Protect your investment in equipment by selecting a platform and a partner that easily accommodate future needs. Despite a sluggish economy, scores of high-volume mailers will add or upgrade processing equipment this year to keep pace with increasing mail volumes and to handle new or evolving applications. In most cases, those acquisition decisions will be successful when measured over the short term. But what about the longer term? Buying an inserting system that is just right for today but ignores the needs and technologies of the foreseeable future can be extremely short-sighted.
Why? Because in today's dynamic business environment, technology is continually advancing, and companies are constantly searching for a competitive edge. Plus, in the world of print and mail finishing, businesses are increasingly using customer communications as a strategic tool to grow the business and boost the bottom line. If your goal is to help your business succeed to acquire and keep customers, to speed processing and lower costs and to improve the effectiveness of every customer contact your equipment, technology and work processes should be cutting edge, both now and as you move forward.
A manager who fails to consider future needs when acquiring inserting equipment, especially the need for flexibility to adapt to changing circumstances, will likely encounter substantial additional costs, as well as lost opportunities, as time and effort is wasted on repetitive and non-productive equipment acquisition cycles. In some firms, this process can take anywhere from six to 18 months. Speed, efficiency and reduced cycle times are critical goals and not just for the processing of mail. They also apply to the process of managing and equipping the print and mail finishing center. Of course, no one knows the future for certain. But there are clear trends taking shape and reasonable assumptions that can be made. For example, the need for fast, reliable and trouble-free operation, which yields a high and ensured throughput, will never end. But the leaders in the industry are already implementing new technologies that can boost performance even more. These newer technologies, which may soon become essential in virtually all centers, involve the use of:
The real key to future success? Select a processing platform and a partner that are flexible, responsive to your specific needs and open to future developments in technology. How do you do this? You can start by comparing the strengths of your potential partner or supplier against 20 key measures in the categories such as application expertise, reliable operations, financial strength and preparing for the future. These 20 concrete and proven successful measures can now help assure that the investments in print and mail finishing equipment being made today are still viable three years, six years or even longer into the future.
Application Expertise
Industry Knowledge Your partner's professional sales staff should specialize in key market segments and have deep experience in your specific industry. This background will help ensure that your sales representative fully understands the nuances of your application, can make recommendations based on trends in your industry and will be able to verify that all specifications for your order are accurate with the equipment assembled promptly and correctly.
Custom-Tailoring Every print and mail finishing center is different. Your partner should have the capability to custom-tailor your equipment, if necessary, to meet the unique needs of your application. Equipment that is "off-the-shelf" or can't be fully custom-tailored is unlikely to provide the superior level of performance you may need.
Application Flexibility In today's fast-changing world, the ability to respond quickly to accommodate new or evolving applications is essential. Your equipment should be highly flexible so you can meet your primary needs fully and yet still have the ability to meet new demands, whether they are anticipated or unforeseen.
Record of Innovation You need to keep pace with the rapid advance of technology. Your partner should have a long and steady record of innovations and enhancements related to processing performance. If the record is stagnant or marked by irregular advances, you may be locked into a "standing still" position, while your competitors enjoy steadily improving performance.
Investment Protection Planned obsolescence is a thing of the past. The best processing solution is versatile and minimizes future expenses while maximizing future productivity by allowing you to add or upgrade components as necessary. This is best achieved by selecting processing solutions that are modular (or platform-oriented) so that you can derive the benefits of new and improved technology without obsoleting your core investment.
Reliable Operation
Assembly Quality If you expect to process perfect mail, your equipment should be manufactured and assembled to flawless standards as well. The best way to ensure the highest level of assembly quality is to insist on ISO 9002 certification. This international standard yields superior levels of quality by ensuring that processes are in place to detect and eliminate errors before they occur.
As-Built Testing Your partner should also offer the opportunity to test equipment before it leaves the factory. This "as-built" testing should include the actual forms and materials used by your application. The benefit? You find out if there are any adjustments that need to be made prior to shipment while the full resources of the factory are still available.
