Postal Logistics Services LLC earlier this year became the first company certified by the US Postal Service to co-palletize mailings of Standard mail letter-size pieces in trays received from authorized mail preparers.
Co-palletization consolidates physical bundles of mail from multiple companies and ZIP codes that have already been addressed and presorted onto pallets. These pallets can then be shipped to the USPS’s 454 Sectional Center Facilities, which are processing and distribution centers that serve a designated geographical area defined by one or more three-digit ZIP code prefixes.
When mail is dropped off at one of these facilities, it is closer to the home where it is being delivered to. This process saves the USPS handling costs. As a result, mailers, especially smaller mailers, can receive Sectional Center Facility (SCF) discounts.
“We take those runs – 30,000, 40,000, or 50,000-run mailings – and give them an opportunity to garner some of the postal savings in drop shipments that they don’t have today,” said Tom Taylor, managing partner of Postal Logistics.
“They will also have a quicker in-home date,” Taylor explained. “The average in-home date through a local drop is 14 to 21 days. Through our system, it will be seven to 10 days.”
Co-palletization of mail also generates increased savings by enabling shipments of Standard mail to be assembled on full pallets as opposed to mail sacks, which are more expensive for the USPS to process.
Only approved letter shops can use the service. Postal Logistics houses one machine in its facility in Aurora, IL, and it plans on opening a facility by year’s end.
Postal Logistics has 16 letter shop companies that are officially authorized to co-palletize letter size Standard mail, according to Taylor. Companies include Alaniz Direct in Mt. Pleasant, IA, the Direct Marketing Group in Swedesboro, NJ, and Renell Prolongo in Western Springs, IL.
The company has 14 customers who are applying for USPS approval.