Automated Mail Sorting: Are You ‘In’ or ‘Out?’

High-volume mailers have a big decision to make about outbound mail sortation. To optimize USPS presort savings, should you send mail to an outside service provider, or sort it in house? As mail center managers and corporate executives are aware, the correct answer to this question depends on many variables, including preferred business models and top priorities. Other factors to consider include daily volumes, delivery requirements, privacy/security, space, schedules, and staffing. Let’s dive into both options.

The challenge: Handling mail can eat up valuable time and increase operational costs. Outbound mail requires rigorous attention, as printing, inserting, sorting and delivering mail to the post office demands meticulous planning and coordination. Qualifying for U.S. Postal Service workshare postage discounts entails sorting mail pieces, separating them into trays, sacks, or pallets, labeling the containers, and preparing the USPS forms and documentation. The level of sortation and the degree of discounting is based on a firm’s daily mail volume and the distribution of mail over geographic areas.

While this may sound like a lot of work, postal software, hardware, and automation handle many of the details. When an organization consistently generates large volumes of mail, an in-house solution is often the best approach. This is particularly true when mail is destined for a fixed geographic area, where you can maximize discounts because of ZIP code density. Investing in hardware such as the versatile Tritek M Sorter and/or the Compact Series for letters and flats could be the key to enhancing outbound mail profitability.

Sending your mail outside the organization for presorting is an option that comes with some plusses and minuses.

3rd Party Considerations

Outsourcing your mail sorting to a third party has its drawbacks. Foremost is general project oversight and loss of control, especially in terms of scheduling. If your organization places a strong emphasis on maintaining direct control and personal touches in customer communications, then outsourcing may not be the answer. Also, consider:

1. Data security and confidentiality risks: Vendors might not offer the same level of diligence that a company applies to its own sensitive information. Outsourcing agreements should include standards for confidentiality and security, which are important in regulated industries such as healthcare and finance.
   
   
2. Hidden expenses of outsourcing: Costs for management oversight and taxes on services add up, making outsourcing more expensive than expected. Be aware of onboarding, daily minimum volume targets, and change-request charges that may apply.
   
   
3. Miscommunication can lead to errors: Be sure to outline clear expectations and deliverables in your contract.

Third Party Benefits

On the flip side, enlisting the services of a presort vendor could be appropriate for your company. To answer the over-arching outsourcing question, companies must evaluate additional considerations:

• Do you experience periods of high and low mail volumes? (How predictable are the peaks and valleys?)
• Can your hardware, software and staff support the organization’s mailing requirements, or do some systems need upgrading?
• What are the costs associated with your in-house mail sorting operations, including labor, equipment, and maintenance?
• Do you have the density to qualify a high percentage of your mail at the lowest postage rates consistently?
• Are you generating daily mail consistently, or are there frequent delays and issues?
• Is mail sorting a task where your current team excels (or struggles)?
• How will you affect the customer experience if you outsource mail sorting operations?

Under the right conditions, outsourcing your organization’s mail services can lead to cost savings. If you don’t have enough geographic density to qualify for deep USPS postage discounts on your own, the co-mingling performed by a presort bureau can lower overall postage spend. (Remember, though, that waiting for co-mingling also can delay when pieces enter the mail stream.)

In addition, by leveraging the ability and scale of a specialized provider, you eliminate the need for regular investments in equipment and technology. Operational expenses are reduced and the hassles of maintaining and upgrading mail sorting systems are avoided as well.

Mailroom staffing challenges, an issue for many organizations, become a thing of the past, too. Outsourcing mail services allows you to repurpose your mailroom staff to focus on core business activities and align your team’s efforts with your company’s strategic goals.

Most outsourced mail service providers employ high standards of data security and comply with regulatory requirements. This level of mail piece integrity may be greater than a standalone company can reasonably deliver within an in-house workflow. Still, you need to vet prospective vendors carefully.

Flexibility and scalability stand out as another outsourcing advantage. When you partner with an experienced provider, you gain the flexibility to scale up or down based on demand. Mail service providers can handle your peak production periods, relieving you of the cost of maintaining idle equipment at less-demanding times.

Outsourcing helps to manage large-scale mailings more efficiently. Presort agencies specialize in high-volume work. You can also choose to outsource only specialized mailings, such as nationwide marketing campaigns or compliance-driven mail. The rest of the mail sorting jobs can remain in-house.

Which Way to Go?

The best choice for your organization depends on several variables. It all depends on the requirements of your organization and the characteristics of your mail. Efficiently presorting outbound mail using the right software and equipment, such as Tritek’s mail sorting solutions, can tip the in-house scale. Contact the technical experts at Tritek for assistance in determining the right solution for your organization.