On May 12, the USPS implemented a new rate change which affected hundreds of postal rates. The rates have a slight to significant percentage increase. For example, priority retail rates have a 6% increase and express mail rates have a 3% increase on average. Neopost has taken an active role in helping the USPS as well as its customers to turn these landmark rate changes into business opportunities.

On the customer side, we employ a five-pronged strategic attack, including:

• Reducing mailing costs
• Increasing mailroom efficiency
• Eliminating fraud and ensuring mail security and integrity
• Improving customer communications
• Raising business productivity 

It used to be that you could simply put an item on a scale to get the postage, but now length, width and shape must be considered. Rates were previously not in alignment with the cost of processing larger and bulkier pieces. The challenge is that the USPS has not only changed the rates but the entire mail classification structure. Flats and parcels are more difficult to automate and more costly to transport than envelopes, making it increasingly important that senders understand the point when an envelope turns into a flat. 

Neopost introduced the Dynamic Scale to address the rate change; a shape-based solution that includes a patented four point detection system, "fold and save" feature and PrintMachine™ Software. Today, package redesign, address hygiene, presort, carrier selection and other areas must be examined for cost savings and business survival as strict attention to these areas can actually result in as much as a $3300 savings.

Neopost continues to be the partner of choice when it comes to education and knowledge about the rate change. Our goal is to remain an advisor and strategic consultant, regardless of changes coming down the postal transformation pipeline.

The United States Postal Service (USPS) published a plan in 2002 called Strategic Transformation, identifying ways to increase revenue, reduce costs, improve service and develop a performance-based culture. 

Some of the results of this plan can be seen today in the form of customized postage, flat rate boxes/envelopes, the Forever Stamp, last year's Shape Based Pricing (SBP) structure, and the most recent rate change on May 12th.

You can control your costs and improve the overall value mail has on your business by aligning your mail output with Strategic Transformation.

Mail already affects your bottom line today
Businesses without a document preparation or address quality strategy in place can experience as much as a 3%-7% returned mail or delayed delivery rate. 

Address quality, out of shape mail, inaccurate postage application, security concerns and overall process inefficiencies can affect your bottom line. The following list of areas should be examined to help identify opportunities for reducing costs, ensuring mail security, improving customer communication and raising productivity.

Five Steps of the Mail Flow Process

Document Preparation
Simple address validation tools and document intelligence implemented at this step can cause a 50-60% reduction in total mail cost.

Document Processing
After document production, the piece must be put into the appropriate envelope.  Using the wrong size envelope can cost up to 49% more in postage than required. 

Envelope Metering
By applying more postage than required to make sure mail is delivered, postage expenses are being increased artificially. Miscalculating postage due to increased complexity can cause more returned mail or clients receiving mail stamped "Postage Due". 

Postal Accounting
Understanding to whom, where and what is being sent through the post office, as well as other mail carriers, is critical data that helps optimize mail communication costs.

Inbound Receiving
Tracking, distributing and processing inbound mail and packages seamlessly and accurately affects how well businesses can complete transactions.

Call to action
Analyze current document generation and distribution flow and identify areas of opportunity for improvement that achieve these objectives while reducing processing costs. 

By recognizing the mailroom as a critical part of business and customer communication processes, and making an investment to align with Postal Transformation, you have more opportunities to positively impact the bottom line.