mario roman shipping solutions specialist 631-582-7431 mario roman shipping solutions specialist...
TRANSCRIPT
Mario RomanShipping Solutions Specialist
631-582-7431
Mario RomanShipping Solutions Specialist
631-582-7431
Long Island PCC – April 18, 2012
What’s New in The Postal Corner!
1
Shipping Services InnovationsShipping Services InnovationsNew! Express Mail Flat Rate Box New! Priority Mail Regional Rate Box size C*New! First-Class Package ServicesNew! Parcel Select Lightweight New! Priority Mail Board Game Board Large Flat Rate BoxNew! Package InterceptNew! Mobile Access & Scanning upgradesNew! Return Options (SBP)-Scan Base PaymentThe True Cost to Fed Ex & UPS 2012 Increase
What’s New In 2012?
2
3
Express Mail ─ Commercial Base Prices• Prices decrease on average by 3.9%
• Flat Rate Envelope price ─ $17.75
• New! Flat Rate Box ─ $39.95
• Approved payment method required
4
Priority Mail ─ Commercial Base Prices• Regional Rate Box
– Approved payment methods required– Price based on box and zone
Regional Rate Box A 15-pound maximum, starts at $5.04
Regional Rate Box B 20-pound maximum, starts at $5.90
New! Regional Rate Box C 25-pound maximum, starts at $14.44
– New! $0.75 additional when deposited at Retail – Commercial plus mailers also qualify
Products that will include free Delivery Confirmation Service
What’s New? Delivery Confirmation
Products Category PaymentType
First Class Packages Competitive Electronic
Parcel Select – Other Competitive Electronic
Parcel Select – Lightweight
Competitive Electronic
5
6
• New! Parcel Select Lightweight– Formerly Standard Mail Commercial Parcels
Weighs less than one pound Used for fulfillment Excludes Nonprofit parcels
– Prices are ounce-based and vary by presort and destination entry Machinable and irregular pricing options
– Increases 8.9%
Parcel Select
Priority Mail Board Game Large Flat Rate Boxes
• Inside Dimensions: 23 11/16" x 11 3/4" x 3"Outside Dimensions: 24 1/16" x 11 7/8" x 3 1/8"
• Can be used for Domestic Priority Mail ($15.45) and International Priority Mail ($39.95 to Canada and Mexico; $60.95 to all other countries; 20 lb weight limit applies for international).
• Only $13.45 when used to send to APO/FPO addresses.
7
What’s New? Package Intercept
• Available through online customer interface or electronic file manifest
• Interception of: Letters, Flats and Parcels
• Requests made:– PC Postage vendor– Business Customer Gateway– usps.com interface
• New scan event
• Shipment can either be:– Returned to Sender– Held for pick up at Post Office– Redirected to alternate address (domestic only)
8
USPS.com Mobile: iPhone 3.0 Release• New icon-directed home screen• New services:
Pickup– Schedule next-day pickup
Get Supplies– Order free shipping supplies
Scan– Tracking barcodes or QR Codes
Mobile Access–iphone
9
Merchant ReturnsNew Product Offerings
4 Reasons for Returns
• Returned Merchandise- The product did not meet the consumer’s expectations (i.e. wrong size or color, not satisfied with quality, wrong product shipped, etc.) or they may have simply changed their minds about the purchase. These reasons are based on consumer desires.
• Repairs- The product was broken or damaged
• Recalls- The Merchant demands for the consumer to return the product due to a manufacturing defect
• Recovery- The product is usually an old electronic that is either returned to either recover/recycle its useful parts
10
After the best consumer Returns experience is achieved the Merchant should consider its own needs as well. Some needs include…
• Visibility– -Reduces call center costs if the consumer can check on the delivery status of a
package online – -Improves inventory logistics if the merchant knows – when a package will be returned
• Automated Payment Method– -Eliminates manual labor costs– -Allows for more accurate billing
• Detailed Reporting– -Receiving accurate billing information helps the merchant manage the budget
• Speedy Delivery– -Improves turn-over time of inventory– -Reduces consumer call volume
• Trust and Security– -Protection of assets is essential to any business
Merchant’s Needs
11
Consumers desire that the Returns process is…
• Convenient-Easy to send package away• Simple- Easy to understand the steps necessary to return the
product• Transparent- Can view the delivery status of package to ensure the
merchant receives it• Free or Cheap- No or little charge• Fast- Package reaches the merchant in a timely manner
Consumer’s Needs
12
USPS has responded to consumer and merchant needs with the new Merchant Returns Solution. Some of its benefits include…
• Lowest cost provider for small packages• Unmatched consumer access• Free and Easy to Use Package Tracking• Easy to get Labels in the Hands of Consumers• Free Package Pickup at Residence • Pricing Flexibility
The USPS Solution
13
A New Set of Returns Products
USPS has introduced a rebranded set of Returns products that fit the new Returns solution
First-Class™ Package Return Service
Fast and affordable service for envelopes and packages weighing up to 13 oz
Priority Mail® Return Service
A great choice for shipping packages up to 70 pounds, offering the fastest delivery time of any return
Ground Return Service
Reliable and economical choice for less-than-urgent deliveries and oversized packages
14
The new Returns offerings are made possible by a new USPS program called Scan Based Payment
• All mail pieces are scanned before delivery• Pricing is determined by sampling mail pieces to
determine average piece weight and distance traveled
• Rates are adjusted monthly based on piece sampling
• Merchants charged automatically, on a daily basis, based on package activity – no manifesting
Scan Based Payment (SBP)
15
Scan Based Payment (SBP) changes how USPS processes mail pieces
How Does SBP Work?
