November 9, 2011

Neopost Helps Homeserve to Save Over £35,000 a Year in Mail Processing Costs!

incoming mail case study

Homeserve open and process in excess of 1.4 million items of mail per year, an average of 7,500 items per day. They had been using a basic letter opener to slit open their incoming mail. «The overall man hours spent on processing mail has dropped daily by 10 hours equating to a reduction of over 200 man hours a month!» Stated Josie Bates, Data Processing Manager. «As a result of using the 3 IM-75’s, we can process our incoming mail 33% per cent faster equating to a saving of over £35,000 per year» concluded Bates.

Letter opener IM-75

 

Homeserve Plc was established in 1993 as a result of a joint venture with South Staffordshire Water. From selling the first plumbing and drains policy in 1994, the business has transformed into a successful, fast moving FTSE 250 company with over 8 million emergency insurance policies sold across the UK, France, Spain and the US. They have also established partnerships with other utility, energy and insurance companies.


Homeserve open and process in excess of 1.4 million items of mail per year, an average of 7,500 items per day. They had been using a basic letter opener to slit open their incoming mail. The company initially contacted Neopost to replace their existing letter opener which was coming to the end of its life.


Homeserve start pre-sorting their incoming mail at 7.00 am every morning, using postroom staff, as well as staff from the main office. The incoming mail, consisting of general correspondence, applications and renewals were pre-sorted, batched and boxed ready for slitting on the letter opening machine. As a priority, once the envelopes had been slit open on one side the general correspondence (consisting of 500 envelopes per day) was passed to 12 staff in the main office to open and manually extract the contents ready for scanning. This preparation process took 12 staff, 30 minutes a day, equating to 6 man hours.


The remaining 7,000 envelopes, comprising of insurance applications and renewals were processed at 300 items per hour, equating to 24 man hours per day.
In total the processing of the 7,500 envelopes a day took 30 man hours, equating to 150,000 items a month, at 600 man hours costing £4428 a month to process.
Following a thorough audit of their incoming mail process by Neopost, Homeserve, found that they could make substantial cost and time savings. As a result, Homeserve now lease 3 IM?75 incoming mail processors. By using an IM-75 Homeserve can now complete the processing of their incoming mail in one single process. This reduces the amount of time spent on handling and processing mail, thereby reducing the amount of man hours, allowing staff to focus on more productive tasks. In addition to the 3 IM-75’s Homeserve use a software tool called STATS, which allow performance levels to be set and measured.


Now the mail arrives at 7.00 am for processing and is pre-sorted as usual. The general correspondence is loaded onto the IM-75 automatic mail processor which opens the envelopes on two sides and presents the operator with the document on demand. For added security, after extraction the envelope is then scanned to confirm that all the contents have been removed. The content is then identified and sorted ready for scanning and forwarding onto the appropriate department for action. Since implementing the new automated mail solution the general correspondence is being processed a half hour quicker by the post room staff only. This allows the staff in the general office to work on their normal duties half an hour earlier.


The processing of the applications went from 300 items per hour to 700 per hour. «This increase in process speed benefitted our business substantially in both cost and time savings and the quality of service we provide to our customers. The overall man hours spent on processing mail has dropped daily by 10 hours equating to a reduction of over 200 man hours a month!» Stated Josie Bates, Data Processing Manager.

 

«As a result of using the 3 IM-75’s, we can process our incoming mail 33% per cent faster equating to a saving of over £35,000 per year». She concluded.