Mail Matters

Industry professionals gathered in Florida this week for the annual National Postal Forum. This venue has been the largest industry gathering of mail experts and Postal leaders for many years. This year the largest challenge to be addressed by PMG Patrick Donohoe will be the many proposed changes to service and the infrastructure nationwide. These change proposals include:

• Labor reduction
• Closure of Business Processing Centers (BPCs)
• Request to drop to a five day delivery
• Mandate to move mailers to Intelligent Mail Barcode (IMB)

Here are some of my thoughts on each of these key issues:
 
Labor reduction
Although many people have always stated that the Postal service is grossly overstaffed (this comes from within previous USPS management), the truth is that the Postal Service has been driving labor down using attrition and buyout packages to “lean the line” for over ten years. The operation as currently staffed is needed to process our mail every day.

Closure of BPCs
The largest impact will be the distance that trucks will need to travel from state to state with half of the Postal Service centers closed. Fuel prices and travel time are increasing in this dynamic so there will be questions about the length of delays due to extended travel miles and about whether this scenario will create a service problem for customers. There have been seminars conducted to prepare organizations for a single shift delay (eight hours) including the fact that the impact should be minimal for those sending First Class Mail.

Five Day Delivery
By eliminating Saturday delivery, the Postal Service believes that it can reign in a substantial amount of cash from every level of processing. Given the amount of direct mail in the system, many mailers believe that the sixth day of delivery is not needed, so impact will be minimal from a public viewpoint. However, businesses should be prepared to possibly adjust staff on Monday mornings. More mail will be accumulated on Friday but not processed for delivery, potentially causing a volume that can “cascade” and create a large increase for Monday morning processing.

Intelligent Mail Barcode
What is different about this change? The USPS has previously mandated IMB to mailers every year since 2007. Every time, within three months of that mandate, the Postal Service has backed off and continued using the POSTNET codes we have all been using. Kudos to all mailers who have converted as this was going to happen sooner than later. This change is different because the Postal Service has announced that it will no longer provide discounts if you are using the POSTNET code. If you have not taken first steps in reviewing your mail and working with your presort house and stationary supplier, now would be a great time to move on this initiative. Reach out to your local USPS Postal Design representative now to initiate steps in converting to IMB.

Together, these changes equate to positive steps in reducing the giant gap in revenue, expenses, realty and labor management – provided every piece of proposed changes is approved by Congress. Many have been stalled to a point where we are not sure when any of this will be put into place. However, the IMB barcodes were created to produce the fastest processing of letters and with minimal touch by a human. I for one believe that in a struggling economy, this is a very effective method to reduce discount and raise revenue.

For more information on mail center management best practices and other topics related to maximizing your mailroom service capabilities, please feel free to visit http://www.ocesolutions.com

The US Postal Service has been using the airwaves and commercial media to review a few of the very unique product offerings that are still only available using the USPS. In an effort to raise customer awareness and to ward off decreasing volumes, the USPS has had to ask itself “What do we do that others cannot?” The following provides three reasons to consider using the Postal Service for your correspondence needs.

The first and most important feature of using the Postal Service is secure handling by a government protected service. Only the USPS has an official stamp and the receiver box protected by federal law. That is correct – it is against the law to take anything out or leave anything in unless placed there by the box owner or the USPS carrier. No other commercial or private service can make that claim.

The second level of security that the USPS can provide is actually an avoidance of sorts. That is, you will never have your mailbox “hacked” or have information extracted electronically behind the magic of perceived firewall protection. We have heard of too many instances where lists of confidential customer data has been compromised or stolen via technology trickery.

The third, and perhaps most interesting feature, comes as a result of numerous surveys conducted during the past three years, which involve the mood of the recipient. You heard that correctly – apparently people feel “happier” when they receive mail. The reasons include the ability to touch and feel something, which has value. The recipient also feels that a social interaction greater than an e-mail or Facebook contact is being made. Someone cares enough to contact them using physical correspondence.
I must admit, I did not see that one coming, but when a marketing department is looking to reach a specific audience, you cannot discount this fact when determining the type of media to employ. The U.S. mail still can still provide a mood lift for people who simply receive a letter. Chances are, the reader will actually examine the content and pay more attention as opposed to receiving a “spam” email.

