Crown Commercial Service Helping Deliver Postal Savings · • The Postal Services Market was liberalised in 2006. This does not mean that the market is deregulated. ... quality customer

Crown Commercial Service

Helping Deliver Postal Savings

Delivering value for the nation through

outstanding commercial capability and

quality customer service

Contents

2 Commercial Innovation - Enabling Superior Savings

1. Background

2. Step 1 – Identify your Mail Usage

3. Step 2 – Quick Wins

4. Step 3 – Short to Medium term

5. Step 4 - Medium to Long term

6. Conclusion




Background:

3 Commercial Innovation - Enabling Superior Savings

• The Postal Services Market was liberalised in 2006. This

does not mean that the market is deregulated.

• Savings of between 9% and 30% achievable through

considered purchasing

• The key to making savings:

• Challenge long established working practices

• Identify where and how more efficient ways of

working can be realised

• Introduce competition




Commercial Innovation - Enabling Superior Savings

CCS Post: facts and figures

1,000+

customers

Category

Savings

£50m+ p.a.

Extensive

Category

knowledge

Category Spend

£650m

Spend through historic

arrangements with Royal Mail

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Postal Goods and Services Framework


Lot

LOT 1: COLLECTION AND DELIVERY

The collection and delivery of physical mail items of up to 2kg throughout the whole of the

United Kingdom. Services under lot 1 include but are not limited to: bulk mail; standard

mailings; sorted & unsorted mail; unaddressed mail; secured mail and undelivered mail.

LOT 2: HYBRID MAIL ON-SITE SOLUTION

The provision of a hybrid mail solution that is within the Contracting Body’s premises and

utilises the existing equipment that is owned or leased by the Contracting Body together with

supporting software provided by the successful Service Provider (s).

LOT 3: HYBRID MAIL OFF SITE SOLUTION

A hybrid mail solution that is wholly external. Service Provider (s) will receive work electronically

and will be responsible for the printing, addressing, enveloping and delivery (physical or

electronic) of mail items. Service Provider (s) will offer a range of electronic and physical

delivery options, such as SMS or email and will provide supporting software where necessary.

LOT 4: INTERNATIONAL MAIL SERVICES

The provision of international mail services, including the collection of mail items from all areas

of the United Kingdom for delivery to recipients around the globe. Services include but are not

limited to: bulk international mail; standard international mail; sorted and unsorted mail; secured

international mail and undelivered mail.




Postal Goods and Services Framework con’t


Lot

LOT 5: FRANKING MACHINES AND MAIL ROOM EQUIPMENT (INCLUDING ASSOCIATED

SERVICES AND CONSUMABLES)

The provision of franking machines and mailroom equipment (inc.associated services and

consumables) either for lease or purchase in the UK. Products included within the scope of this lot are:

new and remanufactured franking machines; folder inserters; letter openers and address systems.

LOT 6: ON-SITE INBOUND MAIL SOLUTION

For Contracting Bodies who have a requirement for mail items to be delivered to their premises. Service

Provider (s) will offer services including timed delivery, pre-sorted delivery, numbered box services, post

opening, mail screening and tracked/signed for services. Service Provider (s) will also offer the

capability to digitalise inbound mail using the Contracting Body’s existing equipment and to provide a

supporting software package.

LOT 7: OFF SITE DIGITAL INBOUND MAIL SOLUTION

Services relating to digitalisation of mail items sent to the Contracting Body. Services include but are not

limited to: opening, scanning and electronic distribution of mail; archiving, destruction and indexing

services; mail screening and cherished or valuable document handling.

Step 1 – Identify your mail

usage




Step 1 – Identify your mail usage

Establish how you use mail services

•How does this relate to your business requirements?

Key Questions:

•Is there an integrated communications strategy?

•What are you trying to achieve with your postal activity?

•Where are your despatch points?

•How much mail do you send?

•What products and services do you use?

