Merging For Mutual Success

Combining departments will not only boost your services, but it will save money in the long run.

Marrying in-house mail and print departments requires all the foresight, planning and tact of a royal wedding—and the payoffs are just as spectacular. A more coordinated, efficient operation able to offer customers more services at a lower cost—that's the dream come true for managers of integrated in-plants.

"The results [of our merger] were far greater than we ever imagined. There's a synergy from everything being together now in one wide-open space," reveals Tim Steenhoek, who manages mail and print at Equitable of Iowa in Des Moines. Operations were merged in September 1997.

Steenhoek has a staff of 28 which last year handled 850,000 pieces of in-bound mail and nine million outgoing pieces. The fulfillment center processed 100,000 orders and printed pieces for 350,000 kits shipped last year. The center also duplicated 50,000 diskettes and 5,000 CD-ROMs, in addition to printing 38 million impressions, 300,000 of which were full color.

Steenhoek, however, is not alone. A number of other in-plants have discovered the benefits of merging their printing and mailing operations and are saving their parent organizations lots of money as a result.

A decade ago the University of Washington combined print/copy, mailing and design departments under a "publication services" monicker. Acting Director Frank Davis now oversees 160 employees plus over 100 students in the operation, which was reorganized primarily for efficiency.

"The best thing about it is the [ease of] communication. We have people look at the design and make sure it works for postal requirements," Davis says.

The department averages 75,000 pieces of incoming and outgoing mail daily, verifying addresses, bar coding and sorting to gain discounts. The savings for postage is $15,000 to $20,000 monthly, Davis says.

A Wonderful Relationship

Print and mail have been a team "forever" at Bucknell University, in Lewisburg, Pa., says Jim Muchler, director of administrative services.

"I can't imagine having print and mail operations separate," he says. "We're on the same floor and we've had [mail] people walk by the press and catch a mistake. The managers are next door to each other; it's wonderful."

The 5 employees in the mail operation handle 975,000 pieces of bulk mail and 905,000 first class pieces annually. Using a Videojet 2001 graphics printing system, the mail operation can image variable address and bar code information at up to 13,800 pieces per hour, eliminating the need for labels.

"The 2001 has doubled our addressing productivity, and not one piece of mail has been rejected by the USPS for improper bar codes," lauds Muchler.

Weekly production meetings and staff shuffling during busy times enhance communication and flexibility.

"It's much easier when you're one unit," Muchler remarks. "In my opinion it's been very successful."

The print and mail departments at Indiana University Purdue University Indianapolis (IUPUI) merged in February 1997 to provide customers with one-stop shopping, more services and better efficiency, according to mail manager Roy Harris.

"We looked for redundancy and combined functions," Harris says.

An average of 50,000 pieces a month of nonprofit mail and 20,000 to 25,000 pieces a day of desk mail are processed with an automated system. Prior to the merger, customers had to resolve print and mail issues separately. Coordination was minimal.

"Now we can give mail tips before the design," Harris points out. "There's better planning since customers can talk to one person to set up a job start to finish—design, data file and mailing."

A common e-mail and phone system unified communications, and a newsletter informed the 90 employees of upcoming changes. "We let people know we were not downsizing but expanding services," Harris says.

Customers now receive substantial savings, and the new publishing, document and distribution services group (PDDS) is able to offer more services more efficiently. For instance, delivery drivers now have a dispatch system for efficient utilization in the combined operation. Duplicating centers were networked, allowing jobs to be sent to the first available printer.

James Dalton, PDDS director, says the benefits include more productivity, better responsiveness and increased flexibility—with decreased costs and redundancy. A comprehensive analysis of all positions was undertaken, and guiding principles of flexibility, knowledge sharing, mutual respect and ongoing support were established.

"It made sense to merge," declares Dalton. "We're more responsive to customers."

Closer Than Ever

Brigham Young University is in the midst of merging its mail and print operations, says Mail Manager Thom Roylance, who uses 17 full time employees and 50 students to process eight million pieces of outgoing mail and run a contract postal station.