Feel free to visit our website (http://www.ocesolutions.com) for insights into mail center management best practices, electronic mail management and many other document management strategies that can help your enterprise succeed in the days ahead.

It is becoming harder to remain objective when discussing the fixes needed to assist the USPS in rebounding from the latest financial losses. Just a few years back it said that the IMB (Intelligent Mail Barcode) would help reduce labor and save billions. Next it was an Exigent Rate Request that eventually led to missing the scheduled increase for 2009. Then, the USPS hoped that reducing retail sites would lead to a save. As an observation, we really have not seen many instances when vacating realty has led to an easy recapture of capital or large scale cost savings.

The USPS has announced that in January, one month from now, the public will get a standard annual rate increase for letter mailers and small items than can be processed via automation. However, there will be higher than normal increases in competitive product lines that were created to produce revenue. The USPS will also be closing 50 percent of the major Business Sort Centers across the country. The projected cost savings is estimated at $3 billion per year, but that is only less than half of the $8 billion in debt carried each year.

The result of these closures will be greater distances to transport mail and as the USPS has been telling us recently, the mail will also move one shift slower. In the business mailer’s work day, mail would be delayed half a day, meaning mail that used to be processed at night to go into the delivery stream the next morning would now be delayed to be placed in the afternoon entry. This delay, although not critical from the standard user (us) would create a delay in billing for those still using paper statements and remittance, and any lost interest must be accounted for and could result in a slight increase in fees from some source in the mail / billing and payment process.

If we return to the impact on standard individuals we must take into account the following challenges:
• How to keep users on board with use of the USPS (critical and timely mail)
• Convincing electronic users to stay with paper correspondence
• Motivating people to travel a further distance to participate in the mail process – whether as a sender or recipient

These are challenges that no other single, standing company has had to face. The USPS operates from our use and revenue generated by postage. If that slows, it would seem that there would be additional cost cuts needed to address an additional financial burden. Stay tuned and we will continue to follow the impact and offer recommendations that can assist mailers.  In the meantime, feel free to visit our website (www.ocesolutions.com) for insights into mail center management best practices, electronic mail management and many other document management strategies that can help your enterprise succeed in the days ahead.

I mentioned in a previous column that Postmaster General (PMG) Donahoe was looking to request an Exigent Rate Increase. I also stated that I hope the USPS will keep its standard rate increase request in place – unlike last year when PMG Jack Potter did not cover the bases with a perfectly legitimate two percent rate increase request for first class mail.

When first class mail volume is tallied for 2011 I anticipate it will show a missed opportunity to increase revenue by millions of dollars. The Rate Commission turned down the Exigent Rate Increase and the USPS wound up keeping the regular rate of 44 cents for its highest volume product throughout the year.

At least the USPS is prepared to seek what it has coming this time around. The problems that the USPS face require much more than 2.3 percent, but at least it is maximizing an opportunity to which it is legally entitled. Let’s face it – there is no service that can deliver a piece of physical correspondence anywhere in the United States for the value that the USPS can guarantee each day.

For more information regarding what is going on at the USPS, you can get the Postal Customer’s Council view by logging into www.usps.com. There are also LinkedIn sites that carry useful information and user feedback on issues. As an additional resource on mail center management and related document process topics, feel free to visit www.ocesolutions.com 

I anticipated that with the new Postmaster General announcement creating a positive stir in the USPS that this summer would not be as newsworthy as others. As usual, the budget crisis and political jockeying for power did transplant the USPS from the front page. However, much has happened with the USPS to become some serious “Page 2” news.

The USPS has been reviewing the following noteworthy possibilities:
• Closing 10% of the Postal units across the country, eliminating 3700 properties
• Selling products in retail and non-postal properties, similar to successful contract stations at universities
• Closing on Saturday, a move still being resisted by Congress
• Requesting permission to gain Exigent Rate Increases

In addition the PMG has made comments to the effect that the Postal Service could become a three-day-a- week delivery service within the foreseeable future. These are ideas to try and offset continued record losses that have exceeded all projections. There is finally an acceptance that electronic mail and hybrid print are causing a serious negative impact on postal revenue sources. However, every step the USPS has taken to remedy these losses have failed to bridge any gap in spend versus budget. 

