Trends in Print and Mail

My document production team was excited. We’d already surpassed our goal of driving down the costs of color printing down to less than 35 cents a page. With the installation of our new digital press, we’d cut those costs in half – less than 15 cents per page. For full color!

This was in the late 1990s, when I was the Vice President of Document Technology & Delivery at State Street Corporation. We’d just installed the IBM model of Xeikon’s digital press; one of the first roll-fed, full-color digital printers. It was a major leap forward for the team, with a steep learning curve. Success was the result of a lot of hard work and late nights.

Back in the 1990s, I developed a presentation entitled “Information Technology for Mail Center Managers.” The section on purchasing software was pretty basic. Were your applications on a mainframe, a server or desktop? If a server, what version of Microsoft? If desktop, were you Microsoft or Apple? In the main categories – document composition, address management and package tracking – there were just a few vendors to consider.

This weekend, I had to search through some records from the 1990s. Among the papers was the first speech I ever gave for the U.S. Postal Service (USPS). The District Manager for Boston asked me to present to a gathering of his postmasters and station managers. In particular, he wanted to hear about how my company was impacted by the service we received from the USPS.

While I wrote this speech over 2 decades ago, the message holds true today. The industry and the USPS must work together to provide the best possible service to our mutual customers.

On Sunday, January 22, 2017, the new US Postal Service (USPS) postage rates and rules go into effect, so mailers need to take action now to be properly prepared. For most mailers, the first day of mailing under the new rates will be Monday, January 23, 2017.

Even with the increase, postage rates are a great deal. The USPS retail rates for letter mail remain lower than our trading partners – including the countries that have privatized their posts. Take a look at the price for one-ounce stamps:

Exigent postage rate increases were repealed. The upcoming rates changes will have some positive impact for First Class Mailers. Selecting vendor-partners, for technology or outsourcing services, remains a challenge. And legislative reform was seriously considered by Congress – before ultimately deciding to do nothing. These were just a few of the major stories impacting our industry over the last year.

We here at The Berkshire Company can't predict what changes 2017 will bring, but we do know more changes are on the horizon – from the implementation of “USPS Marketing Mail” to new technologies to reinforcing good management practices. We plan on covering those, and other issues, in the coming year. If there’s a particular topic you’d like to see covered, leave a note in the comments, or send me an email at mmf@berkshire-company.com.

In case you missed them, here are the 10 most read posts from 2016:

* Actually, it’s an extra 1.5 ounces!

At the 2016 National Postal Forum in Nashville, Postmaster General (PMG) Megan Brennan announced that the US Postal Service (USPS) would file to expand the weight allowances for commercial, presorted First-Class letter mail. For some time, mailers have been able to add a second ounce to this weight category at no additional charge. In Nashville, PMG Brennan stated that the USPS would increase the weight limit to 3 ounces. Well – she more than delivered – as the 2017 rates include letter-sized, automation mail up to 3.5 ounces.

This is a great opportunity for mailers. This weight increase means savings of between $0.25 and $0.37 per piece for many mailers. Additional pages, heavier stock, more inserts – the opportunities are substantial. What should mailers do?

To start – print and mail operations managers should schedule meetings with the marketing and sales departments of their companies to explain the new rate structure. Print/Mail service providers should be setting up similar briefings with their customers. For example, additional inserts in bills, notices and statements are an easy method of increasing the value of the mail.

But that’s just the beginning. Mailers should reconsider the design of every mailpiece and exploit the prospective ways to take advantage of this rule change. Are there flat pieces that can be redesigned as 6 x 9 letter mail? The savings would be substantial. As a reminder, commercial, automation letter mail must meet the physical standards set in the Domestic Mail Manual, specifically Section 201.1.1.1:

Machinable letter-size mail is:

In a competitive environment, “good enough” isn’t “good enough”. Customer expectations continue to rise. They want to receive their documents with the correct information, and expect a printing job to be error-free. They want the right statement, with the right address, in the right envelope to be delivered at the right time.

The first step of introducing quality control into an operation is to document the existing process, including process maps displaying the individual steps and the hand-offs between teams and operators. Even if written procedures exist, it’s important to validate the steps with the employees who do the actual work.

Using the process map, you need to identify key areas where errors can occur. Based on this information, you can formulate the objectives of your quality control program. Then, you must clearly state which errors will be reduced or eliminated through the implementation of quality control, and identify the factors required for success.

