Regus

International Workplace Solutions Provider Replaces Postage Meters with Stamps.com Enterprise in More Than 400 U.S. Locations and Saves $1.2 Million Dollars a Year.

“Our clients turn to us to manage all of their workplace needs, which allows them to focus on their core business. That is why it is important that we have the most advanced and reliable postage management system available today. Stamps.com not only provides us with the most capable solution in the market, but does it in a way that saves us $1.2 million dollars a year over our old postage meter solution.” – Jeffrey Lipes, Procurement Manager, Regus Group

Customer

Regus is the world’s largest provider of workplace solutions, with a footprint of more than 1000 business centers spanning 450 international cities. Regus offers organizations of all sizes and types fully furnished, equipped and staffed offices in some of the most prestigious buildings in the world including Rockefeller Plaza, The Chrysler Building and Spear Tower. Today, more than half of the Fortune 500, along with thousands of small– and medium-sized companies, depend on Regus for some part of their office requirements.

Challenge

Regus business centers had traditionally relied on postage meters for their client’s mail management. Each business center had a dedicated area that housed a large postage meter along with all of the other consumables required to supply it. Regus employees would use this space to support their clients by collecting, sorting and processing postage requests using this hardware-only solution.

Regus’ clients paid for the postage used to ship packages and mail envelopes, but the considerable expense incurred by operating the postage meters occupying valuable space was a direct impact on Regus’s bottom line. It was also becoming increasingly difficult for central management to get accurate expense reporting for its centers as well as have a clear picture of their clients postage needs. Additionally, Regus had to manually input client charges into their billing system which created an added manpower expense as well as a process bottleneck.

Solution

Regus management recognized the operational waste caused by the postage meters and initiated a search for a more modern and cost effective solution. As the person responsible for evaluating and selecting the technologies offered to Regus’ wide variety of clientele, Jeffrey Lipes, Procurement Manager for Regus Group Americas, led the search. Key criteria for his search included cost savings for Regus and for their clients, the ability to meet every type of postage demand, capacity for expansion throughout all of Regus’ locations and reporting capabilities that would give them the ability to track every penny that was spent on postage. In addition, providing their clients with greater transparency and automating the client charge-back was key. Regus also recognized the size of the project and required that the vendor have experience in working with organizations of their size, as well as the ability to manage the entire transition process themselves.

After a thorough evaluation process, Stamps.com Enterprise was the only postage solution provider that met Regus’ strict requirements and the solution was quickly rolled out to more than 400 Regus locations. Stamps.com, along with Regus Operations and Procurement teams, managed the entire roll-out process using Stamps.com’s signature White Glove Roll-Out Program. This program manages all aspects of implementing the postage solution so that new customer transitions are seamless and efficient, and do not interrupt day-to-day business operations. As part of this program, Stamps.com not only managed the creation of all 400+ postage accounts, but also provided customized communications materials and software training for all users. The White Glove Roll-Out Program continued long after the initial adoption, with dedicated account representatives permanently assigned to the Regus account in order to make sure each of their locations had everything needed to get the most out of the Stamps.com Enterprise system.

Results

Cost Savings

Regus estimates that their adoption of Stamps.com Enterprise has reduced cost by approximately $1.2 million dollars per year by allowing them to use hardware they already own instead of renting expensive equipment that they don’t need. These hefty rental fees were magnified by hidden costs such as expensive ink refills and hidden service fees that were not listed in the initial agreements. With Stamps.com Enterprise, no extra equipment is required, no special labels or ink refills are needed and Regus is not locked into complex multi-year contracts. Additional savings were also achieved by the charge-back automation process. By freeing up Regus team members time they are now able to better service their clients.

Space Savings

Because Regus’ product literally is space, each square foot taken up needlessly has a direct impact on the overall bottom line. Postage meters and other hardware-only designs take up dramatic amounts of work space in each center and even more in storage space needed for their custom consumables. With the need for this space removed, Regus was able to offer more work and storage space to their clients and therefore increase the revenue potential for each of their locations.

Flexibility

Regus serves the business needs of organizations ranging in size from small startups to Fortune 500 companies. Because the postage needs of these organizations ranges from simple day-to-day mailings all the way up through bulk marketing initiatives and heavy freight delivery, Regus needed its postage solution to be both flexible enough to adapt to the required project and robust enough to meet these different challenges on an ongoing basis. Once Stamps.com Enterprise was adopted, Regus and Regus’ clients quickly realized that the system is both easy to use and powerful enough to manage even the largest postage projects.

Reporting

Because Regus generally has numerous clients sharing business resources at each facility, it was important that their mailing solution have advanced tracking and reporting capabilities so that postage expenses could be allocated to the appropriate client. Stamps.com Enterprise allows Regus to use cost codes for each client and attach them to every piece of mail that is processed in the center. Reports are automatically generated and displayed on a comprehensive dashboard for Regus management. This allows them to quickly and easily identify postage usage so that they can bill their clients with detailed accuracy down to the penny. Billing can also be consolidated at the central management level as these reports can be run across multiple locations. In addition, Stamps.Com and Regus worked together to create a report/file that automatically interfaces with the Regus billing system and captures all client charge-backs.

Control and Visibility

The postage meters operated in Regus’ 400 locations gave the organization minimal control over how their postage dollars were spent. The company had no centralized way to view activity in these remote locations and therefore no way to identify discrepancies until long after they had occurred, if at all. With Stamps.com Enterprise, Regus management can view activity throughout all of their locations via a centralized dashboard, allowing them to review location by location from a single point and use the information to avoid discrepancies. Additionally, the system can set permissions on a user by user basis, virtually eliminating the risk of abuse of the system.