There are articles that blame the number of employees and their overpaid salaries as the cause; others point to the millions that the USPS must pay into military pension funds – something FedEx, UPS or another carrier of correspondence does not have to pay. The fact is that the USPS has had a special status in its line of business since inception, namely, operating as a quasi monopoly. Its recent advance into the discounted market has been successful to some, but unsuccessful in creating the revenue needed to turn the corner.

It is interesting to study the recent fall of Borders Books and how it arrived at that “point of no return.” The company started as a neighborhood book retailer, succeeded to force small shops to close and gained exclusivity in its market.

Borders expanded into many different lines of business – audio, video, specialty gifts, coffee and snacks and basically implemented all business lines into all stores. This required a larger footprint, and at the height of growth, two factors hit the company extremely hard: one was the move to more electronic media, specifically e-books, and the second was the failing economy. The result was a rapid descent from top to bottom and then the recently announced closure of the company.

The USPS has been challenged with the closure of regional processing centers and underperforming local units. Other developments will need to be addressed to level the playing field with their competitors, but could cost the USPS its exclusive “monopoly” in the process. It will be interesting to see what develops as the USPS faces a huge obstacle with certain payments due in the fall. It has applied for the Exigent Rate Increase and we can only hope that it does not forget the 2-3% increase (Plan B) that they are entitled to.

It would also be a good time for the USPS to cease airing expensive commercials in prime time touting to the home viewers the number of pieces of mail it delivers. Many home viewers only see mail that remains after they moved all of their bills to an e-payment process and their personal correspondence to e-mail and Facebook. That leftover mail usually winds up being tossed.

For more information regarding what is going on at the USPS, you can get the Postal Customer’s Council view by logging into (www.usps.com). There are also LinkedIn sites that carry useful information and user feedback on issues. As an additional resource on mail center management and related document process topics, feel free to visit (www.ocesolutions.com)

The latest on the effect of mail destined to Canada from the US.

News from this past weekend had the USPS announcing on June 18th that it has stopped accepting mail destined for Canada. The Canada Post informed the USPS earlier on Saturday that their suspension of service will last at least until sometime next week as they await the Canadian government’s action on back-to-work legislation.
 
 As a result, effective 11:59 p.m. CDT Saturday, June 18, USPS® has discontinued accepting all mail destined for Canada, with the exception of Global Express Guaranteed (GXG) service.
 
Customers can avoid service disruptions by using GXG service, which is available online at USPS.com.

For information on what can be sent using this service, as well as rules, exceptions and pricing tables based on destination and content, please refer to the following USPS link: 
pe.usps.com/text/Imm/ce_003.htm#ep2041503 .

The strike has been conducted on a “Province to Province” basis in recent weeks as talks between sides commenced. It appears that it will take a serious intervention by the Canadian Government to bring both sides to an agreement, similar to past Canada Post strikes.

We will keep you informed of any developments, but in the meantime you can check on the progress by going to the official Canada Post website: www.canadapost.ca. Also, feel free to visit the Océ Business Services website (www.ocesolutions.com) for mail center management best practices and up-to-date industry information on document processing services.    

There will be a new pricing schedule for USPS mail effective April 17th, 2011. Based on the limitation for rate increase requests that are in line with the Consumer Price Index (CPI), this change in rates represents an average of 1.741%. In an attempt to offer a quick overview to users on how this change will affect your organization’s mail center management operations, I will try and simplify and then offer resources for any other information you may need.

As a user of USPS services, you will want to know how the following potentially affects your mail processing center activities:

How does this impact my postage spend?
The answer for First Class letters is that it won’t. The same rates you have been paying to post letters at 44 cents will still be in place. Items that are oversized, specially-handled or contain excess weight will realize the largest increase, while items that run through automation processes will continue to represent the best pricing for users.

What about certified, registered and return receipt mail?
There will be a slight increase as these products are considered special handling. Do explore electronic proof of delivery options to reduce your current spend with these products.

