How to Improve Mailing Productivity. A White Paper from Neopost Cut Costs Improve Productivity Communicate more effectively Manage the mail process ©2012 Neopost Page 1 How to Improve Mailing Productivity | White Paper Contents Introduction. Why an efficient mailroom is important to your business. 03 Design & Efficiency. The importance of design and ergonomics to mailroom productivity. 04 Mail Preparation. Extending the benefits of automation beyond the mailroom. 05 Outgoing Mail. How to process outgoing mail more quickly. 07 Incoming Mail. How to speed up the opening and distribution of incoming mail. 09 Why Neopost. How Neopost can help you improve productivity throughout your business. 10 ...mail processing must keep up with digital workflows... Page 2 ©2012 Neopost How to Improve Mailing Productivity | White Paper Introduction Mail is vital to the smooth running of any business and the speed and accuracy with which invoices, contracts, statements, reminders, marketing material and other business-critical mail is processed can have a major impact on everything from cash flow and new business generation to the quality of an organisation's relationships with customers, suppliers and employees. This is especially true today when most business activities rely on a combination of digital and paper-based information. In order to maximise efficiency, mail processing must keep up and integrate with digital workflows: if it takes minutes to arrange a loan or take out insurance online, customers won't be prepared to wait days for the necessary paperwork to arrive. Bottlenecks and delays Organisations that rely on manual processes for the opening and distribution of post or for the processing of outgoing mail risk creating bottlenecks that could impair their competitiveness, reputation and profitability. Processing mail by hand is slow, expensive and an unwelcome distraction for employees who might be co-opted to open the morning post or stuff envelopes for marketing campaigns or invoice runs. It can also lead to mistakes and inaccuracies, from applying too much or too little postage to inserting the wrong letter in an envelope. Be more productive Automating mail processing can help businesses eradicate such inefficiencies and be more productive. Our research shows that even an entry-level folder-inserter can fill envelopes at least 13 times faster than by hand and an automatic letter opener can open 2,500 envelopes in less time than it takes to open 38 manually. Combining letter opening with scanning and digital distribution can bring even greater efficiency gains, while franking machines that weigh letters and automatically apply the correct postage in an uninterrupted process dramatically reduce the time needed to prepare bundles of mixed mail for postage. Solutions that make use of powerful software to streamline an entire process take mailing efficiency to a higher level and enable users to personalise and control communications in ways that would not be possible if done by hand. From automatically varying envelope insertions for each addressee to selecting a distribution method (post, email or fax) to suit customers' preferences, modern mailing solutions are a necessary complement to effective communication strategies. Automating mail production and processing can bring costs savings... Automating mail production and processing can bring costs savings through reduced manpower and more efficient mailing choices (see our white paper on How to cut the cost of postal communications). The potential productivity gains are equally significant – arguably even more so, as they can have a big impact on efficiency across all areas of a business. ©2012 Neopost Page 3 How to Improve Mailing Productivity | White Paper Designing an efficient mail process In order to maximise the productivity benefits of any investment in mailing technology, it is essential to have a thorough knowledge of existing mail processes within your business. Who sends mail, when, in what volumes and from where? Are there peaks and troughs at certain times of the day? Do mail volumes fluctuate in line with invoicing schedules, marketing programmes or seasonal demand? How much time is spent filling envelopes? How important is personalisation/confidentiality? How much mail is received and how is it distributed? How do you cope with periods of peak demand? Do other employees help out to avoid bottlenecks and what impact does this have on their productivity? Answering these and other questions will help identify areas where efficiency can be improved by changing a process or installing new equipment. Automating manual processes. Look out for manual processes (e.g. opening mail, stuffing envelopes or collating content) that can be automated to save time or free employees up for more productive tasks. ...it is essential to have a thorough knowledge of existing mail processes within your business. Integrated Solutions. Consider whether separate tasks can be integrated so that mail flows from one stage to another in an uninterrupted process. Could you combine letter opening, content extraction and document scanning/ distribution in a single production line; or link folding inserting, envelope printing and franking? Most modern mailing equipment can be linked together to create integrated solutions that take up less space and are more productive than separate units. Applying