1. Consumer Receives/Crea
tes Labels
2. Consumer Drops Off
Return with USPS
3. Packages Shipped; Scanned
& Sampled
4. Merchant Receives Return
5. Merchant Charged
upon Delivery
16
How Does SBP
1. Consumers Receive/Create Labels
Consumers have four ways of getting a label …
17
How Does SBP Work?
• i. Consumer already has a pre-printed label
SBP- Consumer Receives / Creates a Label
The merchant is certified to create their own labels. The merchant puts a return label in their outgoing shipments in case the consumer chooses to return the shipment.
18
• ii. Consumer creates a label through the new USPS Returns website
SBP- Consumer Receives / Creates Label
Consumer initiates the Returns process on Merchant Website …
1
… is then redirected to the USPS
Returns Application …
2
… application builds your label that you are now ready to
ship with.
3
Email / Print LabelEmail / Print Label
Locate PO or Schedule Package Pickup
Locate PO or Schedule Package Pickup
• Integration with the USPS Locator service to easily find your nearest location to drop-off a package
• Integration with USPS Schedule a Pickup service if you choose to have the return picked up by your mail carrier 19
SBP- Consumer Receives / Creates Label
iii. The merchant has the option to use their own website to ‘call’ the USPS Returns Web Service (API) in order for the consumer to create labels
Merchants can keep the same ‘look and feel’ on their website while still allowing the consumer to create labels using the returns tool
The merchant can tailor the returns website to fit their needs and promote their products
ReturnReturn
Labels could be created here while using Merchant’s User Interface
Returns Web Service
20
iv. Consumer calls Merchant Call Center
Consumer contacts a Call Center Agent, who uses the USPS Returns website to generate a label and send it to the consumer.
21
SBP- Consumer Receives / Creates Label
SBP – Consumer Drops Off, Schedules a Pick up
i. Request for Pickup at Home• Daily presence at 150 million
addresses• Free Carrier Pickup, Monday
through Saturday
ii. Drop-off at any Post Office• Over 33,000 retail outlets• Over 180,000 drop boxes
23
With either option USPS has made it easy with its convenient access and presence across the nation
After the returns label is placed onto the package the consumer has the following two options:
SBP – Packages Shipped, Scanned & SampledShipping
• The shipping process begins as soon as the consumer drops off the package or the mail carrier picks it up and ends when the merchant receives the package
Scanning• Packages are typically scanned 4-7 times during the
shipping process
• Scans tabulate total shipping volume for SBP billing
• Allows piece visibility - allows Merchants and Consumers to see exactly how many packages have been delivered as well as the ones that are ‘enroute’ for delivery
Consumer Visibility
• Consumers can use the USPS.com Track & Confirm page to obtain the status of the package
Merchant Visibility
• PostalOne!: Application allows merchants to track Scan Based Payment activity. Merchants can view reports on sampling, pricing, delivery, and more.
• Product Tracking System (PTS): Database of all scan events. PTS extract files can be sent to merchant and include all shipping events.
