The responsibility for multifaceted mailroom expenses can be distributed across several departments, with each managing a separate budget. Analyzing and controlling total costs require a cooperative, holistic approach. Organizations must study the entire process, including the pieces to be mailed, the purchase and storage of mailing supplies and the costs of preparing and shipping mail pieces.
Traditionally, businesses have focused on shipping supplies as an area to trim.
Now, shape-based postage has changed the situation to some extent by enabling businesses to choose more efficient packaging to minimize postage expenses. Yet businesses must also look at the costs of fulfillment, freight and storage and, for a growing number of companies, environmental impact.
Bob Makofsky, general manager for Conformer Expansion Products, Great Neck, N.Y., offers the following checklist to help organizations look beyond mailing supplies and gain an accurate picture of total costs:
1. Determine postage fees. Consider how packaging affects mailing costs. Padded mailers, for instance, now ship as parcels in most cases due to their thickness. The additional $0.33 per piece in postage decreases the cost benefit of using this type of packaging. Paperboard mailers may cost a few cents more at the point of purchase, but they often yield a net savings by qualifying as a flat, rather than a parcel. Also evaluate the shape of the materials being mailed. Redesigning a brochure from letter size to digest size, for example, saves $0.39 in postage. It may require an initial investment, but it will save money in the long run.
2. Calculate fulfillment costs. Boxes and padded mailers require manual insertion, and the former also involves assembly. This human element elevates costs considerably—in addition to increasing the potential for error. Using automation-friendly mailers can cut fulfillment costs in half, more than compensating for any price difference in packaging materials.
3. Include inventory management. Many companies order oversized envelopes in bulk, using a single mailer to accommodate contents of all sizes. Putting a small item in a large envelope now classifies the mail piece as a parcel and adds $0.33 to the postage. Expansion envelopes can help solve this problem. Their design accommodates a wide range of content. Bulk purchases qualify for price discounts and reduce the costs of inventory management. Additionally, compatibility with postal machinery keeps postage low.
4. Consider freight and warehouse expenses. Different mailers incur different costs relating to freight and storage. The ubiquitous padded mailer is a prime example. In addition to higher postage and fulfillment fees, this type of packaging is more expensive to ship—up to 30 percent. They also require five times more space on warehouse shelves than their paperboard counterparts. Switching to paperboard saves money by freeing storage space for other purposes.
5. Identify environmental impact. More companies are opting to “go green” by making environmentally friendly business decisions. Padded envelopes cannot be recycled, although they can be made from recycled materials. However, other mailing options offer both—they’re made from recycled materials and are themselves recyclable.
For more information, call (516) 504-6300 or e-mail bmakofsky@conformerinc.com
- Companies:
- Conformer Expansion Products