The USPS and the Cost of One Day

THE COST OF ONE DAY MAIL We've all heard the expression "the check's in the mail." Increased transit time has financial consequences for businesses that count on speedy delivery. The struggling U.S. Postal Service is consolidating processing facilities, increasing "mail float" and decreasing businesses liquidity. For a company with lots of paper payments, a delay of even 1 day can be costly. 300.00 50% Paper payments still account for almost 50% of B2B payments and 45% of C2B payments. B2B 45% C2B The U.S. Postal Service $5 right now is losing about $1.2 billion a quarter - almost $5 billion a year. Billion Annual Loss 60% x of processing facilities are closing As part of its ongoing Network Optimization, the Postal Service is closing about 60% of its processing facilities across the country. Closures have caused the average transit time for nationally mailed remittances to increase from 3 to 5 days. Transit time 15 +2 days This time is known as "mail float." MAIL FLOAT COSTS 24 BUSINESSES MONEY A COMPANY COLLECTING $1 MILLION PER DAY IN PAPER CHECKS WITH A CURRENT AVERAGE COST OF CAPITAL AROUND 6% AND AN AVERAGE INCREASE OF 2 DAYS TO RECEIVE PAYMENTS WILL EXPERIENCE $120,000.00 MORE PER YEAR IN COST OF CAPITAL. Lockbox strategies are increasingly important because of the strain on USPS processing facilities. A COMPANY RECEIVING $20-$30 MILLION OR MORE EVERY MONTH IN A LOCKBOX PROBABLY NEEDS TWO OR THREE LOCKBOXES. THE CASE FOR OUTSOURCING WHAT IS ONE DAY WORTH? Business Process Outsourcers can help a company become more efficient and drive down the costs of handling accounts receivables, in addition to solving mail workflow issues. %24 FASTER MAIL COST DELIVERY OPTIMIZATION DEDUCTION PROCESS OPTIMIZATION MANAGEMENT Every business process outsourcing (BPO) provider knows that they have to achieve 20 percent or more in savings or they shouldn't even be in the business. MAIL BancTec has a record of getting that level of return for its clients and more - sometimes much more. BANCTEC Get a copy of BancTec's free ebook on first-class liquidity at www.banctec.com