•Are you trying to achieve speed or predictability?

•What is the level of undelivered mail?

•Is postal activity centrally managed?

•Are there any statutory or policy requirements?

•Do you have senior level buy-in to introduce change?

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Step 2- Quick Wins




Step 2- Quick Wins

Reduce 1st Class Mail output

•Switch to 2nd Class (saving 14%)

Improve presentation of mail items

•Correct addressing format can provide an immediate 12.8% saving

Only use letter size envelopes (DL or C5) Saving 33.3%

Undertake pre-sortation of mail, where possible. Savings between 7.8% and 19.69%

Reduce or eliminate use of Special Delivery

Reduce or eliminate use of Business Response

Reduce or rationalise use of PO Boxes

Reduce or eliminate use of franking machines (Savings of between 5p and 7p per item)

Compete your mail services

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Step 3 – Short to Medium

Term




Step 3 – Short to Medium Term

Develop an integrated communications strategy

•Are you using the correct communications media for your target groups?

Identify the lowest cost options for intra office, customer and

stakeholder communications e.g. e-mail, SMS messaging or telephone

Switch to web based services where legally permissible

Cleanse address databases

•Sending items to the right address first time will produce savings

Examine the effectiveness of your bulk mailings

•Are electronic or other methods of communications more suitable?

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Step 3 – Short to Medium Term continued

Review contract management processes

•Proactive rather than reactive

Utilise supplier expertise to provide solutions

Rationalise mail despatch and delivery points

Centralise management and budgetary control of postal services

Improve forecasting to take advantage of cheaper products with longer delivery timescales

Cross Departmental procurement – aggregation of postal volumes to attract volume related discounts

Explore the option of using Hybrid Mail Services

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Step 4 – Medium to Long

Term




Step 4 – Medium to Long Term

Statutory or policy requirements – can these be challenged and

rewritten to take account of competition and innovation?

Consolidating correspondence to same addressee from different

Departments

Utilise spare capacity of other Departments output handling attracting

greater volume related discounts

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Aims and Objectives• Collaboration between contracting bodies to harness the efficiency of

buying together and delivering commercial innovation through a partnership approach.

• Today can only ‘chip away at the edges’ as we develop initiatives with individual bodies (1-2-1 vs 1-2-many)

• Without a 1-2-many approach the opportunity sizes are generally not significant enough for either party to divert resource to from other activity

• Make one person/ body responsible for procuring post for all bodies that fall under each specific region

• Ensure all the best practices for efficiency are adopted

• Innovative initiatives worked on in partnership to benefit all in the region

• Commitment to a programme of reviews, pilots and test activity

• example, focused on the use of fulfilment services, or

• how mail can be used to drive down overall costs across the estate

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Best Practice Examples

17

CollaborateFree Mail Room

Audits

Review envelopes

Hybrid Mail Solutions

Reduce handwritten mail




Examples:

Chelsea & Westminster Hospital – Did Not Attend (DNA)

Solution. £10k per day.

Leeds Teaching Hospital – standardisation of envelopes.

£1.09p per item to 0.51p per item

London Boroughs - collaboration of mail requirements,

saving 17%

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Conclusion




Conclusion

•If the above steps are taken significant savings are

available.

•Crown Commercial Service Postal Services team is in the

process of developing a full Post Specific customer toolkit

to assist in identifying and competing your mail

requirements. This toolkit is being developed in

collaboration with key stakeholders and suppliers.

•The Postal Services team, viewed as industry experts, is

available to assist you.

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For further information please contact the

Team:

[email protected]

Customer Service Desk 0345 410 2222

[email protected]

www.ccs-

agreements.cabinetoffice.gov.uk/contracts/rm1063

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mailto:[email protected]

mailto:[email protected]

Crown Commercial Service Helping Deliver Postal Savings · • The Postal Services Market was liberalised in 2006. This does not mean that the market is deregulated. ... quality customer

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