Pitney Bowes 2005 Annual Report Download - page 7

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As we pursue opportunities across the entire
mailstream, we continue to see broad
opportunities in traditional letter mail.
We are showing our customers and prospects
how to make their mail work harder, particularly
in light of the growing demand among large
corporations and government entities for process
improvements, cost efficiencies and financial
transparency. Our technological innovations
are transforming the meter into a networked
information management system. For example,
we added an innovation to our IntelliLink®
technology in 2005 that allows users to obtain
electronic signatures on Certified Mail™Business
Manager, our most advanced accounting
software, allows large mailers with multiple sites
to manage all spending centrally. Our OnRoute™
mail tracking software offers a broad range of
capabilities, including the ability to connect
information from inside the envelope to business
processes across the enterprise, including
customer service and collection centers.
Postal transformation and reform efforts around
the world are also creating opportunities for
Pitney Bowes. For example, Royal Mail in the
United Kingdom has instituted a 3.3 percent
discount on metered First-Class mail versus
postage stamps to promote the efficiency of
metered mail and, more recently, announced
a discount on Second-Class mail. It will also
change its pricing in 2006 according to the thickness
and weight of mail pieces, creating opportunities
for us to upgrade the mailing systems of our U.K.
customers. The U.S. House of Representatives
approved comprehensive postal reform legislation
in mid-2005, and in early 2006, the U.S. Senate
approved its version of the legislation by
unanimous consent. We are confident the
legislation that emerges from the House-Senate
Conference Committee will benefit Pitney Bowes,
the mailing industry, including the U.S. Postal
Service, and the public.
Productivity Improvement and Process Excellence
We have completed the major restructuring we
began in 2003 to accelerate process improvements,
improve productivity and reduce costs. The results
have been substantial. We have reduced operating
expenses for our U.S. call centers by 24 percent
since 2000 while handling more transactions
than ever. We have reduced the number of U.S.
customer service technicians from 2,000 to 1,554
since 1999, yet increased revenue by acquiring the
capability to service equipment other than our own.
Our Global Mailstream Solutions group has been
able to reduce the number of salespeople in the
field by opening two new telesales centers, resulting
in a net increase in revenue of 45 percent in 2005
The market for
customized postage
products will only
continue to grow
The higher
a person’s income,
the more
mail the person
sends and receives
.