|
| Mail Center Management Tips |
|
December 2007
Greetings!
Print/Mail Consultants occasionally distributes thoughts and ideas about topics of interest to professionals in the document production and distribution business. This month, we present the last of a two-part article about how envelopes can affect productivity. FINANCIAL IMPACTS OF POORLY-RUNNING ENVELOPES
Last month we discussed how one might improve the
productivity of their inserting operations by taking a
look at the envelopes they are running on their
machines. We stressed that the quality and
consistency of the envelopes becomes more critical
with high speed inserting equipment.This month is a continuation of that discussion, with a focus on the financial impacts of poor quality material. We'll finish up with some ideas you can use to improve the way your envelopes run. In many companies, the purchasing department controls what envelopes get used in the inserting operation. It is the nature of the job of a purchasing agent to focus on the price paid. Envelopes are viewed as a commodity and are understood by the purchasing department from their perspective of regular office use. Few purchasing agents will have insight into the important differences that exist in a high volume mail shop without getting guidance and input from operations. The purchasing departments are good at making sure that they order envelopes that meet specifications they have for size or window placement, but may not be so aware of the importance of quality criteria that will impact productivity. To make matters worse, they may be making replenishment purchase decisions based on the best available price each time, resulting in sourcing the envelopes from multiple vendors. Using envelopes that vary in design, materials, quality, or packaging is even worse than dealing with one that is consistently causing problems. In the high speed inserting world, envelope problems that increase jams can quickly erase any savings realized by a slight reduction in the price of the material. Besides the productivity lost while the operator is clearing jams, there is also the very high cost of reprinting and manually mailing damaged pieces. In consumer billing applications, where the highest percentage of customers pay their bills the day they receive them, a day or two delay caused by lower productivity or manual reprints can have an effect on cash flow as well. I've been in lots of shops where if an operator starts having repeated problems after loading envelopes from a newly-opened case, they toss the whole carton into the trash. It's just not worth it to keep fighting what is perceived as a "bad box". What happens to the purchasing savings then? There are also costs that lack objective measurements but definitely impact productivity, such as the damage done to morale and motivation of employees. Inserter operators generally are more satisfied and productive when they can do their work faster. They are proud of their statistics and may even be compensated on the number of finished pieces they produce. Having to sort through envelopes to find good ones, continuously clear jams, or record account numbers for reprints tends to drive their personal productivity down - even if the problems eventually work themselves out. Here are some ideas that will help to ensure that your envelopes are part of the reason for high productivity instead of the cause for disappointing results: Avoid manufacturers that produce envelopes only with die-cut production techniques. With die-cutting it is difficult to maintain consistency. Use diagonal-seam envelopes. Side-seam designs have a tendency to cause inserts to catch and the seam glue can sometimes cause the inside surfaces of the front and back of the envelope to become glued together. Provide Purchasing and your vendors with the material specifications for your inserter. These should be available from your equipment vendor. Ask your equipment vendor for advice or referrals to envelope manufacturers. They probably know which vendor's envelopes work well on their machines and which don't based on the experience of some of their other customers. Inspect envelopes for damage. This can be caused during delivery, from being stacked too high in the warehouse, run into by forklifts, etc. If material is consistently arriving from the vendor in poor condition you may have to insist on better packaging. If it is getting damaged after being received you may have to discuss the problem with the warehouse people. Store envelopes in a climate controlled warehouse. Humidity change is a major problem. Paper warps when the moisture content changes. Also acclimatize envelopes planned for the next day's use by moving them into the production room the day before. When looking for ways to improve the productivity of your inserting operation, don't overlook the obvious. Envelopes and material can be a huge factor and one that can be easily corrected with little or no expense. We're always looking for newsletter topics. If you have a subject you'd like us to cover, or you have some thoughts you'd like to share with your fellow document professionals, please contact us. Until next time, enjoy this holiday season (year-end processing is just around the corner)!
Sincerely,  Mike Porter
Print/Mail Consultants
|
