As companies look for every possible way to squeeze more performance from the mailstream, the inserting process is getting more attention. As a result, the pressure is on to minimize stoppages, which impact productivity, cash flow and service level agreements (
Market Drivers
When it comes to the state of the modern mail center, productivity is key; and with good reason. By optimizing productivity, companies can maximize the return on their capital investments and drive more value to the bottom line. In the increasingly high-stakes world of high-volume mail, these outcomes can make or break profitability. For years, internal mail centers and production print centers were perceived as cost centers. Today, the mail center is being viewed through a new lens, as an untapped opportunity for improvement that is transforming into a model of efficiency. That transformation is being driven by a growing focus on improving uptime performance based on using the right materials (i.e. envelopes) for the application. High-speed systems available today have transformed the ability of mail operations to process and deliver work faster. They can make an internal operation more valuable and an outsourcer more competitive. But here's the bottom line. Whether you're running an in-house mail center or a competitive service bureau, reliability is mandatory. There is often a very real cost when the bills don't get out on time research shows that 68% of people pay their bills as soon as they receive them. This means the faster these revenue recovery tools reach their destinations, the better. And that means looking for new ways to weed out inefficiency and extract more productivity from the process.
"The role of the envelope is HUGE. Poor envelopes equate to poor performance, no matter how fast or sophisticated the inserter." J. Clint Daly, Vice President, Product Line Management, Pitney Bowes
Some organizations don't recognize the critical importance of the envelope or the impact it can have on the high-speed inserting process. When it comes to downtime in the high-volume mail business, production specialists understand the concept all too well. Inserting floor managers wrestle with it every day. These production professionals have to maintain a certain level of up-time performance to satisfy demanding performance commitments. But when it comes to meeting SLAs and eliminating downtime, even the most experienced production managers may not correlate the materials they're using with the downtime they're battling.
Are Envelopes a Commodity?
Typically, most purchasing pros view the envelope as a commodity, and one of the least expensive component items within the overall cost per mailpiece (CPM). However, a poorly designed envelope or one that is not designed to run well on high-speed inserting equipment can negatively affect the organization in other areas beyond the price of the envelope. Compounding the problem, they may be buying from several vendors or using reverse auctions that provide no real long-term solution. With a better understanding of the value equation for their operation (the price of the envelope vs. other costs like machine downtime, SLA penalties, labor, mailing schedules, lost or delayed revenue and postage), purchasing staff can make more informed decisions about materials.
As inserting speed increases, the negative impact of stoppages and downtime is actually amplified. At higher cycling speeds, inserting systems are far more sensitive to variability in materials, and machine stoppages are far more costly in terms of lost throughput. For example, if a 12,000 cycle-per-hour inserter goes down for five minutes, it will have fewer documents to recover than an inserter that delivers 22,000 cycles per hour.
Inserter performance is the result of two main factors sustained speeds and mailpiece quality. Many factors conspire to shortchange uptime over a shift, including variables like quality; barcodes; and the size and weight of inserts, paper, and envelopes. Other factors include operational awareness, materials and operator skill levels.
One of the most important factors affecting mailpiece manufacturing is the quality of the envelopes passing through the inserting device. Envelopes are an extremely fluid component of inserting workflow and the piece most affected when something goes wrong.
"The inserter is highly dependent on the envelope to run efficiently and minimize stops. While envelope specifications for inserters are fairly broad, the key components for high-speed inserting are envelope quality and consistency." Jim Walsh, Director, Technical Solutions Management, BÖWE
Downtime impacts production workflows in many ways, including where it hurts most at the bottom line. The financial impact of inserter downtime can be measured in cost per mailpiece (CPM) the cumulative value of multiple performance-impacting factors such as labor, materials, workflow and average job size. Then there are operational costs of direct and indirect labor, maintenance, equipment depreciation, leases and the facility. To take full advantage of high-speed systems, they should run as much and as efficiently as possible to drive down the CPM.
Quantifying the financial impact of downtime also means examining material costs. In the case of high-speed inserting, it can be a classic case of "you get what you pay for." While potentially your initial outlay for quality envelopes may be higher, you'll experience fewer stoppages, lower downtime and more sustained performance. Of all the materials involved in the inserting process, the envelope is the most critical.
Further along in the mail cycle, when reply envelopes are opened on automated extraction equipment, quality can impact inbound mail to an equally serious degree. Quality envelopes accelerate efficiency for opening and remittance processing equipment. Vendors of remittance equipment often state their preference for the use of envelopes with diagonal seam construction because there are no side seams to catch the inner contents. When an envelope can't be processed by automated extractor, it has to be done in a semi-automatic or manual mode at a rate of 100 an hour. Costs are largely labor for manual handling, but processing delays also create a negative impact.
The Solution: The Ultimate Envelope
Optimizing the efficiency and cost-effectiveness of the process and other processes further downstream depends largely on using an envelope designed for the rigors of the print-to-mail process. In other words the Ultimate Envelope. What is the Ultimate Envelope? It's one designed to run smoothly on high-speed equipment. Choosing the Ultimate Envelope can make a dramatic difference in your production workflow.
Choosing the right envelope, one engineered for the high-speed inserting process, is essential. There are several criteria to look for when choosing an envelope vendor to improve inserter productivity and minimize costs. Some criteria affect the inserting device, while others have to do with how the envelope supports the marketing objectives of the mailing. When choosing an envelope vendor for high-speed inserting, look for a solution that meets these criteria:
- Extensive knowledge The envelope vendor understands inserting and opening equipment specifications and can custom-design envelopes for high-speed applications.
- Dry-packed envelopes Glued or tacked envelopes can have a negative impact on equipment performance.
- Diagonal seam construction Diagonal seam construction is the optimal envelope design for inserting and extracting equipment. There are no side seams to catch insert or trap contents inside the envelope.
- Envelope uniformity and efficiency Precision cutting of each envelope individually ensures uniform size over the entire order. Some manufacturers use an offline die-cutting process, which causes envelope size and construction inconsistencies. The slightest variation in tolerance can result in inserter downtime.
- Edge-tight gumming around window patch material This prevents inserts from catching paper or the window patch during high-speed inserting.
- Lighter weight design This is important for mailers who pay by the ounce under First-Class USPS automated rate discounts. Based on mailing contents, you may save on added postage or be able to include an additional insert without exceeding a postal breakpoint.
- Proper adhesive placement in envelope construction Poor gumming on side seams can create problems for an inserter.
- Time-seal gumming on the seal flap This avoids adhesive migration (tacking in postal trays) after high-speed inserting.
- Environmental sustainability Envelopes made from web paper generate less paper waste. Also, paper typically accounts for 40% to 60% of the total envelope cost.
- Quality Management System ISO 9001: 2000
- Far from being a secondary element, the quality of envelopes used in high-speed inserting can make or break productivity goals. By paying attention to the quality of envelopes used on your high-speed processing equipment, you can make a huge difference towards sustained productivity and lowering the cost per mailpiece.
You may contact Carro Ford Weston by emailing carrof@earthlink.net.
