“Oiling the wheels of commerce and exports” - Direct Distribution article
At the start of 2007, the Mail Consolidators Association (MCA) launched their white paper "Oiling the wheels of commerce and exports". This paper was mailed to key stakeholders, such as MPs, ministers, clients, suppliers, postal operators, media and trade associations. This paper was produced as part of an overall awareness and profile campaign to key stakeholders. The objective of which is to communicate the importance and value the mail consolidators bring to UK business and the UK economy. In so doing raise the profile and awareness of the Mail Consolidators Association and its members. Below are key extracts from the paper.Economic engine
International mail from UK is probably worth £1 billion in postage costs alone. This mailing activity stimulates a variety of commercial activity from selling and exporting products and services to financial transactions. At the centre of this activity are international mail consolidators, working with brands, clients and postal operators to deliver efficient and effective international mailing activity. This activity is a direct contributor to the UK economy, contributing to economic growth through the generation of exports. They are in essence oiling the wheels of the export machine. This international activity could be generating in excess of £4 billion in export sales.
What is a mail consolidator?
A mail consolidator produces mail for clients following the regulations of the destination countries including the appropriate postal indicia and address formatting (or receives mail from clients produced correctly) mixes and sorts it according to the requirements of the receiving postal authority overseas. The mail is then bagged and labelled appropriately to meet the requirements of the destination country or region.
By presenting the mail in a "sorted" condition to the postal operators the consolidator effectively handles some of the initial work for the postal operator, leaving the postal operator with less processing to undertake and fewer resources to employ. In turn they offer a trade rate to consolidators which reflect this, and this is much cheaper than the general tariff.
Also mail consolidators leverage the collective might of all their clients to negotiate with postal operators. Postal operators are only really interested in handling very large volumes of mail so clients alone can not usually access these services.
Best practice & Experience
As competition begins to establish itself in the UK postal market, there is a feast of knowledge, clients, mailing houses and operators can access from international mail consolidators. For many decades, MCA members have taken clients' mail, sorted and presented it, ensuring it meets regulatory constraints of the destination countries. It hands over to the national operator/ carrier to perform the final delivery. Many of the traditional sortation processes have been carried out by the consolidator, so saving the operator, time and cost. In many aspects, this mirrors what is happening in the UK market, now, particularly with downstream access. MCA members have invaluable experience and best practice to pass on to the UK market.
Innovation
In order to succeed and prosper international mail consolidators have constantly innovated, bringing leading edge solutions to the international mail arena. This innovation takes many forms, fundamentally driven, to offer clients a better service and the most cost-efficient route. Some of the more recent examples are:
• Creation of a subsidirial network in destination countries
• Creation of intelligent routing systems, such as IRIS from Mail Handling International. Ensuring the most cost-effective route for clients
• Creation of extra-territorial Office of Exchange (ETOE) for national operators within consolidators international sorting centres. Operating under licence, so generating faster delivery times and exerting greater control over the transport/logistics process. For example IMX’s recent agreement with Belgian Post International, creating an ETOE in Italy within IMX international sort centres.
• Solutions to take clients unsorted, mixed mail, taking onboard all sortation and routing processes. Such as Post Express from Mail International. Allowing clients to make real savings in their international mail
Quality Commitment
The postage element of an international mailing campaign is the single largest cost likely to be incurred. Coupled with the variability in supplier costs, it is vital clients can choose suppliers who are committed to quality, an effective code of practice , exhorting best practice and mail integrity, at all times.
Such suppliers are MCA members who sign up to the MCA quality commitment and sign up to the MCA code of practice. A code designed to protect the clients’ mail integrity, offer transparency, auditable processes and accurate, effective service and routing diagnostics.
This gives the client trust and confidence in the handling and processing of their international mail campaigns.
The mail consolidator
Mail consolidators often have sophisticated data processing, mail fulfilment and sorting capabilities which clients, and their printers, simply do not have. Mail consolidators also have many years experience and established supplier relationships, often with many agents across the world.
Most mail consolidators will offer a range of delivery options and prices, and they can offer a mixture of services for delivering direct mail, transactional mail, customer correspondence, catalogues, magazines, journals, packets and parcels etc.
The major benefits of working with a mail consolidator are:
• Cheaper prices
• More choice of delivery options
• Experience and expertise
• Value added services
MCA modus operandi
The MCA is a membership organisation, and it acts as a forum for approved independent mail consolidators to share information, develop joint initiatives, and promote best practice, to the mutual benefit of members and their custom.
Members of the MCA adhere to the following Code of Conduct, to:
• Ensure the integrity of the customers mail at all times.
• Maintain Client confidentiality.
• Operate robust auditable processing systems.
• Provide accurate service and routing information.
• Provide accurate information on service delivery aims and prices.
The aims and objectives for which the MCA is established are as follows, to:
• Promote best practice by, and maintain high standards of, its members
• Develop the industry for the benefit of its members and their customers
• Promote equality in the industry between private and public postal & parcel suppliers
• Inform and educate the market of the benefits of consolidated distribution services
• Protect, promote and further the interests of its members
As you can see from the MCA's aims and objectives and Membership Code of Conduct, MCA members are committed to providing a high quality service, they are actively involved in promoting best practice within the industry and their decision to join the MCA illustrates how seriously they take these issues
Value Added Services
As well as mail consolidation many MCA Members also provide a full range of value added services including; data processing, polywrapping, envelope enclosing, laser printing, personalisation and response fulfilment services.
With their experience ranging from two, to over twenty years, MCA members can also offer advice to help you find the best mix of services to effectively and efficiently distribute your mail across the world.
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