software. Software offers further scope for integration. Can you speed up the processing of incoming post by scanning letters and distributing them electronically? Or increase the impact of marketing campaigns by implementing output management software to personalise customer communications? Centralisation. Is there an opportunity to improve productivity by centralising mailing operations and output management, for example by replacing several smaller and slower machines in multiple locations with a larger machine in a central position? Mailroom Design A separate consideration that also has a bearing on productivity is mailroom design. Mail processes are repetitive and have considerable scope for human error, so it is important to provide specialist furniture and space planning to ensure staff can operate effectively during peak periods. The positioning and design of tables, benches, sorting units and mailing equipment is critical for process efficiency and staff productivity. Installing the right furniture is not just a question of optimising workflows: modern, ergonomic fittings and seating can improve operator comfort and morale and have a beneficial effect on overall performance levels. Page 4 ©2012 Neopost How to Improve Mailing Productivity | White Paper Mail Preparation Mail preparation is a critical part of the mailing process. The number of stages involved – document design, printing, addressing, insertion and pre-sorting – means that it can be time-consuming and complex, especially for businesses that rely on manual processes. Failure to make the most of technology to automate mail preparation will not just impair productivity, but also competitiveness. In particular, it makes it impossible to deliver the levels of personalisation demanded by customers, from customised mailings to a choice of communication channel. For businesses that do embrace mailing technology, today's solutions offer enormous scope to enhance the effectiveness of postal communications and the productivity of mailing processes. Software Solutions Addressing Software. Ensuring that addresses in databases are accurate, complete and properly formatted helps eliminate the waste and expense of undeliverable or duplicated mailings and is essential in order to qualify for Royal Mail discounts. For businesses that print return addresses on envelopes, accurate addressing will cut the amount of time needed to deal with undeliverable returns. Output Management Software. Users can streamline the printing and preparation of mailings through the use of output management software like Neopost PrintMachine™ or the entry-level OMS-100 solution. As well as automating mail processing (see below), output management software maximises the productivity benefits of folder inserters by encoding letters with optical marks or barcodes that specify what insert(s) to include with each letter. Sensors on the folder inserters read the marks and adjust insertions accordingly. In this way, the software makes it possible to implement fully automated, personalised mailings. Other ways in which output management software can simplify and speed up the creation, production and despatch of printed communications include the ability to: nd esign and save forms that can be printed-on-demand on office laser printers; nc reate a uniform format for common print jobs such as invoices, payslips, statements etc.; ns tore/archive electronic images of printed documents so that they can be viewed by customer service staff and other employees; nb atch print items so that you only have to enter printing parameters/ properties once; np re-sort and group documents automatically by envelope size, postage type or postcode to reduce the need for time-consuming manual sorting, saving 30-60 seconds per item; ng enerate all required postal documentation, reports and postage statements; and n group together documents to the same address in a single envelope. Some solutions also have parallel printing so that a print job can be shared between several printers and output more quickly. ©2012 Neopost Page 5 How to Improve Mailing Productivity | White Paper Business Machines Folder inserters. Versatile folder inserters automatically fold and insert documents into envelopes at least 13 times faster than by hand. Our experience shows that an office worker can stuff approximately 100 envelopes per hour by hand, compared to 1,350 on an entry-level machine. As you move up the range and insertion tasks become more complex, the productivity benefits of automation are even greater: Folder inserters are the most sophisticated models can insert up to 12,000 easy to use envelopes an hour and have multiple feed stations allowing a variety of documents, leaflets, reply paid envelopes, even booklets and CDs to be inserted. Associated software solutions let you personalise the types of insert sent to each customer. Envelope Printers. Dedicated high speed envelope printers that print addresses and marketing messages in colour directly onto envelopes are a productive alternative to the use of labels and pre-printed envelopes in large mailings. Print speeds of up to 39,000 envelopes per hour and an inaccurate addressing detection feature let you get more done, more accurately in a limited period. The ability to print envelopes on demand removes the need to manage, order and hold pre-printed envelopes: just load blank