Which products will be impacted the most?
If you are using Standard Mail parcels, you will see an 11% increase. Also if your parcels require special handling and need to be processed manually (different weight and sizes), you’ll want to examine what is being mailed and ask about some alternatives such as:

• Can it be converted to a PDF?
• Can it be sent via electronic mail?
• Can it be uploaded to a website for download accessibility?
• Are there competitive ground services that can deliver at a lower rate?

The USPS will not be providing you with these solutions as they reduce Postal Service revenue and lower the volume of mail entering the postal stream. However, given the increase in rate structure and the products being affected, I believe the USPS is telling us that it prefers automated processing over manual handling. Therefore it’s possible that a private carrier may offer a better price option.

What can I do to reduce my costs?
Simple suggestions usually create the best solutions, and this is no different. The best ways to reduce your postage costs include:

• If you are not presorting your letter mail, it is time to start.
• Don’t be afraid to commingle mail in a letter-shop or presort house – it all travels together once sorted.
• Use shape-based strategies, that is fold a 8 ½  X 11 sheet to fit in a 6 X 9 envelope – 50% more mail at the same rate and avoid oversized dimension fees.
• Use smaller fonts where able – less document, less weight.
• Move tri-fold content to bi-fold and insert it into a 6 X 9 envelope to gain thickness advantage and save on number of pieces (30-40%).
• There are two sides to every document – use them both!
• Unless you need to, not using “special” envelopes (e.g. with windows) enables you to reduce special stock levels, which can save you money and storage space.

There are many different ways to reduce costs, such as converting paper documents to PDF when possible. This allows you to distribute documents electronically to different offices where they can be printed locally. If you think these savings total a small number, feel free to contact us. We can help you create a mailroom service program to study what, when, where and why items are being sent from your business. You will be surprised at the results!

For more information on electronic mail management and related document management strategies, visit www.ocesolutions.com.

I have returned from Washington DC and am pleased to report that the 2011 MAILCOM conference was a success. Due to a challenging economy, we had seen lower onference participation in previous years. Many organizations reduced expenses and went through layoffs while at the same time mail center management operations experienced many changes. More knowledge is required to meet the demands of such tough business cycles, but the ongoing challenge of these cycles is that there is less money and resources available to support education.

The MAILCOM conferences featured President George W Bush, the 43rd President of the United States, as the keynote speaker. Former Super Bowl winning quarterback Doug Williams and Postal Rate Commission Chairman Ruth Goldway also addressed the conference audience. In addition to these presentations, I heard extremely positive feedback on many of the educational sessions. The topics, which ranged from management issues to mail security, digital distribution, postal address management and many other subjects, were exactly what attendees wanted. The sessions were all nearly or completely full, with attendees motivated and ready to share their experiences.

George W. Bush, 43rd President of the United States (left)
and Joe Freeman, National Business Solutions Architect, 
Oce Business Services (right)

I look forward to the next conference to see if the industry supports the idea that knowledge is still power and that gaining information at conferences can help drive improved mailroom service and other document processing services.

I’d like to add two important points. One is that Océ Business Services was well represented from the teaching standpoint (we presented at 11 educational workshops). The other is that Lauran Solvik, Senior Site Manager and National Manager of the Year for Océ received her Master Certification in Mail (MCOM). She is the first Océ employee to achieve this valued designation and we are proud to have her on the team. Lauran has completed over ten separate Mailcom professional certifications and has worked non-stop to continue her professional education. Congratulations to Lauran!

For further information on Mailcom, visit www.mailcom-conference.com/2011/dc.2011.welcome.htm. As an additional resource on mail center management and related document process topics, feel free to visit www.obs-innovation.com

This week Océ Business Services is presenting 11 educational workshops on mail and other document management strategies at the MAILCOM 31st Annual Conference and Exposition. This year’s conference is taking place in Washington, DC Feb. 28 – March 3 at the Washington Hilton Hotel.

Our presentations are spotlighting how organizations can reduce costs and streamline their mail, information and records management processes. To achieve these and other business goals, Océ experts are highlighting the latest industry best practices, technology and sourcing strategies.

