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Flexible
and High-Integrity
Processing Fuels Growth
at American Direct Mail
Venerable
firm re-equips to boost performance and
keep pace with changing customer needs
If ever there was a firm with a history of success in the
print/mail finishing business, it is a company called American
Direct Mail.
A.D.M., now a part of Global Document Solutions, one of the
premier customer messaging service bureaus in the world, was
founded nearly 100 years ago and is believed to be the oldest
continuously-operating 'mail shop' in New York City and perhaps
the entire U.S.
When A.D.M. was founded in 1906 -- and received USPS Permit
#416 -- Teddy Roosevelt was President. There were also only
45 states in the Union, fewer than 80,000 cars registered
across the nation, and no personal income tax.
As everyone knows, the world of business has changed immeasurably
over the past century. But A.D.M. has kept pace by focusing
on and continuously enhancing its core competencies, which
currently consist of data handling, software development,
document creation, print/mail finishing and fulfillment processing.
Personalized Customer Messaging
As a result, the firm is now an acknowledged leader
in processing highly personalized customer messages in both
paper and digital form for an array of transactional and direct
marketing applications. Indeed, more than 300 employees produce
nearly one billion print images and 85 million mail pieces
a year on behalf of financial services and other firms. The
privately held firm doesn't disclose sales or profit figures,
but industry observers estimate the firm achieved about $55
million in revenue last year.
Plus, A.D.M. is now poised to grow even more; thanks to an
investment in new processing technology that is ideally suited
both to its location in lower Manhattan and its evolving workload.
"Our challenge centered on a need for better efficiency
in our mail finishing operation so we could stay ahead of
our growing volumes as well as the shifting demands of our
customers," explains John Slaney, who serves as president
of A.D.M. A nine-year veteran with the company, Slaney also
heads American Direct Laser, which is the company's digital
printing unit, and serves as C.O.O. of Global Document Solution.
"Previously, we used separate technology platforms for
mail finishing," he continues. "One processed our
transaction-based mail, which consists of monthly bills, statements
and related customer correspondence. And the other handled
our direct mail applications, which were larger and more complex
and often included over-sized materials as a way to generate
interest via the creative use of paper, printing and inserts."
A Lower Cost of Ownership
Both platforms were well suited to their respective
jobs. But they also came with a high cost of ownership, especially
when factors such as floor space, maintenance and employee
training and staffing were considered.
"With 110,000 sq. ft. of floor space, we're not cramped
for room," says Slaney. But A.D.M., like any business,
needs to use every inch of it wisely. "Since our processing
work load varies according to the needs of our customers,
there were just too many instances when one platform was overtaxed
while the other was underutilized," he says.
Additionally, the distinction between direct mail and transactional-based
mail is rapidly blurring. At one time they were entirely different
processes serving entirely different needs. But no more.
"Direct mail applications today are increasingly custom-tailored
to individual preferences," says Slaney. "They are
often based on and even make direct reference to previous
transactions.
"Transactional-based mailings are evolving as well,"
he continues. "They must still record past business dealings.
But now they are just as likely to incorporate 1:1 marketing
and messaging techniques to cross-sell, up-sell and otherwise
create a tighter relationship or connection with individual
customers.
"So we really needed a hybrid platform where we could
easily process either transactional-based mail, or direct
mail, or a combination of the two, all on a single inserting
system. "And of course, A.D.M. also wanted the important
and related features of assured mail piece integrity, faster
processing, a high level of equipment reliability or dependability,
and easy set-ups and change-overs -- all the things that yield
prompt turnarounds, and high throughput and contribute to
high levels of customer satisfaction.
The solution for A.D.M. came in the form of six of the innovative
FlowMaster FX12 intelligent inserting systems from Pitney
Bowes Document Messaging Technologies. Each is equipped with
a high capacity sheet feeder and is capable of operating at
more than 10,000 cycles per hour.
Productive and Cost-Efficient
Not only are the new inserting systems faster and
more flexible – they operate roughly 50 percent faster
than the previous equipment and can accommodate virtually
any application now processed by A.D.M., making the entire
shop more productive and cost-efficient -- but they were also
instrumental in securing a substantial piece of new business.
"The real impetus for acquiring the FlowMasters came
from a new financial services customer, who offered us the
chance to process a mega-mailing consisting of several million
pieces, each containing an average of three sheets of 8.5
x 11 inch paper in a half-fold (or broker's fold) landscape
fashion, with two inserts and 3 of 9 barcode scanning to assure
integrity."
To make the assignment even more challenging, A.D.M. was
given just 30 days to prove it had the necessary capacity
in-house to handle the application, and just 5 days to actually
process and complete it.
Despite the extremely tight time frame, the equipment was
shipped, installed, set-up, tested and ready with time to
spare. The mailing was processed smoothly. And A.D.M. now
has yet another very satisfied customer.
The faster speeds and the flexibility to accommodate both
new and existing work are certainly key benefits. But the
new inserting systems also feature a lower cost of ownership.
"We no longer have to maintain separate processing platforms
and incur the added expenses for equipment maintenance, training
and staffing, and downtime," says Slaney.
The investment has also brought new career opportunities
for employees. "We were a little concerned at first about
cross-training our staff on the new systems," says Slaney.
"Many of our people are more accustomed to a mechanical
environment and we didn't know how well their would respond
to the computer-driven technology of our new systems."
But the shift wasn't a problem, principally because the systems
are easy to operate, and the employees enjoy the faster work
pace as well as the opportunity to try new tasks and advance
into more challenging jobs," he continues.
"Our best FlowMaster operator today is an employee who
just six months ago was a folding machine operator with no
experience on inserting equipment," says Slaney. "He
has absolutely flourished in the new assignment and we might
not have uncovered his true potential if we had not cross-trained
everyone on the new equipment."
Now, A.D.M. is using the FlowMaster virtually around the
clock, and can easily switch back and forth to process either
direct mail or transaction-based applications as the need
arises. That makes the firm more responsive and valuable to
its customers. And helps assure that the next hundred years
will be just as successful as the first.
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