Innovative Outsourcing, Transforming a Cost Reduction Programme into a Sustainable Business Model

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How PostNL by means of PostNL Shore turned a cost savings project into a sustainable business. PostNL developed offshoring services, saved costs and established business growth. Offshoring videocoding saves PostNL millions of euros per year. Making that solution and gained experience available will help other postal and parcel companies as well as companies outside the postal market to make impressive cost savings and improve quality of work. A presentation by Manolo de la Fuente for the Shared Services and Outsourcing week 2011 (http://www.ssoweek.com)

Transcript of Innovative Outsourcing, Transforming a Cost Reduction Programme into a Sustainable Business Model

ConQuaestor, Ken FosterTNT Post Shore, Manolo de la Fuente

Innovative OutsourcingTransforming a Cost Reduction Programme into a Sustainable Business Model

Agenda

• The challenge for TNT Post

• The answer

• Our answer

• Video coding

• A new business model

The challenge

Declining mail volume TNT Post in the Netherlands

2001 2002 2003 2004 2005 2006 2007 2008 2009 2011Q1

2010

VIDEOCODING

The answer

The hand of God

Screw it, let’s do it

Hope for a disaster

Confront, don’t discuss

Off shoring Video Coding

Off shoring Video Coding: Results

Flexibility

The possibility toincrease or decrease dataentry capacity by more than

500% within 15 minutes

On time

12-second turn-aroundtime for video-encoded

mail piece

Cost savings

70% cost savingsper year

500 12 70

A new business model: scanning and data entry

Can we help others, with our expertise?

Areas where data entry take place

many flowsmany formats

many points of entry

Level ofcomplexity

single flowssingle formats

single points of entry Turn aroundtimeOff line Same day

ClaimsInvoices

Connotes

ArchivesBooks

SurveysX-ray

coding

Real time

Replyservices

Videocoding

Learnings