As an example, one session focuses on electronic mail management, including digital mail processes and components, business benefits such as faster access to incoming documents, records considerations and more. Another session looks at the benefits of co-sourcing, an alternative sourcing approach in which a company partners with a mail services provider to improve operational efficiency while maintaining mail processing center control. Co-sourcing helps build long-term client/service provider relationships whereby each brings best practices to the partnership.

Here is the full schedule of Océ presentations:

Monday, February 28
• 2:00 PM – 3:00 PM, CM115: “Outsourcing: The Pros & Cons…The Professionals”
• 4:30 PM – 5:30 PM, OS139: “Records & Information Management”

Tuesday, March 1
• 2:00 PM – 3:00 PM, LD248: “Hush! Top Secrets of Leadership to Improve Job Security”
• 3:15 PM – 4:15 PM, LD254: “Lead Like a Four Star General”

Wednesday, March 2
• 8:15 AM – 9:15 AM, OS375: “Table Top Technology for Small/Medium Mail Centers and In-Plants”
• 8:15 AM – 9:15 AM, CM379: “Co-Sourcing: An Alternative to Outsourcing”
• 9:30 AM – 10:30 AM, PD382: “Networking 101: Get Connected…Stay Connected”
• 2:15 PM – 3:15 PM, DM391: “Digital Mail: Real World Applications in Digitized Distribution”
• 4:45 PM – 5:45 PM, OS311: “The Basics of Office Services Management”

Thursday, March 3
• 10:15 AM – 11:15 AM, MS421: “Mail Center Cost Savings Ideas: The Power to Beat Your Budget”
• 12:45 PM – 1:45 PM, PD443: “Managing Your Career: Preparing for the Future”

Visit www.obs-innovation.com for more information on digital mail and many other topics related to our presentations and mailroom service in general.

With the news focused on weather stories about record freezing spells, snowstorms and winter thunder, many of us think about rolling over and calling the day off.

While we are digging out, however, there were a few newsworthy events related to mail processing center issues that deserve special note. First, the USPS installed the new Postmaster General. We wish Patrick Donahoe the best as he takes the reins from outgoing PMG Jack Potter. Mr. Donahoe inherits an extremely challenged business environment that is in desperate need of some major cost-cutting measures. The USPS has exceeded all projected losses during the past three years and faces uncertain measures in attempting to restore some fiscal control. The economic recovery should provide some help, but there are many internal changes that are necessary to turn the corner.

In a rather quiet press release, the USPS announced price increases for 2011. We watched as the request for emergency rate increases were denied by the Rate Case Commission in the last quarter of 2010. This increase will have a more subtle impact on mailers because the regular First Class #10 mailer remains the same. The average mailer will not experience any change cost change. However, if you are sending heavier and oversized packages and envelopes, you will need to put a few more pennies on the counter. The complete price list and article announcing the increase is available on Presort.com (www.presort.com). The new pricing structure will become effective on April 17th, 2011.

The next (and not so surprising) announcement involves the Intelligent Mail Barcode (IMB). The mandate for compliance by all users was to be in May of this year. Citing the general feeling that mailers currently receiving automation discounts on their Post-Net barcodes were not entirely on board, the mandate has been eased. You will still receive discounts as you have been accustomed. However, I suggest that you use the time wisely by contacting your local Mailpiece Design Specialist and securing your individual unique ID number. At a certain point, the mandate will be enforced and it makes sense to be ready for it. IMB updates and user information are available at www.ribbs.usps.gov. This site is the best resource for obtaining the latest information without having to navigate the USPS search engines.

For more information regarding what is going on at the USPS, you can get the Postal Customer’s Council view by logging into www.usps.com. There are also LinkedIn sites that carry useful information and user feedback on issues. I will be covering some of those resources in my next blog regarding networking and social media tools. There are classes being given at MailCom in Washington DC later this month. I plan to attend and bring back some helpful guides on mail user resources available for little or no cost.

