News > Case Studies > 2004 > Churchill Downs Mailcenter Is Off To The Races With Quick, Quiet Neopost Machine

CHURCHILL DOWNS MAILCENTER IS OFF TO THE RACES WITH QUICK, QUIET NEOPOST MACHINE

As seen in Mail Magazine, October 2004

Churchill Downs in Louisville, Kentucky, may be home to the world’s most famous horse racing event, the Kentucky Derby, but it definitely does not have a one-track mind. In fact, the racetrack’s parent company owns six tracks and 12 off-track betting facilities across the United States.

When a company has many important facilities in multiple locations, fast and accurate correspondence between those sites is paramount. Churchill Downs is no exception, and the mailroom at its Kentucky site is the heart that keeps much of this communication racing along. Here the company not only distributes intra-office materials from track to track, but also uses mail as a primary communication vehicle for reaching current and future patrons.

To accomplish this goal and maintain maximum productivity and unabated mail flow, Churchill Downs recently upgraded its mail machine to a state-of-the-art system from Neopost, a leading provider of mailing, document-handling and data systems solutions, with a major presence throughout the largest global markets.

According to Churchill Downs purchasing manager, Sam Haycraft, “Mailing is a vital component of our business. We are players in the gaming business and share a market with the casinos and other entertainment companies. The healthy competition within this industry has forced us to not only change our product, but the way we market our product. We are now marketing in a more proactive fashion, utilizing direct-marketing pieces to help capture our share of the customer population. And we work hard to keep our customers satisfied, in part by utilizing the best and most prompt communications. When a customer needs something, we jump right to it. We make sure we give them everything that they expect and more.”

Churchill Downs processes between 3,000 and 5,000 pieces of mail every week. During the period surrounding the track’s primary spring and fall meets, these numbers increase dramatically. In fact, prior to the Kentucky Derby, Churchill Downs distributes material to more than 20,000 people. To meet these demands, the company’s employees need equipment that cannot only handle the substantial weekly average of mailings but also the occasional spikes in volume.

A safe bet at the starting gate.
“We hadn’t changed our equipment in about 10 years, and to remain competitive we knew it was time to upgrade. We did some research and explored the types of new technology that were now available and who was providing what options,” explains Haycraft. “We found that after looking at various manufacturers, Neopost’s equipment had the functionality we were looking for, as well as superior customer service. Neopost and Scot Mailing and Shipping Systems, Inc., an authorized Neopost dealer, provided the type of customer service and support that Churchill Downs provides to our customers. Neopost has been in business for quite some time. And after speaking with some of their references, we realized that these corporations were as large, if not larger, than us. And their mailings are just as critical to their business as it is to ours.”

Haycraft added, “We felt that the Neopost equipment and company was a safe bet. And the company’s newer technology offered vast improvements in speed, noise, accuracy, and legibility. In fact, Neopost’s equipment and services provided everything we were looking for, including bottom-line cost savings.”

Functionality that is a breed apart.
Churchill Downs’ previous system was mechanically based, as opposed to computer-driven. Suffering from wear and tear, the old machine was prone to jams that could grind all mailing operations to a halt.

“We’d find pieces of debris from rubber rollers and machine components that were deteriorating,” recalls Haycraft. “This led to a lot of jams, which led to prolonged downtime, because it often required maintenance to get it back up and running. With the Neopost system, we are seeing a substantial increase in the flow of mail. No longer are workers forced to stand beside the mail machine to clear up the jams or wait for it to complete the job. As a result, with the Neopost mailing system, we are seeing huge improvements in reliability and speed, resulting in increased productivity.”

Plus, in a business in which any training is best performed on the track, Churchill Downs’ previous mailing equipment required hours of training. The new system, despite being very technical, requires just three or four minutes of operating instruction.

“It’s very user-friendly,” says Haycraft, “and it doesn’t require a lot of hand holding to get an employee familiar and comfortable with its functionalities.”

In addition to improving the speed of everyday mailings, the creation and execution of custom mailings is quick and easy. With the old system, the indicia and artwork for customized mailings had to be manufactured on metal plates. These plates could take weeks to create and would have to be physically transported from the manufacturer back to the mailroom. By choosing the flexible Neopost system, Churchill Downs’ graphics department can download very specific information and images quickly and easily.

“If we’re producing a flyer for our ‘Brew & Bar-B-Q Festival,’” relates Haycraft, “we can customize each piece with that event’s specific logo in a very short time. Preparing custom mailings has gone from a very slow, manual process that required weeks to a computer savvy function that only takes a day or so to complete.”

Haycraft adds, “With the Neopost mailing system, we’re saving money in a number of different ways. First, because every piece of mail is properly and clearly stamped utilizing inkjet printing, it ensures that each piece reaches the intended audience without delay. Second, the mail goes out more quickly, making our marketing efforts more efficient and cost-effective. And of course our maintenance costs have gone way down.”

A quiet champion.
The Churchill Downs’ mail center is an extremely busy office environment, and with the copier, fax, phones, and mailing system all running at the same time, the noise can be quite a distraction. The new Neopost system helps to quiet things down so phone conversations and mail operations can happen simultaneously.

Not resting on laurels.
Haycraft is a firm believer in the benefits of healthy competition. He credits competition from the casino and gaming industry with improving the way Churchill Downs goes about its business. He believes that the same holds true in the postage machine industry.

“Everything in business today is customer-centric. It’s just nice to see some competition for postage machines, and clearly companies like Neopost are really focusing on what the customers need. In terms of our mailroom, we’re reaping the benefits with a very reliable system and productive department. We expect to get a lot of great use out of this equipment.”

Clearly Haycraft expects the mail center at Churchill Downs to be in the winner’s circle for a long time to come.