Installation Expertise Once your equipment arrives on your premises, you'll want it installed and up and running as soon as possible. The best way to achieve a successful installation is make sure the personnel handling the project are experienced with similar equipment, adequate in number, unencumbered by conflicting assignments and available for the full duration of the installation.
Service Quality Any piece of equipment requires service from time to time to ensure peak operating efficiency and the quality of service has a direct impact on performance. First, your partner should offer a range of service options that can be tailored to meet your specific needs. Second, your service team should be fully experienced with similar equipment and applications. Third, your service team should be located so a prompt response is available. And fourth, your service team should have adequate backup available to meet any unforeseen situations.
Parts Availability It's obvious that an adequate supply of replacement parts is necessary to ensure continued operation of your equipment. But it's not just the availability of the parts that is important. You must also consider where the parts are located and how quickly they can be obtained. The quality of the documentation that accompanies · the equipment and replacement parts is also important, so is the experience and knowledge of the technical support personnel supplying the parts, as well as the availability or "reachability" of the support personnel.
Financial Strength
Financial Stability In difficult economic times like these, you need assurance that your partner can "weather the storm." Ideally, you want a partner that has been growing steadily, if not rapidly. Why? Because less robust firms may need to slash staff, products or services to bring costs in line with slowing revenues. And sooner or later, reductions like those are likely to have an adverse impact on your investment and your future capabilities.
Adequate Profitability Similarly, your partner needs an adequate level of profitability to continue to invest in Research and Development (R&D). Why? To continue to create new and improved products. If your partner is plagued by stagnant or shrinking sales, funds may be unavailable to invest in these key activities and future enhancements may be jeopardized. You can gain insight into your partner's commitment to R&D simply by asking how much has been invested annually in R&D over the past five years and what those investments have yielded.
Financing Alternatives In most organizations, the availability of funding for capital expenditures varies from year to year depending on profitability and other business conditions. Yet the need for the efficient processing of customer communications is constant. Your partner should recognize these constraints and offer a range of financing and leasing alternatives that can be custom-tailored to your specific situation. Financing should never be a "one size fits all" approach.
Cooperative Relationships A total print and mail finishing solution by necessity will include equipment, software or products from other vendors and technology providers. However, you may not have the time, staff or expertise to coordinate these other entities. Your partner should have the resources to coordinate these efforts so you can "one-stop-shop."
Complementary Capabilities Another key indicator of financial strength is the ability to acquire or develop complementary capabilities. If your partner is extending and bolstering key capabilities across the entire customer communications message "life cycle," you'll benefit from fast, easy and seamless access to "best in breed" technology.
The Future
A Vision of the Future When you invest in processing equipment, you are making a strategic commitment not just to your partner or to a technology but to the future direction of that technology. Your partner should have a strong and clear vision of the future of customer communications, where processing technology is headed and how their investments are making that vision a reality.
Quality of Management Ideally, your partner should have a senior management team that is both experienced and committed to the business. Unexpected departures, excessive turnover and poorly defined or rapidly shifting responsibilities can be signs of internal turmoil and a lack of direction or progress. Your partner should have a strong record of promotion from within, balanced by key hires from outside.
Strategic Investments All businesses "morph" over time to take advantage or new opportunities or to respond to changing circumstances. But these major or strategic moves should be positive and growth oriented. You should be cautious if your partner is shrinking (i.e., divesting previously 'strategic' business units that are now considered non-core). Similarly, surprise mergers among weak rivals may signal a last ditch attempt to survive.
Total Customer Satisfaction No business can grow and prosper without repeat customers. So your partner should be able to supply you with abundant references from current customers who are totally satisfied with all aspects of the business relationship. Beware if they can't or won't. In fact, given the critical nature of customer communications today, your partner should be 100% committed to your total satisfaction. No ifs, ands, or buts.
Momentum Lastly, be sure to consider the "momentum" factor. Do you want to partner with a proven leader in the industry? Or take a chance with a niche player or turnaround situation? If the giants in your industry, the American Expresses, the Searses and the Citigroups, are partnering with the leader, shouldn't you also?
Bill Dale is general manager of Pitney Bowes Direct Mail Solutions. For additional information, please visit the Pitney Bowes Web site at www.pb.com.
