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ROI & Mail Package Integrity

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ROI & Mail Package Integrity

  1. 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”
  2. 2. ROI for 100% Package Integrity <ul><li>Agenda: </li></ul><ul><li>What is Package Integrity? </li></ul><ul><li>What is your Financial Exposure? </li></ul><ul><li>ROI examples </li></ul><ul><li>Summary Questions </li></ul>•
  3. 3. 100% Package Integrity <ul><li>What is Package Integrity? </li></ul><ul><li>Unimpaired physical condition of a final package. </li></ul>•
  4. 4. 100% Package Integrity <ul><li>What should that include? </li></ul><ul><li>Accurate document content </li></ul><ul><li>Correct material stock: </li></ul><ul><ul><li>Paper </li></ul></ul><ul><ul><li>Envelope </li></ul></ul><ul><ul><li>Inserts </li></ul></ul><ul><li>Accurate intelligent assembly </li></ul><ul><li>Deliverable mail piece </li></ul><ul><li>Recorded record of transaction </li></ul>•
  5. 5. 100% Package Integrity <ul><li>Document Content: Data Processing </li></ul><ul><li>Data points validated </li></ul><ul><li>Data comparisons </li></ul><ul><li>Calculations validated </li></ul><ul><li>Address correction & validation </li></ul><ul><li>Rules based processing </li></ul><ul><li>Automated transaction routing </li></ul><ul><li>Account stops by rules </li></ul>•
  6. 6. 100% Package Integrity <ul><li>Material Stock Control </li></ul><ul><li>Operational workflow controls </li></ul><ul><li>Camera solutions on printer, inserter, & sorter </li></ul><ul><li>Barcode readers on inserter: </li></ul><ul><ul><li>Stock Paper </li></ul></ul><ul><ul><li>Inserts </li></ul></ul><ul><ul><li>BREs </li></ul></ul><ul><ul><li>Mailing Envelope </li></ul></ul>•
  7. 7. 100% Package Integrity <ul><li>Intelligent Assembly: Barcode Control </li></ul><ul><li>2D or linear barcode on every page </li></ul><ul><li>Unique identifier (package key, account #) </li></ul><ul><li>Rolling sequence number </li></ul><ul><li>Automatic job definition selection (Start Pages) </li></ul><ul><li>Insert matching control </li></ul><ul><li>BRE & mailing envelope control </li></ul>•
  8. 8. 100% Package Integrity <ul><li>Mail Piece Deliverability is Important </li></ul><ul><li>Data Processing </li></ul><ul><li>Printing </li></ul><ul><li>Intelligent Inserting & Sorting </li></ul><ul><li>Inserts </li></ul><ul><li>BREs </li></ul><ul><li>Mailing Envelopes </li></ul>•
  9. 9. 100% Package Integrity <ul><li>Recorded record of transaction </li></ul><ul><li>Record inserting events </li></ul><ul><li>Reconcile each job </li></ul><ul><li>Record & report variances </li></ul><ul><li>Report & share your performance metrics </li></ul>•
  10. 10. 100% Package Integrity <ul><li>What is your Financial Exposure? </li></ul><ul><li>HIPPA Violations, $25,000 each </li></ul><ul><li>Regulatory Fines? </li></ul><ul><li>Client penalties for Quality Errors: $48,000 </li></ul><ul><li>Missed SLA penalties: $3,500 </li></ul><ul><li>Client cancelation rate impact? </li></ul><ul><li>Value of tarnishing the “Company Brand”? </li></ul>
  11. 11. ROI for Package Integrity <ul><li>What might your ROI be for implementing 100% Package Integrity? </li></ul><ul><li>Two ROI examples </li></ul><ul><li>Failed attempts to “buy” Package Integrity with manual solutions. </li></ul><ul><li>Manual solutions may cost more in the end. </li></ul><ul><li>Two ROI Examples: </li></ul><ul><li>Co A: $1.5 Million operational lost over 6 years </li></ul><ul><li>Co B: $7.6 Million operational lost over 16 years </li></ul>•
  12. 12. ROI for Package Integrity <ul><li>Timeline of events for Company A </li></ul><ul><li>Yr 2000 –Print ready file for account statements </li></ul><ul><ul><li>Manually fulfilled </li></ul></ul><ul><ul><li>Same day SLA </li></ul></ul><ul><ul><li>Below contract minimum </li></ul></ul><ul><li>Yr 2002 – 800% growth in 2 months </li></ul><ul><ul><li>Manually fulfilled, 2-3 days </li></ul></ul><ul><ul><li>Cost exceeds contract minimum </li></ul></ul><ul><ul><li>Proposed conversion to save 95% </li></ul></ul><ul><ul><li>Unit cost $0.155 vs. $2 piece </li></ul></ul><ul><ul><li>Client Agrees! </li></ul></ul>•
  13. 13. ROI for Package Integrity <ul><li>800% Growth can create problems: </li></ul><ul><li>Package integrity not maintained </li></ul><ul><li>Double stuffs </li></ul><ul><li>Missing pages </li></ul><ul><li>Delayed mailings by 1-2 days </li></ul><ul><li>Jobs not always reconciled </li></ul>•
