Tuesday, November 20, 2007

YES, YOU CAN USE SIGNATURE CONFIRMATION WITH PO BOXES!

FedEx, UPS, and DHL cannot deliver to PO Boxes.

The USPS can.

And, when shipping valuable cargo, you can use Signature Confirmation when shipping to a PO Box.

The Post Office will simply leave a notice inside the PO Box, asking the recipient to wait in line and sign for your package at the Post Office retail counter.

So you can get a "wet signature" proof of delivery.

With TransGuardian, you can print Priority Mail labels (insured up to $150,000) and First Class Mail labels (insured up to $1,000) with Signature Confirmation -- to any destination, including PO Boxes.

Monday, November 12, 2007

Save On Shipping Supplies


TransGuardian has established a new affiliate program with Royal Mailers, a direct manufacturer of bubble mailers.


On the TransGuardian Home Page (http://www.transguardian.com/), simply click the RoyalMailers logo or log in at http://www.royalmailers.com/.


Log in with the coupon code "transguardian" for phenomenal discounts on shipping supplies (like bubble mailers and tape) and absolutely FREE shipping!


You'll be amazed at the savings with every mailer you send out!


Sunday, September 23, 2007

Our New Proof of Mailing Manifest

We're very pleased to highlight the attached video.

USPS Proof Of Mailing Manifest

This shows how we have engineered an interface with the US Postal Service to create an acceptance scan with the US Postal Service analagous to the acceptance scan with FedEx and UPS.

Until now, you could tender packages to the US Postal Service and somewhere, inside the mailstream, you'd get the first scan. Sometimes that happened at the moment of tendering, and sometimes it happened thereafter, and nobody had the authority to compel a scan up front.

Our programming now requires the USPS Employee to provide a scan at the moment of tendering the packages. We're using an exisitng form that before now was only available in paper format -- and we've created it (a) for Internet Online Postage (IOP), made it available (b) per customer and (c) per batch of mailings. Those are the breakthroughs.

Having indulged in a brief "Eureka!", we are now changing our website and contracts to inform and instruct customers on required use of the Proof of Mailing Manifest.

Friday, July 13, 2007

Credit Card Fraud - Beware of This One

David Marcus, the President of the Diamond Club West Coast, Inc., sent this to us, and we thought our readers should be aware.

*******

I thought this was too important to pass by and thought I would forward it. Take the time to read it. You never know, it could happen to you. I checked with our PD and they said yes, they did hear of it.

*******

New Credit Card Scam Snopes.com says this is true. See this site - http://www.snopes.com/crime/warnings/creditcard.asp .

*******

This one is pretty slick since they provide YOU with all the information, except the one piece they want. Note, the callers do not ask for your card number; they already have it. This information is worth reading. By understanding how the VISA & MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself.

One of our employees was called on Wednesday from "VISA," and I was called on Thursday from "Master Card."

The scam works like this: the person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA. My Badge number is 12460. Your card h as been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a Marketing company based in Arizona ?"

When you say "No", the caller continues with, "Then we will be issuing a credit to your account. This is a company we have been watching and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards."

Before your next statement, the credit will be sent to (gives you your address), is that correct?"

You say "yes".

The caller continues: "I will be starting a Fraud investigation. If you have any questions, you should call the 1- 800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. "

The caller then gives you a 6 digit number. "Do you need me to read it again?"

Here's the IMPORTANT part on how the scam works.

The caller then says, "I need to verify you are in possession of your card."

He'll ask you to "turn your card over and look for some numbers."

There are 7 numbers; the first four are part of your card number, the next 3 are the security numbers that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the 3 numbers to him.

After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?"

After you say no, the caller then thanks you and states, "Don't hesitate to call back if you do," and hangs up.

You actually say very little, and they never ask for or tell you the card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did!

The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card. We made a real fraud report and closed the VISA account. VISA is reissuing us a new number.

What the scammers want is the 3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or MasterCard directly for verification of their conversation. The real VISA told us that they will n ever ask for anything on the card as they already know the information since they issued the card!

