Mailroom Solutions Uk Market Intelligence

*This report was last updated in Q4 2018. Please click on request customization if you are looking for an updated version of this report

Report Coverage

  • Case Study
  • Suppliers for Incoming, Outgoing, and Digital Mail Services
  • Trends in Hybrid Mail Services

Table of contents

  1. Executive Summary
  1. Approaches for Modern Mailroom Design
  1. Savings from Digital Mailroom Solution compared to a Physical Mailroom
  1. Why Hybrid Mail?
  1. Trends in Hybrid Mail Services
  1. Hypothesis Validation and Case Studies
  1. Case Study on London Borough of Lambeth and SPS Hybrid Solutions
  2. Case Study on Westminster City Council and Ricoh
  3. Case Study on Mendip district and Capita
  4. Case Study- Southampton City Council (LGS) and Capita Document & Information Services (CDIS)
  5. Suppliers for Incoming, Outgoing, and Digital Mail Services
  1. Supplier Selection Criteria
  2. Supplier List for Outgoing Mail Services
  3. Supplier List for Incoming Mail Services
  4. Supplier List for Digital Storage and Digital Scanning

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  • In the UK, it is estimated that 73 percent of all documents received by companies are paper documents (62 percent from mail and 11 percent from faxes)
  • Electronic documents still represent less than a quarter of the bulk of documents (16 percent as e-mails and 8 percent as web forms). On an average, companies today receive 3 million items per year and the cost of processing incoming mail is estimated at £0.15 to £0.25 per item
  • The use of e-mail has not led to a reduction in the volume of paper circulating inside companies
  • This is a large growth opportunities for dealers, which is a £1.2 billion market within the UK


Cost Savings

Low sort

Low-sort tariffs can be applied to items sent in envelopes and anything that is sealed on all edges. The savings start when you send 4,000 A5 size letters or 1,000 A4s in a single mailing.

The method of sorting depends on each mailing and what is best for your particular requirements:

  • OCR: Mail is printed with addresses in a machine-readable font
  • Barcode: Mail is printed with a 4-state barcode that contains the postcode and DPS
  • Mailmark barcode: Mail is printed with a mailmark barcode and a machine-readable font

By using a combination of low sort, organizations may be able to reduce the price of mailing down to as low as 19 p per letter.

High sort

Certain mailing items fail to meet the low sort criteria, so they would be sent high sort. For instance, to use a font that looks like handwriting because it increases responses. One can still save on postage charges with high sort, but lesser than with low sort.

  • By ensuring compliance with Royal Mail's High Sort sorting standards (90% address machine-readable accuracy)
  • Using a combination of high sort and other available discounts, organizations may be able to reduce the price of the mailing down to as low as 21.8p per letter

Hybrid Mail Models with Benefits to Organization and Service Provider

Models of Hybrid Mail 

The principle and concept remain the same, but the model depends on the volume and geographical distribution of the business correspondence.

  • Regional distributed mail means that any document available in electronic format at one stage of the document life-cycle is regionally distributed in such way as to minimize the distance between physical production (print) and the receiver
  • Local mail aggregation, it refers to the collection of print jobs from different departments or local branches for high volume printing to utilize economies of scale

For service providers looking to offer a hybrid mail service to its customers, there are also numerous benefits:

  • Economies of scale can be achieved with the purchase of high volume of toner, paper, and envelopes
  • Providing such a service increases customer retention and opens up opportunities to become the sole service and print provider to those customers
  • Offering innovative services, such as hybrid mail, offer a more consultative approach, selling professional services and training, thus increasing revenue
  • The more customers you have, the more flexible your pricing can be, which gives you a competitive edge

Benefits Of the Digital Mailroom

  • Reducing Cost: Quicker mail sorting time means employees dedicated to this task can spend time on more value-add activities. Save time and money by decreasing the need for paper copies and printing, as well as removing the need for internal postal services
  • Increase Efficiency:Achieve a faster organizational decision making process thanks to digital workflows that allow mail to be distributed more quickly, as well as mail to be read and processed via mobile devices
  • Greater Control: Achieve greater control thanks to auto-validation rules for your incoming mail - in any format or from any channel. Allow only relevant mail to be sent to the right end-users and make customers and stakeholders happier
  • Improved Compliance:The office internal information governance policies find stronger compliance. All incoming mail gets automatically stored digitally and securely whilst its traceability is also under control - from point of entry down to every step of the distribution process
  • Streamline Operations: Business rules are easy to add in to the workflow to have key documents directed automatically throughout the organization, escalating for approval and authorization, as and when required
  • Return on Investment: Mailroom is designed to provide proven cost savings and increase business efficiencies to achieve a return on investment very quickly

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