Henkel ends paper chase

Multinational chemical company Henkel has made significant savings by outsourcing a large portion of its paper-based mailroom...

Multinational chemical company Henkel has made significant savings by outsourcing a large portion of its paper-based mailroom activity to a service provider that handles it electronically.

Henkel, which manufactures brands such as Loctite, Pritt-stick and Unibond, has been able to do away with paper-based financial correspondence using an e-mail service from Virtual Mail Room (VMR).

Henkel distributes 5,000 statements and dunning (account chasing) letters a month using the service. It runs statements from its SAP R/3 software once a month and transmits the data to VMR, which then sends them out in fax form to customers.

Integration of the new system has been relatively

simple, with VMR software being added to Henkel's existing enterprise resource planning systems.

Tony Murray-Jones, accounts manager at Henkel, said, "Our six accounts clerks used to have to manually process 5,000 statements and dunning notices a month. We have saved money by not having to buy stationery, eliminating franking costs and not having to spend time stuffing envelopes."

Previously, about two person-days a month were spent on these tasks. Murray-Jones said the scheme has been so successful that the company is looking to extend it to its other European operations.

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