move mail closer to its final destination without using
third parties to maintain control.
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18. Manage the Future Relationship
• Once the new service providers and rates are in place
it is important to set up a process for managing the
relationship including:
– Vendor portal access to all mailings
– Visibility to all invoices
– Audit process to look for the following:
• Billing errors where refunds are required.
• Service failures where contracted refunds are
available.
• Expense areas that are above documented
thresholds to work for reductions.
• Budgeting around postage increases.
– Quarterly review process that defines the changes and
new strategies for the future.
– Ongoing meetings to move enhancements forward.
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19. Summary
• Gain visibility to outsourced mailings (Most
important step)
• Audit the invoices to benchmark the service
levels and fees.
• Look for savings across all areas of spend.
• Run an RFP to develop a master service
agreement with fewer suppliers.
• Set up continual future review to further
optimize the category.
• Record your results through your managed
program – They will be larger than you
expect!
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20. Helping multi-location
organizations streamline
their mailing costs
Over 150,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$20,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $63,000,000 IN CLIENT SAVINGS
$1.9M
59%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 220+ 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)

22. Sign Limited Agency
Agreement/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, billing
and 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 IT
WORKS
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 locations -
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

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