One major financial services organisation that I worked with estimated that for its UK operations alone, the postal budget for ad-hoc mail (i.e. that which is not processed centrally) was around £2.5m per annum.

This mail is simply printed out and stuffed locally, collected by the mail room team and given to the postman at the end of the working day.

Without thinking about the inherent costs of having workerss wandering around to laser printers, finding envelopes, folding, stuffing and so on, the plain absence of any kind of volume mail discount is frightening. This is a huge hidden cost saving that is being missed out.

The approximate postage volume is around 830,000 mail pieces per year. Each of these mail items amounts to 3,772 mail items per day across its UK offices. This number is very close to the number for eligibility for Mailsort 120. Arguably with some prioritisation of mail urgency and stacking less urgent mail traffic, a formula can be derived to achieve this range.

This number is also well within range to achieve the minimum 10% discount gained for ensuring clean addresses and Post Office machine readable mail pieces.

Thus even if an organisation chose to sort this mail through Clean Mail processes it could seek to make annual savings of £250,000 per annum!

If feasible, implementing Mailsort 120 service could realise up to £450,000 – nearly a million dollars! Remember this is just the postal discount side of the equasion.

Let us think about this further. If we halve cost per printed page as well – say from £0.13p to £0.06p due to the increased efficiencies of production printers we save yet more money.

The technology through distributed document composition platforms based upon service oriented architecture technology means that this type of thinking and approach is now possible!

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