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Mentor: Ms. V Natarajan (Director, Ops) Guide: Mr. Kaushik Dutta (Head BSG)
Reengineering Dispatch and Delivery Process (Mailroom)Exploring Outsourcing Model
Agenda of Presentation
1 Time Lines 2 Project Introduction
3 Basis of outsourcing model 4 Brief discussion on each point
5 Vendor Comparison 6 Conclusion
Presented By: Nitin Dangwal | Section B | 13P094Presented By: Nitin Dangwal | Section B | 13P094
Research using Primary &
Secondary Data
Explore Service Providers with
expertise
Define outsourcing Model
Develop implementation
plan
TimelineTimelineProject PhasesProject Phases
II IIII IIIIII IVIV
Outsource In-house
Typical Org Set up Mailroom
IntroductionIntroduction
Objective of Project: Explore Outsource Model for MailroomObjective of Project: Explore Outsource Model for Mailroom
Vertically Integrated
Manual Process
Mailroom Management
Courier Mgmt
Accounts
Handling
Data Entry
Billing
Primary & Secondary ResearchResearch Papers
on BPRMail room technology
Current practices in Insurance
Industry
Process Benchmarking
Change Management
Digitization, Analytics
Findings
• High level of vertical integration
• High degree of manual operation
• Use of Excel for data keeping
• Manpower dependent process
• No integrated workflow
Findings
• High level of vertical integration
• High degree of manual operation
• Use of Excel for data keeping
• Manpower dependent process
• No integrated workflow
Exploratory ResearchExploratory Research
Research- Secondary Data
Business Process
Reengineering
Changes & Trends in mailroom
Mail room technology
Current practices in Insurance Industry
Combination of both Research using primary & secondary DataCombination of both Research using primary & secondary Data
Research -Primary Data
Meeting with process
owners
Process map of Mail Room
Process maps of
associated process
Linking process &
stakeholders
Findings
• Non core activities should be outsourced
• Handling mailroom operations challenge increases with size
• Move towards digitizing mailroom processes
Findings
• Non core activities should be outsourced
• Handling mailroom operations challenge increases with size
• Move towards digitizing mailroom processes
Important Process, Touch point to customers, Performance Base
Arranging ContactsDeveloping
QuestionnaireTelephonic Interview
Benchmarking Results
Findings
Not Utilizing Technology
Doing NVA Activities
Max Life TATA AIA Reliance DHFL Kotak
Data Recording
Post Status Viewing
Performance measurement
Workflow mgmt SW
Printing
Process BenchmarkingProcess Benchmarking
Benchmarking MatrixBenchmarking MatrixAviva
Not Best in Class Process
UnIntegrated Work Flow
FindingsFindings
How our Mailroom Process compares with the competitorsHow our Mailroom Process compares with the competitors
At par
Best
Behind
Manpower Dependent
No tracking of performance
Outsourcing AdvantageOutsourcing Advantage
• Real Time Status Tracking
• Cost control through billing reports
• Tracks vendor performance, rates and delivery
time, Rating to compare courier performance
• Department wise cost management
• Productivity monitoring & management
• Proof of delivery
Features of Outsourced Mailroom
Need for Change
Centralized Mail Management
Automated Workflow
Manpower Staffing, training
& Mgmt
Integration with existing system
•Reduced Logistic Cost
•Reduced RTO
•High RTO Redispatch
•Reduced complaints
Benefit of Outsourcing
Market Exploration for VendorsMarket Exploration for Vendors
Vendor Websites Industry News References Local & International
Steps FollowedSteps Followed
Local Vendors – With prior experience/customers International with Indian Presence
9 Vendors Contacted 3 from USA & UK 2 were dropped
Vendor Exploration
Methodology
Filtering
Requirement Explanation
Mail Communication RFP Development On Site Meeting
Avon SolutionsAvon Solutions Mega CaliberMega Caliber TGHTGH NestienNestien DatamarkDatamark DdcosDdcos Outsourcing Service ProOutsourcing Service Pro
Basis for process Reengineering
Monitor & ControlInformation
SystemsProven Business
ProcessesFlexible Systems Cost Advantage
Competitive Advantage
No special Expertise
Repetitive in nature
Standardized operations
Can distract from core process
focus time and talent on your core competenciesfocus time and talent on your core competencies
No investing in fixed costs equipment or facilitiesNo investing in fixed costs equipment or facilities
Focus on improving mailroom performance.Focus on improving mailroom performance.
