NAMMU MEDIA GROUP
MONDAY OCTOBER 22, 2007
2008 RATE CASE +
BACKGROUND
The first collaborative national rate case forum in September 2006 between
Canada Post and the mailing industry was deemed an unqualified success by
participants, and set the stage for continuing the approach in subsequent
years. No major changes to the format were made for the September 19th, 2007
forum, except for the segment hosting by the new NAMMU Council structure.
The pre-work done by Council Chairs with their interested constituency(ies)
on a national level, grouped and prioritized issues for review with Canada
Post product specialists, and enabled strong focus to be held throughout
the
discussions. This method also ensured follow-through on outstanding issues
by Council Chairs. Read more about NAMMU Councils, click
here:
NEW
Following are highlights of each meeting segment. Dialogue/work is ongoing
and members are invited to contact the specific Council Chair or executive@nammu.org.
Overview 2008 Rate Case +
NAMMU President, Kathleen Rowe, highlighted several key points that, when
implemented, would have positive impact for the mailing industry. She thanked
the 2007 Corporate Sponsors not only for their significant dollar support,
but also for their dedication to “getting it right.” “When
we get it right, we build our industry, we build our businesses, we grow
profitable
volumes for Canada Post. It’s in our mutual self-interest to plan together,
the objective of this forum. We want to keep the medium of mail exciting,
cutting edge, relevant, and economically sustainable.” In her 2007
Progress
Report delivered at this session, the President included these comments:
-
The Canada Post annual report format is improving for
readers.
Improvements noted: Clear by product line, clear in strategic direction,
clear about capital investment plans, enabling the reader to understand
the perspective taken, whether they agree/ disagree with direction. At
the
CPC Annual Meeting in St. John’s, NAMMU requested an additional statement
in Transaction Mail to ensure readers do not assume that business mail
is
included in the Rate Cap Formula.
-
Membership support of this second annual September Rate
Case Forum, is a good basis for enhancing the business rate setting model.
NAMMU will next propose this Forum be held in March, so that a collaborative
preview of proposed rates/specification changes could enable planning by
all parties for the subsequent year(s).
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Direct Mail/Direct Marketing is the engine to grow postal
business. In several recent interviews, the NAMMU Mail Marketing Council,VAM
Council, and Publications Mail Council each tabled their business build
initiatives (See DMN direct marketing news – August 2007; Canadian
PRINTER – September 2007.) One overriding barrier to growth is the
current Admail definition. The NAMMU Mail Marketing Council will work with
the Direct Marketing team at Canada Post and give recommendations for change.
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New technology to replace/replenish aging plant infrastructure
is a significant investment for Canada Post, and is apparently going to
move ahead quickly. The President received assurances at the Canada Post
annual meeting, that the suggestion of re-inventing the Joint Technical
Committee (JTC) – or something similar – to ensure the best
outcome possible for industry and Canada Post, is going to be acted on
positively.
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30g threshold was removed initially to “grow the
mail”. Are volumes deteriorating following the weight split? The
30g
issue is creating more complexity in trying to isolate >30g mail. A
transition
statement is required from Canada Post on the specifics of weight component
breakdown reporting plans.
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Envelope space is an option for promotion space, rather
than additional inserts.
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Canada Post is preparing a multi-year road map (3-5 years)
which must have input from knowledgable customers.
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Are all infrastructure improvements necessary? Why not
provide meaningful incentives and mailers will relieve CPC of some of this
cost burden. We can ship mail electronically to Vancouver, for example.
Does it make sense to produce and prepare mail locally? Mailing industry
participants agreed the necessity of input to CPC plans, specifically through
a revived JTC format.
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How do we deal with inconsistencies in RVU reaction and
processes to same issues? Specific instances will be tabled by the Transaction
Mail Council with
recommendations for solutions.
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Process/notification of pricing and specification change
announcements: According to Canada Post: Approvals are not received until
the Spring, pricing for incentives dependant on full letter rate. According
to business: this is costing Canada Post customer loyalty, and increasing
frustration for business users. The Transaction Mail Council has proposed
a spring date for the next Forum, preferring to hear a preview, and at
least
get some sense as to where Canada Post is heading.
Post-meeting follow-through: Fiona Charlton confirmed SERP
vendors are aware of the container weight change and the technical specs for
Presort were adapted to read
22.7 kg.
Direct Mail/Direct Marketing
Due to unavoidable, last minute circumstances, the Mail Marketing
Council agreed to postpone its in-depth discussion on Direct Marketing until
a later date. With thanks to Dale Bemben for reviewing the Admail pro forma
presentation, and responding to several questions. The non-increase to Ad
Card pricing caused some concern with the VAM community. Canada Post advised
it was taking a margin hit on print/production, postage would be at 2008
levels.
Dale also reviewed the potential impact of altering the BRM address and/or
postal code provided by CPC.
Click
here to read the complete presentation:
Members will be advised of the rescheduled timing for this discussion.
Publications/Catalogue Mail
Moderator: Jim Wiseman (Transcontinental –
RBW) Chairman, Publications Mail Council
Presenter: Dale Bemben, Product Manager, Publications Mail
Click
here for Publications Mail Council Wish List:
Click
here for complete CPC presentation:
Discussion Highlights:
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Participants agreed that many of the ideas presented by
the Publications Mail Council were easily transferable to other types of
mail. Discussion focused heavily on removing bureaucracy: audit at source
to avoid local entry; use of
customer records for billing purposes, and more. Successful US models are
available for review and will form a key agenda item for this Council.
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Dale Bemben advised subsequently that this Council and
any other Council that wanted to participate in a further discussion on
these types of issues, would need to include proper representation from
all functions impacted, along with the product line. The VAM Council and
Transaction Mail Council
each declared interest.
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The Publications Mail Council has ongoing, constructive
dialogue with Canada Post and is the most successful example to date of
developing collaborative opportunities.
VAM Council Perspective
Moderator and Presenter: Laura Artibello (Mailennium)
Chairman, VAM Council
Discussion Highlights:
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Patrick Bartlett, General Manager, MSP/Sales Channel Management,
spoke informally to introduce himself, and the new role he is playing with
the VAM community. He has had discussions with Kathleen Rowe and Laura
Artibello,
to familiarize himself with key VAM issues and priorities. Patrick will
be based in Toronto.
-
A number of items on the VAM Wish List relate to Direct
Marketing and business build opportunities. Laura will host a VAM Council
session in conjunction with the Direct Marketing review that needs to be
rescheduled.
NEXT
Council Chairs will follow through on outstanding issues from their segments
and will publish interim reports. The Direct Marketing segment will be rescheduled
for this fall and members will be notified of timing. Exit polls once again
indicated positive reaction to the format and effectiveness of this forum.
Members can offer additional comments to: executive@nammu.org
Contacts:
Transaction Mail Council seneil@hydro.mb.ca
Mail Marketing Council executive@nammu.org
Publications Mail Council wisemanj@transcontinental.ca
VAM Council laura@mailenniumgroup.com
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