Profits & Savings: There will never be an incentive for any vendor to save you as much money as you can save for yourself. Everyone is out to maximize their profit, including the United States Postal Service.
POSTAGE &OVERNIGHT DELIVERY SERVICES
This area is another of management's least understood areas of operation. As General Services Manager, I supervised the printing, inserting and delivery to the United States Postal Service of more than one million pieces of First-class mail.With the implementation of a few judicious guidelines, you should be able to achieve substantial cost reductions. For those people who are poor planners - these are the ones who are always late on their assignments, late for work, etc. - their poor planning oftentimes costs the firm in either disappointed customers or in payment of higher communications costs. Yes, I am talking about overnight mail expense. It seems that no self-respecting manager can live without the fastest and most expensive service available. I would recommend that you do the following:
1.Replace the Standard Overnight envelopes at $10.75 each with 2Day envelopes at $7.25, each for a 32.56% cost reduction. With facsimile machines for immediate transmittal of information, it seems reasonable that a two-day delivery standard be adopted.
2.Create a policy where the President or other authority figure must review and approve each Overnight parcel before it is sent.
3.Consolidate the number of courier and/or parcel delivery, service vendors to one or two. This reduces your management cost as supplies are more easily monitored, ordered and stored. And, your transaction costs, within the Accounts Payable Department, is less. With some courier firms, a discount for volume is available. Ask. The next thorny issue is that of First-Class priority mail versus Standard Mail (A) bulk mail. A savings of almost 57% can be realized when utilizing Standard Mail (A).
4.Some managers think their customers will feel cheated or a loss of image will result from not using First-Class mail. In the lean and mean 90s, customer reaction has proven to be just the opposite....
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