Manifest Mail. Presented by: Jim Hilgefort
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1 Manifest Mail Presented by: Jim Hilgefort
2 Case Study Regional Bank Current Situation Metered Mail Metering Budgets are going down every year Postage Costs continue to increase annually Print/mail becoming viewed as overhead, non-core Postage is in an even greater percentage of the average budget and increasing every year Goal Reduce cost, add value, transform, QR codes... 2
3 Automated Document Factory ADF 2.0 Gartner Group said Gartner's ADF 2.0 architecture gives technology providers the framework for developing and implementing the strategies and tools necessary for 21st century communications in any media. By doing so, the architecture provides the basis for software solutions that enable end users to ensure print is an integral part of their enterprise's multichannel, CRM-based approach to disseminating marketing messages and financial information. MODULES 1.Document design and content integration 2.Input; transformation 3.Delivery preparation 4.Control and reporting 5.Response management 3
4 ADF 2.0 ROI Gartner Group said For many enterprises, however, the primary reason for implementing ADF 2.0 is the desire to: 1. Reduce operating costs, labor, reporting, and reprints 2. Improve product quality, decrease bad mail and duplicates 3. Ensure document integrity. Indeed, the global economic downturn experienced in late 2008 provides the impetus for ADF 2.0 software purchases. Capital expenditures are frozen or reduced at many companies, while software that generates immediate or near-term benefits is purchased, often resulting in a return on investment within a matter of months. ADF 2.0 modules supplied by the technology providers covered in this MarketScope are one key to the operational savings that enterprises are seeking. 4
5 What is Manifest Mail? Manifest Mailing Systems (MMS) 1. Input; transformation 2. Delivery preparation 3. Control and reporting 5
6 What is Manifest Mail? Manifest mailing is an automated system that allows a mailer to document postage and fees for all pieces in a mailing paid via permit imprint indicia Piece Level Tracking - Each piece in the mailing is assigned a unique identification number that may be compared with the manifest To participate in the USPS Manifest Mailing System (MMS) program the mailer must develop or use a computerized system that generates documentation to support mailings Source: USPS Pub 401 6
7 Manifest Mail A Quality Process Six Sigma approach The discipline required to eliminate waste (bad mail pieces) and to implement a manifest mail system drives quality processes through the document production environment Piece level tracking By understanding the characteristics of each mailpiece and assigning a unique identifier before the document is inserted, the mailer has the ability to track each document and balance production against the original manifest Complete accounting The Manifest approach assigns each mailpiece into a tray, identifies what pieces completed the process and what didn t, and provides reports detailing each mailpiece and the actual postage assigned to each mailpiece 7
8 Manifest Mail - Pre and Post Manifest Presort provides a Pre-Production Planned Manifest To Be view of the mailing is available before inserting process Mailpiece tray assignment enables easy assembly of mailing Tray labels can be printed in real time at exit of inserter Final Manifest is derived from Post-Production data Manifest can be closed at any time, regardless of number of pieces in original mailing Calculates the final postal totals Records exceptions Creates all USPS required reports Multiple manifest mailings can be combined under a single 3600R report 8
9 Manifest Mail Piece Level Tracking Manifesting creates a log of every mailpiece and provides better accountability Piece Level Tracking provides: Information in postal report relates to a piece of mail Production data provides Proof of mailing Easier mail acceptance Speeds mail into the system Easier mail acceptance reduces mailers labor cost Electronic tracking creates rich historical data 9
10 Manifest Mail - Complete Accounting Piece level tracking provides Providing post manufacturing verification of final mailing Provides electronic documentation for charge backs Creates Batch Manifest Creates unique date of mailing Similar to meter it captures postage per piece Postage adjustments are documented and presented at acceptance Insures highest level of Tray Qualification Rejected pieces can cause trays to fall below minimum We match to avoid dropping to Mixed AADC Retaining highest postage discount allowed 10
11 Why not just use postage meters? Manifesting complements a quality driven, factory approach to making mail Manifest Mail is an automated, efficient operation of mail throughout the system Eliminates meters and another point of failure Faster throughput for higher performance inserters Higher throughput produces more savings throughout the mail process Eliminates cost of ink and maintenance 11
12 Manifest Mail Quality Tight integration between data, software, and hardware Data driven - data feeds the system Process requires weight and thickness of each piece to be identified A control file describing each mailpiece is generated and passed to the inserter Initial Manifest is derived in from presorting Tray based presort is utilized to assign mailpieces into trays within mailing before production Manifest keyline data is generated 12
13 Manifest Mail Presort Outputs Optimize First Class Mail Outputs Presort data Output for Print Stream creation Reports for USPS, 3600R Reports for Internal charge back MAIL.DAT for electronic filing PDFs for CRM 13
14 The Automated Solution - Input Sort to Rules ADF WorkflowControl Design Input Delivery Reporting Response JES Extract / Download / File recognition to profile Index Pass index to PostalReporter for sorting Assemble to index Commingle / concatenate Postal Report Software CASS / DPV PAVE Application Output External Data FTP / TCP/IP File / Spool AFP w/ PSF exits JES Extract Transform Pre-processing Index Format to Rules Strip, copy, replace Reposition Place barcode / 2D / 4-State Access look-up tables for external information Add electronic inserts / pages Control File regeneration (KIC / IDF / MRDF) Generate banner pages with job controls Transform PDL format Multiple rendering (print, archive, web)