If you give the scammers your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement, you'll see charges for purchases you didn't make, and by then it's almost too late or more difficult actually to file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a "Jason Richardson of MasterCard" with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA. The police said they are taking several of these reports daily! They also urged us to tell everybody we know that this scam is happening.

********

Thanks, David!

Sunday, July 8, 2007

Forbidden Word Failsafe

Most shippers of high-value cargo know that typing "forbidden" words on a shipping label - like gold, diamonds, or jewelry - will void their insurance. Virtually every policy states that packages so labeled are excluded from coverage.

So if you ship a package worth $10,000 and address it to The ABC Jewelry Mart, a claim for theft or loss almost certainly will be denied.

In the gem and jewelry industry, most shippers have developed practices that eliminate such "steal me" red flags on labels. For example, they commonly abbreviate "ABC Jewelry Mart" to "ABC J Mart." And if the shipper's company name is Acme Wedding Rings, they abbreviate the return address to "AWR."

The problem is making sure to remember these conventions every time you make a label - or, even tougher, making sure all your employees understand and remember them.

TransGuardian has created a failsafe measure to reduce this risk.

Any time you type a forbidden word on a TransGuardian label (whether it's UPS, FedEx, DHL or the US Postal Service), you'll get a warning in big, red letters notifying you of the red flag words you just typed - BEFORE the label is purchased or printed.

Of course, we cannot block printing labels with forbidden words entirely, because if you must send a package to Bob GOLDblum, 123 JEWELRY Way, DIAMOND, Texas, there's not much you can do about it. The real surname, street name, and city name are indispensible.

But in addition to onscreen red-flag warnings BEFORE the label prints, forbidden word alerts also transmit instantly to TransGuardian security managers, who can review the label contents on their computer screens or pdas and frequently can intervene with a customer to make labels safer before they leave the shipper's premises.

TransGuardian is committed to the intelligent use of technology to guide shippers away from costly errors BEFORE those errors are made.

Monday, June 25, 2007

Trade Risk Coverage - Now Insure Your Receivables Against Bankruptcy, Default & Even Slow Pay

TransGuardian has just launched Trade Risk Coverage (TRC).

Insure your receivables against default, bankruptcy, absconding, legal judgments & slow-pay, up to $5 million per qualified buyer. Selectively cover buyers.

Here's how it works:

Search TransGuardian's Buyer Database to see if the Buyer you want to sell merchandise to is already approved for trade Risk Coverage.

If not, request Trade Risk Approval for your potential Buyer. (This is free and may take overnight to several days, depending on the data available for your potential Buyer.)

Once your Buyer is in the Database, submit the transaction amount you want to cover.

If your Buyer is approved for the desired amount, use the Commercial Insured Trade Agreement (CITA) in place of a commercial invoice or memo.

Type in the transaction value and delivery details and submit the CITA to TransGuardian. Trade Risk Coverage will be bound and confirmed online.

When the Buyer pays you (in full or in part), record the payments in the TRC History.
In case of default or slow payment, call TransGuardian to submit a claim. Claims typically are paid within 60 days.

The premium for TRC is $0.725 per $100, which includes not only receivables insurance, but transit insurance. This means that on $10,000 the premium would be $72.50 to insure both transit and the account receivable...compare the cost of $22-$50 simply to insure shipping with various shipping insurance providers.

TRC is available for terms of 120 days. If the Buyer is approved, you can buy a second and third term of 120 days each, at the same rate of premium.

To understand how this may be worthwhile, consider the following example:

1. You sell $100,000 to your Buyer and pay TRC/shipping insurance through TransGuardian of $725 (remember, you would pay $220 to $500 for shipping insurance alone through other service providers).

2. After 110 days, your Buyer has paid off $70,000. But you're not comfortable leaving the $30,000 balance uninsured. So you buy a second term of TRC for another 120 at a cost of $217.50.

3. After 230 days, your Buyer has paid off an additional $20,000, leaving a balance of $10,000. You feel he probably will pay, but it bothers you that he's taken all this time to pay off the whole balance, so to be safe, you secure a final term of TRC for another 120 at a cost of $72.50.

Before each term of TRC expires, you will receive multiple emails advising you that the term is about to expire and that you should consider filing a claim before the term is up.

