Merging Print and Mail Can Yield Big Benefits

With today's questionable economic times and changes in the print and mail industry, many organizations are looking to identify ways to control costs and still remain a viable business. While there is no crystal ball that can identify just where the print industry is going or when the economy will turn around, managers of in-plants can still take steps to be profitable.

One change that Brigham Young University's Print and Mail Services made back in 1999 that has proven to be very helpful was the merging of the in-plant, copy centers and digital print operations with the university's mail services. This merger has proven to not only provide for greater financial stability but has also improved customer relations and employee job satisfaction.

Merging the two sizable yet separate organizations was no small task. And while it would be nice to say that everything went smoothly as planned, that would be less than truthful. Still, there have been many benefits. For example, the merger positioned our operation to absorb the unforeseen explosion in benefit costs and declining volumes in both traditional print and mailing volumes. It has allowed for "right-sizing" the employee base through attrition, reducing our employee count by 30 percent since the merger. Retiring employees' responsibilities were, in many cases, absorbed by others, often made possible as a result of the merger. Some positions have also been replaced with ¾-time staff that, until recently, had few benefits.

We've also been better positioned to adapt to the ever-changing postal regulations. In the past, we would receive brochures and recruitment campaigns that would cost more to mail because of design or content issues such as dark envelopes, nonprofit mailings containing unapproved travel or credit card promotions, square and odd-shaped letters, self-mailers requiring multiple tabs, etc. This became particularly problematic when the USPS implemented its "Shaped-Based Rates" back in 2007. Yet, as a result of the merger, we've been able to face these challenges with minimal negative impact, resulting in considerable savings in both rework and in postage.

The Relationship of Print and Mail

The motivation for merging began with the realization that nearly everything we mail, we print. We began by answering three questions, "What is print, what is mail and how are they related?" We defined print as falling into three categories: traditional, digital and finishing (bindery).

Traditional print, both large and small offset, produced magazines, textbooks, brochures and stationery. Digital printing consisted more of on-demand, short-run jobs, including self-mailers and postcards, along with variable data pieces containing customer-specific information. The bindery primarily completed the finishing and assembly process. It was here that we realized that mailing was simply another "finishing" process.

We identified mail as primarily two types: desktop—individual letters written by department secretaries, faculty, staff and others that were mailed to both domestic and international addresses; and bulk business mail—commonly referred to as "junk" mail, an arguably unfair label as it is an economical way of advertising products, events, requests for donations, etc. Remember the saying that "one man's junk is another man's treasure."

Creating the Proposal

Once we defined print and mail and identified their relationship, we created the proposal, which consisted of five primary sections:

• Executive Summary

• Introduction and History

• Goals and Objectives

• Implementation

• Summary Conclusion

The Executive Summary was a brief synopsis of why our proposal was being presented and why we felt it had merit. Ours was nothing fancy:

In recent years advances in print and mail technology along with rising customer needs have blurred the once clear boundaries between print and mail. As a result, Print and Mail Services propose that they merge their individual operations to better meet the demands placed on university resources.

The Introduction was used to outline a brief history of the two organizations along with several reasons for considering the merger. A few of those reasons included changing technology, rising customer needs (I need it now!), and changing postal regulations.

We next listed our Goals and Objectives. The goals were our primary targets—what we planned to accomplish with the merger—and consisted of the following:

1. Integrate Mail Services into Print Services.

2. Create a one-stop-shop providing "print to post" services.

3. Enhance and maintain cost effectiveness of university resources.

4. Utilize digital technology to stay consistent with the university vision.

The objectives were more specific to the outcome of our goals. Two of those objectives included:

1. Mail and deliver printed materials at the end of an improved production process in a highly efficient manner, resulting in faster service at a lower cost and through greater productivity.

2. Provide a complete package of printing and mailing services under a one-stop-shopping scenario, providing a greater potential of postage savings through consideration of mailing content and design during the design stages.

The Implementation Plan

This was followed with our Implementation Plan. Here we cited several examples of past experiences and how we would work to turn those experiences into positives for both the department and the university as a whole. Here are two of those examples:

One department outsourced the mailing of 30,000 promotional letters at the USPS Nonprofit Rate to promote their "First Class Public Broadcast Station." Each envelope contained the phrase "First Class Information from your First Class PBS." Had this mailing been processed in-house, Mail Services would have noticed the misuse of the term "First Class." As a result, the department ended up having to pay over $5,000 in additional postage.

In another case, a department budgeted $600 for a postcard mailing believing that a two-sided half sheet of card stock (41⁄4x111⁄2˝) qualified as a postcard. Not only did it exceed the 41⁄4x6˝ maximum postcard size, it also exceeded that USPS aspect ratio. Their 33 cent postcard was now going to cost them 66 cents, nearly twice what they had budgeted. However, our Mail Services was able to assist them by recommending they mail the pieces at the Nonprofit Standard Mail rate. Although it would take longer for the "cards" to be delivered, the total cost would be less than $250.

We also identified several catchphrases and/or slogans such as "one-stop-shop" and "print to post." One of the slogans we used was "While in design, keep mailing in mind." These proved to be helpful tools to communicate the merger and to assist campus designers in creating materials that could be mailed efficiently and cost-effectively, while still meeting the goal of quality materials representing the university.

Finally, we added the Conclusion—basically our deal closer.

With the many changes occurring both within the university and within the print and mail industries, the time is right to bring these two operations together. In reviewing other college and university operations, it became evident that the transition to consolidating print and mail operations is the direction of the industry. BYU can realize significant savings managing this change. It is respectfully requested that the merger of Print Services and Mail Services take place as described in this document.

Challenges Exist

Not every merger will go well. Depending on individual situations, there can be many obstacles. Poor management and/or customer service in one or both areas may be difficult to overcome, even with a well-planned merger. Some operations may be located too far apart physically. One area may be unionized and the other not. Perhaps one area could be the cash cow while the other is hemorrhaging financially. A merger could spell disaster for both areas. Often times the print is seen as a "trade" while mail is simply an entry level "job." Egos can get in the way.

While these obstacles and others may be challenging, most are surmountable. Much of the success of a merger is dependent upon a well-defined objective that is clearly communicated to all those impacted, has input from those involved and has the support from the institution's administration and/or management.

Status quo is not a viable option. Forward-looking management, along with the assistance of employees and customers, can position most in-plants for a very long and healthy life.IPG