Print and mail
managers learned an important lesson this
past year: No
matter how far you've gone, it still may not be
far enough. After
making every effort to achieve the year's
results,
transaction mailers must again identify additional opportunities
and meet new
demands.
High-volume
mailers are stepping back and taking a fresh look at their
end-to-end
operations. Three distinct types of high-volume mailers
have three
distinct sets of issues and questions. As you begin your
fresh look, your
operation may resemble one of these personae:
Cost Champions;
Business Accelerators; or Flexible Optimizers.
Cost
Champions
Some print and
mail facilities operate as a cost center, which is a
necessary business
function. Once motivated, they must look for
ways to avoid any
increase in direct costs and reduce operating
expenses.
Department
heads seek ways to extend the life of existing technologies,
often relying on
individuals and detailed, labor-intense
process flows to
ensure the quality of each mailpiece.
For
some, the objective of each communication is less important
than the overall
production cost. Cost Champions rely on production
intelligence for
performance data and reports, focusing on
productivity and
timeliness. Standardization efforts, such as common
address block
formatting, common envelopes, etc. have
helped simplify
operations creating new efficiencies.
Cost
Champions who take a fresh look at their operations should
ask themselves
some hard questions:
- Labor costs - In labor-intense organizations, paychecks
have a more
significant impact on overall costs. Increases
in wages, health
care and benefits add pressure to already tight
budgets. Where will the next cuts come from? Can
automation
make a difference? How can redesigning workflow
allow
you to maintain production levels with fewer
operators?
- Competition - The
threat of outsourcing has never
been
greater. How can an in-house organization offer
more
value? What superior processes or controls do
you
offer? Where can you strengthen the connection
between
print, mail and the organization?
- Collaboration - Overall
corporate objectives span far
beyond
cost control. How can your print and mail operations
better
integrate with company goals? What corporate
initiatives
can your group support or lead?
- Measurement - Calculating
ROI on replacement technologies
is
critical, especially when budgets are tight. Print
and
mail operations often don't consider their value. Do on-time
statement
mailings impact call center volumes? How
much
is a new customer worth? How much would it cost
the
business if it had to manage through a privacy breach?
Business Accelerators
Some
print and mail operations collaborate closely with other departments
across
the organization.
While
cost avoidance and savings are essential, these objectives
stand
on equal footing with revenue preservation and growth.
Transactional
documents can represent more than bills and
statements;
they serve as integral parts of the overall customer
experience.
Print and mail managers have a "seat at the table"Â and
proactively
identify
ways to increase the value of the mailpiece. They keep
abreast
of emerging technologies, understanding how innovations
help
their operation evolve efficiently.
With no tolerance for error, piece-level tracking, accuracy
and real-time
validation
of one-to-one messaging are considered crucial capabilities.
Business Accelerators may already employ leading-edge
technologies,
which
can make it even more challenging to uncover
incremental
opportunities. A fresh look should uncover areas of
concern:
- Flexibility - New
communications channels like mobile
SMS
haven't replaced the old; transactional mailers
must
become experts in all channels. Can you centralize
output
management? How can you adapt, enhance and
modify
underlying print streams? What channel will you
need
to support next?
- Transformation - Advances
in technology continually
come
to market, bringing new capabilities at lower prices.
At
what point do you convert to color? How can you
increase
personalization? What's next in TransPromo?
- Complexity and speed - Preprinted envelopes, rolls
and
fan-folded reams have been replaced by a clean canvas
of
white paper and closed-faced envelopes. Color,
digital,
high-integrity, one-to-one transactional data and
marketing
messages fly onto each mailpiece on one run.
Complexity
and speed have risen together to meet the
new
demand for a heightened customer experience.
- Integrity - Achieving
99.8% accuracy on one million
pieces
still leaves 2,000 unhappy customers. What controls
are
lacking? Which processes are not automated,
tracked
and verified? How quickly can you validate
events
at the record level?
Flexible Optimizers
These
transaction mailers work in industries where mail is a critical
communications
channel. They serve a broad base of constituents
who
may demand a lot from their department.
Managers identify ways to rapidly respond to new requests
and
they
invest in point-level solutions to address needs - even in a
slow
economy.
Flexible Optimizers often work apart from the rest of the
organization
and
may even departmentalize print and mail operations into
distinct
functions. Multi-site operations often work independently
with
their own set of processes and standards.
Flexible Optimizers often move quickly, but slowing down
and
plotting
out a longer-term strategy could prove worthwhile:
- Best practices - Documented
standards, best practices
and a
process for continual improvement can improve
performance
across an enterprise. Do you have
standard
operating procedures across your operation?
Are
you testing new approaches? How can you expedite "success
transfer"Â within your group?
- Road maps - While
there are always fires to be put
out
today, each manager needs to simultaneously build
bridges
to the future. Where do you see your operation
three
and five years from now? How will your goals differ?
What
capabilities should you drive toward?
- In-house value - Companies
are considering outsourcing
even
in areas once considered off-limits. What
value
does your group provide that no third party could
match?
Where can you strengthen integration, controls
and
timeliness?
- End-to-end workflow - From
database to delivery,
each
aspect of the print/mail continuum is connected.
Do you
look at print and mail as a single workflow? Does
the
same system track each piece from start to finish?
How
can you leverage Intelligent Mail barcode to improve
productivity,
integrity and sort rates?
In today's economy, every organization must identify
effective ways
to
contain costs and improve performance. Take a fresh look today.
Kevin Klein is the Director of Production Intelligence
Consulting,
which
joined the mailing industry and Pitney Bowes in 2000. In
his
current role, Klein leads a team of consultants who work with
managers
and executives of large-volume print and mail operations
to
architect solutions to broad and complex operational and
business
problems. For more information, visit www.pb.com.