HP Opts For Neopost Digital Mailing System

Neopost has supplied its digital mailing system for use throughout Hewlett-Packard's North American offices.

It was a different kind of sale.

The prospective buyer already knew the many benefits of Neopost's digital mailing systems' print quality, reliability, ease of use, speed and productivity.

After all, the buyer engineered the printing technology inside the systems.

So when Neopost was asked to propose mailing solutions for Hewlett-Packard's North American offices, Neopost focused less on the technology and more on the relationship.

It proved to be a winning proposition for both companies.

Following the 2002 merger of HP and Compaq, the new HP found itself with too many metering machines, especially in major cities.

At about the same time, the United States Postal Service was entering the second half of its four-phase plan to remove non-secure postage meters from the market.

HP needed to streamline and update its mailing systems to handle its 120,000 pieces-per-month mail volume.

The opportunity was right for Neopost, the fastest growing provider of mailing solutions in the world.

Neopost was awarded a contract for more than 85 digital mailing systems, replacing about 80 per cent of HP's existing mailing equipment in the United States and Canada.

The remaining 20 per cent is expected to be replaced over the next two years.

Neopost and HP are not strangers.

In fact, Neopost was among the first companies to license HP thermal inkjet technology for industrial-printing applications.

And today, nearly ten years later, Neopost is one of HP's largest clients in the mailing system business, exclusively using HP inkjet technology to drive its mail-printing solutions.

Each month, hundreds of thousands of dollars in postage is printed by Neopost's digital mailing systems using HP inkjet technology.

Still, the sale was no slam dunk for Neopost.

'HP invited us to participate in the process, but we had to adhere to the same strict qualifying process as every other vendor,' said Gerard Grossano, vice president of direct sales for Neopost.

'It was clear from the onset that even though we had been an HP partner for several years, our advanced technology, unmatched flexibility and outstanding service were going to have to win this account for us'.

According to Cristi Malloy, HP Americas distribution services program manager for the Real Estate and Workplace Services (REWS) operation, HP evaluated prospective suppliers on several criteria, including technology and innovation, pricing, geographic coverage and maintenance programs.

'Neopost had very competitive pricing, a strong support structure and a well-thought-out implementation plan,' explained Malloy.

'The fact that Neopost's digital mailing systems are powered by clean, reliable HP inkjet technology didn't hurt'.

'Neopost has some of the most technologically advanced mailing systems in the world,' said Buddy Price, sales development manager for HP's Specialty Printing Systems.

'The products are reliable, easy to use and just as simple to maintain.

'There's virtually no training involved to get users up and running on these systems, which makes implementation a cinch'.

Neopost approached the opportunity as a consultant rather than a vendor, listening intently and sharing industry knowledge with the HP purchasing team.

'We were able to work in partnership with HP.

'They helped us understand what their needs were, and we were able to help HP better understand the market, changing postage requirements and the various mailing equipment options,' said Nancy David, major account executive for Neopost.

Neopost provided HP with the information and tools to do its own evaluations of low-end equipment and conducted onsite evaluations for HP's high-end equipment.

These evaluations revealed that many of HP's existing mailing systems were being underutilized, meaning the company was paying for features it didn't need.

In other cases, the existing equipment lacked advanced features that could dramatically improve HP's mail processing efficiency.

'We didn't simply look for a one-to-one equipment replacement,' explained David.

'Needs change, and so do technology and postal regulations.

'We looked at what HP's needs are today and also where HP might need to grow'.

The modularity of Neopost's equipment helped minimize the risk for HP.

'Features that HP doesn't need today don't need to be purchased today.

'If the need arises tomorrow, the features can be easily added without losing the initial investment,' said David.

'There's more flexibility with Neopost's modular equipment," agreed Clara Tyler, HP's indirect procurement commodity manager.

'For example, we were able to select the size of scales for our meters.

'If our weight requirements increase, but the volumes don't, we can simply change out a scale'.

Neopost was also able to deliver flexible invoicing schedules and consolidated maintenance programs to further streamline HP's equipment purchase.

'Neopost didn't show any rigidity that you might find with other companies,' said Tyler.

'We would share what we were trying to achieve, and they would either validate our thinking or give us another solution to reach our goals.

'They were very open to sharing best practices to find solutions'.

For HP Specialty Printing Systems, the organization responsible for licensing HP technology to original equipment manufacturers, the selection of Neopost digital mailing systems has sweet significance.

'HP was looking for one supplier for all our North American mailing systems - not one supplier for low-end equipment, another for high-end equipment and another for software, etc.

'Neopost has a full range of innovative solutions and the solid support infrastructure necessary to meet HP's requirements, not just in North America but globally,' said Price.

'It's a very significant relationship for HP.

'It shows we are partnering with a top notch manufacturer capable of providing global and complete solutions to the world's leading companies'.

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