TransGuardian can also assist with slow-pay, both for TRC transactions and for old outstanding receivables not covered by TRC.

Wednesday, May 23, 2007

Your Best Friend: The Other Carrier's Rep

Once a man died and, to his surprise, found that he had the choice of Heaven or Hell. An angel showed him Heaven, a place of peace, beauty, and dignified joy. Satan showed him Hell, an endless riot of wine, women and song. A little sheepishly, the man said that he’d take Hell. The next day, he found himself in a chasm of endless fire, gnawing worms, and haunting despair. He complained to Satan, “Where’s your truth in advertising?” Satan smiled and said, “Yesterday you were a prospect. Today you are a customer.”

That’s how it is with your current parcel carrier. Guess who gets all the latest savings and incentives? The company who’s shipping with another carrier!

Logistics is one of the greatest expenses in the gem and jewelry industry. Because many businesses in this trade are small operations, they don’t have the time to analyze various methods of shipping and choose the best. They tend to build a relationship with one carrier or one consolidator and stick with them. That relationship often becomes one of friendship and trust - or so you think...

The problem is that the worst friend you have in the world is the sales rep from your current consolidator or carrier.

The rep already calling on you is that last person to tell you that you are entitled to lower rates, increased incentives, and reduced accessorial charges. Remember, the carrier values the rep based on how much money he or she can charge you, not on how much you can save.

To make matters worse, the big carriers often treat their customers with threats and arrogance. They know shipping is your lifeline, so they badmouth the competition and create a sense of fear.

One customer told us, “My carrier threatened to raise my freight rates if I didn’t insure with them.” Of course, there’s no such provision in the carrier contract, and there are dozens, if not hundreds, of other customers using the exact same association discounts and using third-party insurance within a half-mile radius of this same business. But it shows how the sales rep treats an existing customer: like a hostage, not a valued source of business.

The smart way is to have relationships with the three major carries, UPS, FedEx, and DHL, as well as with the US Postal Service. And let each of them know you have a good rapport with the others.

Having a sole relationship with a freight consolidator is no solution, either, because consolidators have the same motivation as carrier reps – to charge you the most money they can for freight. So they steer you towards the carrier that gives them, not you, the best deal.
What makes you think you couldn’t get the same deal through the carrier directly? Probably nothing but the fact that you’ve never asked.

Listen, if you’re paying $10 per package through a consolidator for UPS or FedEx, guess what? The carrier is charging $9 to the consolidator. Don’t you think that UPS or FedEx would rather have your business for $10 if you worked directly with them? Better yet, if you’re using FedEx through a consolidator, see what you can get through UPS without the consolidator…then go back and ask FedEx to match it.

The truth is, no one carrier is best everywhere. You need the options that all four provide for different circumstances.

That’s why TransGuardian presents all four major carriers, UPS, FedEx, DHL and the USPS, to you through our carrier-neutral website. That’s why we bring you competitive Secure Transit Coverage, Trade Risk Coverage, and Virtual COD…as support services, without marking up freight.

Are rate-shopping and carrier comparison a lot of trouble to go to? Well, we’re trying to make it easy for you.

I was just visiting with a major customer in the Southeast. The purpose of my visit was to further integrate TransGuardan's services to his sales and inventory management software. But the CFO told me, "I want to talk to you about prices after you finish with my IT guys." Well, you know what he had in mind. He wasn't hoping I'd find a way to raise them!

But I had laid down some proposed guidelines for his programmers, choosing less expensive freight options for their various package profiles. They agreed that these would suit their customer expectations perfectly.

When the CFO came back into the conference room in the afternoon, his IT guys said, "We just saved $120,000 a year." Instead of sweating over pricing, we went to dinner and talked about our future together.

If shipping is, in fact, one of your top two expenses (along with insurance), analyzing your options may be some of the most profitable effort you can expend.

Saturday, May 5, 2007

The Great Package Race: DHL Smacks the Competition

Georgia Tech’s School of Industrial and Systems Engineering just conducted the 2007 Great Package Race.

The goal was to test the three major private carriers to see which could deliver a package to remote and challenging destinations most quickly and in the best condition.

