How smart firms save on shipping and couriers. April 27, 2017

Transcription

1 How smart firms save on shipping and couriers April 27, 2017

2 Welcome and thanks for joining us. Tom Hazel Channel Director, Shipping Pitney Bowes Inc. Nick Staffieri, CMDSM Director, Administrative Services The MCS Group, Inc. Pitney Bowes April

3 Today s agenda Introductions Benefits of automating the back office through charge backs and integration with existing systems Impact of deploying business rules across the firm Importance of chain of custody and how to improve it Rising carrier rates and strategies to reduce spend Questions? Pitney Bowes April

4 Common practices at law firms: Manual charge back processes increase potential for error. Challenges: Client billing occurs weekly, with possibility of errors. Manual entry of clientmatter accounting information in remarks field Reliance on carrierprovided interface to ship at desktop or mail center Fees often missed due to carrier adjustments. Missing client matter numbers require research before billing. House/orphan account charged when costs not assigned in full or when client cannot be determined. Accounting receives carrier invoices weekly. Manual review and assignment of each charge. Pitney Bowes April

5 Carrier management technology: Reduce errors by automating charge backs and integrating with existing systems Multicarrier technology solution enables shipping via desktop/mail center. Dedicated field available for client matter accounting information. Daily export of all client matter carrier accounting data. Daily account updates and billing is possible. UPS FedEx DHL USPS Contains all carriers; UPS, FedEx, DHL, USPS, local and regional couriers Requires information validation before processing an outgoing package/letter. Captures all carrier costs are within the transaction. Export file is imported into client matter billing system. Billing completely automated. Removes client billing delays. Ensures carrier billing accuracy. Reduces house/orphan account charges. Pitney Bowes April

6 Common practices at law firms: Inconsistent application of business rules invites human error. Reliance on carrierprovided interface to ship at desktop or mail center. Challenges: Carrier final costs not provided; missing applicable surcharges Fuel charges Residential and delivery area, extended delivery, address correction fees added No street level address hygiene Manual entry of critical accounting information. Multiple address data bases need to be managed and maintained Information un-validated and not required for processing Weight not always entered relying on carrier to re-weigh No ability to ensure compliance with selected /preferred carrier Pitney Bowes April

7 Carrier management technology: Automate to ensure consistent application of business rules across the organization. Multicarrier solution deploys at desktop/mail center and includes all carriers. Dedicated field used for client matter accounting information. Ship request functionality allows user to weigh and finalize shipment correctly in Mail Center. All costs accounted for, including applicable surcharges. Complete address correction provided at the desktop/mail center. UPS FedEx DHL USPS Users smart shop all carriers for lowest cost. Information validation required to process an outgoing package/letter. Ensures compliance with preferred carrier Fuel charges Residential and delivery area, extended delivery Simplifies and streamlines address data base maintenance. Pitney Bowes April

8 Common practices at law firms: Manual processes endanger the chain of custody process. Challenges: Manual methods are subject to error. Researching packages manually is a time consuming process subject to errors in package information and assignment to proper recipients. Delivery delays can occur. No complete chain of custody/compliance is established. Receptionist or mail center receives packages throughout the day. Staff manually records the package information in a log book or excel spread sheet. Staff manually generates s to notify recipients of packages received and can be picked up or will be delivered. Staff and client complaints and satisfaction issues occur. Pitney Bowes April

9 Inbound management package technology: Improve accountability through automated chain of custody process. Automated solution scans inbound packages and records all package information. Eliminates errors in information and assignment. Establishes complete chain of custody and compliance throughout the organization. Notifies recipients via automaticallygenerated that packages received and available for pickup or delivery, all in real time. Research packages easily within the application, including signature of recipient along with all package movement within the organization. Reduces receiving and documenting package time to minutes instead of hours. No more questions about was it received and when Chain is documented from the moment it arrives at your location Pitney Bowes April

10 Poll: What is the primary reason you evaluate your firm s shipping options: a. save money b. gain efficiency c. change in volume d. other Pitney Bowes April

11 Case Study I: Client Profile Review Situation Challenges Four location, full service law firm $50,000 annual postage spend all sites with postage meters with postage accounting $300,000 annual UPS /FedEx spend Client presented as using only FedEx Determined after accounts payable review that 3 locations were also using UPS Represented an additional $80,000 in carrier spend to manage Accounts payable receives 25 carrier invoices per month on 10 day terms Manually updating client matter system for client bill back services errors in assignment occurred added surcharges discovered but not applied to clients Missing client matter numbers on carrier invoices No specific business rules around carrier services usage by employees Next day Early am delivery Saturday Delivery Accountable chargeback requirements Pitney Bowes April

12 Case Study II: Client Profile Review Situation Challenges One location, personal injury litigation firm $10,000 annual postage spend; using a postage meter with postage accounting $100,000 annual UPS Using UPS Campus Ship for UPS shipping Difficult to enforce use of remarks field for client matter file numbers Abuse of overnight occurred frequently for regional deliveries Not all costs are billed back to clients Manually updating client matter system for UPS and USPS costs Using manual USPS Certified Return Receipt for Certified Mail Tracking and storage varied by para legal/ admin No set policy around green card storage Paying full retail for Green Card Return Receipts Pitney Bowes April

13 Poll: How often have you evaluated your firm s shipping options: a. Annually and should evaluate now. b. Annually and should evaluate over the next 6 months. c. We have never evaluated and would like to evaluate now. d. We have never evaluated and would like to evaluate sometime over the next 6 months. Pitney Bowes April

14 Case Study III: Client Profile Review Situation Two-location, full service law firm Manually recording all packages received One site used a log book The other location had no receiving methods in place Challenges Packages went missing or misplaced on a weekly basis Staff time spent researching and tracking down missing packages on a weekly basis Delays occurred in client file progress due to missing/misplaced materials Frequent complaints from attorneys and support staff Leadership concerned about compliance issues No chain of custody or history to refer to on received packages Pitney Bowes April

15 Shipping is complex Pitney Bowes April

16 Every service selection decision impacts the bottom line. Best carrier Ideal service level While avoiding surcharges Pitney Bowes April

17 Average shipping prices continue to rise in 2017 Pitney Bowes April

18 Shipping base rates and surcharges increased dramatically over the past decade. For the first time in years, FedEx and UPS will not have matching base rate and surcharge increases*. UPS base rate increase is 4.9 percent FedEx base rate for Express will be 3.9 percent, 4.9% for Ground The infamous residential surcharge, added to shipping services when a shipment s final destination is a residential address, is increasing $0.20 at FedEx & $0.15 at UPS Rates and surcharges increase * Charge Surcharge Pitney Bowes April 2017 *Last 10 years inflation rate was18.99%; Source: State Bureau Org In 2017 USPS parcel rates are Commercial Plus, in 2007 Retail & Commercial rates did not exist. 18

19 Carrier management technology gives you a competitive advantage. Cost Controls Productivity Automation Employing a carrier management solution: Standardizes the firms workflow and processes Eliminates non value added carrier fees, reduced overall spend Provides cost controls to precisely capture all carrier costs Provide compliance to reduce risk Firms professionals spend their time on legal matters and advice: Administrative tasks associated with carrier activity greatly reduced Automated client billing processes Automated storage of USPS Return Receipts and package history Using technology to modernize your business model and appreciate advances that improve your legal services Standardized processes throughout the firm Eliminated manual tedious tasks Accuracy in client billing Monthly carrier billing vs weekly 19

20 Thank you for joining us Questions? Please complete your post event survey and let us know if we can help you reduce costs and ship smarter. Pitney Bowes April