25
SBP – Packages Shipped, Scanned, &
SampledSampling• Portions of the merchant’s returns are
sampled (weighed and rated) to determine an accurate price (per piece)
• USPS uses a statistically valid number of samples to represent the merchant’s shipping profile
• USPS uses multiple sampling methods to randomly sample from the returns shipment’s total population
• Sampling can occur at multiple points in the shipping process
All mail is tracked, but only a portion of the mail is weighed and rated as
part of the sampling process
26
Acceptance In Transit Delivered
Local PO/DDU USPS Processing Facilities Merchant’s Address
• Consumer delivers package with label to retail clerk at a local PO or a mail carrier picks up package
• Merchant waits as the package is processed through the shipping process
• Mail Carrier may deliver package to merchant’s address if it is not picked up
Scan Event: scanned as ‘Accept’
Scan Event: scanned as ‘Enroute’ (multiple scan events occur during the ‘enroute’ stage)
Scan Event: scanned as ‘Delivered’
Sampling: Package may be weighed and rated
Sampling: Package may be weighed and rated Sampling: Package may be weighed and rated
How are Packages Scanned? Packages are scanned at multiple stages in the shipping process with hand-held and mail processing scanners
How are Packages Sampled?Weight and rate (origin to destination shipping distance) are sampled during the shipping process 27
SBP – Packages Shipped, Scanned, & Sampled
Screenshot of the SBP module in PostalOne! (https://gateway.usps.com/bcg/login.htm)
where the merchant can view a pieces paid report.
28
The status is complete because the merchant automatically paid upon delivery (see slide on pricing for more details on how rate is calculated)
The three mail classes for Returns are only:•Priority Mail Return Service•First-Class Package Return Service•Ground Return Service
A ‘complete’ status means that the package was delivered and the merchant was charged the amount on the left
09/18/2011
SBP – Packages Shipped, Scanned, & Sampled
The mail carrier delivers the returned packages to the merchant
• Package(s) delivered to the merchant’s address- A mail carrier delivers the returns to the merchant from the local USPS Processing and Distribution Center (P&DC) or the Destination Delivery Unit (DDU)
30
SBP – Merchant Receives Return
SBP – Merchant Charged Upon Delivery
How and when is the merchant charged for the Return once it is delivered?The merchant will sign up for an automatic payment process (CAPS) that is linked to the merchant’s bank account. Whenever a package is scanned as ‘delivered’ the merchant will be charged for the package on the next business day.
Can the merchant view a consolidated list of all charges?Yes, the merchant will have access to many reports, including a pricing summary that lists charges
Automatic Debit
32
Pricing
Will the merchant receive a Flat Rate Price?Merchants are offered a uniform price that is adjusted monthly
Zn. Lbs Rt. Avg. Qt. Total4 2 $6.20
$5.65 x 10 = $56.501 1 $5.10
Example:
Priority Mail
33
How are merchant rates (prices) determined? • The merchant is eligible for one of the two pricing
discounts below: Commercial Base Pricing (all merchants qualify) Commercial Plus Pricing (some merchants qualify)
• For the first month pricing is assigned based on one of the following (listed in priority):
Established pricing data according to historical returns characteristics
Outbound mailing activity prices Another agreed upon method
• After the first month of activity pricing is determined by sampling
An average rate is calculated by using the sampled data (weight and rate) for mail class
Average price is multiplied by scanned mail volume to determine charges
SBP – Merchant Charged Upon Delivery
ReportingMerchant Can View a Pieces Pending Report
This screenshot is the merchant view of the SBP module in PostalOne! (https://gateway.usps.com/bcg/login.htm)where the merchant can view a summary of pieces that have not yet been delivered. 34
A ‘pending’ status means that the package is en route for delivery
$2.74
ReportingMerchant Can View Sampled Data
This screenshot is the merchant view of the SBP module in PostalOne! (https://gateway.usps.com/bcg/login.htm)where the merchant can view a summary of the monthly sampling.
35
Total Pieces Sampled is the sum of all sampled packages for all three mail classes
56$2.71
$5.2459
22 $7.28
137137
How Do I Sign Up For SBP?
2. Obtain a National MR Permit & Set up CAPS Account
1.Set up a Cust. Reg Account
3.Set up Prog Reg and SBP
Services
4.Set up Account on Returns Tool
Why do I need a permit?A permit provides permission for the merchant to conduct Returns transactions at specific locations. A national permit will allow transactions across the entire U.S.
Why do I need a CAPS Account?A CAPS account sets up the merchant for automatic payment (debit) from the merchant’s bank account whenever a Returns package is delivered.
Why do I need to sign up for Consumer Reg.?The merchant must set up an account by entering basic address information. It is also important because a Consumer Registration ID (CRID) is created.
Why do I need to sign up for Program Reg. and SBP?This process sets up a SBP account in PostalOne! and allows the merchant to sign up for other services outside of SBP. This step is essential for the merchant to receive returns and view SBP Reports.
Why do I need to sign up for the Returns Tool?This step is necessary before the consumer/merchant call center can create labels.
