Aflac is an insurance industry leader with more than 40 million customers worldwide. Known for innovation and service, Aflac continually strives to improve its operations. To reduce costs and add value in the handling of its mail processing, Aflac tapped the resources of UPS Mail Innovations.

Client Challenge

Aflac is one of a growing number of companies capitalizing on the savings made possible through work-share programs of the U.S. Postal Service. This particular program gives postage discounts to private-sector contractors that process “flats” - mail that is larger than a letter but smaller than a one-pound package-before inducting them into the U.S. Postal Service system closest to the final delivery address.

After utilizing another private contractor, Aflac switched to UPS Mail Innovations due to our ability to deliver greater savings and more flexibility along with a complete package of expedited mail services.

“Aflac has utilized UPS for several years and we are excited about the solutions Mail Innovations offers,” said Kevin McCarty, Manager of Outbound Print and Mail Services for Aflac.

Our Solution

As a major insurance agency, Aflac sends out 36 million pieces of mail annually, with much of it originating from its Columbus, Georgia, headquarters. Approximately 15 percent of that volume qualifies as flats, including policy enrollment kits, proxy statements for shareholders, and company marketing materials.

With UPS Mail Innovations, Aflac immediately enjoyed the benefits of a national network of expedited mail processing centers outfitted with advanced IT systems and served by secure, reliable ground and air transportation. The built-in flexibility of the system allows UPS Mail Innovations to accommodate spikes in volume without losing efficiencies.

UPS Mail Innovations’ dedicated couriers pick up flat mail on a flexible, as-needed basis from Aflac’s headquarters and transport it to the regional mail-processing center in Greenville, South Carolina. We developed our own technology-approved by the U.S. Postal Service-to rapidly weigh, sort, and affix postage to high volumes of mail.

Dedicated couriers take the regional mail to U.S. Postal Service facilities for induction into the postal stream as close as possible to the final address. Flat mail destined outside the region is taken to a UPS air hub, where it is guaranteed space on the next available UPS cargo plane. The mail receives final preparation at the UPS Mail Innovations processing center nearest its final destination, then it’s inducted into the appropriate U.S. Postal Service facility.

Regional mail is typically inducted into the U.S. Postal Service within 24 hours and national mail within 48 hours. The process provides faster induction into the U.S. Postal Service resulting in transit times comparable to First-Class mail, while generating significant cost savings.

“It is a great benefit to Aflac to receive first-class service at a significant cost reduction,” McCarty said. “Mail Innovations has streamlined their process and it is a testament to them that they can pass on these savings to their customers.”

The UPS Mail Innovations reporting and tracking system allows Aflac to access data on the status of mail shipments every 24 hours via a secure Web site. The system traces the mail to the point of induction into the U.S. Postal service and reports both distribution data and total savings generated. The mail weights and volumes are broken down into cost centers, giving Aflac the option to bill inter-departmentally on a daily basis instead of weekly.

“UPS Mail Innovations continues to offer innovative solutions that allow us to meet the needs of our customers in a timely and cost effective manner,” McCarty said.