envelopes and start printing – it's that easy. CASE STUDY Standardising on Neopost “...we have greatly benefited by saving the amount of time required to process volumes of outgoing mail.” OMF International sends missionaries to support Christian movements in East Asia. With a turnover in excess of £4 million in gifts and legacies, the non-profit organisation has a 33-strong team based in the UK. The mailroom at OMF International processes around 10,000 items of outgoing mail a month including glossy papers, leaflets and flyers of variable sizes, which are folded and inserted into C5 and DL envelopes before franking. When its old folder inserter leased from another supplier started jamming, OMF International began to look for a new machine. Mailroom Co-ordinator Simon Tucker considered a number of possibilities before choosing a DS-70. Now installed in the mailroom, the powerful yet compact DS-70 Folder Inserter with MaxiFeeder provides efficient, uninterrupted operation. "Recurring machine jams are a thing of the past. You can turn your back on the DS-70 and it keeps working! The greatest appeal of the system is the flexibility it offers to insert and fold a vast array of document types," explains Simon. "We have saved ourselves a whole day's work by switching to Neopost. Our previous machine kept jamming and was unable to cope with the types of document we process everyday in our mailroom. This meant we had manually to fold a lot of documents”. He adds: “With Neopost, we have greatly benefited by saving the amount of time required to process volumes of outgoing mail. This has undoubtedly had a positive impact on our mailroom operations and created greater efficiency within the organisation." Page 6 ©2012 Neopost How to Improve Mailing Productivity | White Paper Outgoing Mail Faster processing of outgoing mail has the potential to drive new business, enhance cash flow and improve customer satisfaction. The ability to process stacks of outgoing mail more quickly also helps create a cleaner working environment that could improve morale and efficiency. Franking machines. The ultimate labour-saving device for Royal Mail customers, a franking machine is the most important investment you can make to improve mailing productivity. As well as giving access to Royal Mail discounts for franked mail (see Neopost's How to cut the cost of postal communications White Paper), a franking machine reduces the time it takes to get post out of the door and on its way to your customers. Franking machines automate several key steps in a logical, linear sequence that is considerably faster and more accurate than disjointed manual processes, including weighing, franking and sealing envelopes. With fully integrated Royal Mail pricing, franking machines automatically calculate the right postage from the weight and size of the item and the postal service selected. Higher end models maximise throughput with conveyor belts and in-line weighing scales that create a single joined-up workflow with the ability to process mixed batches on the fly. If necessary, franking machines can be linked to other equipment, such as folder inserters, in a fully integrated mailing production line. The IS-6000 high volume franking machine Modern machines feature all the time-saving features of digital technology including touch-screen displays; one-touch access to saved settings for regular jobs; network connectivity for remote management; and detailed accounting and usage reports. The latest 'Smart' franking machines also provide VAT accounting making it easy for businesses to reclaim VAT paid on retail mail services. Clearly, the more mail a business sends out, the greater the efficiency savings, but even businesses with low mail volumes can save time and effort with a franking machine. Having one removes the need to queue at a Post Office to buy stamps, as franking machines can be re-credited with postage online 24/7. Network connectivity also allows remote maintenance, online supplies ordering and automatic tariff updates as postal rate changes are introduced. ©2012 Neopost Page 7 How to Improve Mailing Productivity | White Paper Mail accounting software. Postal expenditure is another area that can be made more efficient through the use of technology. The ability to consolidate data from franking machines in multiple locations makes it quick and easy for managers to monitor usage across an entire organisation. Using software monitoring and reporting instead of paper forms simplifies administration and management. CASE STUDY University of Nottingham awards Neopost top marks With roots stretching back to 1881, the University of Nottingham has enjoyed a rich and highly successful history, with campuses spread across the globe from the UK all the way to Malaysia and China. In March 2005 the University opened the King’s Meadow Campus catering for a population of over 34,000 students and staff. ...the IS-6000 automatically seals and franks envelopes at a rate of up to 260 letters per minute. In order to process upwards of 7000 mail items per day, including welcome packs, prospectuses, and mail shots to locations throughout the world, this postroom depends on Neopost equipment to provide essential automation to speed up the outbound mailing process, and as such has enjoyed a very positive relationship with Neopost for a number of years. Recent changes to VAT have meant