parcel shipping 2014 survival guide: pitney bowes webinar oct. 15, 2013

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John J. Kruzan Pitney Bowes, Distribution Solutions

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The parcel industry is constantly changing. From big changes in how the USPS wants you to process packages, to rate changes by the private carriers, to new ways companies are fulfilling and communicating with customers, 2014 promises new products, services – and rules and regulations – you need to know to remain competitive. This webinar is for any organization that does any shipping at all!

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Page 1: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

John J. Kruzan Pitney Bowes, Distribution Solutions

Page 2: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 2 The Mail and Shipping Summit

Your Presenter

John Kruzan is in charge of the Transportation Management Solutions Marketing at Pitney Bowes. John’s background in transportation management includes his role as Director of Strategic Partners and Business Development at DHL Express and Manager of Ecommerce at Airborne Express. In these various roles, John designed, developed and implemented new products and sales programs for the business and consumer segments. His in-depth understanding and hands-on experience with technical applications, Ecommerce platforms, internet marketing tactics and analytics help guide businesses of all sizes to the best transportation management solutions.

Page 3: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 3 The Mail and Shipping Summit

Agenda

The Changing Parcel Shipping Landscape

Managing to Crisis – The GRI

Survival or Adaptation

Reducing Costs and Increasing Efficiency with Technology

Carrier Technology: IM®pb

Pitney Bowes Distribution Solutions

Page 4: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 4 The Mail and Shipping Summit

Noah Webster

change /CHanj/

verb

1. Make or become different.

2. Take or use another instead of…

Page 5: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 5 The Mail and Shipping Summit

2008 2013

Parcel shipping industry has seen quite a bit of change

Page 6: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 6 The Mail and Shipping Summit

2008 2013

Private Parcel Carriers

Page 7: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 7 The Mail and Shipping Summit

2008 2013

Changes in the USPS

-$36.1B

Source USPS

Page 8: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 8 The Mail and Shipping Summit

2008 2013

Regional Carriers

Page 9: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 9 The Mail and Shipping Summit

2008 2013

New Products and Services

Page 10: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 10 The Mail and Shipping Summit

2008 2013

+30%

Year

Perc

en

t In

cre

ase

Source AMF Logistics (Logica), 2012

Average increase in Parcel Shipping by National Carriers

2008 2013

Page 11: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 11 The Mail and Shipping Summit

The 2014 Landscape

General Rate Increase (GRI) The impact to base rates and accessorial fees

announced annually by both Parcel and Freight

carriers

Generally, represents an increase in in both base

and fees

FedEx Express has already announced a 3.9%

express increase, with no offset for the fuel

surcharge

Over 5% increase on Deferred Products

Over 8% increase on Fees

Page 12: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 12 The Mail and Shipping Summit

The 2014 Landscape

Stop managing to the crisis of the GRI

There is a better way

Page 13: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 13 The Mail and Shipping Summit

The REAL problem with shipping

Carrier rates rise every year…however:

Lack of visibility

Inability to effectively manage rates

No shared information

Inability create meaningful benchmarks

No enforceable business rules

Page 14: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 14 The Mail and Shipping Summit

adapt /a-dapt/

verb

1. make (something) suitable for a new

use or purpose; modify.

2. become adjusted to new conditions.

Don’t just survive…thrive

Charles Darwin

Page 15: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 15 The Mail and Shipping Summit

• Single

• Multiple

• Regional

• Courier

Carriers

• Fully accessible

• 100% Compliant

• Contracts

Rates • Authorization

• Services

• Visibility

• Integration

Business Rules

• Monthly Accounting

• Meaningful benchmarks

Monitoring

What we call…

Workflow: the sequence of processes through which a piece of work passes

from initiation to completion

Automatation

Page 16: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 16 The Mail and Shipping Summit

Only integrated Parcel Management solutions In

form

ati

on

P

roc

es

se

s

Pe

op

le

Procurement

ERP WMS Financial

Employees

Management

Customers

Engineering &

Manufacturing

Receive, Stock,

Fulfill & Ship

Finance, Billing,

A/R, & A/P

Customer

Service

Purchasing &

Supplier Mgmt.

Suppliers

Carriers

Transportation Information Integration

Can automate workflow

Page 17: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 17 The Mail and Shipping Summit

Integrated technologies

Parcel Management solutions can pull these disparate systems and people together

On average, only approx. 30% of companies employ any transportation technology

According to the ARC Research Group, utilizing a transportation technology will lower transportation costs

through better visibility, control and benchmarking of carrier costs and performance

Page 18: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 18 The Mail and Shipping Summit

Like a microscope of your whole business

Analysis,

Reporting,

KPIs

Business Rules Audit and

Settlement

Shipment

Documentation

Shipment

Rating

Consolidation

Service Type

As important for “desktop” shippers as production shippers

Carrier

Management

Even small businesses are benefiting from improved technology and deployment methods, like SaaS

Page 19: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 19 The Mail and Shipping Summit

Using technology to increase efficiencies and decrease costs

It must be integrated

It is not an isolated exercise…

It must be strategic

It must be comprehensive

It must be collaborative

Page 20: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 20 The Mail and Shipping Summit

New IMpb Barcode

Carriers are improving their technology and networks as well

Page 21: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 21 The Mail and Shipping Summit

New IMpb Barcode

Delivery Confirmation is now USPS Tracking

Offers better visibility, and control over shipments

Will allow USPS to act like private carriers

Domestic items typically receive the following types of events, such as Time in Transit, Out for Delivery and Final Delivery or Notice of Left

This will allow the USPS to better monitor and ultimately improve transit times across their network

Page 22: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 22 The Mail and Shipping Summit

New IMpb Barcode

Allows serial numbers up to 14 digits to maintain barcode uniqueness

Longer serial numbers enable customers

to incorporate order or reference numbers within the tracking barcode

– Reduces multiple barcodes on package

– Saves printing toner/ink when barcodes combined

– Potential to simplify operations and improve customer service

Single file version supports all products and file versions 1.7 and 2.0 support International Packages in eVS and electronic customs data

Page 23: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 23 The Mail and Shipping Summit

Fortune 500 Company

$4.9 billion in Annual Revenue

2 Million Customers

28,700 Employees

Offices in over 100 Countries

Pitney Bowes

Page 24: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 24 The Mail and Shipping Summit

ARC Advisory Group Names Pitney Bowes #1 Transportation Management System Supplier

Thur April 28 2011 8:30am EST

STAMFORD, Conn.--(Business Wire)--Pitney Bowes Inc. (NYSE: PBI), announced today that it has been named the leading global supplier of transportation management systems for the fifth consecutive year, according to a Transportation Management Systems Worldwide Outlook study by ARC Advisory Group.

Ranked among top 150 global software companies

Dominant parcel management software provider (56% share)

28 years experience; multi-carrier shipping systems

Financial services, including shipping payments solution

The Pitney Bowes you may not know

Page 25: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 25 The Mail and Shipping Summit

Solutions for our Clients

XPRESS

Page 26: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 26 The Mail and Shipping Summit

Solutions for our Clients

Page 27: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 27 The Mail and Shipping Summit

Solutions for our Clients

XPRESS • For small or mid-market shippers • Perfect for <50 shipments/day • Multi-carrier • Meter Integration

• Mid- to large-shippers • Target shippers with over 50 shipments/day • Multi-carrier, including Freight • Meter Integration and eRR

Page 28: Parcel Shipping 2014 Survival Guide: Pitney Bowes Webinar Oct. 15, 2013

October 15, 2013 28 The Mail and Shipping Summit

Solutions for our Clients

Thank you