BUSINESS CASE TEMPLATE

Provision of Mailing Services to

[insert organisation name]

1
Business case - explanation

• This document will help postal procurement personnel to detail the potential
benefits (financial and non-financial) and costs involved in improving their postal
services

• It can be used to secure commitment from senior management for changes

required to improve performance

• It is intended to be a guide and will require completion and tailoring by individual

organisations

• It draws on the NAO report, “Improving the Efficiency of Postal Services in the
Public Sector”, which can be referred to for more information

• Note, use of [ ] denotes information that must be completed

by the user. Examples have been inserted into this document as a guide to
indicate the type of information you may wish to consider inputting.

2
Business case - Contents

• Objectives and scope

• Summary (including quantified financial and non-financial benefits)
• Value levers
• Benefits (quantified, where possible, over time)
• Implementation tasks and project plan
• Key barriers
• “Reference” customers
• Methodology
• Assumptions

3
Business case – Objectives and scope

• To reduce spend on postal services

• To increase the quality of postal services
• This work focuses on postal procurement and management covering mail
services
• The organisation may wish to take this opportunity to review related areas, such
as stationery, printing costs, and use of the Post Office network

4
Business case – Summary

• Background: [highlight current spend, volume, suppliers, use of postal services

within the organisation]
• Potential areas of improvement: [summarise findings from business case
analysis]
• Potential benefits: [summarise financial and non-financial benefits over time]
• Implementation costs and timeline: [summarise implementation activities and
costs over time]
• Key risks: [overview of risks and mitigating actions to achieving potential
benefits]
• What next: [detail immediate next steps]

5
Business case – Value levers
• [Use NAO postal efficiency improvement tree to highlight primary value levers]

6
Business case – Benefits
Year 1 £
• Financial benefits
Year 2 £
Year 3 £
• [Methodology for gathering data and assessing benefits]:

 Benefits can be measured by taking a baseline figure for the Key Performance
Indicator (using data from a Mail Audit) and then re-measuring these at periodic
intervals

• For example, savings due to increased use of workshare products
(compared with use of standard tariff) can be measured in this way

• Non financial benefits:

 [summarise key service delivery benefits, eg. reduction in lost mail, quicker
delivery times, improved targeting of mail items]

7
Business case – Implementation tasks and project plan

Tasks will likely be around the following topics:

[customer contact]
Processes [applications and forms]
[mail generation]

[printing] [data cleansing]

Technology [sorting] [Key Performance ]Indicators]
[integration of systems]

[postal requirements]
[centralised
Organisation [manage post with print, stationery]
supplier
[centralised print centres]
management]

8
Business case – Implementation tasks and project plan

• Costs are estimated at:

Cost area Cost

Technology £
Process change £
New licenses £

• The project will begin in [month, year] and complete in [month, year], with benefits
beginning to be realised by [month, year].

Month Month
1
Task 3
Milestone

Task
Milestone
Task
Milestone
Task
Milestone

9
Business case – Key barriers

[ e.g.Technology Can be mitigated through [action]

barrier]

[e.g.Internal resistance Can be mitigated through [action]

To change]

[Barrier 3]
Can be mitigated through [action]

10
Business case – Reference customers

Other public and private sector organisations have made similar changes with
substantial rewards [reference case examples in NAO report and good
practice guide].
For example,

[Change, eg. replace first class [HM Revenue & [£1.3m estimated
with second class] Customs] savings]

[Improve accuracy and [National Savings & [Postage savings of

management of customer Investments] £20,000 + processing
address data] savings and improved
customer satisfaction]

[Large Local Authority] [Potential annual

[Audit of mail usage] savings of £50,000]

[ ]
[ ] [ ]

11
Business case – Methodology and assumptions

• This business case has been created using the following sources:
• [OGCbuying.solutions, postal services team]
• [Discussions with existing postal suppliers]
• [Discussions with potential new postal suppliers]
• [regional procurement group]
• [National Audit Office report, “Improving Postal Services Procurement in
the Public Sector”]

• The main assumptions made for this business case are:

• [assumption 1]
• [assumption 2]

12