Businesses, nonprofits, and marketing agencies rely heavily on envelope supply for direct-mail success, so it’s crucial to have a proactive, predictive, and efficient envelope inventory management system to help:
- Meet demand
- Prevent disruptions
- Streamline operations
- Reduce costs
Here are four envelope inventory management best practices every organization that depends on direct mail should consider.
1. Min/Max Programs
Set minimum and maximum inventory levels for each type of envelope. Doing so grants real-time visibility into your inventory with rebuild points that automatically trigger reorders when stock is depleted to minimum levels. A min/max program is an efficient inventory management strategy that ensures you have ample supply to meet demand.
Min/max programs also reduce reliance on Just-in-Time inventory. Just-in-Time inventory can be a good thing if your strategy is to reduce storage costs, but it could leave you vulnerable to demand spikes if you don’t have a robust supply chain. Your envelope supplier can assist with setting up your min/max program to proactively refill stock before it runs out.
2. Storage/Warehousing
While many companies store envelopes on-site, organizations that send many mailers should consider off-site storage at supplier facilities to free up floor space. Every square inch of floor space has a dollar value, so on-site storage could unnecessarily tie up valuable space that could be used for additional inventory, production, or other purposes to grow your business.
In select cases, Priority Envelope can even work with our partners to create inventory management programs that optimize stock levels, reduce lead times, and minimize unit costs.
3. First-In First-Out
This straightforward yet often-overlooked inventory management practice is crucial for quality control. Organize inventory on your floor so that you always pull the oldest stock first. That way, your envelopes won’t age, become brittle, or discolor, and you’ll always have crisp, fresh envelopes that look and feel amazing at the mailbox.
4. Demand Planning
Demand planning allows you to take advantage of efficiencies of scale.
- Order quarterly volumes with releases rather than weekly or monthly PO’s: For example, you could place quarterly PO’s with four, five, or six releases instead of individual PO’s for each. This practice unlocks price breaks that ultimately boost ROI
- Analyze historical data and usage patterns to forecast demand: Anticipate spikes such as election mailers and seasonal variation. Estimate demand for the next year of work to ensure you’re prepared and can order ahead to take advantage of price breaks
- Continually monitor and adjust: Monitor inventory levels and adjust to demand accordingly. This strategy extends beyond inventory levels and includes press speeds and setup times, as improving these can increase volume and operational efficiency
Many organizations struggle with demand planning and often overlook lead times, which can put them in a bind when they don’t have enough envelopes for their direct-mail campaigns. A strategic envelope supplier can help.
For example, large health insurers send millions of mailers during the annual open enrollment period. Priority Envelope understands their usage patterns, so we anticipate their needs to ensure they can meet demand while reducing or nearly eliminating lead times.
If you’re struggling with inventory management, lean on an experienced envelope supplier like Priority Envelope that can help you anticipate demand, increase efficiency, lower costs, and boost ROI.
