Should You Insource or Outsource Your Mail?

Should You Insource or Outsource Your Mail?

07/14/2016

The size of an organization’s mail center depends on the importance of mail and parcels to that particular organization. However it’s important to remember that companies have the option to in-source or outsource their operations.  

Investing in a Mail Center

It’s up to each organization to evaluate how critical their mail and parcels are and what type of investment they wish to make internally in order to build a mail center. Certain organizations prefer to outsource due to either cost saving opportunities, or when they simply don’t have managing a mail center within their area of expertise.

Different Types of Mail and Parcels

Whether you insource or outsource your mail largely depends on the types of mail and parcels you are sending out, together with the level of standardization. Outsourcing is an ideal option if you send large volumes of mail that are common from one job to the next. But if you have specific jobs or handle jobs for multiple departments within the organization, each with its own customized needs, for example marketing materials, invoices or annual reports, a dedicated in-house solution is preferable.

Opting for insourcing gives you more control over how you handle your customer communications and enables you to take advantage of the new mail room technologies that are currently available.

High Volume Mailing Jobs

You may however have a single large job to handle, a one-time event type job, such as sending a marketing letter to 20,000 customers or 20,000 prospects; it’s the same letter and the only level of customization is in the address. This is a typical example of when you’ll get the benefit from outsourcing because this can be managed at a low cost.

Basic Business Fundamentals

There are four basic fundamentals that lead to the success of any organization:

  • Attracting new customers or members
  • Improving retention of customers/a member base
  • Increasing financial performance or revenue
  • Reducing costs through improved operational efficiencies

Before Investing in Mail Center Solutions

Before investing in any mail center solutions, organizations should ask themselves what type of return on investment they are looking for. Smaller businesses may be looking for more of a convenience opportunity. However most people make decisions based on some level of return on the investment. There are solutions on the market today that are extremely low priced. This means that SMBs can enjoy a PC-based online shipping solution for only $5 a month.

Intuitive Mail Solutions for SMBs

Another aspect that is important for SMBs is ease of implementation. Therefore before investing they need to be sure that the solutions they are planning to buy have been designed for multiple operators inside an organization. They don’t want to have to train dedicated employees to understand how to use these solutions. They really should be intuitive to use and easy to manage when it comes to running multiple jobs through their mailing operations.

Expertise in Mail Center Processes

A key success factor in mail center investment is comprehensive and competent consulting. This covers the technical, logistic and strategic aspects, and should be provided by somebody who really knows the market, the solutions and the mail center processes extremely well. Therefore before investing in mail center solutions, organizations should ask themselves how they can open up to new business potential. They should also examine to what extent digital services can help them make progress and build their business over a given number of years. 

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