The conventional wisdom concerning sorting technology centers on volume and cost. Until recently, it was quite simple. Managers of print/mail finishing facilities who wanted to add a mechanical sorting capability as a way to secure postage discounts had to ask themselves just one question: Do I have enough mail to justify the acquisition of a sorter with multi-line optical character reader (MLOCR) capabilities? Today, sorting technology can help assure integrity and improve the entire messaging process.
Since several vendors offer sorting equipment, and their capabilities are largely similar, the decision to acquire a sorter used to be based primarily on volume and the time required to pay back or recover the cost of the equipment. Most of the sales went to larger volume operations.
However, the conventional wisdom began to change in the late 1990s. That's when software-based Optical Character Recognition (OCR) capabilities emerged. These new software-based capabilities were far superior to their hardware-based counterparts, especially in their ability to read and process difficult mailpieces such as those with stylized typefaces or, perhaps, printed logos.
As a result, software-based OCR solutions quickly became the industry standard. They also formed the foundation for a new set of capabilities in processing and storing digital images that is increasingly important today as companies seek to engineer the flow of customer messaging.
Many organizations now presort mail before it is printed, and the mail is automatically processed and assembled in presort order. In an environment where mail volumes are large and individual mailstreams are few, this is a very cost-effective approach.
However, as the number of separate mailstreams increases along with the number of non-qualifying mailpieces the practice of presorting mail via software becomes more complex. Combining or commingling mailstreams is then a good way to achieve the lowest possible postage costs.
A hybrid solution is also available. That's where several mailstreams are commingled for presorting prior to printing, and the residual or non-qualifying mail is outsorted for follow-up processing on a sorter. This approach is quite common in large financial and insurance firms.
More Than Postal Savings
Today, the situation is more complex. Presorting to lower postage costs is still a worthwhile goal. But it may not be the most important goal. Indeed, advances in technology now enable sorting equipment to assume a vital role in a sophisticated production environment known as an Automated Document Factory.
No longer simply a device to presort mail as well as print barcodes, advanced sorting-based solutions are now valuable data collection/image processing tools and are being used to help improve the effectiveness of the customer messaging process.
Many businesses, government agencies and non-profit organizations such as universities now view messaging as a critical linkage with their most important constituencies. These organizations value quality and document integrity, and they have invested substantial amounts on high-integrity software and hardware solutions throughout the production process to assure that each mailpiece is processed accurately.
In this environment, the sorter can now serve as both an extension and integral part of a closed-loop or end-to-end assured integrity process simply by virtue of its ability to capture and compare data on mailpieces and mailstreams. By comparing a list of all mailpieces that were expected to be processed with a list of mailpieces that reached the sorter and actually were processed, sorters can serve as the final link in the integrity process. Mailpieces that did not reach the sorter are noted in an exception file and can be automatically regenerated to complete the original mail run.
Another key benefit centers on the ability of the software-based OCRs to capture a digital image of the exterior of every mailpiece processed. These images may be archived in an easy-to-search database and accessed via different elements such as the date processed, the customer address, the account number or other external data.
The archived images have many uses. For example, they can be used by service bureaus as proof of processing when handling third-party mailings. Internally, they can show that all mailpieces were processed as expected. And when coupled with other advanced technologies, such as PLANET Codes, they can serve as proof of mailing.
An Innovative Solution
Recently, a unique sorting/verification system was developed to enable a major direct mail organization to presort 100% of its mailstream prior to printing as well as assure the accuracy of the mailstream prior to drop-off. The goal was to eliminate the errors that occasionally delayed drop-shipped mailings at the destination and provide the U.S. Postal Service with a 100% verified mailing.
To achieve these goals, the sorting solution downloads a file of all expected mailpieces in the presort order in which they were printed. It confirms that it has seen the mailpiece and performs a MERLIN-type barcode verification. (MERLIN is an acronym for Mailing Evaluation, Readability Lookup Instrument; it is a Postal Service tool that grades a number of address components on a mailpiece, including barcode readability.)
It then counts each mailpiece as it is sorted into bins keeping track of each individual mailpiece weighs the contents of the finished tray and then prints a tray label. The tray label details the number of pieces in the tray, along with the weight of the tray, which provides the Postal Service with an easy way to verify the accuracy of the postage payment.
Finally, the sorter compares the number of mailpieces it actually scanned and processed with the number of mailpieces it expected to process. It reconciles the two numbers and, if necessary, removes the "spoilage" and related costs for postage from the postal forms.
The result is a mailing and a mailing statement that is virtually 100% accurate. Undeniably, this solution is a win/win situation for both the mailer and the Postal Service.
As for payback, an investment in new sorting technology can yield significant cost savings in three areas.
First, a mailing that is 100% verified for piece count, weight, and barcode quality could merit a Negotiated Service Agreement (NSA) with the Postal Service. If approved, an NSA could be worth several thousand dollars a year in lower postage costs.
Second, the Postal Service assesses financial penalties for MERLIN failures. Providing mailings that are 100% verified would reduce or eliminate these failures and save thousands of dollars a year in potential penalties.
Third, in today's highly competitive business world, can any organization really afford the cost of inaccurate messaging and the resulting negative impact on customer relations? Is it worth the risk? Why not just assure the integrity of the entire customer messaging process?
Today, sorters can do much more than just sort mail for postage discounts. They are key components in sophisticated customer messaging solutions that can help unlock cost savings, yield process improvements, assure mailpiece integrity and improve and maintain customer satisfaction.
Stan Johnson is the general manager of sales for Pitney Bowes MailCode. For more information, contact Stan via e-mail at stan.johnson@pb.com, or you can visit MailCode on the Web at www.mailcode.com.
