RR Donnelley's DistributionOptimizer Service Reduces Postal Costs for Magazine Publishers
July 01 2004 - 8:30AM
PR Newswire (US)
RR Donnelley's DistributionOptimizer Service Reduces Postal Costs
for Magazine Publishers CHICAGO, July 1 /PRNewswire-FirstCall/ --
RR Donnelley & Sons Company's (NYSE:RRD)
DistributionOptimizer(SM) service continues to provide significant
postal savings for RR Donnelley's magazine publishing customers by
leveraging RR Donnelley's scope and scale to simplify the
distribution of periodicals and create postal efficiencies.
Distribution costs are a significant expense for magazine
publishers. DistributionOptimizer helps reduce costs by combining
RR Donnelley's co-palletization operations with its dynamic entry
and drop-shipping capabilities. Co-palletization combines magazines
from different publishers on the same pallet, eliminating the need
for mail sacks. Dynamic entry analyzes each mailing to identify the
best strategy to optimize postal discounts, entry points and
schedules. Drop-shipping delivers deeper postal penetration and
reduces overall delivery times. The overall benefits to magazine
publishers include improved delivery times, lower postage costs and
more predictable total mail costs. RR Donnelley also continues to
raise awareness of the possible consequences of future postal rate
changes and to educate publishers about ways to mitigate the impact
of rate hikes. The company recently hosted a customer education
seminar in New York to discuss the benefits of the
DistributionOptimizer service -- especially in light of rate
increases that could be implemented in 2006. The Postal Rate
Commission (PRC) and the United States Postal Service (USPS) are
currently evaluating these potential rate increases. Louise Morrin,
production director of Haymarket Media, attended the RR Donnelley
seminar and discovered that her company could save as much as 18
percent on postage and eliminate 99.5 percent of their sacked mail
by using the DistributionOptimizer service. "Before, our titles
wouldn't qualify for a palletization discount due to our subscriber
base and distribution pattern which meant we entered all of our
mail in sacks locally," said Morrin. "Through this seminar, I
learned that RR Donnelley can co-palletize our issues with other
publishers' mail, virtually eliminating our sacked mail and
allowing us to qualify for co-palletization and palletization
discounts." The DistributionOptimizer service is available to
customers that print at RR Donnelley's Pontiac, Ill., Mendota,
Ill., and Senatobia, Miss., facilities, and is targeted to magazine
publishers with circulation or mailings under 100,000. These
publishers typically do not qualify for palletized mail savings, so
the possible discounts from the service can result in significant
postal savings for publishers. "RR Donnelley quickly analyzed my
mail files to determine the potential savings from
DistributionOptimizer," said Morrin. "RR Donnelley also evaluated
the impact on Haymarket Media if the current proposal being
considered by the PRC went into effect. It was calculated that our
postage costs would increase 12 percent if the proposed rate were
approved. DistributionOptimizer is going to help Haymarket Media
avoid that increase." RR Donnelley has contributed significantly to
the development of the niche rate case that allows the company to
co-palletize bundled periodicals from different titles onto the
same pallet. The goal is to help publishers earn the
co-palletization and palletization discounts, eliminate the need
for sacks and deliver their mail faster and in better condition. To
date, no other printer has been able to deliver the same service to
periodicals that are currently sacked. About RR Donnelley RR
Donnelley (NYSE:RRD) is the world's premier full-service global
print provider and the largest printing company in North America,
serving customers in the publishing, healthcare, advertising,
retail, technology, financial services, and many other industries.
Founded 140 years ago, the company provides solutions in commercial
printing, forms and labels, direct mail, financial printing, print
fulfillment, business communication outsourcing, logistics, online
services, digital photography, and content and database management.
The largest companies in the world and others rely on RR
Donnelley's scale, scope and insight through a comprehensive range
of online tools, variable printing services, and market-specific
solutions. For more information, visit the company's web site at
http://www.rrdonnelley.com/ . Use of Forward-Looking Statements
Except for historical information, this news release may contain
"forward-looking statements" as defined in the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned not
to place undue reliance on these forward-looking statements and any
such forward-looking statements are qualified in their entirety by
reference to the following cautionary statements. All
forward-looking statements speak only as of the date of this press
release and are based on current expectations and involve a number
of assumptions, risks and uncertainties that could cause the actual
results to differ materially from such forward-looking statements.
Readers are strongly encouraged to read the full cautionary
statements described in RR Donnelley's filings with the Securities
and Exchange Commission, including the section entitled
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" contained therein. RR Donnelley disclaims
any obligation to update or revise any forward-looking statements.
DATASOURCE: RR Donnelley & Sons Company CONTACT: Dan Leib, Vice
President, Investor Relations, +1-312-326-7710, or , or Doug
Fitzgerald, Sr. Vice President, Marketing & Communications,
+1-312-326-7740, or , or Jeanette Ray, Director, Solution
Development, +1-630-322-6946, or , all of RR Donnelley & Sons
Company Web site: http://www.rrdonnelley.com/
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