September 29th, 2006

 

IN FOCUS: WHAT’S NOW? WHAT’S NEXT?
The 2007 Rate Case and Directional Thinking

BACKGROUND
More frequent, interactive industry forums on key topics surfaced in discussions as a top enabler of a mailing industry – Canada Post productive business relationship. This is seen as particularly true of directional thinking in likely product and service developments. No comprehensive rate package discussions have been held in the past several years, the Joint Technical Committee has not resumed meetings, and knowledge/understanding of directional thinking of the Corporation appears to be uneven across products, and across customer groups.

NEW
In co-operation with Canada Post, the NAMMU NATIONAL FORUM: What’s Now? What’s Next? delivered the industry platform for information and dialogue on four key aspects of the 2007 rate case: Lettermail, Admail, Publications Mail, BRM. Together, these products account for 75 per cent of the postal revenue. Catalogue mail, parcels, data products and services were reserved for a separate discussion. Exit polls from the September 19 Forum indicated strong, positive views of the meeting format; enhanced understanding of the postal direction; high expectation of continued industry dialogue now that the process has been revived.

NEXT
Follow-up meetings to be scheduled:

September 19th Forum Highlights

LETTERMAIL BUSINESS OVERVIEW
Presentation and discussion of the CPC Exclusive Privilege Incentive Lettermail products was conducted by Mike Badour, General Manager, Product Development and Management (Lettermail), Transaction Mail. This presentation has not been made available for distribution due to CPC confidentiality requirements. CPC stated it will keep the January 2007 date for both rate and reporting implementation on the re-introduced weight band split. Agreement was stated on the need to develop an earlier timeline for industry consultation and the detrimental effect of little or no industry connection on this Exclusive Privilege product line.

Two industry discussion leaders representing the Transaction Mail Council presented their perspectives on the 2007 rate case. Shirley Neil (Manitoba Hydro) called for a strategic partnership between CPC and owners/producers of large volume, low-touch Lettermail. Forum discussion lent credibility to the potential that >30g mail is actually mail generating mail, and the significant rate increase will ultimately discourage this. Warren Howard (Intria Units) provided background on changing mail piece characteristics, typical weights. Lead time and clarity of technical specifications for the new weight reporting requirements were tabled as key issues for implementation. Forum discussion reinforced these points as barriers.
Click here for presentation by S. Neil
Click here for presentation by W. Howard

DIRECT MARKETING AT CANADA POST
Presentation and discussion of the Admail products was conducted by Christine Timbers, Manager Addressed Admail/Unaddressed Products. This line of business is targeted for growth by Canada Post, a factor enthusiastically supported by the mailing industry. Highlights of the rate package were presented but discussion readily focused on creating new business and simplifying definition/compliance requirements. The NAMMU Mail Marketing Council will update the multi-idea paper submitted in 2004 so the new SVP, Laurene Cihosky, will be in the loop for discussion. The VAM Council will set up a meeting with the Direct Marketing group to look at non-productive communication issues, significant opportunities for business growth.
Click here for presentation by C. Timbers

PUBLICATIONS MAIL OVERVIEW
Presentation and discussion of the Publications Mail product was conducted by Dale Bemben, Product Manager, Publications Mail. The 2007 rate case presented no surprises due to the ongoing dialogue between Canada Post and blishers/printers/VAM. Not all favored all aspects but agreed their input had been considered. The presentation focused on initiatives and specifications developed from the cost reduction workshops, particularly brickpiling (palletizing), container fill modifications, and forward thinking on the ERTS (Electronic Return to Sender). Industry and Canada Post benefits are easily demonstrated and the projects are expected to result in win-win results. These and other initiatives will be refined in practice and regular dialogue with a variety of stakeholders, including the NAMMU Publications Mail Council.
Click here for presentation by D. Bemben

Discussion leader, Jim Wiseman (RBW – Transcontinental), Co-Chair, NAMMU Publications Mail Council, focused on costs and rates, clearly signaling the importance and continuing need for close, joint examination of opportunities to both reduce costs and improve the product offering. Touching on the impact of PAP and Canadian Heritage subsidies, it was noted that alternative distribution methods might cover the urban centres for publishers but the rural and less densely populated distribution areas would probably fall only to Canada Post. Heading the “Wish List” posted by Jim is the statement: “Industry needs to work with Canada Post to reduce cost of processing mail.” At least two items on that wish list transcended product lines: Electronic Acceptance of Mail; In-house audits for mail so large volumes can bypass Gateway facility. Co-mailing was also agreed as a reasonable discussion topic. These items were strongly supported by the delegates for all mail types, and Canada Post expressed further interest. NAMMU will pull together a stakeholder forum to discuss potential.
Click here for presentation by J. Wiseman

BRM
Presentation and discussion of BRM was conducted by Rachel Carriere, BRM Brand Manager. The overall thrust was: Better return on your message. Along with the technical product updates, the user-friendly support mechanism was highlighted as well as proven techniques to consider for response improvement. The mandatory requirement for the 4-State Bar Code as of July 2007 will pay off in big benefits for users: daily sort, count, and eventually invoicing. Chapter level presentations/discussions were agreed to support this initiative.
Click here for presentation by R. Carriere