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The common theme is this: if you think the Postal Service is a creaky, outdated bureaucracy and the commercial carriers are on the cutting edge, forget it.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.