  14. 14. ROI for Package Integrity <ul><li>New Client Requests due to high volume: </li></ul><ul><li>Manually pull transactions from batch of 8k </li></ul><ul><li>Same day SLA of 8k, file received at 9 AM </li></ul><ul><li>Provide reports on mailings </li></ul><ul><li>Stop Batch routing based on rules </li></ul><ul><li>Change forms from within file </li></ul><ul><li>Root cause analysis on mailing errors </li></ul><ul><li>Maintain package integrity </li></ul>       Root cause analysis Manual processes when completed by people are prone to human error.
  15. 15. ROI for Package Integrity <ul><li>Solutions with Automated Processing: </li></ul><ul><li>Automatically pull transactions from batch of 8k </li></ul><ul><li>Same day SLA of 8k, file received at 9 AM </li></ul><ul><li>Provide reports on mailings </li></ul><ul><li>Stop Batch routing based on rules </li></ul><ul><li>Change forms from within PCL </li></ul><ul><li>Root cause analysis on mailing errors </li></ul><ul><li>Maintain package integrity </li></ul>       •
  16. 16. ROI for Package Integrity <ul><li>Yr 2005 – 3 years later & no client changes </li></ul><ul><li>Additional 480% growth since 2002 </li></ul><ul><li>$750k in savings lost </li></ul><ul><li>Same client requests not fulfilled </li></ul><ul><li>Company Automates w/ OMR & keeps savings </li></ul><ul><li>Some issues still w/ OMR </li></ul><ul><li>Client provides notice to bring work in-house </li></ul><ul><li>Yr 2005 - 3 Months Later </li></ul><ul><li>Client cancels in-house plan </li></ul>
  17. 17. ROI for Package Integrity <ul><li>Yr 2008 – Job still outsourced </li></ul><ul><li>23,159% Volume increase since 2002 </li></ul><ul><li>$1.5 Million total in lost savings </li></ul><ul><li>The Lost ROI: </li></ul><ul><li>Investment: $82,500 </li></ul><ul><li>Savings: $1,500,000 </li></ul><ul><li>($1,500,000 - $82,500)/$82,500 = 1718% ROI </li></ul>•
  18. 18. ROI for Package Integrity <ul><li>Company A Growth </li></ul>• & Annual Growth Rate
  19. 19. ROI for Package Integrity <ul><li>Timeline of events for Company B </li></ul><ul><li>Yr 1990 – Company begins consolidating </li></ul><ul><ul><li>1 st sister company sets standard for future </li></ul></ul><ul><ul><li>1 employee hired for Quality Control </li></ul></ul><ul><ul><li>Manual QC </li></ul></ul><ul><ul><li>Manual sorting & job routing </li></ul></ul><ul><ul><li>Manual finishing instruction sheets </li></ul></ul><ul><ul><li>Job balancing & reconciliation </li></ul></ul>•
  20. 20. ROI for Package Integrity <ul><li>Timeline of events for Company B </li></ul><ul><li>Yr 1993 – Additional consolidation & growth </li></ul><ul><ul><li>5 people in Manual QC department </li></ul></ul><ul><ul><li>No barcode control </li></ul></ul><ul><ul><li>No reconciliation reports </li></ul></ul>•
  21. 21. ROI for Package Integrity <ul><li>Timeline of events for Company B </li></ul><ul><li>Yr 2009 – 19 years later </li></ul><ul><ul><li>Same manual workflow </li></ul></ul><ul><ul><li>8 employees responsible for QC </li></ul></ul><ul><ul><li>QC takes 1 full day </li></ul></ul><ul><ul><li>Mailings delayed by 1 day </li></ul></ul><ul><ul><li>Reconciliation is misstated </li></ul></ul>•
  22. 22. ROI for Package Integrity <ul><li>So what is going on with Company B? </li></ul><ul><li>Company culture issue </li></ul><ul><li>Frugal w/ budget </li></ul><ul><li>Promote from within </li></ul><ul><li>No print mail experience sought out </li></ul><ul><li>Knowledge gap, educational training needed </li></ul><ul><li>Software & Hardware solutions were unknown </li></ul>•
  23. 23. ROI for Package Integrity <ul><li>Company B Objectives & Goals: </li></ul><ul><li>Improve Quality Control </li></ul><ul><li>Improve workflow for inserting </li></ul><ul><li>Automate flow of information </li></ul><ul><li>Balance work prior to Automation </li></ul><ul><li>Quality Control 1 day process – GONE! </li></ul>•
  24. 24. ROI for Package Integrity <ul><li>Unplanned Operational Growth cost them: </li></ul><ul><li>1 day’s mailing each cycle </li></ul><ul><li>Limited growth potential </li></ul><ul><li>$6.1 Million operationally wasted over 10 years </li></ul><ul><li>The Lost ROI: </li></ul><ul><li>Investment: $1.5 Million </li></ul><ul><li>Savings: $7.6 Million </li></ul><ul><li>$7.6M - $1.5M)/ $1.5M = 407% ROI </li></ul>•
  25. 25. Summary Questions to Ask Yourself <ul><li>What level of Package Integrity are you at? </li></ul><ul><li>What is your Financial Risk? </li></ul><ul><li>Have you performed Operational Risk Mitigation? </li></ul><ul><li>What would your Return On Investment be? </li></ul><ul><li>What is your Package Integrity level costing you? </li></ul>•
  26. 26. Question & Answer <ul><li>? </li></ul>

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