Prior to selecting Canon Business Process Services (CBPS), our client, a large telecommunications
organization, was experiencing regional process variability in its mail, shipping
and receiving operation, resulting in rising costs and unpredictable performance.
This client was able to gain control of the operation with our mail management services
and the MAX performance management solution. Ultimately, we standardized
A multinational telecommunications giant contacted Canon Business Process Services
because it was facing challenges common to many large organizations with outsourcing
providers. The company's issues had escalated to the point that it no longer had
control over its outsourced operations.
The client has 46 corporate locations nationwide with the country split into four
major regions. Only one of the regions fostered communication between locations.
Most regions were out of touch. Because there were no national performance management
standards, most locations had separate processes, procedures and measurements which
made it very difficult to compare and improve performance. Even the performance
information that was available, primarily in spreadsheet format, was not accessible
to management. Consequently, management reviews were often centered on data that
was 30-45 days old, leaving managers without realtime information.
As a result of these challenges, a number of mail management costs were increasing
inexplicably. One area of great concern to the company was its rising courier costs.
Consequently, although our client wanted to expand, the company was reluctant to
offer new services at other locations until it got a handle on performance.
Canon Business Process Services took control of the mail, shipping and
receiving operation and immediately implemented 32 sites in 30 days without any
interruptions in service. We have recently expanded to 46 sites.
MAX, the first performance management system specifically designed for clients
to manage outsourcing providers, helped our client track the performance of its
outsourced operations against service level agreements (SLA) and key performance
indicators. Ultimately, MAX drove standardization and continuous improvement
in locations across the country.
The MAX tools and methodology allowed us to help our client reduce its courier
costs. Using MAX to analyze three years of historical data enabled us to clarify
critical patterns of expenditures across months and geographies. Our national account
manager then launched an initiative to streamline operations and reduce costs utilizing
Six Sigma principles.
The project team discovered that a number of non-urgent materials — including merchandise,
marketing materials and employee expense reports — were being delivered by overnight
mail. The team worked with end-users to develop a new process that guided employees
in reducing costs by selecting the most cost-effective shipping method for each
item depending on urgency. The process was documented and posted at all locations
along with FAQs, comparisons of different courier options, step-by-step manuals
and color shipping maps tailored for each location.
Control & Standardization: Our client has gained control
of its outsourced mail services through standardization of processes and procedures
across all corporate locations. The company tightly manages the business with complete
visibility across all 46 sites through our near real-time interactive tool. Currently,
managers across the nation communicate weekly to review their executive scorecard,
which includes measures such as cost per piece, cost per customer and cost per square
foot. This communication forum is used to compare performance and quickly identify
locations that need help in implementing best practices.
Savings: As a result of the courier project, our client
saved almost $500,000 in the first year after implementation. On average, the company
experienced savings of over 10% per month across all sites.
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