15 The Automated Solution - Delivery ADF WorkflowControl Design Input Delivery Reporting Response Postal Report Software CASS / DPV PAVE SQL AFP w/ PSF exits Index Production Manager Production control files Application Output AFP w/ PSF exits JES Extract External Data FTP / TCP/IP File / Spool Transform Pre-processing Print
16 The Automated Solution - Reporting ADF WorkflowControl Design Input Delivery Reporting Response Inserter Reporter Postal Report Software CASS / DPV PAVE Tray tags, 3600R, mail.dat Post-production updates SQL Application Output AFP w/ PSF exits AFP w/ PSF exits JES Extract Index DMZ server Select Reprint Files Production control files Production Manager Production ctl files Post-production ctl files Document Control Inserters Workplace Manual production updates External Data FTP / TCP/IP File / Spool Transform Pre-processing Print Inserters
17 Manifest Mail - Input Data Processing - Presort Implement tray-based presort as well as logical units of work Manifest Keyline may be generated Sets up sequence for documents to be generated Separate or segment output for different production runs 17
18 Manifest Mail - Output First Class Letters and Flats Manifest Keyline = Unique Mailpiece ID Basic Keyline data AV = Sequence of mail piece in mailing 1 = Weight of mail piece in even ounce increments AV = Qualification level of mail piece = postage paid on mail piece Creates unique date of mailing o Similar to meter it captures postage per piece o Postage adjustments are documented and presented at acceptance 18
19 Manifest Mail - Output Production Creates the Print job in presort sequence and creates and routes control file to inserter's database Postal reporter software updates control data for each mailpiece, including manifest keyline, if needed Insert job on one or more inserters manifest keyline may be sprayed on envelope, if needed Generate and print tray labels as required Out sorted or damaged mailpieces are identified and removed from manifest mailing 19
20 Manifest Mail - Reporting Production Control Production End manifest at any point no need to complete entire mailing Combine multiple manifests into single 3600R USPS and production reporting What completed the process and what didn t What are the final postage costs What are the exceptions Reprint file creation Database driven Manifest mail is more accurate by virtue of piece level tracking, and maximizes postage savings. 20
21 Postage Report Number Of Trays Total Pieces, Weight Total Postage 21
22 Manifest Report 22
23 Manifest Report 23
24 Manifest Summary 24
25 Manifest Summary 25
26 Phasing Sample Approach Phase 1 Network Infrastructure Network drops, PCs, server Phase 2 2D File Based Solution Phase 3 Postal Reporter Cass/Pave/DPV Manifest Reporter Print Stream Reengineerin, ie. transform (if necessary) Control file, SLA tracking and reprint file 26
27 Case Study Regional Bank Current Situation Metered Mail Metering Budgets are going down every year Postages Costs continue to increase annually Print/mail becoming viewed as overhead vs. necessity Postage is in an even greater percentage of the average budget and increasing every year Goal Reduce cost, add value, transform, QR codes... 27
28 Case Study Regional Bank Current Situation Goal = Quality Improvement Reduce undelivered mail Improve speed into mail system End-to-End piece level tracking Regulation like HIPAA and Sarbanes-Oxley mandates quality Overdraft notices delivered in a timely manner Reduce duplicate mail Improve customer service Reduce staff cost in handling customer inquiries 28
29 Case Study Regional Bank Potential Options 1. Send to presort company 1. Permit mail 2. Accept the 3 digit rate that they give you 2. Meter 1. Expensive 3. Manifest 1. Manifest 5 and 3 digit 2. Send out remaining mail to presort company to get 3 digit rate 29
30 Case Study Regional Bank ROI 12 to 24 month payback (external and internal cost) End-to-end tracking quality Piece level tracking Automates reconciliation and USPS documentation Automates charge backs to departments Saves leasing of meter, ink cost, and maintenance Productivity increases Reprint cost goes down Undeliverable mail decreases Customer service increases 30
31 Case Study Regional Bank CURRENT COST Mail Processed by Presort Company Cycle 1 Mail Count Rate Presort Handling Charge Cost Today Site A 27,637,315 $0.346 $0.004 $9,628,841 Site B 18,424,877 $0.346 $0.009 $6,441,337 TOTAL MAIL 46,062,192 Total Current Cost $16,070,178 31
32 Case Study Regional Bank MANIFEST COST Mail Electronically Presorted Count 5-Digit 3-Digit ADC MADC Presort Single Piece TOTAL MAIL 46,062,192 16,313,880 27,418, , , ,488 0 Rate $0.324 $0.346 $0.351 $0.369 $0.394 $0.420 MANIFEST COST $5,285,697 $9,486,896 $240,834 $336,865 $287,812 $0 TOTAL COST $15,638,104 Total Current Cost $16,070,178 Total Manifest Cost -$15,638,104 YEAR 1 SAVINGS $432,073 32
33 Case Study Regional Bank Summary of Manifest Savings for Cycle 1 * Period Current Costs New Costs Savings Year1 $16,070, $15,638, $432, Year2 $16,873, $16,420, $453, Year3 $17,717, $17,241, $476, Year4 $18,603, $18,103, $500, Year5 $19,533, $19,008, $525,
34 Frequently Asked Questions What was the payback time? Approximately 24 months. Cost varies based on infrastructure How long is the transition/implementation time? Varies according to each customers involvement. It can be a completed in 3 to 6 months depending on your starting point (ie. Are you already 2D, file based, etc.) Can you calculate the savings to justify manifesting? Yes. Provide us with a sample print file and your current cost. We ll calculate the cost of the manifest mailing potential savings Can you generate tray labels and pallet tags as required? Yes. You print and insert? Can you still co-mingle jobs? Yes. You process to business rules like SLAs and production schedules. How do you begin? Give sample print files to your vendor for testing. Compare manifest cost to current postage cost for financial justification. 34
35 Manifest Mail Presented by: Jim Hilgefort
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