[comp.dcom.telecom] Why do Telcos Use Window Envelopes for Payments?

syd@dsi.com (Syd Weinstein) (02/20/91)

Ron Heiby <heiby@mcdchg.chg.mcd.mot.com> writes:

> 0004133373@mcimail.com (Donald E. Kimberlin) writes:

> The thing about my IL Bell bill-paying envelopes, and many others,
> that I continue to find a mystery is, "Why the heck do they need that
> window on the envelope?"  As far as I can tell, it's just to give me a
> pain by forcing me to a specific orientation of contents insertion.

The reason is very simple, its to make sure you remember to include
the payment coupon.  Having the make the address show through the
window makes it much more likely that the customer will include the
payment coupon.

Our local power company and the water company go one better, the
window only is big enough to show the name of the company, the address
and bar code are pre-printed.

Again, its just to make sure that the proper page is returned and that
a page is returned.  Otherwise too many people just send in a check
and no 'bill payment page'.


Sydney S. Weinstein, CDP, CCP                   Elm Coordinator
Datacomp Systems, Inc.                          Voice: (215) 947-9900
syd@DSI.COM or dsinc!syd                        FAX:   (215) 938-0235

SKASS@drew.bitnet (02/20/91)

In TELECOM Digest #136, Ron Heiby <heiby@mcdchg.chg.mcd.mot.com>
writes:
 
> The thing about my IL Bell bill-paying envelopes, and many others,
> that I continue to find a mystery is, "Why the heck do they need that
> window on the envelope?"  As far as I can tell, it's just to give me a
> pain by forcing me to a specific orientation of contents insertion.
          ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
> The envelope already has the city/state/zip+4.  In fact, the zip+4 is
> BAR CODED on the envelope!  [...]
 
It may give you a pain to put the contents into the envelope in a
particular way, but it aids the Telco's automation.  If the check is
always behind the bill and the bill is right side up, a machine can
open the letter, separate the check from the bill, pull up the
customer record and present an employee with the check.  The employee
simply types the amount of the check into a terminal and all the rest
is taken care of automatically.
 
I don't know for a fact that this is the reason, but it's the only one
I can come up with that makes sense.
 

Steve Kass/ Math&CS Dept/ Drew U/ Madison NJ 07940
2015141187/ skass@drew.edu

lang@panews (02/21/91)

> [Moderator's Note: Actually in the case of Illinois Bell, ...  Anything
> saying 60669 sorts to the back of a large van which delivers a couple
> hundred thousand payment envelopes to telco daily ... Like you, I've
> always wondered why the big fuss about making the coupon stand the
> right way in the envelope, etc.  PAT]

Consider what happens at the other end, when those couple hundred
thousand envelopes arrive at the processing center each day.  Each one
has to be opened, and the remittance sheet handled both by a human (to
enter the amount received) and (I presume, based on the
machine-readable digits on the sheet) by a machine to record the
payment.

The person handling the remittance has to take the sheet out of the
envelope, read it, and probably insert it in the correct orientation
into some processing machine.  Consider it from an efficiency
engineer's point of view and you'll see that adding the step of
flipping the sheet around to the correct orientation to read it and
send it through the processing machine could cost, say, two seconds.

Even if only 30% of the envelopes came in with the sheets in an
"incorrect" orientation, Pat's estimate of 200,000 envelopes per day
yields 60,000 envelopes requiring special handling to reorient the
remittance document.  Assuming the flow of envelopes is constant six
days a week, two second for each of those 60,000 envelopes comes to
16.66 hours per day, or 5197.92 hours per year.  Even allowing for a
fifty-hour work week, that still comes out to two extra full-time
employees.

While not a large expense compared to the outrageous profit margins of
the operating companies, two full-time employees has *got* to cost
more than the difference between standard and window envelopes.  So,
from a manager's point of view, the choice makes sense.

Be seeing you...

Lang

tro@uunet.uu.net (Tom Olin) (02/21/91)

In TELECOM Digest #136, Ron Heiby <heiby@mcdchg.chg.mcd.mot.com>
writes:

> The thing about my IL Bell bill-paying envelopes, and many others,
> that I continue to find a mystery is, "Why the heck do they need that
> window on the envelope?"  As far as I can tell, it's just to give me a
> pain by forcing me to a specific orientation of contents insertion.

According to an information insert in one of my New York State
Electric & Gas (NYSEG) bills a few months back, that is exactly the
reason they use window envelopes.  They speed processing at the
office.


	Tom Olin	uunet!adiron!tro	(315) 738-0600 Ext 638
 PAR Technology Corporation * 220 Seneca Turnpike * New Hartford NY 13413-1191

rees@pisa.ifs.umich.edu (Jim Rees) (02/22/91)

In article <telecom11.136.5@eecs.nwu.edu>, Ron Heiby <heiby@mcdchg.
chg.mcd.mot.com> writes:

> Why do they put those darn windows there, rather than printing their
> full address on the envelope?

