AN INTRODUCTION TO. Mailroom Outsourcing A CONCISE GUIDE FOR ENTERPRISES AND LARGE ORGANIZATIONS. an ebook by.
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1 AN INTRODUCTION TO Mailroom Outsourcing A CONCISE GUIDE FOR ENTERPRISES AND LARGE ORGANIZATIONS an ebook by
2 Contents Introduction: Why Outsource Mail Operations? Chapter 1: The Digital Mailroom Chapter 2: Transform Processes Chapter 3: Mailroom Outsourcing in Action: Case Studies Chapter 4: HR Management: A Compassionate Approach to Outsourcing Request a Consultation
3 Introduction Why Outsource Mail Operations?
4 Introduction: Why Outsource Mail Operations? Do What You Do Best And let a specialist handle back-office functions Every organization has a purpose a reason why it exists. In business, the reason is to produce world-class products and services for customers. This is a company s core business, and it is where time, money and resources are focused. Supporting services such as payroll, accounting, facility maintenance, and inbound and outbound mail management (the subject of this ebook) are important, but in most cases are better off outsourced. Expert service providers take care of these back-office functions at lower cost and higher quality than if they were handled in-house. Here are three top reasons why it makes sense to turn over mail functions to a specialty provider: 1. Cost Reduction: Mail operations can be handled in lower-cost labor markets in the U.S. or with a hybrid model, where mail is received in the U.S. and processed and digitized at a nearshore location. 2. Focus on Core Business: Turning over mail operations to a provider allows you to focus time and talent on your core competencies: those key features of your product or service that differentiate your company from competitors. 3. Improved Quality, Efficiency and Turnaround Times: Because specialty providers focus exclusively on back-office functions like mail handling and document processing, they invest in the technology, process-improvement methodologies, staff training and other resources necessary to achieve the highest level of performance.
5 Introduction: Why Outsource Mail Operations? Mailroom Outsourcing Overview Learn More: Click to watch a short video about outsourced mailroom services. Learn More: Download Business Process Outsourcing 101: Five Steps for Success at:
6 Chapter 1 The Digital Mailroom
7 Chapter 1: The Digital Mailroom Open, Sort, Scan Digitize paper as it enters the organization If you outsource mail operations, your service provider should deliver a digital mailroom solution. A digital mailroom captures information arriving by mail, , fax or other channels and moves it into a digital workflow. Hard-copy correspondence and forms are scanned, digitized and automatically routed to appropriate departments for handling. A digital mailroom is the cornerstone of a complete Enterprise Content Management (ECM) solution: the strategies, tools and technologies for managing an organization s information through its entire lifecycle.
8 Chapter 1: The Digital Mailroom Digital Mailroom FAQs What happens in a digital mailroom workflow? The goal is to automate workflow to reduce the number of manual touches. Incoming documents are scanned and digitized, and software automatically classifies forms for routing to designated business processes. Optical Character Recognition (OCR) technology automatically extracts and validates information for use in databases and business applications. Faxes and electronic documents are routed through servers into the digital workflow. What is a typical ROI timeframe for digital mailroom investment? ROI will vary depending on the scope and the complexity of the organization s business processes. An AIIM study found the payback period for scanning and capture investments was 12 months or less for 46 percent of organizations and 18 months or less for 64 percent of organizations. Can a digital mailroom meet my compliance requirements? Yes, this is one of great advantages of a digital process. Permissions can be set so only authorized individuals handle certain documents. An audit trail is established so that you will know when a document has been checked in or out, where it is, and who revised it. ECM strategies will typically allow for only one final copy of a document (and a backup) to exist, so there are not several versions of a document in multiple locations. Digital document processes improve searchability and retrieval. Learn More: Download our Digital Mailroom FAQs : Part One: Part Two:
9 Chapter 2 Transforming Processes
10 Chapter 2: Transforming Processes Transform Your Mailroom Tap a provider s process-improvement expertise It would be a mistake to simply lift and shift your mail operations to a provider that can handle it at a lower cost, and leave it at that. An outsourcing provider should also be able to apply business process reengineering strategies to your workflow to improve efficiency, quality and turnaround time. Your provider s consulting team should create a complete process-improvement solution within the Lean Six Sigma framework of DMAIC: define, measure, analyze, improve and control. This includes creating process maps, documenting and standardizing processes, establishing ownership and accountability of workflows, and creating a step-by-step plan to seamlessly transition the process.