They sent identical boxes by UPS, DHL and FedEx from Atlanta, Georgia to

  • Yangon, Myanmar
  • Tikrit, Iraq (a center of the Sunni insurgency)
  • Floranopolis, Brazil (a small island)
  • Harare, Zimbabwe and
  • Apia, Samoa

The carriers were unaware that the race was even going on. They picked up the parcels April 13, and students tracked them online as they traversed oceans, rivers, and jungles. Some destinations, with no official street address, required last-mile delivery by bicycle!

DHL stomped the competition, delivering first to 3 out of 5 destinations and finishing second at the remaining two. FedEx and UPS each came in first at one destination.

“Most packages arrived within a week or two, but one has yet to be delivered or returned, and the mistakes in delivery were often entertaining,” wrote LiveScience.com “One package was sent back-and-forth across the Atlantic nine times before it was delivered, and another was sent to Costa Rica instead of Croatia.

“And just as in a road race, the sprint to the finish proved the most difficult part of the package’s journey, as packages usually arrived in the general vicinity of their destination, but then finding the exact locale was harder.” (http://www.livescience.com/othernews/070502_package_race.html).

TransGuardian insures DHL, UPS, FedEx, the USPS and Canada Post up to $150,000 per package, because we believe that the informed shipper uses the strengths and avoids the weaknesses of every carrier option.

Tuesday, April 24, 2007

Someone to Watch Over You

"Hello, this is Greg Finck from TransGuardian. May I speak to Ellie in shipping?"

"This is Ellie..."

"Hi, Ellie, I see that two minutes ago you logged in a shipment by Express Mail to the XYZ Company in Palm Beach, Florida with a value of $75,000. I was just calling to ensure that you have used the proper security packaging with that."

"Who is this?"

"Greg Finck with TransGuardian."

"Um...we usually speak to Joe Rodriguez..."

"Yes, he's our Manager in Los Angeles. But I'm at the TransGuardian Security Center in Utah, and your shipment just flashed on our screens and pdas, because of its high value. To be fully covered, you need to package that either in a Digital SmartBox or in a 'turtle' with numbered seals. Do you have our security packaging?"

"Yes, Joe provided us with that. But I just put this in a regular box. Should I re-package it?"

"Absolutely, if you want it fully covered. And, Ellie?"

"Yes, Greg?"

"You also put 'Bob's diamonds' in the reference field."

"I did?"

"Yes, you did. That's the other reason I called. If you put any reference to gems, diamonds, gold, or any valuable item on the shipping label, you void your coverage."

"Oh, that's right!"

"So please cancel and re-do your label, use the security packaging, and omit any reference to diamonds in the reference field."

"OK, Greg. And..thank you!"

TransGuardian not only covers the value you declare for high-value packages...our powerful report programming analyzes shipping trends real-time.

When any TransGuardian member ships a package with a declared value over $50,000, our Security Center in Utah receives an immediate flash with all the package-level details.

A TransGuardian representative will then call the shipper to enquire if the appropriate security measures are being taken with that package.

Appropriate security measures include use of a Digital SmartBox or a "turtle" (a blow-molded security case with numbered security seals).

If not, we'll advise you how to get the required security packaging to ensure that your shipment is fully covered.

Also, if there is a pattern of losses with a certain carrier to or through a certain ZIP Code, our programming is designed to detect it quickly. If the pattern warrants it, we can turn off certain carriers to certain ZIP Codes on certain days.

That way, your shipping operator doesn't have to rely on his or her ability to judge the risk of certain destinations or shipping methods; if a loss pattern emerges, that option will simply become unavailable through TransGuardian.

A diamond may be forever...but it should get there overnight...safely.

Monday, April 23, 2007

Now You Can Use TransGaurdian's Label Maker Without Declared Value

Many clients enjoy the benefits of producing online US Postal Service labels with TransGuardian, as opposed to paying a monthly fee for a postal meter.

In the near future, TransGuardian will also offer online labels for UPS, FedEx, DHL, and Canada Post.

TransGuardian's policy is not to mark up freight. So if you have a great rate with one of the carriers, you can continue to enjoy it directly through TransGuardian. Our revenue comes from providing Secure Transit Coverage on the declared value of packages.