36
Flexible Label Printing• New website / API for consumers to
generate labels on-demand• Merchant call center interface to allow
agents to print labels on behalf of consumers
• Consumers may pre-print labels for insertion into an outbound package
Increased Visibility• Tracking included in the price of the
product – no charge• Eliminates delays in time-in-transit caused
by manual rating
Low Cost• USPS offers a uniform low price that is
adjusted monthly for every mail class 37
Just some of the benefits of the New Returns Platform include…
Summary
Understanding 2012 Price Increase
5.9% increase on Ground with a 1%
reduction in the FSC
1-5 lb. ground rates increase
nearly 8%
Some surcharge increases hit
10%
Several international rates
approach 15%
The True Cost of the 2012 UPS/FedEx Increase
38
Fuel Surcharge Comparison
Comparison of Cost with 1% FSC Reduction
(A)
8.0%
FSC
(B)
7.0%
FSC
1lb Zone 2 Rate 5.49 5.49
Residential Surcharge
2.55 2.55
Residential Ext. DAS
3.25 3.25
Fuel Surcharge 0.90 0.79
Total 12.19 12.08
IMPORTANT: The FSC is calculated AFTER the Residential DAS or Ext DAS are added.
Column (A) is the FSC @ the current 8 %: $.90
Column (B) is the FSC @ 7 % using the 1% reduction: $.79 A difference of 11 cents.
The 1% Fuel reduction nets $.11 savings BUT:
• Base Rate: + $.32• Residential: + $.10• Ext. DAS: + $.25
$.67•1% FSC - $.11
Net increase $.56
Fuel Surcharge Comparison
39
Delivery Area Surcharge - DAS
According to industry consultants, more than 18 % of all domestic packages are assessed a DAS charge
25% of the US population lives in a “DAS” area.
Your customer ships 200,000 packages a year and 18% of their shipments are assessed a DAS Surcharge:
200,000 x 18 % = 36,000 DAS Fee: x $2.75
$99,000
Delivery Area Surcharge - DAS
41
What Is The Total Price Paid?
UPS Ground Priority
Rate (1lb Zone 2) $5.49 $4.90
Tracking 0.00 0.00
Discount (35 %) ($1.92) 0.00
Total $3.57 $4.90
Actual Cost With Minimum NetMinimum Net Rate 5.49 NA
Residential Surcharge 2.55 0
Total 8.04 4.90
Fuel Surcharge 0.57 0
Total $8.61 $4.90Add if applicable
Residential DAS 2.75 0
Residential Ext. DAS 3.25 0
Total with DAS + FSC $11.55 $4.90
Total with Ext DAS + FSC $12.09 $4.90
What Is The Total Price Paid?
42
FedEx Ground Priority Rate ONLY $1,336,528 $1,389,422Raw Average $/Pkg $7.02 $7.30Avg $/Pkg with Discount (35%) $4.56 $7.30Fuel Surcharge $155,786 $0Residential Surcharge (100% @ $2.55) $485,591 $0Delivery Area Surcharge - Res (18% @ $2.75) $94,262 $0Delivery Area Surcharge –Ext Res (5% @ $3.25) $55,158 $0Address Corrections (1%) $30,945 $0Total Surcharges $821,742 $0TOTAL CHARGES $1,656,274 $1,389,422Total Average $/Pkg $8.70 $7.30Cost Savings $1.40Potential savings 16% $266,832
Shipping Cost Summary Priority vs. Fed Ex Ground 1-5lbs 190,428 pkgsShipping Cost Summary Priority vs. Fed Ex Ground 1-5lbs 190,428 pkgsShipping Cost Summary Priority vs. Fed Ex Ground 1-5lbs 190,428 pkgs
Shipping Comparison
43
Scan # 11: Delivered Day 2
Expected Delivery Date
Scan # 10: Out For Delivery Day 2
USPS Acceptance Scan Proof of Possession:
Day 1
What Is The Total Price Paid?
Day 2 Delivery: 11 Tracking Events with Expected Delivery Date
Day 2 Delivery: 11 Tracking Events with Expected Delivery Date
44
Resources• Postal Explorer ─ pe.usps.com
– Prices / downloadable price files / Federal Register notices / link to the Postal Bulletin
– Domestic Mail Manual (DMM) / International Mail Manual (IMM)
• P&C Weekly (for employees)– Subscribe via e-mail: [email protected]
• DMM Advisory (for customers)– Subscribe via e-mail: [email protected]
• MailPro– View online and subscribe at usps.com/mailpro 45