In today’s always-on, digitally connected world it can be easy to
overlook the role played by physical mail in business. The convenience
and immediacy of email and instant messaging drive massive usage growth
across these channels. But the fact remains that hard-copy documents
continue to be the preferred medium for a significant volume of
communications across a broad range of business sectors.
Certainly in the financial sector, specific communications are mandated
to be in physical form. And often where forms require personal details,
or documents aim to deliver advice and benefits, recipients prefer the
familiarity, security and clarity of mail. Think also of dynamic,
creative industries such as the media sector where hard-copy visuals can
influence the decision-making process.
Deregulation of the UK postal market in 2006 introduced more competition
to the delivery field. In the ten-years-plus since deregulation, the
market has become more complex in terms of the number of operators, the
range of services and the scope of technology. Understandably, the
expertise to navigate this maze of possibilities and options rarely
exists at the in-house level. Yes, businesses may operate specific
mailroom functions, but too often staff are tasked with adapting legacy
processes and are simply too consumed in the day-to-day to be able to
step back, re-assess and consider the operation holistically.
Analysts estimate that mail operations account for around 9% of the
budgets of Fortune 500 companies. For those businesses not at Fortune
500 scale, this percentage can often be higher because these firms lack
the resources to invest in the latest technology and to keep up-to-speed
with changing regulations that might deliver savings. It is not simply a
matter of cost. Forward-thinking businesses are recognizing that
working with dedicated mailroom management experts can deliver real
strategic benefits to the business.
- Powering productivity
Whilst some mail requirements – particularly regular high-volume
send-outs – will often be processed through the corporate mailroom,
there will still be a steady volume of day-to-day ad-hoc mail processed
throughout a business. In a typical scenario, this mail will be produced
at the desk and then taken to a departmental franking machine for
postage to be applied. At an average cost of around £5-6k per year,
franking machines represent a significant outlay. But asking staff to
break from their tasks and stand at a franking machine is arguably even
more costly to a business. Multiply this inactivity across several
franking machines situated in multiple departments and the issue soon
starts to take on real significance.
The trouble is, the time and money wasted on ad-hoc departmental mailing
is incredibly hard to quantify. There may well be company-wide policies
in place about using first-class postage sparingly or only using the
franking machines for a certain-weight of mail but, with activity
happening across several departments, individuals are often left to make
their own decisions.
The integrity of the brand can also be compromised. Ideally, each and
every communication should follow corporate style guidelines in order to
present a consistent public face. There is a danger that individuals
will interpret guidelines differently – or may choose to ignore them
altogether – resulting in a less than professional end result.
The productivity of staff is one thing, but think also of the
square-foot cost of a typical mailroom. Often, these in-house sites date
back many years and are far from optimised in terms of layout, scale
and efficiency. Depending on location, London office costs can run from
£50-£95 per square foot, and other city-centre spaces are not far
behind.
Re-engineering this space, and either optimising the area used for
mailing, or moving the mailing function to a purpose built remote
facility, can save significant sums and enable businesses to better
utilise their real estate.
- Refining communication processes
A lack of expertise in mail management can lead many businesses to
simply stick with the status quo and accept costs and processes that are
far from optimal. Often, mail does not receive the level of scrutiny
afforded to other business functions – an oversight when one considers
the ‘9% of budgets’ figure. And yet, by adding intelligence to the mix,
businesses can glean important insights into the types of communications
that work and the workflows required to create them.
Mail experts do not simply assess costs and look to reduce spend.
Rather, they operate as “off-line consultants”, providing solutions that
are cost-effective but which also empower management staff with
knowledge. Suddenly, areas of the business become accountable and
strategies can be refined. Different departments can be cost-coded to
highlight where the majority of the communication spend sits. And
bespoke management reports can provide detail on mail formats and
weights, and peaks and troughs of demand. Such insight is critical if
managers are to make informed decisions on the communication mix.
- Future-proofing operations
Resistance to change – and continuing to operate mail processes below
the radar of corporate scrutiny – is a short-sighted solution to a
business process that shows no sign of disappearing. The world of work
can hardly be more digitally connected, yet mailed documents persist in
volume. Indeed, commentators have even discussed the idea of a ‘mail
renaissance’ – with physical mail used as a differentiator to deliver
impact and catch the attention.
As the mail and delivery arena gets more complex, so more time is
required to understand available options – time that is simply
non-existent internally. Failure to keep up-to-speed with developments
will certainly cost money in the long-run but could also lead to more
serious challenges. Regulatory compliance is critical for many sectors,
and punishments for failing to comply can be crippling. Incredibly, many
mailrooms still rely heavily on manual workers to perform key tasks
leaving processes at risk of human-error.
Automating the mail workflow – both inbound and outbound – can provide
guarantees of integrity and compliance. But more than this, businesses
can also position so that they are able to adapt with agility to
changing business requirements. Perhaps certain inbound documents are
scanned and delivered digitally to recipients for ease of use? Or
perhaps documents are redesigned to take advantage of available postal
discounts? Maybe certain communications should be couriered or
hand-delivered to add value to the relationship?
The fact is, the expertise exists to enable businesses to transform
the mail operation from a costly and inflexible legacy process to a
platform that delivers real value to the business. Cost-savings will
always be important to businesses of any size but a well thought-out
solution can also drive strategic business improvements. Rather than
being an afterthought, there is a real case for detailed analysis of
mailroom efficiency. Businesses acting now can quickly deliver
bottom-line benefits and competitive advantage.
Source: CMS Network