He employs mobile ink-jet equipment, since the print operation is a few hundred yards distant, separated from mail by a paper and ink storage facility.

"One of our main concerns is the complexity of postal regulations," Roylance says. "We've worked hard to have communication [with the print operation] to train them what to look for and when to ask us about design."

The two departments are "closer now than ever before," reports Print Services Manager West Barton. Equipment must adhere to an open architecture and databases are being examined for multiple uses.

The emphasis on new technology "is what's going to drive fusing departments together," Barton says. "Any time you talk about merging departments, it's a threat. People are nervous, but you have to break down barriers and look at what's best for the university."

A good working relationship between print and mail is essential.

"You don't want any fingerpointing," Barton says. "A team approach works best for the client. We have to redesign mail to go through as simply and economically as it can; that's where the savings are. Thom is my co-partner. He has a vast knowledge of the rules and regulations of mail."

At IUPUI, Dalton notes that establishing the purpose of a merger and having goals were essential, but communication is also vital.

"Involve everyone you can at the start. Get feedback from front-line people; you'll run into problems down the road without employee buy-in," Dalton remarks.

Automation Boosts Productivity

Automation has allowed a smaller staff at Equitable of Iowa to process ever-greater volumes. From 1995 to 1998, print volumes increased 136 percent, Steenhoek says. Mail went up 190 percent, shipping increased 108 percent and kit orders zoomed 271 percent—while the department's budget dropped from $2.685 million to $2.625 million.

Presorting saves the company $1 million, Steenhoek adds, and customized variable printing can save 10 hours on a typical job. Shipping is now computerized, inserting is automated, printing is standardized on PostScript and Steenhoek is pitching management on a $2.5 million inventory management system. The proposed software system will save $1 million annually, he says, and pay for itself in 18 months. Steenhoek plans to begin implementation in July.

"We're really pumped; it shows we can afford to invest internally," he says.

At the University of Washington, automation investments were justified based on the university's volume. The conversion to box numbers and sorting by Zip +4 were implemented in 1995.

"It was a huge undertaking but very successful," notes Davis. Customers were taught how to prepare files for ink-jet addressing; bar codes are used to automate chargebacks of outgoing mail.

"It's an exciting, rewarding time for employees. They're learning new technologies, and that's a nice benefit," Davis says.

Bucknell now offers mail merge processing start to finish, including digitized signatures, and has achieved significant cost savings. In the first six months of using PostalSoft, Bucknell saved $38,000 in postage. The Development Office at Bucknell brought its mail merge and processing work back to the mailroom when Muchler explained that the resulting postage savings would reach nearly $70,000.

Roylance has been saving BYU money by keeping postal savings in-house and charging the basic postage fee with no handling added.

"The savings covers our overhead and investment in new equipment," Roylance says.

BYU Print Services recently purchased a new Xerox DocuTech 6180 and intends to use its variable data merging capabilities for mail purposes, among other things.

Currently, both print and mail have scheduling software, though combining systems would be a plus, Roylance says. He and Barton are studying the feasibility of a high-speed laser printer to print, fold and insert letters in a continuous stream, offering faster service and higher quality.

Lots Of Planning

A minimum of 12 months is essential to prepare for a merger and research new equipment and processes, managers say.

When Equitable of Iowa moved its distribution services department into a new building last year, Steenhoek merged two mail centers and two fulfillment centers, shrinking staff from 36 to 24 through attrition. A year of planning and research into equipment and processes preceded the merger between mail and print.

Davis advises anyone looking to integrate print and mail to do a lot of research—on mail volume and type, equipment and process.

"You have to do your homework," he advises. "It's a challenge to stay current. Have close communication with vendors, local presort houses, mailers and colleges. Go to trade shows and do a lot of networking—that's critical."

Barton and Roylance are interviewing others who have merged departments to get answers for their administration.

"You need to be ready to respond or outsourcing comes in," Barton says.

by Janet R. Gross