UPS Mail Innovations case study AFLAC Gains Savings and Improves Service with UPS Mail Innovations AFLAC AFLAC is an insurance industry leader with more than 40 million customers worldwide. Known for innovation and service, AFLAC continually strives to improve its operations. To reduce costs and add value in the handling of its mail processing, AFLAC tapped the resources of UPS Mail Innovations. G E O G R A P H I C A R EA S E R V E D United States CHALLENGE Client Challenge AFLAC is one of a growing number of companies capitalizing on the savings made possible through work-share programs of the U.S. Postal Service. This particular program gives postage discounts to private-sector contractors that process “flats”— mail that is larger than a letter but smaller than a one-pound package — before inducting them into the U.S. Postal Service system closest to the final delivery address. After utilizing another private contractor, AFLAC switched to UPS Mail Innovations due to our ability to deliver greater savings and more flexibility, along with a complete package of Expedited Mail Services. “We have worked with UPS for a long time, and we have a lot of confidence in the way they do business,” said Steve Givens, AFLAC’s Director of Outbound Services. “When UPS Mail Innovations offered us a better package to meet our business needs for flat mail, we jumped at the opportunity.” Our Solution As a major insurance agency, AFLAC sends out 30 million pieces of mail annually, with much of it originating from its Columbus, Georgia, headquarters. Approximately 15 percent of that volume qualifies as flats, including policy enrollment kits, proxy statements for shareholders, and company marketing materials. With UPS Mail Innovations, AFLAC immediately enjoyed the benefits of a national network of expedited mail processing centers outfitted with advanced IT systems and served by secure, reliable ground and air transportation. The built-in flexibility of the system allows UPS Mail Innovations to accommodate spikes in volume without losing efficiencies. Add value, flexibility and speed to the processing of flat mail while also reducing costs. SOLUTION An Expedited Mail Service that uses advanced technology and leverages the power of a secure, reliable ground and air transportation network. R E S U LT S • Achieved significant savings on postage • Increased production through flexibility for mail volumes and pick-up times • Tapped into an advanced U.S. Postal Service-approved mail processing system • Accessed a Web-based reporting and tracking system • Leveraged an integrated air and ground transportation network “The quality of flat mail UPS Mail Innovations’ dedicated couriers pick up flat mail on a flexible, as-needed basis from AFLAC’s headquarters and transport it to the regional mail processing center in Greenville, South Carolina. We developed our own technology — approved by the U.S. Postal Service — to rapidly weigh, sort, and affix postage to high volumes of mail. processing offered by Dedicated couriers take the regional mail to U.S. Postal Service facilities for induction into the postal stream as close as possible to the final address. Flat mail destined outside the region is taken to a UPS air hub, where it is guaranteed space on the next available UPS cargo plane. The mail receives final preparation at the UPS Mail Innovations processing center nearest its final destination, then it’s inducted into the appropriate U.S. Postal Service facility. secure, timely manner Regional mail is typically inducted into the U.S. Postal Service within 24 hours and national mail within 48 hours. The process provides faster induction into the U.S. Postal Service resulting in transit times comparable to First Class mail, while generating significant cost savings. us is a testament to “The quality of flat mail processing offered by UPS Mail Innovations enables us to get qualified mail to its destination in a secure, timely manner and at a greatly reduced cost,” Givens said. “The fact that they can pass on so much savings to us is a testament to how well their system operates.” The UPS Mail Innovations reporting and tracking system allows AFLAC to access data on the status of mail shipments every 24 hours via a secure Web site. The system traces the mail to the point of induction into the U.S. Postal Service and reports both distribution data and total savings generated. The mail weights and volumes are broken down into cost centers, giving AFLAC the option to bill interdepartmentally on a daily basis instead of weekly. “UPS Mail Innovations has brought tremendous value to an important part of our business,” Givens said. “The relationship that we have with all levels of their staff is outstanding. They are always striving to come up with new solutions that fit our needs.” UPS Mail Innovations enables us to get mail to its destination in a and at a greatly reduced cost. The fact that they can pass on so much savings to how well their system operates.” — Steve Givens, Director of Outbound Services, AFLAC For more information please visit: www.upsmailinnovations.com UPS Mail Innovations 1-800-500-2224 © Copyright 2003 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved. Printed on recycled paper. E 7/03 UPS Mail Innovations