However, TransGuardian does have costs associated with the generation of labels. That means we pay a per-label fee.

In order to keep our charges as low as possible and to avoid charging a monthly per label fee, we have decided to add minimum per-label charges for packages with no declared value, as follows:

Express Mail or Overnight with UPS, FedEx or DHL: $0.75
Priority Mail or 2nd Day with UPS, FedEx or DHL: $0.50
First Class Mail or Ground with UPS, FedEx or DHL: $0.25

We believe this will offer our customers continued savings and advantages without compelling TransGuardian to impose monthly or membership fees.

Thursday, April 12, 2007

Turn Shipping Labor Hours into Minutes

TransGuardian has introduced a method of batch producing USPS labels that turns hours of labor time into minutes.

If you have order-order taking software, you simply export today's orders to an Excel file (or to a .csv or ASCII file and convert to Excel).

Send the file to TransGuardian, and we'll do the data mapping to enable Batch Upload for your account.

Now you can upload the .csv file in the TransGuardian Insured USPS Shipping Module. The module enters all package level-detail into the appropriate fields to generate a USPS bar-coded label with a tracking number.

Yes, it can auto-fill your internal reference or billing number, too.

Our software presents you with a list of all the packages to be sent with a check box (so you can select or de-select that package) showing the total quotation for each package, including postage and insurance, if any.

It takes 3 seconds per label to turn your order-entry data into the USPS Labels of your choice. So 100 labels take 5 minutes to generate, and another few minutes to print, depending on the speed of your printe.

The Labels are produced in a multi-page Adobe .pdf. That means you can print them one at a time or all at once, and if any page misfeeds, you can simply choose to print that page again.

One large shipper of 50-100 packages per day told us:

We've been spending 5-7 hours per day preparing labels, even before we started using TransGuardian. Now the whole process takes 15-30 minutes. We hit the button, go get a cup of coffee, come back and we're done. Now we don't have to hire more people to handle future growth. All we have to worry about is what to do with the extra 4-5 hours per day!

Monday, April 9, 2007

Factoids from the 2007 National Postal Forum

  • The USPS is seeing a significant shift from air to ground packages as ground transit times improve and shippers look to lower costs.

  • UPS estimates that it consumes 0.1 gallons of fuel per EACH delivered package. The USPS estimates that it uses 0.002 gallons of fuel per delivery stop (0.75 gallons per stop annually). This is why you don't get fuel charges with the USPS...you get the leverage of the USPS tremendous mail delivery network cutting down fuel costs to a vanishing impact per package.

  • The USPS views "reverse logistics" as a great growth opportunity. The USPS can leverage its huge network of drop boxes and post offices to collect packages that consumers want to return to manufacturers or retailers -- conveniently and economically.

  • Growth in online postage sales is projected to jump from $1 billion in 2006 to $1.5 billion in 2007.

  • Over 70% of USPS packages are shipped a distance of less than 700 miles.

USPS Competitive Trend = Many Advantages to Shippers

One of the most fascinating speakers at the 2007 National Postal Forum was Michael J. Greene, Certified Financial Analyst for Morgan Stanley Research. His said,

The USPS may a more serious competitor to UPS and FedEx.

You, the small-parcel shipper, should be aware of the strengths and weaknesses of all the carriers. There is a place for all of them, but you can save thousands of dollars a year by knowing which carrier is most appropriate for which categories of your shipments.

Driven by e-commerce, the fastest growth in the domestic parcel market is B2C - meaning 1-5 lb packages going to residences. This is the USPS's sweet spot.

TransGuardian Delivers Your Options

By integrating the services of the USPS and the private carriers to our site (http://www.transguardian.com), we bring you the ability to choose any of the carriers’ most advantageous products and insure your small parcels up to $150,000 each.
We bundle these with many other tools and services that put you in greater control of your logistics solutions. Our goal is to keep abreast of the best options in the marketplace for you and then to position those services so that you can access them in ways that are cost- and labor-efficient.

