Mailrooms have come a long way since the age of paper mail. With the rise of e-commerce, they’re busier than ever, especially in large corporations. A corporate mailroom can be an extremely busy place, with an endless stream of packages and letters demanding constant attention.

These changes have led to the birth of the digital mailroom.

A digital mailroom offers modern solutions to evolving problems. Digital mailrooms use new technology to automate and optimize daily operations, reducing costs and improving the customer experience. At the same time, these mailrooms lighten your organization’s need for physical resources since documents are digitalized.

For example, some digital mailroom software scans parcels upon arrival or when they are ready to be sent out. They can even track a package’s journey throughout the premises—much more reliable than using a series of physical logbooks to know what item is where.

But how does a digital mailroom work, and what does it entail for your business? Let’s explore the technology and explore its benefits together.

How Does a Digital Mailroom Work?

Digital mailrooms leverage automation and intelligent technology to streamline the flow of physical and electronic mail. Here’s a quick breakdown of how it works.

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1. Mail and Package Arrival

Incoming mail is sent to a mailroom’s secure scanning facility where it is logged and prepared for processing. The software can also log packages and capture their dimensions and weight data.

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2. High-speed Scanning and OCR

Digital mailroom software utilize scanners equipped with Optical Character Recognition (OCR) technology. OCR reads the text on documents and labels,  converting them into searchable files. This feature makes it easier to find and track parcels during the later steps of the process.

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3. Intelligent Classification

Artificial Intelligence (AI) sets predefined rules that mailroom personnel can use to categorize documents. For example, scanned documents containing the word “invoice” can be routed automatically to accounts payable.

Learning Language Models (LLM) help the system improve over time. These can improve accuracy when scanning tricky handwriting and are capable of understanding context.

The software analyzes and identifies patterns in past data, allowing it to automatically categorize documents for you. Digital mailroom systems can recognize a specific vendor logo and route it to the correct department.

OCR and AI are a match made in heaven for simplified parcel management. Artificial intelligence and machine learning turn simple scanning into automated sorting and routing.

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4. Secure Digital Storage and Distribution

Say goodbye to filing cabinets – digital mailrooms store all documents electronically in a central and secure cloud-based repository. Authorized users can access these files from any location with an Internet connection. Digital mailrooms can automatically distribute scanned documents and extracted data to designated individuals or departments based on pre-set workflows.

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8 Important Benefits of a Digital Mailroom

Digital mailrooms have transformed the way businesses handle mail. Here are eight reasons why more and more organizations have started implementing digital mailrooms.

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1. Greater Efficiency

Manual and paper-based processes are tedious and annoying. They are a tremendous burden on your business. Not only will you need valuable resources to inform employees about their parcels’ status, but you will also have to manage all the associated paperwork.

With a digital mailroom, you will be able to:

• Have immediate access to the locations of mail within your property,
• Meet tight timeframes,
• Save time wasted on photocopying or scanning,
• Minimize mistakes,
• Improve your internal efficiency, and
• Enable your team members to focus on work that makes you money.

Corporate mailrooms can spend hours logging parcels alone. With a digital mailroom, the process becomes much faster.

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2. Improved Customer Service

A more efficient mailroom gives you a headstart on improving customer service. The mail you send out will get to recipients faster, and you can respond to mail with greater haste.

You will also be able to offer your customers a range of other benefits, including dispatch and delivery notifications. Recipients like to stay informed about the whereabouts of their parcels. It provides peace of mind and reduces frustration, which can reduce admin time when customers or internal staff inquire about the status of their parcel.

Improved internal parcel tracking gives you an edge against competitors that still use outdated systems for their mail.

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3. Reduce Operational Overheads

Digital mailrooms can reduce the human resources needed to handle operations. Think about how much time and manpower you consume every day logging parcels by hand and notifying recipients individually. An intelligent system takes away the tedious tasks and brings everything to a digital record.

A digital mailroom also means that you will save other resources, especially electricity and supplies like paper and ink. The need for printers and other machines will be greatly reduced, which is important given that printer ink and toner are some of the most expensive office supplies.

