Texas drives cost savings and efficiency for the DMV

The State of Texas, as well as almost every other state in the union, is currently battling to cut expenses and balance budgets in light of a very difficult economic environment.

Texas began analyzing different ways that it could reduce costs across various state agencies without harming constituent service levels. One of the areas where it identified opportunities for process improvements was in the state’s Department of Motor Vehicles (DMV).

The DMV in the State of Texas had an inefficient system in place for processing and fulfilling requests for proofs of insurance. The poor process created unnecessary inventory, wasteful printing and high postage costs

In an effort to make this process simpler and less expensive, the DMV worked to develop a new system for processing requests for proof of insurance for Texas motorists. Employees worked with a third party to outsource the document management effort, including receipt of data files, document creation and printing. They also optimized mail finishing, insertion and zip code sortation to achieve maximum postal discounts.

Overall, by improving the system in which the DMV receives, processes and fulfills requests for proofs of insurance, the State of Texas has managed to reduce its proof of insurance documents inventory to zero.

In addition to optimizing mail to cut costs, the State of Texas also worked to implement a document composition tool to electronically modify the terms and conditions language appearing on the back of the proof of insurance documents as regulations and requirements change.

With the proofs of insurance being printed as needed, changes in conditions can be done quickly and without having to discard stock that is no longer up-to-date. This drastically cuts waste.

When you combine the money saved from printing, distributing and storing these documents with the savings from optimizing mail delivery to take advantage of postage discounts, the State is seeing serious savings from some simple changes to the way its DMV operates.