Pira Presentation

Direct Holdings Europe11

Strategic Print Procurement and Production for Publishers

12-13 December 2005


Removing the risks from outsourcing Direct Mailin Europe and the U.S.

Removing the risks from outsourcing Direct Mailin Europe and the U.S.

Sensible precautions to ensure delivery on time and to specification – from concept to doormatIdentifying risks and pitfallsManaging the Postal AuthorityInternal/External SchedulingHandling the logistics over large distances, the greatest problem

Andrew ShearsProduction Manager, Europe


Sensible precautions to ensure deliveryon time and to specification– from concept to doormat


Concept MeetingEnsure a production presence at the Marketing Creative Agency briefing, it is at this point you can advise on formats/specifications and raise any production incompatibility concerns.

Campaign SchedulingDiscuss the Mailing Date with Marketing, work out the ‘key’ dates and explain what is required to get to each of these dates. Marketing need to understand and ‘buy in’ to the schedule.TIP: Add ‘buffer’ time where possible to account for delays, changes of plan and hiccups!


Budget CostsPrepare a clear and detailed production brief and invite quotations/tenders from suppliers. Identify complex requirements, e.g. number of personalisation/language version, at an early stage to ensure costings are realistic and accurate for the project.

Production OrdersOn approval of budget costs issue production orders, the orders should be divided into two categories as follows:

Provisional orders to secure capacity and material.

Final orders to confirm final production/mailing requirements.



REMINDERExchange Rates




Site VisitAlthough not always practical in the case of U.S. suppliers, it is possible to visit European suppliers. This is an important part of production and will help you to understand how the supplier will produce the project.

PostalDiscuss the project and mail drop date with the Postal Authority, depending on the number of countries the campaign will be released into this may involve one or several different authorities. Each will have their own artwork specifications and approval criteria.




Artwork ‘check in’ Continue checking in on artwork progress, ensure Technical Drawings are being adhered to. As the artwork nears completion the period between checking will become less and less.

MechanicalsSupply a made-up (mechanical) sample of the artwork for print/finishing, lettershop (personalisation), mailing house, have each supplier check and either make amends or approve the sample for ‘live’ production.




Press PassThis applies not just to the printing pass, it also applies to, finishing, lettershop and enclosing (mailing house). If it is not possible to attend ask your Account contact to attend on your behalf and send samples to you by courier straight from press.

Production ‘check in’Several different suppliers may be producing pack elements; ensure that all suppliers will meet the external schedule and liaise with the mailing house to confirm elements are being delivered to time and that delivered quantities are complete.




Transport CollectionSupply a collection and delivery schedule to the transport company, issue customs paperwork, provide pre-alert forms detailing estimated pallet counts. Supply transport with a completed final packing list prior to collection.

Mail ReleaseRequest date stamped postal dockets from all postal authorities on release of campaign. Notify seed recipients to expect DM packs in their mail and to log the date of arrival so that you can monitor postal authority service levels.




Concept meetingCampaign schedulingBudget costsProduction ordersSite visitPostalArtwork ‘check in’MechanicalsPress passProduction ‘check in’Transport collectionMail release


Identifying risks and pitfallsIdentifying risks and pitfalls

Production – which includes all processes from repro to mailing house.

Transport – from collection to delivery.

Risk and pitfalls Cause, Effect, Penalties and Ownership are as follows:



Production delays – cause and effect

CAUSE EFFECT PENALTY OWNERSHIP

Late file/film supply

Missed production slot.

Machine ‘standing time’ charges

Client

Late authors corrections to final files/films

Delay to print proofs, knock on effect to production slot

Additional repro costs and potential standing charges

Client





Artwork does not fit Technical

Drawing

Major artwork amends, missed production slot, DM pack can not be enclosed, postal reject format

Expensive amends, standing charges, loss of campaign revenue

Client

Late material volume increase

Extra material may not available to meet new volume, amending orders can introduce errors

Backend – less mail volume

= less responders

= less revenue

Client

DANGERMajorPitfall





Machine breakdown, previous production run over

Delay to ‘live’ production and Lettershop delivery

Lettershop machine standing charges, possible late mailing drop into post

Supplier

Failure to supply running sheets and finishing proofs

Client not able to check content or spot errors in production, possible reprint

Expensive to reprint, material availability issue, lettershop machine charges

Supplier



Transport delays – cause and effect


Incomplete Transport Brief

Transport offer does not reflect actual requirement, method of transport incorrectly specified

