TUESDAY NOVEMBER 5, 2002

ESOMNIACS

The Business Transformation Team rallied quickly to address and remedy customer and Canada Post business issues as the result of system outtages and other technical difficulties in October. The major contributing factor is the transition to new Distribution Services rates.Customers using ESOM (Electronic Statement of Mailing) and EST (Electronic Shipping Tools) applications, were significantly impacted.

Customer recovery plans to address technical issues included additional Help Desk personnel; Customer Automation Reps working directly with customers many on site. According to Donna Drover, Corporate Manager, Business Transformation, Take to Market, the scope of contact points - i.e. direct calls; EST Help Desk calls; reports from hardware suppliers, Sales Reps, Mail Induction points ensured the team was immediately informed of all issues and able to take action. The system is stabilized, all customer issues have been or are being resolved. The corporate Team is now focusing attention on addressing the longer term issues for Canada Post and mailers: system reliability and performance.Any customer with lingering unresolved difficulties should work directly with their Canada Post Rep and as well, inform the Association if issues persist. Contact executive@nammu.org

TAKE TO MARKET PROCESS

As part of the continuous improvement program established by Canada Post on the take to marketfunction, Donna Drover and her team will participate in the NAMMU National Information Workshop and Dialogue in November. One segment will focus on next stepsin Business Transformation as well as encourage additional customer insight on how the development and implementation process can be improved. If you are interested in attending this session in Toronto, contact : executive@nammu.org

ROI REPORT

For those mailers recently impacted by Business Transformation issues or who may be in the process of converting their own legacy systems to an Enterprise Resource Planning System, the June 2002 issue of the ROI REPORT makes fascinating reading. Published by Hill Holliday, the periodical features case studies analyzing the return on investment of Customer Relationship Management (CRM) initiatives. The June report analyzed the Canada Post business case very favorably and helps put the Corporations significant business challenges into proper perspective: to achieve and grow competitive advantage in tomorrows marketplace (and even todays), the first step had to be full knowledge of the customer. In Canada Posts case, this required integration of over 80 legacy systems into one highly integrated database.

As Philippe Lemay, Executive Vice-President, Business Development puts it: What we had were broken business processes....we needed a complete business process re-engineering.To obtain the full report visit www.sap.com or click on the links below for the full report (http://www.sap.com/) or click on http://www.sap.com/solutions/crm/customersuccesses/roi.asp for the executive summary.

NON-PROFIT NEWS

A new report from the US-based Direct Marketing Association (DMA) found that recent postal rate increases had "a measurable and adverse effect" on the ability of nonprofit organizations to raise funds and deliver programs to their communities. "Given the close dependence of nonprofit organizations on direct mail for fundraising, especially so with charities, it is clear that postage rate increases must only be undertaken as a last resort," said Senny Boone, executive director of the DMA Nonprofit Federation. For more information or to view the report, visit: www.the-dma.org

Another relevant issue for non-profits is the most productive use of volunteer and employee time. James D. Lee, Director of Development, Candlelighters, Childhood Cancer Foundation Canada, made a strong case for outsourcing non-core competencies, driving home key issues in the decision making process and criteria for a seamless and successful business partnership. For a copy of his remarks at the October Toronto Chapter meeting, contact general@nammu.org

DRIVING EFFICIENCY

A key cost driver for any postal administration is the number of times the mail piece is touched. There are two important initiatives underway in the US on undeliverable as addressed(UAA) machineable letter size mail which could drive substantial cost savings for the United States Postal Service (USPS).

The first is PARS (Postal Automated Redirection System), reported in TECH-NOTES (Postcom Issue 02-2002). Using new and enhanced automation equipment and recognition technology, PARS will identify and intercept UAA letters earlier in the sorting process and automatically redirect them to the correct addresses. The system will help the USPS minimize mail forwarding delays, substantially reduce costs and increase productivity in its facilities. Phase 1 implementation is underway and functional in July 2003. The USPS incurs an average additional cost of 20.9 cents if a mailpiece has to be forwarded, and 58.6 cents if it has to be returned to sender.

A new US MTAC (Mailers Technical Advisory Committee) workgroup is looking at the USPS move update audit process and preparing recommendations for improvement. Move Update Audits (assessment of mail deliverability based on criteria that include usage of a USPS approved move update service each 180 days) recently conducted in several regions, indicate much room for improvement. The USPS initially planned to kick off a national roll-out of the move update audit process this month but may be delayed due to industry issues.

The Canadian NCOA service is not mandatory and may, in fact, drive costs higher in the Canadian postal service if the opt outrate is substantial from the recently revised Change of Address Notificationforms. Statistics will be available this month and NAMMU will monitor the impact closely. Some concerned members have already voiced their opinions and you are welcome to forward comments to: executive@nammu.org