Print and Post

Remotely printed (hybrid) mail is not a new concept. ItAn important feature of all the software packages on
has been marketed by document services companiesoffer is the ability to personalise the documents. The
for many years, but previously it has only beenTNT-it software can be downloaded free of charge
available to a restricted corporate customer basefrom the TNT Post website. Clearly this mail will be
seeking a BPO (business process outsourcing) typeconsolidated with other TNT Post mail volumes. Van
solution. These DPO (document process outsource)Ierland regards that as major point of difference
suppliers target major customers with significantbetween TNT Post and other, non-affiliated
volumes of transactional or direct mail.competitors. He said, "The client will benefit since you
The 'father' of the new breed of hybrid mailcan eliminate mark-ups between parties when you
technology is Australia Post which developed thecontrol the full postal chain". The TNT-it product adds
concept for its domestic market and then acquiredvalue to the core product by ensuring the accuracy of
international print software vendor 'PrintSoft',the address is verified before it is printed, which van
specifically to extend the concept internationally. AsIerland feels helps in terms of service levels to clients.
Mark Worsley, Global CEO for PrintSoft explains, "WeViaPost has the lowest cost model on the market at a
originally developed a desktop mail solution called 'Postprojected 24p for a printed delivered document in
E Letter' for National Australia Bank. Our new vision iswhat is described as a "first class service for a
to take a wide range of desktop mail documents andsecond class post" according to Simon Campbell CEO
bring them into a central process, electronically."of ViaPost. It has recruited a high profile management
What this new breed of hybrid mail technologyteam and raised finance. It believes its print-on-demand
achieves is that it brings the whole concept of hybridmodel is the 'future of postage' as it brings SME's with
mail within reach of a range of much smaller users -below 250 items into the loop and allows then to
specifically SME's and branches of corporates.access potential savings. "For the price of their second
PrintSoft feels that potential lies in "event triggeredclass stampe at the moment, they get everything
documents". Worsley explains "We've found a strongincluded," adds Campbell. But there is also the
market with debt collection agencies, typically forconvenience factor and time saving, a point also
reminder letters....the type of document doesn't changeendorsed by van Ierland of TNT Post.
too much but the person you're writing to doesHowever unlike some of the hybrid mail operator,
change."ViaPost is not interested in bypassing Royal Mail, but
Many feel it is an idea whose time has arrived, not onlyprefers instead to work closely with Royal Mail
due to accessible new (free) software, but alsoWholesale. To ensure uniform print quality across the
because the dynamics in physical mail are still verynetwork ViaPost is working with Publicis Dialog who
much determined by the cost of collection. For mostCampbell describes as "experts in production and
SME's it is just not cost effective to use an alternativemaintaining brand control."
supplier because collection costs are prohibitive. ThisPrintSoft is forecasting customers' savings of up to 40
view is confirmed by to Bob van Ierlan, Director ofper cent based on Australian experience to date.
E2E development for TNT Post. He said, "ThePDQit are estimating similar savings to the end user.
dynamics in physical mail are still very muchUK Mail's i-Mail product will be launched in January
determined by the cost of collection."2008. It is claimed to be the first hybrid mail product to
SME mailoffer a 'next day service' - in effect competing directly
Indeed the 100 - 200 per night letter market still remainswith full priced first class mail. This has been made
'business as usual' for the vast majority of SME's,possible by a late night access agreement negotiated
despite the opening up of the market to fullwith Royal Mail Wholesale.
competition. With the standard DSA product rapidlyEquipment Integration
becoming homogeneous and dominated by twoPitney Bowes has moved into the hybrid mail market
operators - TNT Post and UK Mail - it leaves theseas part of a suite of offerings according to Jo Kenny,
SME's as a potentially attractive target. "With hybridOperations Director UK for Pitney Bowes
mail, you can differentiate yourself upstream moreManagement Services. "We prepare, create, fulfil and
than you can do with traditional physical mail,"insert into the mailstream at the closest point to
according to van Ireland.delivery", he claimed.