11 Chapter 2: Transforming Processes Mailroom Transformation FAQs What are some common bottlenecks or inefficiencies in the mailroom workflow of large organizations? Something very common that we see is organizations that do not take full advantage of scan technology that can greatly reduce costs and shorten conversion time from paper and digital. For example, the use of paper separator sheets is still a common practice, rather than leveraging already present envelopes to delineate the start of each new document during the scan process. What technologies have you found to be truly effective for your clients workflows? We have success transforming paper-driven processes into a truly digital workflow. We ve all heard of the digital mailroom, and the concept has moved beyond hype to reality, thanks to advances in scanning and OCR technology. Scanning speeds and image quality are much better than a decade ago, and computing power is less expensive yet more powerful, allowing the use of multiple OCR engines at once to improve character and document recognition. What benefits have your clients realized from the application of Lean Six Sigma to their processes? That s easy: cost savings and cost avoidance come with improved efficiency and improved quality in the workflow. But what I ve really enjoyed seeing is how our clients own customers react to the improved process, be it mailroom or other function. We see that the customers are delighted by radical improvements in turn-around-time or one-call problem resolution. That s the wonderful end result of the application of Lean Six Sigma. Learn More: Download Enterprise Mailroom Process Improvement Q&A at Process Transformation: Your Questions Answered at
12 Chapter 3 Mailroom Outsourcing in Action: Case Studies
13 Chapter 3: Mailroom Outsourcing In Action: Case Studies Real Results Enterprises benefit from a mailroom transformation Outsourcing a Facility-Managed Mailroom A Fortune 200 insurance and financial services company selected DATAMARK to transform its mailroom operations on-site, at the company s headquarters. Necessary staff levels were reduced from 240 to 150, saving millions annually in payroll costs. Required facility space was reduced 33%, from 32,000 square feet to 21,500 square feet. Recommended an outbound correspondence process change to save$6,500 in postage annually. Developed a business continuity plan for inclement weather to ensure that critical financial services documents would be processed on time Transforming an Off-Site Mailroom DATAMARK improved mailroom operations for a Fortune 100 health insurance company, using Kaizen and Lean principles to reengineer the physical facility and its workflows. Delivered overall cost reductions of 20 to 40 percent using an off-site outsourcing model. Implemented a digital mailroom software platform to automate document classification and data capture. Gained an immediate 10 percent improvement in business process workflow output after a 5-day Kaizen exercise. Increased facility space by removing unnecessary equipment and workstations. Learn More: Download our case study at: Learn More: Download our case study at:
14 Chapter 3 HR Management: A Compassionate Approach to Outsourcing
15 Chapter 4: HR Management: A Compassionate Approach to Outsourcing Rebadging A strategy to retain experience and talent We understand our clients employees will be affected by a transition to an outsourced mailroom. We use a compassionate outsourcing strategy to ease the transition and avoid negative repercussions of a sudden, mass layoff. We create opportunities for clients' mailroom staff in the DATAMARK-managed facility, whether on-site or off-site. During this rebadging process, we work closely with our clients human resources department, keeping lines of communication open while presenting career-path options to affected employees. For example, while transitioning a mailroom for a Fortune 200 company, we made offers of employment to all the client's mailroom staff. Our offer included an incentive: employees who accepted employment would be paid 10% more than the prevailing regional wage for this type of work. Additionally, DATAMARK worked to make the transition seamless by preparing for normal employee attrition during the six-month changeover to the outsourced mailroom. This way, if an employee of the client left the company, a trained DATAMARK staffer could immediately step into that open position. This ensured that staffing levels remained more than adequate, and ensured continuity of customer service. Learn More: Download our case study at:
16 Request a Consultation Find out if your organization can benefit from an outsourced mailroom. Contact us today to arrange for an initial consultation with a DATAMARK business process expert. Contact Us an ebook by
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