counts, entities are looking for ways to reduce costs. The most successful strategy is to shop between carriers on a package by package basis through third party systems. Here is what we are finding as the biggest changes in this space: } More providers at all levels of the marketplace — There is a lot of focus at all levels of this space from the desktop shipper to the production floor. Also, systems can start at a fraction of what they once cost for basic configurations or move to more feature rich systems that work across the enterprise. } Cloud based solutions are taking over — This is the biggest growth driver in this space because it lets different vendors compete more rigorously, adding more value to the customer. } EDI rates vs. downloaded tables — You used to need to get a DVD with rates each year and try to match discount
levels to what you were actually getting billed. Now you only need to hit the carriers’ servers to calculate the correct price. } Same question over free — There is still the question of if it makes sense to pay for a system over what the carriers offer at no charge. The carrier-provided systems have improved and can do many items you used to need a third party system to accomplish.
Package volumes will continue to grow as will the choices that you will have to optimize your operation. This will mean lower system pricing in the end. We will see more services move to the cloud, which will give us the best opportunities for integration and visibility. Change is inevitable in any industry and it is always uncomfortable. If we look at the big picture, we now are able to communicate faster, at lower costs and with more options.
Future Outlook I don’t see any major changes in this space happening quickly. It will be slow declines of mail volume that will make all of these forces described above evolve over time. I expect that we will see 3-7% reductions in mail volumes and postage meter placements, with the other types of ancillary equipment reducing at similar rates. We will see reductions in expertise around mail, forcing volumes to production facilities inside or outside of our entities.
Adam Lewenberg, CMDSS, MDC is President of Postal Advocate Inc. and runs the largest Mail Audit and Recover firm in the United States. Their mission is to help entities with large numbers of locations reduce mail related expenses, recover lost postage funds, and simplify visibility and oversight. Over the last year, they have helped their clients save an average of 63% and over $4 million on equipment, fees and lost postage. He can be reached at 617.372.6853 or adam.lewenberg@postaladvocate.com.
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