Manpower outsource
Courier Management
Can distract from core process
Bill Tallying, data entry
Monitor & ControlInformation
Systems
Proven Business
Processes
Flexible Systems
Cost Advantage
Competitive Advantage
Outsourcing GuidelineOutsourcing Guideline
Process OutsourcingProcess Outsourcing
Features of MailroomFeatures of Mailroom
High
High
Low
Low Strategic importance
Pro
cess
C
om
ple
xity
1
2 3
4
Commodity
Specialized Knowledge Intensive
Standardized
outsource Retain in house
Outsource/Automate Process Improvement
One Click Analysis Standardization Work Flow
Non Core ProcessInformation
Systems
Proven Business
Processes
Flexible Systems
Cost Advantage
Competitive Advantage
Vertically Integrated
Manual Process
Manual measurem
ents
Accounts
Handling
Excel Dependent
No advance analysis
Bill tallyingBill tallying
Zone wise report generationZone wise report generation
Courier performanceCourier performance
Dept wise costingDept wise costing
13/20 steps involve excel
Data sorting, filtering –inefficient
Reduced productivity
Features of MailroomFeatures of Mailroom
Process OutsourcingProcess Outsourcing
Non Core ProcessInformation
Systems
Proven Business
Processes
Flexible Systems
Cost Advantage
Competitive Advantage
Benchmark existing
processes
Processes within the industry
Quick implementation
Selected vendors similar work experience
Higher rating -similarity of environment
System should be Plug & Play
Players like Max Life, Reliance are already using outsourcing model
The vendors like Mega Caliber, Nestien, Avon are providing such solutions
The outsourcing model comprises of following:
Onsite office spare provided with Aviva with other consumables
100% manpower management by vendor
A proprietary mail management would be installed by vendor
Process OutsourcingProcess Outsourcing
Flexible system
Provision for expansion
Can utilize past data to make quarterly/monthly manpower plan
In future other departments like Branch office, NB & others can be included
Non Core ProcessInformation
Systems
Proven Business
Processes
Flexible Systems
Cost Advantage
Competitive Advantage
Process OutsourcingProcess Outsourcing
Non Core ProcessInformation
Systems
Proven Business
Processes
Flexible Systems
Cost Advantage
Competitive Advantage
-
50
100
150
200
250
300
350
400
450
Nov '13 Dec '13 Jan '14 Feb '14 Mar '14 April '14
Nu
mb
er o
f M
ails
Month
Monthly Volumes (in '000)
Total Mails Mailroom mails
Mailroom22%
vendor78%
Mail Volume Distribution
(1)
1
3
5
7
Nov '13 Dec '13 Jan '14 Feb '14 Mar '14 April '14
Daily Volumes (in '000)
Series1 Series2
Process OutsourcingProcess Outsourcing
Non Core ProcessInformation
Systems
Proven Business
Processes
Flexible Systems
Cost Advantage
Competitive Advantage
Average Document Volumes
Mailroom + Vendor (monthly): 295,968Mailroom (monthly): 64,884
Existing (In-house)
Staff: 8Productivity: 250
Proposed (Outsourced)
Staff: 4Productivity: 500
Estimated Cost Savings
Manpower reduction that can be achieved is to the tune of 50%Yearly cost savings: 6-8 lacs per year
Process OutsourcingProcess Outsourcing
Non Core ProcessInformation
Systems
Proven Business
Processes
Flexible Systems
Cost Advantage
Competitive Advantage
Average Document Volumes
Consistency in maintaining dispatch TAT
Reduction in logistics costs
Bringing down RTO cases
Reduction in Dispatch related customer complaints
Improvement in 7 Day courier updation
Improvement in RTO redispatch
Estimated Cost Savings
Robust Process
Lean Process
Reduced Rework
Satisfied Customer
Better Process Control
Quick Reaction
Process OutsourcingProcess Outsourcing
Scope of WorkScope of Work
Reengineer existing mailroom process
Mail Information System Planning
Mail Information System Trials, Proving
Mail Room Management (Inbound & Outbound)
Courier Services Management
Branch dispatch & delivery management
Manpower Staffing & Training
Complaints & Query Handling
Account & Dashboard Management
ControllingReal Time Data
UpdationReport Generation
No Manual Operations
Performance Measurement
Facility
Utility
Working Space
Stamps, stationary
Systems for working
MIS Installation & Mgmt
Dashboard
MIS Reports
Vendor Performance Reports
Billing Reports
VendorVendor AvivaAviva
DeliverablesDeliverables
Vendor ComparisonVendor Comparison
Avon Solutions
Avon Solutions
Mega CaliberMega
CaliberTGHTGH NestienNestien DatamarkDatamark DdcosDdcos Outsourcing
ServiceOutsourcing
Service
Work Experience in similar sector
Clientele List
Proximity of Work Location
Workflow mgmt SW
Clarity in presentation
2 1 3
Thank YouThank You