that universities are no longer exempt from VAT when sending bulk items, as the University’s Postroom Manager, Andy Whitfield, explains “We had an older Neopost machine which we’d always found to be highly reliable. All of our mail had been VAT exempt, however recent changes to the mailing system meant that all bulk items became subject to VAT. Our old machine couldn’t cope with adding on the VAT, and so it became necessary to look for a replacement.” The University began a tender process, considering Neopost’s IS-6000 franking machine against two machines from leading competitors. Andy Continues, “Throughout the tender we found Neopost’s team to be the most responsive and proactive, and we know from previous experience that that’s how they operate all the time, the service from Neopost’s engineers has always been very quick, friendly and efficient. The IS-6000 itself was also very impressive in terms of reliability, quality of output and ease of use, and a robust design combined with an extensive range of features makes it ideal for our needs.” When designing the IS-6000, Neopost’s R & D team ensured that the IS-6000 combines speed, reliability and consistency with an ergonomic design and user friendly interface. Its mixed mail feeder makes it possible for envelopes of various sizes and formats to be loaded together, the IS-6000 automatically seals and franks envelopes at a rate of up to 260 letters per minute. Having completed the tender process Andy decided to purchase from Neopost, and arranged for Neopost to deliver and install the IS-6000. Since the installation Andy continues to be happy with its performance. Andy was so happy with the results that the University purchased another IS-6000 two months later. Page 8 ©2012 Neopost How to Improve Mailing Productivity | White Paper Incoming Mail Letter openers and scanners that create digital images of incoming post allow mail to be distributed to employees more quickly helping organisations improve cash flow by processing sales orders and payments more quickly; enhance customer service by ensuring that staff quickly receive enquiries and complaints; and boost business efficiency by enabling general correspondence to be dealt with more quickly. Letter openers. An essential timesaver, letter openers can open mixed mail 60 times faster than by hand. The most productive machines can open 10 envelopes a second or up to 45,000 per hour without damaging the contents. Even small, portable models can open mixed mail at speeds of 300 envelopes per minute. Entry-level models slit the envelope on one side and an operator is still needed to remove the contents, but mid- to high-end machines can cut an envelope on three sides and automatically extract any inserts. The addition of an optional conveyor belt that delivers letters to staff for sorting and electro-mechanical sensors that check an envelope is empty take automation to a higher level. For maximum efficiency, letter openers can be integrated into a complete system with a conveyor belt that runs past one or more operators allowing them to date stamp letters and place them in sorting trays from a sitting position. Opening and delivery speeds are controlled by optical sensors triggered by sorting staff. Easy and quick extraction Mail and document digitisation. A growing number of organisations are taking incoming mail processing to the next stage by incorporating document scanning at the letter opening stage. Creating digital images of opened letters and routing them to recipients electronically has many benefits: it speeds up distribution so that employees can respond to mail more quickly; reduces the amount of paper flowing around a business; minimises the scope for human error; creates an audit trail; gives shared access to documents; removes barriers between paper and electronic documents; streamlines document retrieval; and reduces hard copy storage requirements. As more businesses adopt electronic workflows to improve customer service, speed up business processes and reduce their carbon footprint, it makes sense to digitise documents as soon as they enter a company. Doing so reduces the time taken to deliver mail to recipients and improves the productivity of knowledge workers by giving them access to the documents they need at the click of a button, while relieving them of the burden of scanning at the workstation. Specialist Applications. In addition to products for processing daily mail, businesses can take advantage of a number of additional solutions designed to improve the processing of exceptional items, including deliveries from couriers (see overleaf). ©2012 Neopost Page 9 How to Improve Mailing Productivity | White Paper Parcel tracking. Mail doesn't just enter a business through the mailroom; nor does it only arrive at regular delivery times. Packages are also delivered by courier – often to reception areas. Organisations that receive large numbers of such deliveries face a real challenge in keeping track of their whereabouts and arranging delivery to recipients who may be off-site. Software that tracks a package from the point at which it is received to delivery to the addressee removes much of the uncertainty and guesswork from this process. Once a package is dropped off, it is scanned and an email notification sent to the recipient. Such systems can also be used to track other items around an office, such as