Critical Decision System Announces Fix for Multi-Million Dollar Shortfalls in Mail Operations
CDS Introduces a Mail Channel Management Solution that Greatly Increases Revenue (at Greatly Reduced Costs) for Integrated Third Party Marketing Operations
Jacksonville, FL – October 2nd, 2019 – Critical Decision Systems, has announced the development and availability of a mail channel management framework/platform, OPTIM(Optimal Planning Tool for Integrated Messaging), that effectively integrates and manages the dual challenges of mass mailer communications: delivering primary content and integrating Third Party Marketing messages in a way that increases profits greatly.
Purely incremental profit gains clearly are company specific and are dependent upon factors such as number of mail recipients and typical surplus weight available in a mail piece. Nonetheless, CDS research strongly suggests, based on conservative assumptions, profit increases can easily run into the tens of millions of dollars annually and capital value increases can easily reach into the high hundreds of millions of dollars for larger mass mailers. As such, this solution should be of interest to Chief Financial Officers and Chief Strategy Officers in addition to operational managers. Per Jim Enright: “The ability to increase revenue and to decrease expenses simultaneously is proof positive of significant inefficiency in these 3PM operations. Even better, reductions in operational costs alone are far more than enough to fund the minimal business process re-engineering required. Put another way, replacement of current 3PM business processes is not competing with other capital improvement options. It can be funded immediately from immediate cost savings.”
The CDS OPTIM platform combines detailed, acute financial analysis and robust search algorithms to bring about this increased profitability by solving the two major shortcomings of current Third Party Marketing business processes:
• systematic mis-classification of profitable messaging opportunities as unprofitable
• lack of direct linkage between revenue earning actions and their cost consequences
OPTIM for the mail channel is a customized configuration of a much more general CDS optimization framework. Other configurations can be tailored to the economic realities of other messaging channels, such as digital marketing, and even many other seemingly unrelated business operations.
About Critical Decision Systems
Critical Decision Systems helps improve profitability through a variety of means such as process re-design, process automation, and the three phases of business analytics:
• Reporting: tells managers what is happening
• Regression: tells managers which controls, and how strongly, drive what is happening
• Optimization: tells managers how to set their controls to best meet their objectives
We are generally of the opinion that companies typically shortchange themselves by limiting their analytics effort to Reporting alone. Our experience has been that singular management decision making and/or management through consensus is vastly inferior to the combination of “atomistic” financial models and sophisticated optimization software to improve operational profitability.
Contact information:
jim enright
critical decision systems
jimenright@critisys.com
913.709.5271