Expensive extra costs, vehicle not suitable for purpose, delays while alternative transport sourced

Client

Incorrect Paperwork

Collection delayed, shipment held at customs/port or rejected

Costs to repack and reissue papers, customs fines, delay to campaign release

Client/Supplier



Transport delays – cause and effect


Damage or loss during transit

Reduction in volume for enclosing or mail release if material can not be salvaged or located

Machine standing costs, reduced mail release loss of revenue costs

Supplier

Vehicle breakdown, industrial action

Delivery of material and mail release delays

Campaign revenue loss

Supplier

N.B. Vehicle Breakdown only

WARNINGReprinttoo late


Managing the Postal AuthorityManaging the Postal Authority

Outer/BRE layout specifications Campaign Postage – PPIs, licence number Response Postage – 1st/2nd class service, licence If Undeliverable Service – address set-up Service Levels – mailsort, infopost kompact, 2 day Postal Preparation – bags, ties, palletizing instructions Dockets Mail Drop Monitoring

Create a checklist of items that require postal authority discussion, supply proofs of outer and BRE artwork, request comments and/or approval.

Supply a schedule detailing feedback deadlines, when postal supplies are required at the mailing house and the mail release (drop) date.


Internal/External SchedulingInternal/External SchedulingBelow is an example of a standard Time-Life Direct Mail Schedule

Action Plan

Brief M ajor update/New

creative

Brief M inor update

WM S1st

proof

Ordercard proof to

Fulfi lment

M arketing key codes &

List order

M arketing keys

returned to

M arketing

Paper order

Fina l approval

Selections to DP

A/w to repro

Fina l Print Qty's

Tapes a t printer

Fina l Insertion

matrix (M EL)

from PM

Film/Digi ta l fi les to printer

22-Aug 30-Aug 19-Sep 26-Sep 26-Sep 28-Sep 03-Oct 10-Oct 10-Oct 19-Oct 24-Oct 24-Oct 09-Nov 14-Nov 14-Nov 14-Nov

Foil/Cards Foil/Cards Foil/Cards

17-Oct 24-Oct 31-Oct

Ozalid Proofs in London

Perso proofing

Del iver for

insertion

Transport / Posta l

Authori ty Col lection

AB samples

to LondonM ail ing date

Door drop date Europe

Door drop date U.K.

21-Nov 28-Nov 05-Dec 19-Dec 19-Dec Decem ber 28, 2005 Decem ber 30, 2005 January 6, 2006 18weeks


Internal/External SchedulingInternal/External SchedulingThe DM schedule should be separated into five key areas,within each of these key areas there will be sub areas each with their own date priority. Key/sub areas are as follows:

1. Creative

Agency/Copywriter briefFormat quoting,Budget CostsTechnical DrawingPhotography/ScanningFulfilment Order Device checking – scanning compatibilityPostal Authority Outer and Response device checkingMechanical Dummy

6-7weeks


Internal/External SchedulingInternal/External Scheduling

2. Repro

Image scanning Image Library – recall/upload Printer file supply testing – PDF distiller settings Retouching Artwork amends Proofing – analogue/digital

2-3weeks


Internal/External Scheduling Internal/External Scheduling

3. Print/Finishing/Lettershop

Provisional order – secures capacity/material Final order – confirms final production quantities/versions File/film supply Print Proofing – soft/hard, made-up blueprint/laser Printing pass/press sheets Data supply Data testing – file format and readability Personalisation brief – includes perso layout guide Delivery of personalised elements – cards/labels Perso proofing – PDF/live Die-cutting/Lamination/Gluing/Perforation/Trimming/Folding

3-4weeks



4. Mailing House

Enclosing brief Sample Enclosing Packs (SEPs) Delivery of enclosing elements Delivery of postal supplies – mail bags/ties/trays/bag labels Postal preparation brief – pallet packing, bag loading AB Samples Postal dockets completed