As an additional resource on mail center management and related document process topics, feel free to visit www.obs-innovation.com

On the heels of the announced request for rate increases for mail, the US Postal Service holds a piece of our accounting functions and our departmental budget requests for funding for 2011. Many who are new to mail services or may have been recently appointed to oversee these departments have a unique opportunity to review last year’s expenditures and try to make an accurate estimate of funds needed. Last year (F/Y 2009) the postal service bypassed increasing postage as the economy was still threatening to choke off many avenues of communication, and mail was suffering more than any media. The Postmaster General made a decision to provide relief to mailers and did not request any new postage increases.

As a result, you may be looking at a 2009 vs. 2008 postage fund budget that does not reflect any additional funds. You may even believe that the figure could be a constant, but do not be fooled. The average increase amounts to 2-2.5% annually. When the rates did not change last year, the relief was temporary. This increase requests an average of 5.6% and if you are not reading between the lines, you may fall short of your anticipated budget needs.

To the many involved in mail center management who went ahead last year and did forecast the annual 2.5% increase, your job is much easier and the ability to get budget approval is a snap – as it represents a figure that the CFO is familiar with in approving your operating funds. To the remainder, the task is more difficult as we are aware of the “use it or lose it” approach to budgets in the past. The times have forced many to assume that the slightest decrease in operating expense is directly attributed to your skills in managing the bottom line. You looked like a hero last August, but the pendulum swing will cause much homework in explaining your need to double the 2008 increase.

A word to those in this position – go to the USPS website (www.usps.com) and look up the rate requests from 2008 and 2009 for backup. It will be worth your while to document what happened rather than trying to create a budget that appears excessive compared to the prior years’ postage rates. A good advice is to always assume that these increases will always be required and that even a delay in rate requests will be absorbed temporarily, but the USPS will be back to collect at a later date! For additional information on mailroom service solutions and the latest in electronic mail management, visit www.obs-innovation.com.

 

In today’s post I would like to congratulate Jim Mullan, Executive VP of the Greater NY Chapter of the Mail Systems Management Association (MSMA), on recently receiving the prestigious Franklin Award at the Mailcom Awards luncheon, which took place at the Atlantic City Convention Center.
 

Jim Mullan (L) receives Franklin Award
from Lance Humphries, MAILCOM Executive Director

Jim is the most energetic person I have met in the industry, and when notified of the award, he shared that he did not feel he deserved to be singled out for accomplishments that his staff, family and management make happen on a daily basis. For any of you who have met Jim, you would know that he is not a person you would categorize as shy. However, he does believe that service excellence starts and ends with a cohesive team of co-workers that provide delivery of the best in service. He told me that all of them should be receiving the award and not him.

That is the most important ingredient in what separates true leadership from people who are “in charge.”  Jim sees the process of inclusion and delegation as the only management method, and treats all in his care as partners who work together to achieve a goal. From some of the greatest military leaders, to corporate magnates, and even the most successful sports coaches, these same characteristics are why people form a motivated team and execute behind Jim’s guidance, as he is always trying to share the accolades with those who directly service customers.

Congratulations to Mr. Mullan on a successful career, and to all responsible for working as a team. His results are a credit to everyone who is a part of his success. Jim Mullan also is an Océ Business Services’ National Account Manager at Chubb & Sons in New Jersey. For more information about Océ and topics including mail center management and electronic mail management, visit (www.obs-innovation.com). Additional information on mail processing center topics and postal industry news can be found at the MSMA web site (www.msmanational.org).

 

I have always believed that you can’t spend too much energy worrying about what you cannot control. In these extremely lean times, this has been a difficult mantra to get one’s arms around without experiencing at least a touch of anxiety. I offer a simple remedy that will not only replace nervous energy, but also prepare you to improve your position when the economy rebounds.

Professional development has been the most important critical factor in hiring and retaining motivated talent. I am reminded of the “managing with carrots” theory that suggests when you cannot reward with monetary incentives you can resort to compliments and acknowledgements to help bridge the gap.
 
But people need more than a hearty handshake and pat on the back to convince them that the company is happy to have their services. One way to meet that need is for organizations to invest in their employees by helping them achieve professional certification. This creates formal recognition of an employee’s desire and willingness to advance.

