Pira Presentation

Direct Holdings Europe
Strategic Print Procurement
and Production for Publishers
12-13 December 2005

Removing the risks from outsourcing Direct Mail
in Europe and the U.S.
Sensible precautions to ensure delivery on time and
to specification – from concept to doormat
Identifying risks and pitfalls
Managing the Postal Authority
Internal/External Scheduling
Handling the logistics over large distances, the
greatest problem
Andrew Shears
Production Manager, Europe

Sensible precautions to ensure delivery
on time and to specification
– from concept to doormat
Concept Meeting
Ensure 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 Scheduling
Discuss 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 Costs
Prepare 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 Orders
On 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.
REMINDER
Exchange Rates

Site Visit
Although 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.
Postal
Discuss 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.
Mechanicals
Supply 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 Pass
This 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 Collection
Supply 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 Release
Request 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 meeting
Campaign scheduling
Budget costs
Production orders
Site visit
Postal
Artwork ‘check in’
Mechanicals
Press pass
Production ‘check in’
Transport collection
Mail release

Identifying 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
DANGER
Major
Pitfall

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
WARNING
Reprint
too late

Managing 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 Scheduling
Below is an example of a standard Time-Life Direct Mail
Schedule
Action
Plan
Brief Major
update/New
creative
Brief
Minor
update
WMS
1st
proof
Ordercard
proof to
Fulfilment
Marketing
key codes&
List order
Marketing
keys
returned
to
Marketing
Paper
order
Final
approval
Selections
to DP
A/w to
repro
Final
Print
Qty's
Tapesat
printer
Final
Insertion
matrix
(MEL)
from PM
Film/Digital
files 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
Deliver
for
insertion
Transport
/ Postal
Authority
Collection
AB
samples
to London
M ailing date
Door drop date
Europe
Door drop date
U.K.
21-Nov 28-Nov 05-Dec 19-Dec 19-Dec December 28, 2005 December 30, 2005 January 6, 2006
18
weeks

The 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 brief
Format quoting,
Budget Costs
Technical Drawing
Photography/Scanning
Fulfilment Order Device checking – scanning compatibility
Postal Authority Outer and Response device checking
Mechanical Dummy
6-7
weeks

2. Repro
Image scanning
Image Library – recall/upload
Printer file supply testing – PDF distiller settings
Retouching
Artwork amends
Proofing – analogue/digital
2-3
weeks

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
3-4
weeks

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
2
weeks

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
2-3
weeks

MAIL
DROP

The Process
Marketing Plan
Target Audience
Budget
Postal
Postal authority
Service required
Outer/BRE layout
Outer/BRE licence
Returns address
Creative
Choose agency
Brief concept
Discuss technical
drawing
Traffic artwork
Repro
Proofing – Digital or
Analogue
Retouching/amends
File/film supply
Printer
Web Offset/sheetfed
Foil/poly printer
DM Specialist
Brochure printer
Card/gimmick printer
Quotations/budget
Lettershop/Finishing
Simplex/duplex
Inline scitex
Continuous/cutsheet laser
Personalisation brief
Die-cutting/gumming/stickers/folding
Mailing House
Enclosing matrix
Delivery enclosing elements
Postal preparation brief
Postal supplies – bags/ties
Sample enclosing packs (SEPs)
AB samples
Postal dockets completed
Transport
Transport brief
Pre-alert/insurance
forms
Custom declaration
Final packing list
Delivery schedule
Mail Drop/Wrap-up
Seed recipients alerted
Date stamped dockets
Monitor campaign responses
Log undeliverables/gonaways
Supplier post campaign appraisal
Invoice payment/actualise campaign
Product
What is available
DM CAMPAIGN

Handling the logistics over large
distances, the greatest problem
Time difference
The U.S. in particular – be prepared to be available around the
clock.
Language barrier
Primarily 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 clearly
documented

Terminology
Be 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

Account Manager
If 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.
Customs
Even 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 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
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

Summary
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.

Summary
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.

Questions

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