The Players

For perspective, let's compare some of the assets of the USPS and the private carriers:
USPS Manned Drop Off Locations: 38,000
UPS Manned Drop Off Locations: 3,300
FedEx Manned Drop OFf Locations: 1,500
USPS Annual Revenue: $73 billion
UPS Annual Revenue: $48 billion
FedEx Annual Revenue: $32 billion

The drop off locations are important in the rapidly growing e-commerce B2C world, because for return or repair shipments, consumers usually will find a Post Office in their neighborhood, whether their neighborhood is in New York, Puerto Rico, Alaska, or Guam.

And now that the USPS offers free carrier pick up (which you can book online at http://www.transguardian.com/), the playing field is further leveled.

Also important in the B2C world is the fact that only the USPS can delivery to Post Office Boxes; and only the USPS has the legal right put parcels in an actual mail boxes; the commercial carriers must leave parcels “on the porch.”
Priority Mail is the USPS "2-3 Day" product and is most competitive with the ground and deferred air products of the private carriers.
Rate Increases

The New Postal Law that embodies the postal rate change is the most sweeping change in postal regulations in 35 years.
The law does more than raise prices; it also gives the Postal Service to more flexibility create new products and prices in response to fluctuating market demands.
It's true that the USPS will increase its prices for Priority Mail by an average of 13.6%. But the Postal Service hasn't raised rates in 5 years, while UPS and FedEx have increased their ground rates for 1-5 lb packages from 2002 to 2007 as follows:


Total Published Increase: 22.89%
Actual Commercial Delivery Increase: 28.02%
Actual Residential Delivery Increase 37.85%

Also, the USPS does not have accessorial surcharges, like fuel surcharges, residential surcharges, Alaska/Hawaii and Saturday Delivery surcharges.
So, while UPS and FedEx officially raise their rates each year in January, they actually adjust their accessorial surcharges monthly.

Many large shippers at NPF told me that, in their opinion, the private carriers are eagerly awaiting the USPS rate case this summer as an opportunity to hike their accessorial charges and boost profits in the short term. FedEx, for example, begins its fiscal year in June, so this might be a timely move, if it happens, to attempt to support the FDX stock price.
Service Standards

A common complaint about the Postal Service is that it still does not provide the same level of tracking, tracing, and customer service as the private carriers.

But, the USPS has made tremendous strides in this area; for example, its air services are now carried by FedEx, which has caused USPS Express Mail on-time performance to exceed 90%. The online tracking and tracing services with the USPS are improving measurably.
And the improvements are likely to continue. The new law mandates that the USPS can no longer be content with breaking even; it must show a profit.

To hit those goals, the USPS is rolling out new technology. The forthcoming "Intelligent Mail" barcodes will allow for end-to-end visibility through the entire Express and Priority Mail network.

Turf Wars

The USPS is already the low-price leader in many markets. That means it puts a lot of pressure on UPS and FedEx pricing. This is especially true in vertical markets where packages are light-weight, like the gem & jewelry trade and most B2C commerce.

This may pose a real threat to UPS and FedEx. UPS is the dominant player in the ground parcel market, and increasing market share in that segment is one of FedEx's most important goals. Why? Because it is the fastest growing and the most profitable segment.
If the USPS is poised to defend its share of this market and win market share, this means UPS could lose some of its most valuable turf and FedEx could be denied the chance to expand in this area critical to its profit performance.

Conclusion

How does the struggle of giants benefit you?

In the 1970s, when the Cold War was at its height, the President of Indonesia once stood up in a conference of Asian nations and said,

“We must take care that the Soviet Union and the United States do not come to open war. Let us remember that when elephants fight, they trample all the grass around them.”

Then-Prime Minister of Singapore, Lee Kwan Yu, replied,

“We must also take care that they do not become too friendly, for when elephants make love, they also trample all the grass around them.”

The bottom line is that competition is good for you and for the whole market, as long as you pay attention to where new pricing and service changes can benefit you the most.

TransGuardian’s commitment is continually to analyze the changing market and bring you the cutting edge.