For instance, at Océ Business Services we offer employees a variety of development training programs that are available throughout the year. Individualized career tracks are available at a pace that provides the employee time to complete and achieve educational credit in various industry subjects. Some training classes are conducted in person at regional training sessions and others via webinars.

In addition, we invest in professional association memberships that span disciplines including electronic mail management, digital imaging management, records information management systems and office document control. We also send staff to trade shows to increase their exposure to the latest technology and best practices.

The return on investment is motivated individuals who don’t spend countless hours wondering what will happen next. They are busy advancing themselves and elevating their company, which leads to account renewals, new business and overall growth of the enterprise. 

The winners are employees who improve their skills and advancement potential, the customers who benefit from the employees’ superior service, and the companies that gain a competitive edge due to their commitment and investment in training. This progressive cycle is financially effective and it drives a more positive mindset in challenging economic times. With this approach the glass will never be half empty – in fact, another glass will be needed because the first will most certainly overflow.

Visit our web site (www.obs-innovation.com) if you’re interested learning more about mail management and other document management processes. The AIIM Digital Landfill blog (aiim.typepad.com/) also offers information on digital, electronic document scanning, and related topics.

 

In our most recent research, Driving Business in a Tough Economy, a high number of survey respondents indicated that their organization is outsourcing mail and shipping activities. What’s driving the outsourcing of mailroom service and other document management activities? The top two reasons according to the survey are to reduce costs and concentrate more on core business activities. Our project with one client showed how handling mail management processes more efficiently can reap solid dividends.

Mail center management is critical to communicating with clients, complying with regulatory requirements and efficient workflow in the banking industry. For our client, a major bank, the mail centers played a critical role—supporting the core financial businesses. In addition to processing office mail, they printed and distributed monthly client account statements, transactions notices, disbursement checks, regulatory disclosures, and direct marketing.

Realizing that increased print and mail volume eroded profits, the bank’s management decided to take action to improve mail center efficiency and reduce operating expenses. The financial institution needed to meet a variety of goals, which included re-engineering modern mail centers where customer service, efficiency, cycle time and cost control are aligned with the corporate strategy. The bank also wanted to improve the efficiency and control of the mail process and standardize all the mail operations centers throughout the country.

Our team recommended solutions that addressed the workflow and efficiencies of the bank's enterprise-wide mail production, distribution and management functions. The solutions included implementing technology to automatically obtain the lowest possible overnight courier delivery rates and augmenting package-tracking capabilities from the mail centers to the desks of employees. We also helped the bank redesign its mail processing center workflow to improve efficiency and reduce risk—for example, installing cameras to record proof of check disbursements. Another change was to design a standardized mail production/distribution center, which can be replicated throughout the country—achieving measurable cost reduction and performance improvements.

There were number other solutions implemented, but the end result was that the bank achieved savings of $1 million in the first year and a total of over $7 million in the next 12 years.

For more on the topic of mail management, feel free to download our survey, Driving Business in a Tough Economy (click the box in the right hand column of this page), and visit out web site (www.obs-innovation.com).
 

As the economy attempts to recover, companies are looking to implement strategies that can help them meet current financial challenges and even gain a competitive edge. Our most recent document management industry survey report, Driving Business in a Tough Economy, links six document management practices with high value business benefits according to senior executives experienced in document management. In one of the findings, survey respondents report that mail and shipping practices have a high impact on improving operational efficiency, driving faster time to market, and reducing costs.

The following mail processing center management practices can help organizations increase the efficiency of their operations while containing costs. 

Contain Certified Mail Costs
Organizations can realize significant savings by using a Certificate of Mailing instead of Certified Mail. Businesses often use Certified Mail to verify that a mail piece has been sent. Using a Certificate of Mailing can accomplish this much more cost effectively, especially if verification of delivery or a return receipt are not required. For example, a company can save $3.82 for every one-ounce letter using a Certificate of Mailing. For a small fee, Proof of Delivery can be requested from the USPS at a later date.

