As companies look to reduce costs across the enterprise, they often consider outsourcing non-core functions. Shifting work to companies specializing in an area has many savings advantages. One area that organizations should consider is transactional print and mail services.
For any business that must deliver compliant, accurate communications to customers, you’re likely spending too much if you’re doing this in-house. Because of the complex nature of these documents and letters, the security and compliance upkeep and the rising costs of producing them, it’s hard to decrease expenses.
So, what services related to outsourcing print and mail really impact your bottom line?
How Transactional Print and Mail Services Create Savings
When looking at projected savings, you first have to understand the total cost of ownership of your in-plant. Expense categories include materials, equipment, technology, labor, postage, and overhead. Below, we’ll address each.
Material Costs
You can’t produce print and mail without materials, including paper, ink, and toner. Paper is the most expensive and has risen sharply in the past few years. While some normalization occurred, inflation influences these costs, as they do any other resource.
Print and mail companies have an advantage here. They buy larger quantities and have special contracts with suppliers. Another way they can support reducing material costs is by providing recommendations on standardization of envelopes.
Equipment and Technology
For transactional print and mail, you need sophisticated equipment and technology, specifically inkjet printers, intelligent inserting, and advanced technology to drive workflows and accuracy. These CAPEX expenditures cost millions of dollars and need frequent maintenance and upgrades.
In addition, you may also have costs around physical servers that store and secure data. Software is also necessary for operations and tracking letters through the mail stream. These items can also number in the millions of dollars annually.
You’ll also need software that works with equipment to deliver consistent and compliant mailings. Your machinery will also need regular maintenance, often from manufacturers, so that’s one more expense.
Labor
Running an in-plant requires skilled workers. In addition to regular time, you may also be paying out overtime regularly. Staff continues to be a high expense, which you can eliminate. Reallocate those people to more meaningful work that revolves around your core operations.
Postage
Postage costs are always rising, and applying optimization strategies is the only way to get the best rate. Only large operations can do this. A transactional print and mail company delivers the best rates by:
- Being able to presort and comingling at high volumes
- Leveraging the IMb, a 65-bar Postal Service™ barcode, to sort and stack
- Using address hygiene tools to ensure deliverability and minimize the costs of undelivered mail
- Introducing mail standardization options to convert most letters to a #10
Overhead Expenses
Another cost savings from transactional print and mail services is the elimination of overhead. You’ll no longer require this space. This equates to rent, energy, utilities, and security systems savings.
Transitioning to E-Delivery
Another way to realize cost reduction is by using a partner’s e-delivery services for those customers who want digital communications. The system uses an encrypted, certified digital platform in compliance with all regulations (e.g., PCI-DSS, HIPAA, HITRUST, FISMA). It’s fast and cost-effective, and you have access to all metrics, including email deliverability, opens, and clicks.
Get more insights on how we help companies save by watching this episode of Ask the Experts.
Save Big with Transactional Print and Mail Services
All these savings add up and create more capital for your internal growth programs. While you’ll reduce costs, you won’t see any declines in accuracy, compliance, or quality. That is our promise to customers, built on decades of experience.
Start your journey to savings and improved processes by requesting a free consultation with our experts.
