Pitney Bowes Inc. (NYSE:PBI) Q2 2023 Earnings Call Transcript

Kartik Mehta: And then Marc, I know one of the things that you were doing was automating a lot of the warehouses, a lot of those distribution facilities, kind of where do you stand on that and obviously, must be paying some dividends as you’re seeing better. You’re seeing lower unit cost?

Marc Lautenbach: Yes, I would say we are most redundant with the automation investment. We are in the process of deploying it. We had a great review with the team – a couple weeks ago. I would say, we’ve got some sites that are aggressively deploying and using the new automation. We got some that have some opportunities in front of them. But, what I would say is, you know, that automation is producing the productivity that was contemplated in the business case, when it is deployed as was planned.

Kartik Mehta: And Marc, just one last question, in today’s environment where maybe the labor is still hard to get, and companies are looking to make their parcels or e-commerce a little bit more efficient. What are you hearing from customers or as your salespeople are brought 30.49 are company is looking to outsource that or is that attitude changing at all?

Marc Lautenbach: At first, I’m not sure I understood the question.

Kartik Mehta: Just outsourcing all their parcel needs, coming to a company like you to say, hi take over the entire parcel shipment process for us?

Marc Lautenbach: Well, and so – we provide a portion of the total logistics chain. So, we don’t do the whole thing end-to-end. I would say the mid-market customers, are more interested in outsourcing, more of the larger customers are a little bit more selective. I would say as you look at the benefits of our business model, I would point to a couple of things. One is, the Postal Service final mail delivery, is got terrific economics and one that economics that others have a very hard time recreating. I would say as it relates to our capabilities in the middle. Our unit costs, our labor costs are very, very competitive, versus our competitors. And we’re more flexible to deal with. So, we provide a nice veneer of economic capabilities for clients for middle mail to get parcels to the end of the Postal Service Network.

Kartik Mehta: Thanks, Marc. I appreciate it.

Marc Lautenbach: Yes.

Operator: And we have time for one more question. We’ll go to Matt Swope with Baird. Please go ahead.

Matt Swope: Hi, good morning, Mark and Ana. Just one last from on GEC. You took out cross-border, would Global Ecommerce have had positive EBITDA for the quarter?