files, supplies and business equipment. CASE STUDY Homeserve opens mail 33% faster with Neopost letter openers Insurance company Homeserve has cut the time taken to open the 7,500 items of mail it receives each day by one third after replacing its old letter openers with three Neopost IM-75s that open envelopes and extract the contents in a single process. "As a result of using the three IM-75s, we can process our incoming mail 33% faster equating to a saving of over £35,000 per year," explains Data Processing Manager Josie Bates. Homeserve had been using a basic letter opener to open general correspondence, applications and renewals. Once the envelopes had been slit open on one side, general correspondence (500 envelopes per day) was passed to 12 staff in the main office who manually extracted the contents for scanning. The remaining 7,000 insurance applications and renewals were processed at a rate of 300 items per hour. In total, mailroom and office staff took 30 man hours a day to process 7,500 envelopes at a cost of £4,428 per month. The three IM-75s have reduced the time staff spend processing general correspondence and speeded up the processing of applications to 700 items an hours, saving 10 man hours a day or 200 hours a month. WHY NEOPOST? Neopost is Europe’s number one supplier of mailing solutions, with annual sales of €1 billion in 2011. Its products and services are sold in more than 90 countries, and the Group has become a key player in the markets for mailroom equipment and logistics solutions. Neopost supplies advanced solutions for franking, folding/inserting, addressing, logistics management and traceability, as well as a full range of services, including consultancy, maintenance and finance. Its product range meets the needs of all mail users, from micro-businesses to the largest enterprises and public sector organisations, and covers the three main areas of mailroom activity: Incoming Mail; Mail Preparation; and Outgoing Mail. Neopost products are designed to work together and can be integrated into complete mail processing systems that address the specific needs of individual customers. Page 10 ©2012 Neopost How to Improve Mailing Productivity | White Paper Mail Preparation Address Management. Neopost Bulk Mailer is a complete address management solution that can increase mail deliverability by cleaning address databases and maximise Royal Mail discounts by sorting post in the right way and generating required documentation, reports and postage statements. Output Management. Neopost has two solutions for automating document production, distribution and dispatch, the entry-level OMS-100 for non-technical users and PrintMachine for larger volume applications. Both automatically process mailings to minimise manual sorting, for example by batch printing and grouping documents destined for the same address in the same envelope. Other useful features include the ability to print OMR marks and barcodes that encode instructions for other processes, such as folding and inserting. The intelligence these marks add to documents ensures accurate mailings (essential for confidential information), facilitates varied content by addressee and simplifies processing of returned mail. Folding and Inserting Machines. Neopost's DS range of Folder Inserters includes models to suit any size business, from the desktop DS-35, with an insertion speed of up to 1,350 envelopes per hour, to the DS-1200 that can fill up to 12,000 envelopes per hour and handle inserts from flyers and business reply envelopes to thick booklets and CDs. Outgoing Mail Franking Machines. Neopost's IS series of franking machines ranges from the entry-level AutoStamp2 with integrated weighing scale and LAN connectivity to the IS-6000 with mixed mail feeding, dynamic scale, power conveyor and full colour touch-screen. Mail Accounting. Neopost Mail Accounting Software is the next step up from a franking machine's built-in accounting features. The software collects and reports on data from multiple machines in multiple locations. As well as tracking all postal expenditure, it lets you set budgets and will send out alerts if expenditure exceeds limits. Incoming Mail Letter openers. Neopost's five-strong IM series ranges from the desktop IM16, with opening speeds of 300 letters per minute, to the IM-75, which opens envelopes and extracts the contents. Document Scanners. Neopost mail extraction systems can be enhanced with document scanners and software solutions that scan, archive and distribute incoming documents electronically. These include Neopost's IMW-20 all-in-one document management system featuring a duplex colour scanner, interactive touchscreen, workflow management software and embedded archiving server for the rapid retrieval of stored documents. Mail tracking. neoTrak automated parcel receiving software tracks packages from drop-off at the post room or reception to delivery to a named recipient. neoTrak can also track files, equipment, office supplies, computers and other equipment around a building. What Next? To find out how Neopost can help you cut mailing costs, please call us on 0800 731 1334. ©2012 Neopost Page 11 How to Improve Mailing Productivity | White Paper Neopost House South Street Romford Essex RM1 2AR Tel: 0800 731 1334 Fax: 01708 726361 www.neopost.co.uk. Page 12 ©2012 Neopost
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