Reduce Opportunities for Error

The common errors that take place in mail operations include:

This week, we’ll celebrate Thanksgiving – a time to pause and reflect on our good fortune and prosperity. And while decorations have been up in some stores for weeks, it also marks the “official” start to the holiday season. For individuals and businesses, it means it’s time to start finalizing plans for shipping packages that we want to arrive by December 24th.

Our country has service members stationed all over the world – South America, Europe. Africa, Asia – and of course, the Middle East. The U.S. Postal Service (USPS) and the Military Post Office worked together to develop a schedule that takes into account the logistics and other conditions impacting delivery times. To ensure timely delivery to a service member, use the following dates.



While most of us will use First-Class Mail or Priority Mail, there are other options included in the chart.

Recently, I had the opportunity to lead a workshop at the Operational Excellence in Insurance Summit in Hartford, CT. The summit brought together executives, directors and managers from across the insurance industry to discuss different ways of meeting challenges in a disruptive business climate.

I was joined by Jeff Heigert of Lexmark to moderate a session entitled "Managing Customer Communications: Outside and Inside the Mailbox". Our attendees included a Chief Information Officer, Operations Managers, and Directors of Continuous Improvement. In addition to varied responsibilities, the class included people from the United States, Canada, Bermuda and South Africa.

We began by talking about the traditional paper workflow for communicating with customers and the many changes that have been introduced over the last several decades – scanning, OCR, email, customer portals and mobile devices. Customers expect more choices for receiving and sending information, and companies can improve efficiencies with the right applications.

But new technologies aren’t enough. Organizations need to redesign their communications and processing workflows to maximize the benefits. With that in mind, we broke the class up into 3 teams and addressed the following case study:

Not every change has to involve a major project with capital expenditures. Consistently making small enhancements leads to lasting improvements. Here are 20 tips for your operation:

People

1. Managers of multiple-shift operations need to regularly come in early and leave later in order to maintain contact with your employees.

2. Partner with adjunct departments to develop cross-training programs. Mail operations, document services and shipping/receiving employees share similar skill sets. A joint training program helps everyone.

3. Develop a succession plan for all positions. You need to prepare for both planned and unexpected departures. Including your own.

4. Merge the print and mail organizations. All printed documents need to be delivered or mailed. One group focused on the entire process will improve results.

5. Reward your employees as a team. Build unity through joint recognition of successes. Throw pizza parties, always have small incentive items to hand out, or give bonuses to the entire department.

6. Write down good/bad employee experiences when they happen and file them for future reference. Don't rely on your memory at review time.

Process

7. Have your shop open before the company opens and close after the company closes. People are always looking for deliveries early in the day or are sending out mail at the last minute.

8. Establish written Standard Operating Procedures (SOPs). People should have clear directions on what to do. Whether you are present or not. SOPs are also the best training tools for new employees or for cross-training staff.

9. Have senior management review your shop's SOPs. Having your bosses see your procedures lets them know everything your department does.

10. Create a production report to track activity in your shop. The information will tell you what you're doing and how well you're doing it. And, it will help justify more employees or new equipment.

11. Review the production report with your manager to ensure that he/she understands it. Not everyone knows mail as well as you do. Make sure your message is getting through.

12. Write a complete disaster recovery plan. Address all threats – internal, external and natural disasters. Have short-term and long-term contingency plans.

13. Develop a communications plan for any disaster. You need to know who to call, and what to say in the event of a disaster.

14. Track your inbound mail volumes by classes and categories. In the words of Peter Drucker, "If you don't measure it, you can't manage it."

Technology

15. Use automated systems to track accountable mail. If your shop signs for something, get a signature from the final recipient.

16. Use automated systems to collect postage information. This information needs to be 100% accurate.

17. Keep your employee database up to date by linking with the phone system. People can move without notifying mail services, but they need to get their phone turned on.

18. Investigate voice-activated or automated sorting systems. This technology is improving rapidly, and is very helpful with high turnover – both in the mail center and in the departments you service.

19. Implement a work order or job tracking system. Managers and employees are more efficient when they know what work needs to be completed and where jobs are in the process.

20. Talk to your staff before you buy equipment. Don't assume you know what your staff needs. Involving your employees in the process will ensure their buy-in later.

Do you have a tip to share? Please join the conversation and leave a tip in the comments section below.

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