THURSDAY SEPTEMBER 1, 2005
TOPIC: SHAPING THE NEW BUSINESS MODEL
BACKGROUND
The Canadian mailing industry by
many accounts is increasingly marginalized by the strategic and
practical initiatives of their largest supplier, Canada Post
Corporation. To achieve a more balanced, sustainable and
profitable business model, NAMMU is focusing attention and
awareness on three key business drivers: the rate setting process,
incentives and cost accountability; meaningful consultation and
win-win impact; fair business practices.
Along with the
2004 ground-breaking report: Canada Post and The Mailing Industry:
Shaping The New Business Model, NAMMU initiated a political
“outreach” awareness program, to promote and engage in dialogue
for process improvement. Members were also encouraged to
participate in the two Canada Post sponsored workshops in fall
2004, administered by an independent third party from Queen’s
University. Executive summaries of these workshops published by
Canada Post fully supported the NAMMU Phase I report. No action
has been taken to date with the mailing industry on the issues
tabled, however internal CPC discussions have been held.
NEW
Following the June announcement in
the Canada Gazette of the domestic stamp increase for January 2006
governed by the rate cap formula, as well as International rates
for which the avenue of appeal is to Canada Post, business
customers were sent the commercial rates/conditions imposed by the
Corporation for January 2006. NAMMU resumed the JUST SAY NO letter
campaign with members, broadening the recipient list to those who
can influence process change, to increase collaboration,
understanding and mutual business success with Canada Post.
To encourage
ongoing, positive momentum, NAMMU elected to build on the platform
of the Phase I report tabled with Canada Post and government in
August 2004. Results of the NAMMU mailing industry forum – IMPACT
2006: Gateway to Positive Change – held August 25th, as well as
additional ideas submitted by NAMMU members and other interested
parties, will form the second annual report from the mailing
industry in fall 2005. The objective is to update, prioritize and
refine the initiatives presented in the 2004 report, to a
manageable number of key business drivers that are reasonable,
actionable and vital to the profitable business of mail – and
positively impact 2006.
Highlights of
IMPACT 2006:
*Awareness of the
mailing industry’s economic contribution is growing.
The next step is to achieve status – a say in strategic decisions
that drive or enable our business, through a fair, balanced,
commercial process.
*Regular meetings of rejuvenated technical and technological joint
committees
need to be reinstated for mutual value.
*Semi-annual and annual volume reports by type of mail need to be
provided – at minimum on Exclusive Privilege products – to an
agreed, consistent standard, crucial to business planning of the
supplier infrastructure.
*Penalties levied on mail errors should reflect only the actual
cost of correction,
and this only after an offer to re-work is made to the mailer.
*Delivery performance standards could be used as the basis for
pricing.
*Mail consolidation and bypass make sense, regardless of type of
mail.
*Partnership criteria, enabling mutual trust between mailer and
Canada Post,
need to be tabled for the new business model.
*The cost of interface with Canada Post is rising dramatically,
and has reached a crisis point with the reduction/removal of
incentives.
*VAM (Value Add Mailer) issues of competition and business
practices
remain unchanged from 2004.
*Opportunities were prioritized for each type of mail. The key
area of
volume growth was definitely agreed as Admail. NAMMU has
re-surfaced
re-definition as a key enabler, as well as an immediately
available NIXIE file of “opt out” movers.
NEXT
The 2005 annual report will be
published this fall and tabled for review by the Association
executive with all interested parties. Several of the ideas
prioritized at IMPACT 2006 involve mutual education, as well as
specific council discussions, and members will receive
notification of meetings to address these issues. It was agreed
the International Mail – Exclusive Privilege issue was still
causing churn within the industry,
and NAMMU agreed to prioritize and renew its efforts to encourage
positive resolution.
