1. ROI for 100% Package Integrity 2009 Gunther TechForum Presented by: Scott Mulkey Former Operations Manager, Docucorp BPO [email_address] Quantré Group, LLC “ making excellence achievable”
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Editor's Notes
Good Morning & Thank you. I was previously an Operations Manager for the Docucorp BPO/Skywire BPO, Docucorp/Skywire is now Oracle, and the BPO is now Kubra. I was responsible for the processing, printing, and mailing of over 150 jobs a day. Millions of impressions and pieces of mail. I am now a print and mail consultant taking my experience, Solutions & Workflows on the road combating inefficiencies where ever I find them.
Agenda Today I will be speaking on Package Integrity. I will review some examples of financial exposure that may be present in your facility. I’ll give some ROI examples that show why Package Integrity is financially important. I’ll wrap it up w/ Questions to ask yourself. Kind of your own take aways from the presentation.
So what is Package Integrity? DEF- Let’s dig a little deeper into this and more define Package Integrity for OUR purposes.
When looking at a mail piece, what elements are included to equal 100% Package Integrity? <CLICK> READ: 50% = Document Content 10% = Material Stock 25% = Accurate Intelligent Assembly 10% = Deliverable Mail Piece 5% = Recorded record of tran
When considering Package Integrity I believe the most important factor is the actual content of the Document. Of 100% Document content = 50%. Honestly, how important is new water heater insert or insurance product insert if bill owe $1 million dollars or you miss state medical history/ Probably the wrong audience for this point but it’s too important to gloss over. Data points validated Data comparisons Calculations validated = All things that can be done during your data processing. Address correction & validation Rules based processing - Automated transaction routing Account stops by rules
Now let’s get into the areas most of us are responsible for. Material Stock control begins w/ your own Operational Workflow Controls which should include: An Inventory control system Pick ticket process, Material staging workflow Solutions Exist to validate the accurate use of material on your Printer, Inserter and sorter. Gunther Vision is your integrated solution for your Inserter system.
If you are in Intelligent Inserter, I hope you are using Intelligent barcodes. If you are, don’t do it ½ way, use barcode on every page. Also use additional controls beyond simple page separation such an account number or Gunther Package Key Rolling Sequence numbers are a must! Job start pages or an automated job definition file helps make sure your inserting instructions are correct based on the job you are running I have already mentioned barcode validating of material stock. If you have multiple Remittance Processing centers, using the correct BRE may just be important to you. Don’t rely on manual processes for something this important. As Jewell is always saying, you are mailing money. Or in this case your customer is mailing money back to you. Don’t you want it to end up in the correct account?
We’ve gotten your mail piece all the way through: Data Processing Printing Intelligent Inserting & Sorting Inserts BREs Mailing Envelopes <CLICK>Too bad the envelope is going to be returned as undeliverable. Maybe we should put a camera at the end of the system too and make sure the transaction is mailable.
Again, we have gone through all this work effort to create 100% Package Integrity. What good is it if you don’t record your success. Recording or logging your makes it official & a legal record of our completion of the transaction. <CLICK> Reconcile your work & Validate it was done completely. <CLICK> Document any variances in your work. This could be a Automatic Reprint Process. Also validate your job was not a duplicate. <CLICK> Share your performance results w/ Company, MGT, & Employees. When you are actively reporting on your SLA status of jobs you are validating the importance of SLAs and that you are actively managing them.
So we have gone through how to create 100% package integrity. Now lets explore why you should do it. <CLICK> Once: End: Value of tarnishing the “Company Brand”? Within your industry which of these are you potentially financially exposed too?