Wednesday, March 28, 2007

National Postal Forum & the "3-Letter Carriers"

The National Postal Forum in Washington, DC (March 25-28, 2007) has been absolutely eye-opening. We've always felt that the US Postal Service presented great opportunities to the shipper of high-value commodities...but when you hear the experiences of MAJOR shippers from the world of fashion, finance, pharmaceuticals, advertising and luxury items, you begin to realize that the US Postal Service is your lifeline to world commerce.

Let me give you some highlights.

On Monday, I spoke on the Packaging Symposium panel, introduced by Anita Bizotto, Chief Marketing Officer of the USPS, and hosted by Jim Cochrane, Manager of Package Services in USPS Package Development.

After presenting TransGuardian's insurance options that wrap around the US Postal Service, members of the audience approached me - representing insurance, pharmaceuticals, and even the IRS - fascinated to see how we had combined our services with the USPS and wanting to do business with TransGuardian.

But we aren't alone. After 30 years in the transportation business, I would venture to say that the most creative companies and minds in the industry are focusing on partnerships with the US Postal Service.

The common theme is this: if you think the Postal Service is a creaky, outdated bureaucracy and the commercial carriers are on the cutting edge, forget it. The Post Office is already delivering the future. Their technology options are amazing, and, as one large shipper put it, they're


"hungry for your business in a way you'd expect of the commercial carriers. But today the reverse of common belief is true. The Big 3 Commercial Carriers 'yes' you to death, but can't deliver. The USPS not only has a can-do attitude...they actually can do!"


Paul Fitzpatrick, Director of Operations and Distribution for Olympia Sports, a large retail chain, is speaking on the same panel (hosted by Endicia) as I am on Wednesday. Paul recently set up all his retail outlets to ship via the US Postal Service using Label Server online. They've saved huge dollars compared to what Paul calls "the 3-letter carriers" (UPS, FDX & DHL), because with the Postal Service they avoid all the carrier surcharges (that are rarely discounted even to big shippers). In addition, Paul stressed the excellence and reliablity of the USPS.



"If we get an order and one of the 3-letter carriers fails to deliver, it doesn't reflect on the carrier; the customer blames us. We just can't let that happen. We're in New England. When we were using a commercial carrier, we'd get calls saying, 'I never got the package.' So we'd send out a replacement package. And then Spring would come, the snow would melt, and we'd get a call, 'I guess they did deliver the package...but they left it on the lawn!'"

The key here is that, unlike the 3-letter carriers, the US Postal Service has the legal right to leave your package in the safety of your mail box...not on the porch, at the address next door, or in the hedge!

Yesterday I listened to a terrific talk by Ed Foy, CEO of a really cool and innovative company called eFashionSolutions. They are a web designer and fulfillment company for many of the big names in fashion...Oscar de la Renta, DKNY, Lilly of France...most of the brands you know. They started out in 1999 in a 3-room apartment, using a commercial carrier, and now, partnering with the US Postal Service, they fill orders worldwide out of a 75,000 square foot warehouse.

Ed laid great emphasis on the global reach of the US Post Office.




"Basically, we can fill orders in the UK or China (from the US) in the same time frame and for the same low cost as any local distributor overseas, e.g., $12 vs. $40-$60 using UPS, FedEx or DHL."

Recently, he won a new contract that included b2c shipments in Japan. The client told Foy,



"We're giving you distribution in the US, but we're awarding the contract for distribution in Japan to a Japanese company."


But Ed was able to show them that he could beat the prices and time frames, from the US, for distribution to Japan consumers. He retained the entire contract.



"These days, when you can beat overseas competition and attract dollars to the US, that's a huge win...and the US Postal Service is a major lever in helping you to make that happen."


We followed up with USPS representatives who are planning to help TransGuardian bring its clients very specialized opportunities for international postal services for our market niche. Stay tuned.

TransGuardian laid the basis for a partnership with another company that will allow our clients to produce Certified Mail with Return Receipt online. More on this later, but it's another exciting result of NPF.

Many, many of the companies we talked to were extremely energized by the opportunity to integrate TransGuardian's insurance services to their offerings.

NPF was a fantastic experience, not only because of the many great options we learned about - and will soon bring to our clients - but because it showed us our hunch was right.

There will always be a place for the 3-letter carriers, but the savviest minds in shipping are going postal.