AT&T Delivery Innovations produces over 40 million printed statements per month for both business and consumer customers.
This is a huge responsibility and it represents a very large expense for our corporation.
However, we have customers who still want, even demand, printed statements, and for a variety of reasons.
So while the need exists, our commitment is to do this cheaper and better than anyone else.
We built a platform that we call MACS the Mail Automation and Control System.
It's an industry-leading patented process that you can think about as an end-to-end manufacturing control platform that runs on a proprietary IBM AIX Unix platform.
We've gone from a platform that cost us over four million dollars to a platform that's only about two hundred thousand.
We see that incremental piece of paper as an incremental cost.
That incremental cost has to have a balance of a value and if the customer doesn't value it, we don't want to produce it.
A vendor outside of AT&T;, that incremental piece of paper is revenue.
In the manufacturing process we produce paper documents.
And as you can see here, there are many different pre-printed forms.
Each one of them has its own nuance, its own variation.
There's different boxes, colors, logos, perforations for pulling off the remit stub.
We recognize that if we could implement full process color in our environment that we could eliminate that cost.
We could reduce our costs and also gained the efficiencies of moving to this white paper which gives us much more flexibility in how we manufacture.
And the secret with the Postal Service discount is more mail to the same ZIP Code gives you a better discount.
We're able to combine more jobs.
We can save more money in postage.
So a self-funded, self-initiated project that we call the White Paper Factory is already delivering results.
We paid for the incremental cost of the new equipment and we're saving at a run rate over 3 million dollars a year.
So the third chapter of this story and this evolution in our journey toward 202 is this new marketing channel that we invented in collaboration with our business partners.
We call it the First Page Communicator and it's proved to be a very powerful method for communicating with our customers.
Think about it, it's already a touch point that we have every month with our customer and for an incremental cost of a penny, a penny and a half, we can deliver these inspirational, informational, promotional messages that are targeted to those individuals receiving that paper.
And the results have been phenomenal.
Our clients love it.
We've actually grown to over 20 million FPC's per month and they're constantly working with us to find ways to do more.
The First Page Communicator has now become a complimentary marketing asset to other assets such as direct mail email where it now provides incremental sales and incremental revenue to the company and a much lower cost therefore improving the ROI of the marketing programs.
So the reason we've been pursuing this is to continue to really emphasize and focus on our customer.
Our journey is long and we have many steps in this process as we go for 2020, to be more software driven, to deliver more value for the customer.
And in the process that we manufactured the mail, add value to that final touchpoint recognizing that we can continue to grow our capabilities, more tailored specific messaging to the customer, more ways to drive costs out of the business while recognizing that many of our customers still want that paper statement.
So the journey is only just begun.