Guide to Increased Mail Productivity

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


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 Automating
of mixed mail for postage.
mail production
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 processing
and control communications in ways that would not be possible if done by
hand. From automatically varying envelope insertions for each addressee can bring costs
to selecting a distribution method (post, email or fax) to suit customers'
preferences, modern mailing solutions are a necessary complement to savings...
effective communication strategies.
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.



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.
Integrated Solutions. Consider whether separate tasks can be integrated
...it is essential so that mail flows from one stage to another in an uninterrupted process.
Could you combine letter opening, content extraction and document scanning/
to have a distribution in a single production line; or link folding inserting, envelope
printing and franking? Most modern mailing equipment can be linked together
thorough
to create integrated solutions that take up less space and are more productive
knowledge of than separate units.
Applying software. Software offers further scope for integration. Can you
existing mail speed up the processing of incoming post by scanning letters and distributing
them electronically? Or increase the impact of marketing campaigns by
processes within
implementing output management software to personalise customer
your business. 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.



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:
n esign and save forms that can be printed-on-demand on office laser
d
printers;
n reate a uniform format for common print jobs such as invoices, payslips,
c
statements etc.;
n tore/archive electronic images of printed documents so that they can be
s
viewed by customer service staff and other employees;
n atch print items so that you only have to enter printing parameters/
b
properties once;
n re-sort and group documents automatically by envelope size, postage type
p
or postcode to reduce the need for time-consuming manual sorting, saving
30-60 seconds per item;
n enerate all required postal documentation, reports and postage statements;
g
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.



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
Folder inserters are productivity benefits of automation are even greater:
easy to use the most sophisticated models can insert up to 12,000
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
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.
“...we have 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
greatly benefited
are folded and inserted into C5 and DL envelopes before franking.
by saving the When its old folder inserter leased from another supplier started jamming, OMF
International began to look for a new machine. Mailroom Co-ordinator Simon
amount of time Tucker considered a number of possibilities before choosing a DS-70.
required to Now installed in the mailroom, the powerful yet compact DS-70 Folder Inserter
with MaxiFeeder provides efficient, uninterrupted operation.
process volumes
Recurring machine jams are a thing of the past. You can turn your back on the
of outgoing mail.” 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.



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.



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
Greater efficiency at the Royal Borough of Greenwich
The Royal Borough of Greenwich recently amalgamated three postrooms
from around the borough into one central facility. Serving seven directorates
and managing every aspect of the Council's incoming and outgoing post, the
Woolwich postroom handles an average of 20,000 items per day.
To cope with such a high workload, the Council needed a new franking machine,
as Financial Support Service Manager Sue King explains: “The previous
franking machine was nearing the end of its life, it didn’t offer all the services
we required and wasn’t fast enough to cope with the volume of mail we needed
to process. It also had a nasty habit of missing the occasional envelope, so
...the Woolwich required a lot of supervision throughout the process.”

postroom Financial Support Services Team Leader Vicki Cook, who oversees the day-to-
day running of the post room, assisted Sue in the search for a new machine.
handles an Together, they assessed products from three suppliers before settling on
Neopost’s IS-6000 high volume mailing system.
average of
A mixed mail feeder makes it possible for envelopes of various sizes and
20,000 items formats to be loaded together, then by simply pressing start the IS-6000 will
automatically weigh, seal and frank envelopes at a rate of 260 letters per
per day. minute. The IS-6000 also gives users the ability to add additional items as the
machine is running, decreasing the number of stops and starts and increasing
productivity.
Another useful time-saver, says Sue, is simplified cost management. “The
IS-6000 mailing system offers lots of features that we haven’t had access
to before such as bar coding and electronic reporting. We needed to be sure
that any new machine could accommodate all our mailing needs, whilst also
providing a facility to manage costs so we could recharge various teams and
directorates correctly. Bar coding has really
helped us to manage this part of the costing
process.”
Vicki adds: “The IS-6000 has saved us a
lot of man hours through its higher level of
reliability. Before, on big jobs, we could have
a situation where one or two people would
have to be at the machine for up to three
hours to supervise it and make sure it didn’t
miss any envelopes.”
In addition to its productivity benefits, the
IS-6000 has provided the Council with cost
savings through compliance with Royal Mail
discount schemes and cheaper consumables.



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 time-
saver, 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 Easy and quick
to a higher level. For maximum efficiency, letter openers can be integrated into extraction
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.

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).



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.



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 IM-
16, 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.



Neopost House
South Street
Romford
Essex
RM1 2AR

Tel: 0800 731 1334
Fax: 01708 726361
www.neopost.co.uk.


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