I think there is a lot that can be learned from other peoples mistakes. To be Politically Correct: Other peoples “Learning Opportunities” <CLICK> I’ve got 2 examples I hope we can learn from. <CLICK> Both were failed attempts to “Buy” P.I. w/ Manual Solutions. <CLICK> In the end, I hope we can all agree that manual solutions only end up costing you more then the expense you are trying to avoid. <CLICK> All company names are generic to protect the innocent. The examples are real, and the Dollars lost is just a shame. READ COMPANY A & B
READ SLIDE YR 2000: This job started out small. VERY SMALL. YR: 2002 – Client created new marketing efforts but failed to tell anyone. I’m sure you can relate! LAST: CLIENT AGREES
So what happens when you are awaiting for companies to agree to changes to data workflows? Issues magnify and magnify as the volumes continue to go higher.
Of course as volumes increase problems come up on the client end as well that requires new requests. Please realize. We are dealing with manual transactions with a page count of 2 – 15 pages. Reasonability has just gone out the window. <CLICK>
With Automation everything is possible.
So let’s get an update on Company A. <CLICK> READ I know what you are thinking. Why would you go with OMR when you are preaching package integrity. Well it was the only symbol-ogy that would be aproved without impacting the clients visual appearance of the transactions. Plus we wanted them to not experience the full benefit of our work effort until they approved the conversion of the environment which used 2d symbol-ogy. 2005: All good things must come to an end. Client provided notice they were brining the work in-house. The volume is large enough that it looks attractive to in-house operations. <CLICK> 3 months later, Client changes their mind. In-House operation doesn’t like manual solutions.
Here’s my last update: 2008 – ridiculous levels of growth, Don’t you wish you had this problem. $1.5 Million lost savings. Don’t you wish you had that money. Don’t you wish you could show an ROI savings of 1,700%. I wish I could too. If only the project would have been approved.
Here is an overview of their annual growth rate. In 2002 Unit cost Jumped up to $2 a transaction due to the increase in workflow changes. By 2003 Unit cost drops down to $1.05 and maintains about that price until 2008. Automated unit cost would have been $0.155 each
Example #2 Company begins consolidating and centralizing their operations to save money. 1 st company to consolidate sets the operational workflow standard for the rest who follow. 1 person hired to provide QC. READ: Manual QC Manual sorting & job routing Manual finishing instruction sheets Job balancing & reconciliation
5 more people hired. Volumes grew & more companies were consolidated. No Barcode No Automated Reconciliation.
Current Day: We are now up to 8 people. QC takes 1 full day to compete Let me say that again. The mail is delayed 1 full day to manually balance, sort, & route the work correctly. Reconciliation is based on assumptions not actual machine results or calculations. This example is not simply 1 job but rather every job is processed like this.
So what went wrong? I believe this to be a company culture issue: <CLICK READ> Frugal Primarly promote from within No active effort to bring in staffing w/ Print & Mail Experience. There is a huge knowledge gap in what the operations knows and what is possible in the industry. This company is stuck in the 70’s & 80’s.
READ LIST: By the way, The current QC department is manually reviewing about 200K print images a day. For this department that equals 1.9 impressions a second. Reconciliation needs to be automated or use machine generated statistics. If Mail Piece is not sent then a late notice will simply be sent out. I’ll be performing cost analysis on this decission next.
I would have to fault the company culture the situation this operations is experiencing. More effort should have been made to make sure the company understands & evaluated industry standards & technology and software solutions possible. Doing so could have saved them 6 Million Dollars.
In summary, I’ve listed a few questions for you to ask yourself. Each of your operational environments is unique. I can’t give you a generic formula to fill out that would fit for all of you. The work has to be done individually based on your specific applications, business requirements, package design, workflows & financial risk tolerance.
Thank you for your time today. I hope I’ve presented you w/ something that you can take back to your organization. Thank You Gunther for the opportunity to present. I’ll be glad to take any questions you may have as long as you don’t ask for the identity of the companies mentioned.
![ROI for 100% Package Integrity 2009 Gunther TechForum Presented by: Scott Mulkey Former Operations Manager, Docucorp BPO [email_address] Quantré Group, LLC “ making excellence achievable”](https://image.slidesharecdn.com/quantre-roi-packageintegrity-090623081451-phpapp01/85/ROI-Mail-Package-Integrity-1-320.jpg)
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