My first wife worked for a leasing company that had all kinds of
automated billing stuff run by an IBM System/38.  The combination of
window/insert makes it necessary for you to put the bill in the
envelope with a particular orientation.  This makes it possible for a
machine to remove the bill and your check, read your account number
off of the bill, and pass the check on to another machine that reads
your checking account number from the bank code in the lower left
corner.  The only manual intervention required is someone to read the
amount of the check and key it in.  And these days, even that isn't
needed if you have an OCR reader that's good with handwriting
(remember, it only needs to recognize digits).

What's that got to do with telecom?  Next time you have trouble with
your phone bill and need to get a human in the loop, send the bill and
your check in your own envelope.  A warm-blooded human will have to
deal with it.

roy@alanine.phri.nyu.edu (Roy Smith) (02/22/91)

	This is having increasingly little to do with telephones, but
it's a fun tangent, so what the heck?  Besides, evaluating the cost of
running a utility has always been fair telecom digest fodder, hasn't
it?  Let's start with some assumptions by lang@ibmpa.awdpa.ibm.com,
namely that it takes two seconds to re-orient a mis-oriented piece of
paper and that you have to do it with 30% of the envelopes you get.
Do these assumptions justify Lang's statement that:

> While not a large expense compared to the outrageous profit margins of
> the operating companies, two full-time employees has *got* to cost
> more than the difference between standard and window envelopes.

	Today's {NY Times} classified section has three ads for data
entry clerks; two list salaries (one $7/hr the other $17k/year).  At
about 1900 hours per work year, $7/hr is 13.3k/yr, but my guess is
that unionized telco employess make near the high end of the scale, so
I'll take the $17k/yr as a reasonable figure.  That's about $9/hr,
which turns into costing the employer about $12/hr with benefits, or
 .33 cents/second.

	My King Printing and Stationary catalog has 3-3/8" x 6-1/2"
envelopes as $11.19/500 for plain and $14.49/500 for windows, in
10-box lots.  That's 2.24 and 2.90 cents per, respectively.  Add 10%
for inflation (it's a 1989 catalog) and you get 2.46 and 3.19, or an
extra 0.73 cents for windows.  I'll take a wild guess and say telco
buys custom printed ones in billion lots for the same price I can buy
stock ones in 5000 lots.

	To process ten envelopes, the clerk will, on average, have to
re-orient three pieces of paper, at an added cost of six seconds, or
two cents.  To save those six seconds by using window envelopes, telco
would have spent an extra 7.3 cents, putting them 5.3 cents in the
hole on the deal.  If the basic assumptions are true, then lang's
claim is false; the people are cheaper than the envelopes.  Of course,
my estimate of the clerk's wages could be off by a lot, and maybe
telco can buy envelopes a lot cheaper than I thought, but both would
have to be wrong by factors of two (in opposite directons) to make it
break even.  Maybe you lose more than two seconds per re-orientation?

	Well, just to make things more interesting, I asked the
controller here what he pays for both kinds of envelopes (he found
researching this to be a nice diversion from doing our corporate
taxes).  To my surprise he said it doesn't cost them anything
different for the two kinds.  I find that hard to believe, but would
be remiss if I didn't report the datum.  Another tidbit is that while
NYTel uses windows, Brooklyn Union Gas doesn't.  Go figure.


Roy Smith, Public Health Research Institute
455 First Avenue, New York, NY 10016
roy@alanine.phri.nyu.edu -OR- {att,cmcl2,rutgers,hombre}!phri!roy

djdaneh@pacbell.com (Dan'l DanehyOakes) (02/22/91)

In article <telecom11.140.4@eecs.nwu.edu> SKASS@drew.bitnet writes:

> It may give you a pain to put the contents into the envelope in a
> particular way, but it aids the Telco's automation.  

Speaking as a consumer (rather than a telco employee, which I also
am), why should I *give* a frog about aiding the Telco's automation?
If it saves the vendor (in this case, a Telco) labor at cost of
convenience to the Customer, it's bad marketing -- period.


The Roach

scott@huntsai.boeing.com (02/26/91)

djdaneh@pacbell.com (Dan'l DanehyOakes) writes:

> In article <telecom11.140.4@eecs.nwu.edu> SKASS@drew.bitnet writes:
>> It may give you a pain to put the contents into the envelope in a
>> particular way, but it aids the Telco's automation.  
> Speaking as a consumer (rather than a telco employee, which I also
> am), why should I *give* a frog about aiding the Telco's automation?

Well, assuming that the Telco's charges to you are relative to their
costs (probably a big assumption), if they can lower costs through
automation, then they are also lowering your bill. If you go along
with their automation efforts you help lower your bill.


Scott Hinckley   Internet:scott@huntsai.boeing.com 
|UUCP:.!uunet!uw-beaver!bcsaic!huntsai!scot

DISCLAIMER: All contained herein are my opinions, they do not 
represent the opinions or feelings of Boeing or its management.