Another market driver which has really only achievedSignificantly three of the new hybrid mail operators -
B2B prominence in 2007, is the environmental forcesViapost, PDQit and Esker (France)- use Pitney Bowes'
which mitigate against carbon emission hungrymail fulfilment equipment. Both UK Mail and TNT Post
collections and herald the advantages of printing thehave expressed the view that hybrid mail represents a
mail closest to its final destination. The intelligent hybridcompetitive threat to traditional postal metering, but
mail software facilitates this process. AlongsidePitney Bowes has responded swiftly not only as a
PrintSoft, four other companies have now entered themajor supplier of equipment, but also as an operator (in
UK hybrid mail market almost simultaneously: PDQit (aFrance) through the acquisition of Asterion's 10 print
2005 start-up); TNT-it (divison of TNT Post); ViaPostsites which are enabled with a 'white label' version of
(a 2007 start-up) and i-mail (a division of UK Mail).Esker's 'Clic Doc' hybrid mail technology. This
A number of these hybrid mail companies have globalcompliments the three print facilities Pitney Bowes has
ambitions. The cross border advantages of hybrid mailbuilt in the UK to give the company a full downstream
are even more compelling, particularly on in-boundcapability.
international mail. All entrants rely on a network ofKenny also recognises the environmental benefits of
printer partners to deliver the business model, unlesshybrid mail "If you look at the carbon footprint of
they install digital printers into their own facilities. PDQittrucking this mail back and forth, the more mail that we
has a dual strategy having built SME mail its own printcan move digitally closer to the last mile, we believe will
facility in Warrington, but it also plans to set up agreatly reduce the carbon footprint."
regional network and build rcontributive partnerships toThe last to announce its launch is UK Mail with its 'i-mail'
expand their print capability.product, due to be test marketed in January. The point
Printers who have been historically focussed on directof difference, according to Guy Buswell CEO of UK
mail are attracted by the proposition because they areMail's parent Business Post, is that it will be a 'next day'
losing business to transactional mailers due toproduct, due to its agreement with Royal Mail
convergence. So for them it is a form of revenueWholesale in negotiating late night access into the
protection. Examples of alliances announced to datenetwork. "Royal Mail has given us a wholesale
include Inkfish and DOL (Document Outsourcingequivalent to a first class product" states Buswell.
Limited) (by Print Soft) and Polestar and FormProMMThe other major difference between UK Mail and its
(by ViaPost). ViaPost is seeking an initial network ofrivals is that it will not be relying on a printer partner
seven locations expanding to 35 across the UK.network; instead Buswell explains that UK Mail plan to
PrintSoft is taking its printer network partners'add digital printers to its existing regional sortation
involvement a step further "They'll be able to functioncentres. It feels this will give it an advantage because
as a member of the network and also to be able toof the difficulties associated with different printers and
sell the service in their own right." explains Worsley.IT interfaces. Buswell admits however, that this
This empowerment effectively creates additional salesinvestment will be gradual and in line with post launch
resource for PrintSoft.customer demand. UK Mail will also be targeting the
New entrants are mostly offering free downloadable200 letter per night SME segment estimated to be
software models and using that proposition to targetworth £1.5bn by Buswell.
SMR's, or branches of corporates, with a 'pay as youWorsley sums up the hybrid mail concept neatly "In my
go' cost model. It is clearly expected that this model willview of the world, there are only two key
encourage trial and take-up. Joes Sykes, marketingstakeholders in mail, that's the mail originator and the
director of PDQit explains that "The software ismail recipient. Everybody else is just an actor on the
intelligent enough to work out the nearest RMC (Royalstage. So we can match the needs of the mail
Mail Centre); the closest facility that we have to it andoriginator with the needs of the mail recipient and that's
fire the job down to that area. It can take one filewhere hybrid mail fits in"
which might have 10,000 records and split it into 50Buswell agrees that hybrid mail is an evolving product
different sorting centres.It works especially well withdesigned to match customers' needs. He said, "I am
Sage"absolutely convinced that whatever we come up with
The environmental benefits are not lost on Sykesas a product it will change over time... the business
either "What we're trying to do is to eliminate all themodel will not look the same 3 - 6 months after launch,
unnecessary trunking of lots of documents fromas it will appear at the outset.
source to main sorting offices."