2weeks



5. Transport

Land/Sea/Air freight Pre-Alert forms – issued 2 weeks before collection Insurance documentation Customs documentation – duty/fumigation certificates Final packing list Collection notification – supplier

2-3weeks


MAIL DROP


The Process The Process

Marketing PlanTarget AudienceBudget

PostalPostal authorityService requiredOuter/BRE layoutOuter/BRE licenceReturns address

CreativeChoose agencyBrief conceptDiscuss technical drawingTraffic artwork

ReproProofing – Digital or AnalogueRetouching/amendsFile/film supply

PrinterWeb Offset/sheetfedFoil/poly printerDM SpecialistBrochure printerCard/gimmick printerQuotations/budget

Lettershop/FinishingSimplex/duplexInline scitexContinuous/cutsheet laserPersonalisation briefDie-cutting/gumming/stickers/folding

Mailing HouseEnclosing matrixDelivery enclosing elementsPostal preparation briefPostal supplies – bags/tiesSample enclosing packs (SEPs)AB samplesPostal dockets completed

TransportTransport briefPre-alert/insurance formsCustom declarationFinal packing listDelivery schedule

Mail Drop/Wrap-upSeed recipients alertedDate stamped docketsMonitor campaign responsesLog undeliverables/gonawaysSupplier post campaign appraisalInvoice payment/actualise campaign

ProductWhat is available

DM CAMPAIGN


Handling the logistics over large distances, the greatest problem


Time differenceThe U.S. in particular – be prepared to be available around the clock.

Language barrierPrimarily in Europe where English is spoken as a second language misunderstandings can occur, avoid using local ‘colloquialism’ in conversation or on written briefs.

TIP:Keep it concise

and clearlydocumented




TerminologyBe aware of differing production terminology used by U.S. and European suppliers – what means one thing to you may not have the same meaning to the supplier.

Examples of terminology differences as follows:

Europe vs U.K.Blueprints = Colour Lasers

U.S. vs U.K.Bluelines = Ozalids



Handling the logistics over large distances, the greatest problemAccount ManagerIf it is not possible to meet your Account Manager ‘face to face’ send over samples of previous campaigns, discuss what campaign support documents you will provide and set out your requirements and expectations from them.

CustomsEven if paperwork has been completed thoroughly and all documents correctly supplied, delays can occur at the inbound/outbound handling port. Customs have the right to open and inspect all items in transit, your scheduled should be prepared with this in mind.


Direct Mail U.K. – The Facts Direct Mail U.K. – The Facts

Direct Mail is personally addressed advertising that is delivered through the post.

The average British household receives 14.1 items of Direct Mail every four weeks.

5.4 million items of Direct Mail were sent out in 2003. These were split between 78% (4.3m) consumer mailings and 22% (1,198m) business mailings.

Direct Mail volumes have increased by 139% in the last 13 years.

£2.5 million was spent on Direct Mail advertising in 2003.


Direct Mail U.K. – The Facts Direct Mail U.K. – The Facts

Expenditure on Direct Mail has increased by 165% in the last 13 years.

The average consumer spends approximately £577 through Direct Mail per annum.

It is estimated that Direct Mail generates over £26 billion worth of income for consumer advertisers each year in the U.K.

Of the £26.3 billion, over 36% or £9.53 billion is spent of clothes, while

books account for £4 billion and electrical goods £1.8 billion.

Source: The Letterbox Factfile


SummarySummary

In this presentation I have talked about ‘common sense’ Precautions, Risks and Pitfalls, Scheduling, Logistics Handling and Postal Authority Management for U.S. and European Direct Mail production. I hope the points I have raised have given an insight into the preparation and execution of a successful Direct Mail campaign.

I have indicated that the schedule is a key component in a campaigns success, however it is also important not to forget the supplier/client relationship and how it is managed. A supplier is not just an external company producing work on your behalf, they are an important link in a chain and are therefore partners in the project, this applies even if they only produce a small element in the project and never work with you again.


SummarySummary

The supplier should be managed as an extension of your department/company, assist them in understanding your business; what your company expects from the campaign in terms of sales and what is expected from them as a project partner.

Follow-up completed projects with a ‘supplier appraisal’, discuss their strengths and weaknesses and remember this is two way, so be prepared to be appraised.


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