The downturn experienced in the UK and globally in the past 18 months has prompted British companies to reassess their business strategy to ensure growth. As we now steadily move out of difficult economic times, streamlining supply chain operations is increasingly a key focus for businesses.
STREAMLINE FOR SUCCESS
Effective management of procurement through outsourcing in-house services can impact right across a business by saving on time, resource and cost. The results of this strategy are clear to see in the mail room. TNT Post, by appointing two partnership directors working with key mailing houses, is reviewing ways to reduce costs in the total supply chain to enable business to see a competitive advantage through more effective mail solutions for customers.
Since the liberalization of the postal market in 2006, organizations of all sizes across the public and private sectors have been able to choose who their mail is collected and sorted by, before delivery by the Royal Mail. More options when sending mail, whether five thousand or five hundred million items annually, means businesses can see cost savings of up to 25 percent. As well as cost benefit, innovations spearheaded by private postal operators have also provided a greater return on investment and efficient, reliable results.
Bespoke product and service development is changing the way in which businesses utilize mail, with the environmental impact of mail becoming more of a priority as markets start to recover. Offering hybrid mail solutions which allow businesses to send a document to print directly from their PC to print and fulfilment facilities, which is then sorted for delivery, is one of the ways in which mail providers are helping clients looking for a way to reduce their mailing carbon footprint.
Other innovations in postal services pioneering marketing techniques, such as the infusion of scent into direct mail packs or unique stamp design, give back to the client a greater uptake rate and brand recognition. The recently launched mail solution FirstSort, which provides a regional next day delivery service on a national level, adds to the range of services available across the postal market through TNT Post’s regional office network. Currently covering the South West and Wales; Midlands; North; London and the South East and Scotland, the opening of the new Northern Ireland hub in autumn this year will complete TNT Post’s postal coverage of the UK.
The range of postal services following postal deregulation is ever increasing, with the benefits felt across all sectors as businesses are now able to choose the best cost-effective and flexible solution for them. It is interesting to note that differences in the way postal service providers must charge VAT – private operators are required to charge this to clients while the Royal Mail is exempt – still present an unfair mail market within the UK and restricts 40 percent of the business mail market from enjoying the benefits of postal competition. Despite these barriers, outsourcing to private postal operators provides businesses with a simple and effective way to save on time, cost and resource, whilst taking advantage of the latest product and process innovations in the sector for real return.