Address for Success
Undeliverable addresses cost the USPS an estimated $2 billion per year; to businesses that can mean unpaid invoices, lost sales, and poor customer service. Accurate addresses are critical to the post office delivering mail to intended recipients and ensuring that postage costs will not be wasted on bad addresses. Also, the USPS launched a new intelligent barcode system last year. Creating automation-compatible mail pieces with proper address components will enable companies to maximize their postal discounts and reduce surcharges for non-compliant address content.

Automate and Save
Companies can save postage costs by making their mail “automation compatible,” which means preparing it according to USPS regulations that allow the mail to be sorted down to the finest possible detail for processing by automated equipment. Addressing requirements include using all capitals in the address, omitting all punctuation except the hyphen in the ZIP+4 code, and using the proper abbreviations for states. Other requirements include barcode clear zone, placement of the block address, and the required placement of the return address.

Pay Attention to Shape
Review designs of all current and planned mailings to ensure that they are cost-effective using shape-based pricing requirements. For example, a one-ounce 6”x 6” envelope’s aspect ratio (length divided by height) is 1.0. Since this does not fall within the required range of 1:3 to 2:5, the envelope is subject to a non-automation-compatible surcharge.

Determine IMB Discounts
If you’re considering a software upgrade to include Intelligent Mail® barcode (IMB) capability, contact a local USPS Mail Design Specialist to determine when IMB discounts will be available to your organization. This change is currently targeted for fall of 2009.

Consider a Tracking System
To help ensure regulatory compliance, contain costs, and enhance efficiency, consider implementing an automated tracking software system to trace the status of your incoming and outgoing mail. As an example, Océ MAX is a business performance management system that integrates Océ ATS (Automated Tracking Software), enabling users to annually track millions of pieces of inbound, outbound, and accountable interoffice mail as well as overnight and courier deliveries.

Minimize Costly Flats
Fold pages and insert them into smaller envelopes. For example, inserting nine pages into a 10”x13” flat envelope will cost $1.17 in postage. Folding the same nine pages and inserting them into a 6”x9.5” envelope will cost $.59 in postage, a 50 percent savings. (A 6”x 9.5” is .5 ounces lighter than a large envelope.) In addition to folding, duplex-printing documents (copying on both sides of the page rather than one side) before mailing can reduce postage costs by minimizing both the weight and thickness of the mail piece.

Compare Heavy Package Costs
Before mailing heavier packages (two pounds and up) via the USPS, double check rates with carriers such as UPS, Federal Express, and DHL to ensure that you’re obtaining the lowest rate. The price ultimately will depend on the zone to which you are shipping.

Check Your Software
If your organization is using address list software, you can visit  www.ribbs.usps.gov to verify that all move updates (address correction and forwarding) and Federal Register notices are current in your application. This ensures that your company is in compliance and can benefit from discounted rates and faster service.

I’ll highlight other mail center management strategies in upcoming posts. For additional information, our web site (www.obs-innovation.com) and the AIIM Digital Landfill blog (www.aiim.typepad.com) offer information on mailroom service and other document management-related topics.
 

In the current economic environment, businesses continue to look for effective steps to contain costs and increase efficiency. One way to enhance efficiency is to consider digital mail, which can provide faster access to incoming documents and the ability to reduce unwanted mail 

There are several approaches to the digital mail process. One is to convert incoming mail from physical to digital in the mailroom by scanning all mail capable of being scanned and then utilizing workflow processes for distribution. The digital images are stored in a database where, after being notified by email, employees can access them via a Web portal with password protection and interactive functions. Benefits of this approach include faster access to incoming documents and information, particularly for employees who are traveling or located in satellite offices.

Other benefits include the ability to suppress non-essential company mail from entering the organization; a potential reduction in labor and facilities by centralizing multiple mail centers into one; and an opportunity to support “green” initiatives by reducing paper usage. Digital mail can be well-suited for companies that receive a high volume of mail every month, including a high number of critical documents. Other factors include the number of employees who are mobile and telecommute, as well as the company’s desire to implement a centralized scanning solution and reduce paper.

I’ll spotlight other document management strategies for 2010 in future posts. If you’re interested learning more, our web site (www.obs-innovation.com) and the AIIM Digital Landfill blog (http://www.aiim.typepad.com/) offer information on digital mail, electronic document scanning, and related topics.