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.
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.