July 17th, 2014

Homeserve Case Study

Serving up savings and speedier mail handling for Homeserve

Homeserve plc was established in 1993 as a result of a joint venture with South Staffordshire water. From selling the first plumbing and drains policy in 1994, the business has transformed into a successful, fast moving FTSE250 company with over 8 million emergency insurance policies sold across the UK, France, Spain and the US. 

Challenge 

Speed up and simplify the handling of over 1.4 mailing mail items.

Results

Processing times reduced by 33% saving £35,000 pa. 

Solutions

Install three super-effecient IM-75 letter openers and STATS software. 

Method

Develop understanding of current practices and develop effective hardware and software solutions. 

The Overall man hours spent on processing mail has dropped daily by 10 hours equating to a reduction of over 200 man hours a month. 

Josie Bates- Homeserve 

The Challenge 

Homeserve open and process an average of 7,500 items per day. They had been using a basic letter opener to slit open their incoming mail. Incoming mail was pre-sorted, batched and boxed ready for slitting on the letter opening machine. Then the general correspondence (consisting of 500 envelopes per day) was passed to 12 staff in the main office to open and manually extract the contents ready for scanning. This preparation process took 12 staff 30 minutes a day - equating to 6 man hours. The remaining 7,000 envelopes were processed at 300 items per hour - equating to 24 man hours per day! In total the processing of the 7,500 envelopes a day took 30 man hours, equating to £4428 a month to process.

The Process 

Homeserve initially contacted Neopost to replace their existing letter opener which was coming to the end of its life. Neopost reviewed the existing processes and practices before recommending cost-effective hardware and software 

The Solution

Homeserve now lease three IM-75 incoming mail processors – they can now complete the processing of their incoming mail in one single process. This reduces the amount of time spent on handling and processing mail, thereby reducing the amount of man hours, allowing staff to focus on more productive tasks. In addition to the three IM-75’s, Homeserve use a software tool called STATS, which allows performance levels to be set and measured.The content is now identified and sorted ready for scanning and forwarding. Since implementing the new automated mail solution the general correspondence is being processed a half hour quicker by the post room staff only. This allows the staff in the general office to work on their normal duties half an hour earlier.

 

Delivery and Results 

In addition to the installation of IM-75, STATS management software was also installed which allows Homeserve to stay in control – setting, monitoring and managing handling performance.The processing of the applications went from 300 items per hour to 700 per hour.

Customer Feedback 

The increased handling speed, reduced costs and increased management tools has delighted the client. Josie Bates, Data Processing Manager for Homeserve said, “The overall man hours spent on processing mail has dropped daily by 10 hours equating to a reduction of over 200 man hours a month! As a result of using the three IM-75’s, we can process our incoming mail 33 per cent faster equating to a saving of over £35,000 per year.”

 

As a result of using the three IM-75's, we can process our incoming mail 33% faster equating to a saving of over £35,000 per year.