Pricing in Proportion Update - Skipton Building Society

 

Back in 2005, when Skipton Building Society first became aware of Pricing in Proportion (PiP), it was nothing more than 'something happening in the future'. Today it's a reality and businesses across the UK are faced with its affects on their mailroom.

However, Skipton Building Society, the UK's seventh largest building Society, can sit back and relax because it evaluated the impact PiP would have on its mailings, sourced a solution and began to process of informing staff about the potential impact of PiP on Postage cost in early 2006, well before the deadline of August 21 2006.

Founded in 1853, Skipton Building Society is a long-established provider of financial services with over 100,000 borrowers and 600,000 investors serviced from its network of 79 branches, stretching across the UK, from Aberdeen to Plymouth. As a successful mutual organisation, Skipton is renowned throughout the industry as a leader in 'modern mutuality'. This is illustrated by its strategy to use the cost-benefits its mutual status brings and invest in offering its customers a wide range of services. Alongside its core products of savings, mortgages and general insurance, customers have access to specialist mortgages, personal loans, IHT advice, wealth management advice, non-regulated term assurance, health insurance and offshore savings.

Size and Shape Now Have a Bearing on the Final Postage Cost

Like withmany of its customers, Neopost brought PiP to Skipton's attention well in advance of its introduction so that it had adequate time to review its mailing solutions and install any equipment required to make them compliant. "Pricing in proportion has been deemed as the biggest change to the UK postal system in the UK since the introduction of the Penny Black, according to Postcomm," said Philippe Masson, marketing director of Neopost. "Therefore, it was vital to advise our customers well in advance to avoid them incurring any unnecessary costs or finding themselves ill prepared for its introduction."

No longer based just on weight, PiP is a simpler pricing system where size and shape also have a bearing on the final postage cost. This is because Royal Mail believes that the size and shape of most mail is more important to the cost of mail sorting and delivery than its weight.

Specialist Mailroom Equipment to Meet Our Requirements

Having already installed numerous pieces of Neopost mailroom equipment into its busy mailroom, such as the SI-82 and SI-60 folder/inserters, Skipton was impressed by how efficient the equipment was. "We have an extremely demanding mailroom, communicating vital information to our customers. Therefore, we needed a solution that could respond efficiently to the day-to-day requirements of our customers but also make us PiP compliant," said Elwyn Horton, Office Services Manager at Skipton Building society. "Historically, the level of after-sales support we received from Neopost was outstanding and therefore, when we started preparing for PiP, we were keen to see what equipment they had available to meet our requirements."

"It was obvious that our principle Pitney Bowes Paragon franking machine would need replacing prior to PiP, so I decided the first step in our preparations was to upgrade our Neopost IJ-65 Franking Machine to include the i-Weigh platform," said Horton.

One of the Fastest Dynamic Scales, With PIP Capabilities, on the Market

The i-Weigh has the ability to check the weight and size of any piece of mail, while in motion, and calculate the correct postal rate according to the new PiP pricing regulations. Its user-friendly quality means anyone with minimal training can work the i-Weigh by simply dropping the mixed weight and size envelopes into the feeder and pressing start. With speeds of up to 120 items per minute - 7,500 items per hour, the i-Weigh is one of the fastest dynamic scales, with PiP capabilities, on the market.

"When Skipton first came to us, it had two problems that needed solving; replacement of a franking machine, and to respond to the new PiP rules. By upgrading its IJ-65, to include the i-Weigh platform, we were able to solve both problems with one solution; offering Skipton the ultimate in mailroom automation combined with saving time and money," stated Masson.

Prior to the implementation of the i-Weigh, Neopost's sales account manager visited Skipton's offices and took a selection of mailroom operatives to see the i-Weigh in action. This gave them the opportunity to gain hands-on experience and an understanding of what to expect from the i-Weigh. "The implementation was effortless. Neopost's engineer was a 'star', as always, providing sufficient training for all our mailroom operatives at the time of installation," praised Horton.

Today Skipton's principal office, based in Skipton, North Yorkshire, is more efficient then ever. "We have over 1,000 office staff on site, who generate around four million letters a year, about one million of which need to be franked. With the use of the upgraded IJ-65 and the purchase of a new IJ-90 also with i-Weigh, we can rest assured that we will be able to cope with our high demand of mail now, and in the future," concluded Horton.