Co-Mingling, Co-Mailing, Co-Palletizing

US postal rates have gone up. Again. Each of us who produces mailings should pay stricter attention to ways in which we can save money. Size matters. Weight matters. Did you know you can also save money by taking advantage of "work sharing" programs offered by the USPS?

I was interested in learning more about three particular programs: co-mingling, co-mailing, and co-palletizing.

As the terms suggest, they require a sort of "cooperation" - that is, your mailings are processed with mailings of other companies. Everyone saves. To learn more, I spoke with Christine Erna, EVP of Mailing and Fulfillment for Vermillion, Inc., in Derry, NH.

MD: Christine, in a nutshell, can you define each of these three terms?

Co-mingling – Combining actual mail pieces together for 3- and 5-digit sortation postage savings. This process is for letter size mail and is done at a "Presort Service Bureau" that utilizes Optical Character Readers (OCR) and Barcode Sorters (BCS). The same equipment is used by the US Postal Service.

Co-mailing – This service is typically used for Periodical mailers. It combines "Publication Titles" onto a pallet going to the same destinations. They are usually entered into one of 21 Bulk Mail Centers (BMC) nationwide or into one of 445 Sectional Center Facilities (SCF).

Co-palletizing – This is combining different companies' trays of letter-size mail onto a pallet going to the same destinations, and they are usually entered into one of 21 Bulk Mail Centers (BMC) nationwide or into one of 445 Sectional Center Facilities (SCF).

Co-palletizing is something that needs to be done through an authorized consolidation company. Alternatively, a company that wanted to do this themselves would need to work with the US Postal Service and go through an approval process. There are currently three companies nationwide that have been certified by the US Postal Service to perform this service, with more companies coming on board. Additionally, companies who plan to use this type of service will work with their selected authorized company and go through an approval process. There is a requirement for transmitting the data in a particular format called "Mail.dat." This information rolls up to the US Postal Service and allows them to analyze the incoming mail volume into their facilities.

MD: Can anyone take advantage of these money-saving programs, or do they only apply to those who do a significant amount of mailings?

A large-volume mailer is an easy target to take advantage of co-palletization. To provide these money-saving programs to smaller mailers, service providers need to work their logistics and schedules to combine smaller mailings together for transportation. There is a fixed cost of a tractor trailer showing up at a plant for pick up. You want to take advantage and fill up as much of it as you can. It could be one mailing of 300,000 pieces or 10 mailings of 30,000 pieces. Customers whose in-home (delivery) dates are not critical and who can add a couple of days to transportation come out real winners in savings.

MD: Are there certain types of mailings that lend themselves to these programs?

Letter size for co-palletization and co-mingling.

Co-palletization is for postage savings and not for expediting delivery. Talk with your service provider about timing and scheduling to determine if there is other volume to combine for co-palletization.

Search for Presort Service bureaus in your area. There are numerous companies throughout the country. The Mailing & Fulfillment Service Association – MFSA – www.mfsanet.org has a provider search on their website.

MD: Do you need a minimum amount of pieces to be mailed to take advantage of these programs?

The minimum is determined by offsetting the transportation cost, so it is advantageous for service providers to get a lot of smaller jobs together to get to the break-even volume.

MD: Which program potentially yields the biggest savings?

Any of these services could net the optimum postage savings, and it takes communication with the service providers to determine what you'll qualify for.

MD: What are the risks, if any?

No risks at all. You just need to plan your mailing schedule to accommodate for transportation.

MD: Are there ballpark figures you can give for the approximate amount of savings one would see?

Customers could see savings up to $42.00 per 1000 pieces of mail utilizing a co-palletization program. Co-mingling could yield you savings up to $15.00 per 1000 pieces of mail.

Thanks, Christine. You can reach Christine Erna at (603) 432-2547 x292 or at cjerna@vermillion-inc.com. The company's web site is www.vermillion-inc.com.

By the way, Christine will be one of our presenters at our 3rd Annual Print Buyers Conference this September, if you want to learn more.

Comments? Talk to me at mdana@bostonprintbuyers.com.

©2008 Margie Dana. All rights reserved. You're free to forward this email to friends and colleagues: please do! However, no part of this column may be reprinted without permission from the author.

Print Buyer Conference Update

September 11th - 12th, 2008

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July 24
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