Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Direct Mail - Category Spend Analysis
According to procurement analysts at SpendEdge, the adoption of technologies such as AR, automation in the production process, and digital asset management by direct mail service providers enhances the print quality and speeds up the delivery process, thereby increasing the demand from end-user segments. Direct mail buyers are increasingly adopting automated mailing systems wherein they have access to a secure and user-friendly desktop interface, which is connected to the suppliers' print facility. Moreover, buyers can create documents through the desktop interface without the intervention of suppliers. Through the desktop interface, buyers can also select envelope type and specify any attachments that need to be included. Once the specifications are selected by buyers, the print and fulfillment process are automated at suppliers' print facility.
The market is also witnessing an increase in adoption of prepress automation. Direct mail buyers are increasingly adopting prepress automation software solutions such as XMPie to edit direct mail files in-house. Additionally, buyers have the following advantages when they get to edit direct mail files in-house:
- Cuts down the lead time for buyers as the direct mail files can be sent directly for printing and fulfillment
- Reduces procurement costs as suppliers do not charge for prepress solutions
As a result, the increased ability of buyers to execute prepress solutions in-house is enhancing the growth of the direct mail category.
Direct Mail - Procurement Best Practices
One of the procurement best practices for buyers is to engage with service providers that offer data storage and retrieval services based on volume. Historically, service providers used to bill buyers based on per-item-storage and retrieval services within the direct mail process, which used to increase procurement costs for buyers due to lack of discounts. Hence, buyers must engage with direct mail service providers that charge them based on the total volume of online data stored and retrieved within the direct mail process. This enables buyers to avail discounts, thus reducing procurement costs.
Direct Mail - Procurement Challenges
According to this procurement research, one of the key procurement challenges faced by buyers is the high implementation and maintenance cost related to technology-based applications. Service providers are personalizing direct mails by integrating digital technologies with direct mail. Also, service providers have invested in design software for editing and pre-press within the direct mail production process. Therefore, the cost related to implementation, upgrades, and maintenance of such technology-based applications is quite high for service providers. These costs are transferred to buyers, which increases the cost of procuring direct mails
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Direct mail refers to a direct marketing technique where businesses send promotional materials to targeted prospects. Typically, buyers are offered with custom or tailored goods via such direct mails. It predominantly involves mass or bulk mailing; however, organizations send mails in small quantities as well. Also, suppliers either maintain a huge customer database or they tie-up with third-party vendors from whom they procure customer inventory, i.e., names and addresses of prospective clients.
This upcoming procurement research, which is part of SpendEdge’s marketing category, would provide actionable insights on the pricing strategies, market drivers, procurement best practices, and the supply landscape for the global direct mail market.
Category overview of the global direct mail market
Based on the type, analysts at SpendEdge categorize direct mail into:
- Lead letters
- Mailing lists
- Dimensional mailers
Additionally, this report also considers end-use application industries including financial services, FMCG, and retail.
This upcoming procurement research report on the global direct mail market would provide detailed analysis into the continuously evolving supplier landscape to help improve source-to-contract cycle performance. Moreover, it would help sourcing professionals develop enhanced category strategies, understand supplier and market challenges, implement sourcing best practices, and boost cost savings.