With the most significant overhaul of US postal rates in years looming in the next four months, a recent survey performed by a major supplier of mailing equipment has found that many companies are unprepared for the proposed price and rules changes that are destined to have an impact on their business operations and marketing strategies.

The proposed overall 8.4% rate increase would raise the cost of First-Class postage to 42. from the current 39., and this is only the most visible effect of sweeping changes now under consideration by the U.S. Postal Regulatory Commission to the 4,400 different postal rates. Other proposed major changes include the introduction of shape-based pricing and, in a related development, new rules for address quality that will take effect as early as this summer.

Some companies are already planning ways to re-engineer their mail stream to make it less costly and far more effective than it has been in the past. Steps companies are taking to adjust to the proposed postal rates and rules include better planning of their mailpieces, paying attention to shape to optimize shape-based pricing, ensuring clean address files and capitalizing on discounts remaining by pre-sorting mail before it enters the U.S. Postal Service network. Another route many companies are now considering is the use of "hybrid" delivery solutions for desktop mail.

What Is Hybrid Desktop Mail?

Hybrid desktop mail refers to a relatively new realm of software with which messages originating at a computer desktop are sent to a centralized print service facility located either in-house or outsourced instead of being printed locally or departmentally and routed through traditional mailing. Hybrid mail mixes electronic delivery with physical mail production. It allows companies to harvest mail from many sources and sort it for optimal production, maximized postal savings and shorter delivery times.

With hybrid desktop mail software, non-bulk mail, including small groups of letters and related materials, is aggregated on servers into larger production print jobs and is then sorted, optimized for postal processing and printed in remote locations. Desktop mail software can even help select which combination of printers, folders and inserters are best suited to producing each batch. Finally, it optimizes production logistics and provides the postal paperwork before dispatching printed mail to the post office for delivery.

Where Is Desktop Hybrid Mail?

Desktop hybrid mail opportunities are everywhere. Major banks, insurance companies, brokerage houses and retailers all have  significant volumes of current departmental and branch office mail that lends itself to this kind of process re-thinking. In the US alone, 1,100 major corporations produce 38 billion documents per year that fit this mold. In the UK, it is eight billion. This is without counting those applications where new mail is created in lieu of phone or email in order to be more effective.

During the 1990s, hybrid mail volumes worldwide started to grow significantly. In recent years, the growth has been strongly leveraged by electronic communications. Hybrid mail is relatively easy to integrate with IT systems, including financial management systems and, thus, it offers companies a paper-free alternative. Additional conditions that have made hybrid mail even more worth considering today include the cost-effectiveness of color printing and the relative excess print capacity that exists today. In addition, Internet bandwidth is inexpensive; more and more companies are considering outsourcing their mail center functions; and document composition systems have risen to the challenge.

Who's Using It Already?

In some countries, hybrid mail services are already offered to corporate customers by the national postal services as in Australia Post's service, which has output centers in each capital city and thus can save the vast bulk of the long distance transportation time, costs and "carbon tax" (fuel costs via air or road). South Africa Post is just launching its new hybrid mail service, and a number of other postal services around the world have it under consideration.

The business benefits of hybrid mail for corporations range from faster delivery and greater message control to streamlined workflows and increased productivity. For example, the Dunn & Bradstreet receivables business in Australia sends 15,000 letters per day that result from many of their staff selecting templates with built-in client defined rules, then attaching lists from their collection system software. Business rules determine which message goes to each person with the stage of collection, the branding to be used and even the tone of the message tuned to the receiver's demographic. This provides better message control from both a compliance and effectiveness viewpoint.

On the retail side, an Australia department store chain, Coles, with 200 retail outlets, has found new efficiencies working with a centralized print service provider rather than each outlet producing its own customer communications. The company's use of hybrid mail has also resulted in improved quality of communications allowing employees to focus on their main business, retailing.

National Australia Bank's rollout of hybrid mail on every desktop has produced marked improvements in productivity and lowered costs. DeskDirect is used for all ad-hoc bank correspondence, and the bank has been able to considerably reduce its outbound mail staff.

Additional examples of hybrid mail applications include simple client-specific reminder letters from leading retailers to their clients regarding layaways, custom furniture orders and even hospital appointments. In each case, the mailed routine reminders are markedly more effective, resulting in faster clearance of reserved items or a far higher percentage of people showing up for their appointments. From the clients' point of view, printed mail serves as a cheaper and far more effective solution, with returns on investments that are staggering.

Benefits Abound

For the sender company, hybrid mail is an easy, reliable and low-cost option. The benefits include faster delivery, lower costs from reduced labor and consumables, and better control over messages and branding through the availability of standardized templates. Hybrid mail also means lower costs for postal services and a more streamlined production environment for the mail producer. In short, desktop hybrid mail provides greater productivity for all concerned, along with "greener," more environmentally friendly mail due to reduced use of long-haul logistics and transportation fuel.

The future is solid for more widespread adoption of hybrid mail because it provides clear value for the sender, the print service provider and the postal service. The document originator realizes benefits both in cost and labor savings and in document control as well as the opportunity for process re-engineering. For the print service provider, there is clear value in terms of higher margins, increased equipment utilization and higher print volumes. And the postal service provider realizes new growth opportunities, streamlined delivery capabilities, reduced returns and the potential for increased profits from reduced transportation costs.

Mark Worsley is CEO of the PrintSoft Group. PrintSoft Group works with postal organizations to lay the groundwork for a global hybrid mail network for desktop mail communications. Visit www.printsoft.com.