Making your business operations cheaper will have a direct effect on your profits.

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4. Better Policy Compliance

Compliance is crucial in modern business, and the way you handle mail can affect your business’s legal standing. Manual handling is not only inefficient – it’s also prone to error.

Data protection audits are becoming increasingly common. Without the documentation to prove you’ve been handling data correctly, getting through an audit like this without getting into trouble can be challenging.

Digital mailrooms provide a clear record of how your business handles mail. This can help you meet the strict standards of GDPR (General Data Protection Regulation) and lighten your team’s burden. Whether you’re sending stacks of mail each day or have a lot of inbound parcels to manage, a system that can help you stay compliant while you do it is well worth it.

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5. Access and Remote Work

Remote work has become more prevalent, and 71% of US companies have implemented hybrid offices.

Remote workers often need access to incoming mail and critical documents. Physical mailrooms can be a bottleneck in today’s increasingly mobile work environment. When they struggle to access them, collaboration gets hindered and delays emerge.

Digital mailrooms help facilitate remote work and collaboration.

• Access Anytime, Anywhere: A cloud-based system enables authorized users to access documents online, regardless of location.
• Streamlined Collaboration: Digital mailrooms ensure seamless communication between internal and external teams. Version control features ensure everyone works on the latest version, eliminating confusion and wasted effort.
• Improved Communication: Digital mailrooms can integrate with other communication tools, allowing seamless document sharing within discussions and project management platforms.
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6. Eco-Friendliness

Digital mailrooms are a greener solution.

• Reduced Paper Consumption: Digital mailrooms eliminate the need for printing, copying, and paper-based filing systems.
• Waste Reduction: Paperless practices enable mailrooms to cut down on landfill contributions.
• Support for Sustainability Initiatives: A digital mailroom demonstrates your business’s commitment to sustainability. This can enhance your brand image and appeal to environmentally-conscious customers and partners. Digital mailrooms can help companies meet sustainability goals set by regulatory bodies or internal initiatives.

For an example of how a digital mailroom can contribute to environmental benefits, read about how Lancaster University reduced paper waste by 80% with a digital mailroom system.

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7. Space Saving and Staff Optimization

Manual processing often bogs down communication. As a result, traditional mailrooms get stuck with overdue parcels and run out of space for new ones.

Digitizing parcel collection reduces these needs with automated notifications and reminders. This helps keep parcels moving and ensures that they don’t sit in the mailroom too long. With less time spent on scanning parcels, digital mailrooms empower staff to focus on tasks that drive greater organizational impact.

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8. Error Reduction

Human processing is prone to error, but it’s not always the person’s fault. Stress, fatigue, and lack of clear documentation can lead to inconsistencies and miscommunication. High-volume days can be especially difficult for understaffed mailrooms.

Digital mailrooms solve these problems with the following:

• Automated Workflows: Digital mailrooms automate tasks traditionally prone to human error. OCR and AI technology reduce mistakes and ensure the data in the system is consistent with parcel labels.
• Accurate Document Tracking: Every scanned document has a unique identifier. This eliminates the risk of losing track of essential documents and allows easy retrieval.
• Intelligent Sorting Algorithms: Digital mailrooms have algorithms that recognize patterns and keywords. This reduces the risk of misfiling or misrouting documents.

In sectors like legal or healthcare services, accuracy is paramount. These functionalities can help maintain high standards of service.

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Next Step: Experience These Digital Mailroom Benefits First-hand

Imagine a work environment free from overflowing filing cabinets, misplaced documents, and wasted time spent on manual mail processing. That’s the power of the digital mailroom.

Parcel Tracker can serve as your trusted partner in this digital transformation. Our comprehensive platform offers a robust suite of tools to streamline your mail-handling process, from secure document scanning and intelligent sorting to automated workflows and centralized, cloud-based storage.

Unlock the potential of a digital mailroom for your organization. Visit our website to learn more or schedule a free demo.