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A recent poll conducted by Gallup and Pitney Bowes revealed that the Fortune 500 mailroom ranks lowest in importance, but accounts for 9.2 percent of the total annual operating costs. These companies spend more than $386 million annually on mailing expenditures. Overnight or second day delivery charges account for 17 percent of these costs.
In this time of the proposed "paperless office," businesses are spending more money than ever to be sure that their paper documents get somewhere as fast as possible. Many people say they have more paper on their desks than ever before. This is good news for the package delivery business. However, even though businesses still need to get documents and packages to a destination as quickly as possible, they are getting smarter about how this is done. Overnight delivery has always meant big bucks. Don't send it overnight unless it absolutely, positively has to be there...well, you get the message. Anyway, businesses who have a great need for overnight, second day, or even same-day delivery still want to save money and are realizing that they can.
HOW MUCH DO WE SPEND?
Even though package delivery is a relatively large cost area for most businesses, it is probably one of the most ignored and misunderstood processes. How do most businesses choose their delivery service? Do they use different carriers, or keep it simple and stick with one service?
"Nationwide companies that are large shippers tend to put out bids on a nationwide basis if they have manufacturing operations around the country," says Marvin Stone, vice president, Choice Courier (New York, NY) and Twilight Express. "The big problem for a company like us is that these large companies don't want to save money. They are afraid to make a switch because the name FedEx is such a brand name--well known--and the people in charge of delivery decisions figure they can't lose their jobs if they use FedEx. You may be spending twice as much, but you're safe. For overnight delivery, a company like Twilight Express really has to get to the person interested in saving money."
Twilight Express is a division of Choice Courier, one of the nation's largest on-ground couriers. Choice began as an on-ground courier and after opening additional offices...