DAILY COST OF PROCESSING OUTGOING FEDERAL EXPRESS*

 

Task

# of People

Time

Cost per Hour

Total Cost

Processing FedEx

 

1

 

1.5 hours

 

$11.80

 

$17.70

Key Entry (Billing)

 

1

 

.25 hours

 

$11.79

 

$ 2.95

Tracking

1

.50 hours

$11.80

$ 5.90

Billing (Payment)

 

1

 

.25 hours

 

$15.69

 

$ 3.92

Billing Inquiries

1

.25 hours

$14.06

$ 3.52

Daily total costs

 

/////////////////////

 

2.75 hours

 

 

 

$33.99

Average Monthly Revenue (22.5% surcharge)

 

 

 

 

 

 

 

$1,341.60

Average Daily Revenue (based on 21 working days)

 

 

 

 

 

 

 

$ 63.89

Average Daily Net Revenue

 

 

 

 

 

 

 

$ 29.90

Average Monthly Net Revenue (21 working days)

 

 

 

 

 

 

$627.90

Less Monthly cost of Incoming FedEx process (see AIncoming@ table

 

 

 

 

 

 

 

 

$371.70

Average Monthly FedEx revenue, net of both Incoming and Outgoing costs

 

 

 

 

 

 

 

 

$256.20

*Statistics based on July 1997 to February 1998. After February 1998, shipping services was split between Federal Express and United Parcel Service.

 

(This does not reflect the cost in "lost time" for the Mail in Outgoing that is not processed. One meter is not processing mail because that individual is processing outgoing Federal Express. We lose anywhere from 2.5-3.5 hours/day for the processing of outgoing mail. Over a week=s time that equates to at least 12.5 hours of processing time. A customer who has their mail accepted at Mail Services one day risks the possibility that it will not be processed until the following day.)

 

 

RECEIVING INCOMING FEDERAL EXPRESS

(Activity Checklist)

For the Period 5/8/98 - 6/1/98

 

 

Day

Comments

Pkgs Rec=d.

Cmpus P/U

Sort Time

Phone

Research

Fri

12 no mail codes

85

12

1.5 hrs

1

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mon

2 looked up/ 2 accountable

94

8

45 min

Call to 0531/

12 boxes

1

Tues

4 looked up/

1 accountable

80

7

40 min

2

3

Wed

Cart full of boxes

84

9

45 min

1

1

Thu

 

 

66

16

35 min

0

1

Fri

Cart full of boxes

87

7

50 min

2

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mon

 

 

86

13

55 min

2

6

Tue

Refused student pkg

85

10

40 min

1

5

Wed

 

 

74

10

45 min

3

4

Thu

 

 

64

6

35 min

4

3

Fri

 

 

87

7

50 min

2

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mon

HOLIDAY

 

 

 

 

 

 

 

 

 

 

Tue

 

 

75

12

50 min

3

7

Wed

Refused 2 pkgs

88

7

45 min

5

5

Thu

 

 

79

6

40 min

3

6

Fri

Signed for 61, not 69

61

11

45 min

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mon

 

 

75

7

1 hour

2

 

 

16days

 

 

1270

148

12.83 hrs

31

60

RECEIVING INCOMING FEDERAL EXPRESS(Cont'd)

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Calculation of Approximate Costs

 

Basis:

 

Mail Services receives approximately 80 FedEx packages per day.

 

The average amount of time spent on receiving, sorting, researching and making telephone calls is 1 hour and 30 minutes/day.

 

The average salary used is $11.80/hour.

 

Calculation:

 

 

Daily cost of sorting and research = $11.80 x 1.5 hrs = $17.70

 

Monthly cost of sorting and research = $17.70 x 21 days = $371.70/month

 

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Additional Impact of Current FedEx Process:

 

 

Mail Services currently picks up Federal Express packages/letters on the routes that have their own accounts. We have no control over limiting the number of new accounts, and the impact is:

 

1) Possible increased route times, heavier loads

2) No fiscal benefit to mail Services.

(Lost surcharge, calculated per 148 packages picked up over 16 day time frame recorded on check sheet:

Average package cost = $8.60

Surcharge at 22.5% = $1.93

Daily lost revenue = average packages (9.25) x $1.93 = $17.85

Monthly lost revenue = $17.85 x 21 days = $374.85

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Impact on Customer Service: This is a crucial concern of the staff at Mail Services. The time we spend receiving the Fed-Ex packages and all the miscellaneous time cited in the previous tables, causes us to divert resources from sorting and processing US and campus mail, which is the main charge of the Mail Services Mission statement.

 

Time spent on Federal Express:

 

Incoming 12.83 hours (in 16 days) or average .80 hrs/day

Outgoing 50.00 hours (in 20 days) or average 2.50hrs/day

 

Total 69.30 hours/month (3.30hr/day x 21 days)

 

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