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Welcome to OMG, LLC
Greetings!
Onsite Management Group excels at managing and optimizing your service center. We provide you with industry expertise so you can focus on your core business activities.
- Digital Mail Center Management
- Copy Center Management
- Scanning/Imaging & Records Management
- Shipping & Receiving
- Courier Management Services
- Professional Office Services
- Switchboard/Receptionist Services
- Industry Consulting
Let OMG take on the extra responsibility of your service areas so you can focus on what you do best.
Take our Survey so we can discover how we can assist you with your non-core business needs. |
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Cost Savings.......Versus Business As Usual
As most companies are searching for ways to cut costs during this economic downturn, many companies believe that their shipping costs are simply "The cost of doing business". In January of this year, FedEx and UPS announced their annual price increases. For Express and Ground shipments, they both announced an overall increase of 6.95%. While this price increase is consistent with those of the past few years, shippers should make sure they understand the surcharges and accessorial charges that are associated with each shipment.
Accessorial charges can include, Residential Delivery and Extended DAS (Delivery Area Surcharge). These charges can quickly add up if you are not attentive to the cost of each shipment.
Fuel Surcharges are another cost to keep in mind when shipping. While the shipping price increase is fixed for the year, the fuel surcharge is not. Based on the market value of fuel, adjusted fuel surcharges are passed on to the shipper. This fuel surcharge is currently as high as 6.50% for Express and 3.50% for Ground shipments. As the fuel costs trend upward, so will the surcharges applied to each shipment.
These charges account for nearly 25% of the total revenue of FedEx and UPS, and as such, the charges are a significant source of their profits. Shippers should be vigilant and compare carrier prices for each shipment. Carriers will likely continue to increase the shipping rates in the future, as part of the cost of doing business. For companies that aim for cost savings, this is no time for business as usual.
For more information on this topic and to assist your company with finding cost savings in your shipping area please contact Steve Brennan, Field Manager, 513-678-3860. | |
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USPS NEWS! A Bill to save the USPS 2.4 Billion in 2009
A Senate panel is considering a bill that will restructure how the USPS pays for its employee's retirement health benefits. Bill S. 1507 will reduce the amount of money the USPS must pay to the US Treasury Departments Postal Service Retiree Health Fund. This fund covers future retirement payments and provides the agency with a larger borrowing limit to meet its current payments. The bill will also allow the USPS to tap into the retiree health fund to cover retirement benefits for postal workers beginning in 2009, instead of the current date of 2017 as set by law.
With a decline in printed mail and fiscal shortfalls in budget, the USPS has been trying to cut costs and streamline operations. In its Fiscal 2009 Second Quarterly Financial Report, USPS officials said they did not expect to meet a scheduled $5.4 billion payment for future retirements on September 30, the end of the fiscal year. The 2006 Postal Accountability and Enhancement Act require this payment.
Sen. Tom Carper, D-Del, introduced this legislation. According to his office, the bill would save the USPS $2.4 billion in 2009. "This bill will put the Postal Service on more sound financial footing as we approach the crucial holiday shopping season," Carper said in a released statement. Carper expects to pass the bill before Congress leaves for recess in August.
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Savings Tip: Reduce on Return Mail
--- Conduct a Mailstream Analysis - Conservative estimates place the hard cost of return mail to be more than $3.00 per mail piece. This does not include the cost of missed opportunities, or customer dissatisfaction.
--- Update Address Lists - Keep your address lists up to date to help ensure that more of your mail reaches its recipient.
--- Install Return Mail Processes - Ensure address updates loop back to the original sources to avoid repeated errors
OMG can help you with these and more cost saving ideas!
To find out more on this topic, please contact Steve Brennan, OMG, LLC, Field Manager at (513) 678-3860. |
OMG, LLC
4400 Bishop Ln., Ste 214 Louisville, KY 40218
800-207-4807
Deron Jett
President
(513) 722-9990
David Westover
Operations Manager
(513) 432-3667
John Kidwell
Account Executive
(513) 266-4921
Executive Assistant
Newsletter Editor
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