Last issue we looked at the practical benefits of combining the print and mail operations. This month, I want to delve into the "nuts and bolts" of merging the two. Remember, both operations provide the same type of service: someone comes to you with a project that must be printed or mailed by a certain deadline. So, overall, the basic purpose of both organizations is the same: provide timely accurate service. Here is a list of issues to consider:
1. What are you trying to accomplish?
Lowering costs? Well, of course. When evaluating the merger, look at the benefits to the organization as a whole, not just to the in-plant. You can make a strong case for the savings to your customers by not having to go to multiple locations for print and mail projects. Sell senior management on the company-wide service and the savings you will provide by consolidation.
Get beyond the idea that consolidating the two operations will only result in staff savings for the in-plant. It eventually will in the long run but for the immediate future, concentrate on the efficiencies to the organization as a whole. Just imagine how much staff savings to the organization you can show by illustrating the amount of time it takes to start a publishing/mail project meet with designers, work with purchasing, meet with printers, work with purchasing, meet with the mail house and finally, get purchasing to cut a P.O.! Instead, they come to you and everything is taken care of.
2. Do you have the equipment to produce the desired goals?
Take a good, hard look at the workflow. Now, remember a basic point. If a project is destined for the USPS, it must meet the automation requirements. There is no give here. If you do not take advantage of its discounts, you do a disservice to the client.
So, start looking at your equipment from a workflow standpoint. Every piece should complement the next one in the chain and, as always, avoid manual labor. For example: digital production printers (Docutech's or the various 110 engines machines) have the ability to imprint an address on the fly. Why bother with offline labeling? The document comes from the printer ready for folding and insertion.
3. Does your staff have the necessary expertise to provide the desired services?
If not, train and train some more. Obviously there are different skill sets involved in the two operations. One way to handle that problem is cross training. The downside to cross training is that without everyday practice, people tend to forget their new skills.
We eventually went to a rotation schedule. Every three months, staff members shift jobs in the shop. For example, the inserter operator moves over to bindery and the bindery staff moves to the meters, etc. There is a side benefit to this. Staff don't get bored or worse, jealous when they perceive that they might have the "hard" jobs.
Plan for staff changes in the long run. If the people who work for you think the consolidation is an excuse to cut staff, all your work will fail. Start with an organization chart of your operations. Then like a five year plan, create a second chart showing where you want to go with staffing, line supervisors, etc. Plan your new hires or promotions to work within the new future organization.
4. Evaluate the services you provide.
Really, there is no evil in contracting out certain services. Only do in-house what supports the company mission in a timely and cost-efficient manner. Contract out what you cannot do efficiently. But keep records on what you send out! You can use the figures in the future to cost justify bringing services in-house! We've become such a "got to have it right now" society.
As mentioned above, avoid any service that requires extensive manual labor unless it services the core competency of the parent company.
5. Is the physical plant capable of supporting the equipment needs and production flow? If not, start planning for that change down the road.
This is a really tough one. Moving a print/mail center can be very expensive. Power, plumbing, network wiring, all of it really adds up. For best efficiency, the print and mail centers should be in the same place. Unfortunately, management is often tough to convince about the necessity of change.
If they do agree to move your center, make sure to have planning meetings involving all parties who have a stake in the move. Come up with one plan and make sure that everyone contractor, electrical, networks, etc. signs off on the same master set.
Most importantly, make sure that you have a fall back to operate services if something goes wrong. When we moved from City Hall, the mail inserter almost fell off a big flat bed the vendor used. Fortunately, I had backup arrangements (No, we never dreamed the thing might fall off the truck!) with another government in-plant in case we were not operating as scheduled. I know of a major in-plant that had a dispute with the electrical contractor during the actual move process. As a result, the Docutech's were delivered, but there was no electricity! Three months later, the company was still waiting for the power to come on.
6. Market, market, market.
Let everyone in the company know what you are doing. Market your services through seminars, service books and other handouts. Never assume they will come to you. Most employees don't take the time to find out about your services. What makes you think they would be interested in a print/mail consolidation? They will, if you go and market the wonderful benefits and services the consolidation will bring. Most importantly, show them how the newer, faster services will make their jobs easier!
There you have it. Over the past two issues, I hope to have convinced you on the benefits of combining print and mail operations.
For the first part of this article, please see Mailing Systems Technology's March issue, page 18. For more information, you can email David at David_German@ci.sf.ca.us.
