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Mail Services Review Results in 40% Savings

		Related Service Offerings
		·  Project Management
		Related Areas of Expertise
		·  Mail Services
		EMS Can Help You...
		·  Reduce Costs and Save Money ·  Optimize Your Processes ·  Manage Your Suppliers Better ·  Increase Customer Satisfaction ·  Document Service Levels ·  Improve Consistency

Overview:

This company offset spiraling postal rate increases by conducting a thorough review of its mail services operation, which supports 3,000 locations.  Mail services expense was reduced by 40 percent.

Client:

This client is a sophisticated provider of financial solutions to individuals, businesses, governments and institutions nationally and internationally.

Challenge:

Faced with rising mail service costs, an expiring contract, decreasing service levels and antiquated equipment and procedures, this client engaged Expense Management Solutions (EMS) to deliver significant savings via renegotiation of the contract with its mail service provider.  The priorities of the assignment were to ensure the continued delivery of  services with no decrease in service, reduce the total costs of services to the company, position the operation to manage continuing growth, and improve consistency of services across the portfolio.  The initiative was complicated by the historical structure of the contract as a labor-only relationship; a lack of willingness by the organization to make capital investments; a cultural environment that was resistant to change, and 3,000 affected sites.

Solution:

• Assess the contract in place, identify gaps in service, operations and contract terms, and presente specific opportunities for savings and service level improvements. 
• Work with the client’s sourcing team to present a comprehensive functional and financial assessment of mail service operations and performance. 
• Identify the key drivers impacting the rising costs of the operation as well as which contract terms the company needs to negotiate to realize substantial cost savings and specific operational process  improvements. 
• Formulate benchmark metrics using information derived from proprietary sources and industry contacts to identify how the company could close the gaps between its current service and best practice levels.

Results:

• The company was presented with the opportunity to reduce mail service expenses by 40 percent, increase service levels and retain strong financial controls. 
• Delivery of mail services at best-practice metrics was transitioned more fully to the outside provider, with compensation directly linked to its ability to do so effectively.