Converting Case Study


processing up to 22,000 items per hour, allowing MHI to run three times faster than its existing equipment. Accuracy was also a critical factor in choosing Kern, from first fold to final insert, plus the engineering of its system which detects and diverts any errors, before they go into the post. The time it took to deliver the Kern 3500 was also a critical business factor. MHI needed the system live within five weeks to meet a pressing US based client’s customer acquisition strategy. No other manufacturer could meet that deadline – some offered a six month timeframe for an equally bespoke machine which was too slow with Brexit uncertainty on the horizon. MHI are also able to use their own choice of best-in-class scanner and in- house scanning software with the Kern inserter, as they wanted to be able to fully control and audit what goes through it, as well as integrate with their other machines and systems. MHI also uses its own scanners to get postal discounts with over 80 international carriers e.g. not only Royal Mail, Whistl or SecuredMail in the UK but also La Poste in France, Deutsche Post or the US Postal Service, to name a few. “Many manufacturers only allow you to use their approved partner, but what we were able to do with Kern is use our own scanners onto the machine. We wanted to control the scanners and gear them to control the machine,” says Paul. The Kern 3500’s compact footprint was


important as MHI needed a solution to maximise its output per square foot, rather than having to relocate to handle the increase in business, which would increase property costs. When it came to considering potential solutions, CEO Paul Brown states, “the responsiveness of the Kern engineering team and the pedigree of Swiss engineering was important to us. Kern were able to provide a quick install. The combination of speed, price and footprint meant the Kern machine hit a sweet spot.” Another factor that led MHI to look for an


automated solution from Kern was their desire not to outsource production to keep up with increased volumes, as controlling quality themselves was very important. Paul claims: “We have overflow mailing houses that we operate with but we’re then in the hands of their production schedule and, more importantly, their quality or KPIs. We like to have ownership of the quality cycle so there’s a certainty there.” One of the challenges faced by MHI with


this surge of business was limited space in their factory. Relocating was not an option


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Paul was willing to consider. Based in a tech-led city, building costs are premium and most factory and operational staff living within the city could cycle to work, in line with their environmental values. They needed a solution to maximise their output per square foot, and the Kern 3500 provided great cost justification against the high price of land in Bristol. Describing the business as having 'peaks and troughs', Paul outlines the mission critical, responsive nature of their clients’ projects, whether pension statements, brand engagement or e- commerce and goes on to say, “It’s all about surge control and the Kern has allowed us to smooth that out.” Because MHI produce a lot of mail going


into Europe, they needed to get ahead of the curve and get post processed and into the post at the right time to stay ahead of postal


by MHI having some connection to an online business, Paul claims that “post is very relevant; what we’re talking about is investing in the next ten years of lettershop, which accepts that the overall number of letters posted will be lower but businesses will be writing to people who want to receive their mail.” MHI see their investment in the Kern machine as “investing in the right bit of kit going forward for a modern market”. Having purchased the Kern 3500, MHI


invested in a service contract to provide engineering support for the equipment. Paul said, “there is always the concern with engineering equipment that you don’t have the support, and there is an uncertainty when you go to a new manufacturer, and Kern have delivered on their promise in that respect. My team certainly value the ongoing


support. The thing that has impressed us the most is the fact the engineers are very responsive and very customer focused."


MHI chose a Kern 3500 mainly


for its speed and flexibility: its ability to handle different envelopes or products easily


authority cut off times. Paul says, “to be honest, we are looking at the ability to deliver our clients’ postal expectations so whether it’s a marketing goal, competition entry or mission critical mail objective, it will hit at the right time.” With 60 per cent of the post managed


5. TELL ME ABOUT YOUR PLANS FOR 2020. WHAT OTHER IMPROVEMENTS WILL YOU BE SEEKING AND HOW DO YOU INTEND THE BUSINESS TO PROGRESS? MHI is a company driven by software to deliver post and parcels globally, our development team are working to push innovation in processing from robotics to volumetric scanning as mail moves through our network and these tech- solutions will be the key to growth, as we help clients thrive in the challenging cross border e-commerce and mailing and market post Brexit.


mhi.co February 2020 15


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