Postal Services Case Study
Public Sector Client
The Challenge
The Client wanted to take advantage of the de-regulation of postal services and reduce the cost of all postage.
They had no visibility of cost of postage and had allocated departmental budgets based upon historic costs. It was not possible to accurately identify postal use.
Stenmoore Role
The first stage of activity was to monitor post use for a period of time and build a database of items posted capturing the following information:
- Volume
- Item size
- First or second class post
- Identify if first class post had to be sent 1st class or if it was due to custom and practice
This information was captured for all post rooms in the Client organisation.
We designed a performance specification based upon the pattern of activity identified during the data gathering stage and issued it to postal service providers.
The responses were evaluated using the following criteria:
- cost,
- ability to deliver a two and three day service
- ability to comply with collection time slots,
- management reporting,
- security,
The contract was awarded to a single OGC Catalist supply partner who satisfied all criteria.
Stenmoore managed the entire process including all data gathering.
The Delivery
The new service delivery structure delivered annual “hard cash” savings of £15,000 with a significant improvement in total performance. Benefits realised for the Client included:
- Hard cash savings of £15,000
- Improved internal process and discipline, for example fewer letters sent with hand addressed envelopes, post moving from first class to second class equivalent when operationally possible.
- Visibility and transparency of costs– enables very accurate budget forecasting
- Management reporting and measurement of performance
Stenmoore were responsible for working with the supply partner to implement the new solution and drive compliance across the Client organisation. We are still managing the relationship with the supplier and we are continuing to drive compliance to the new solution.