IT Network Solutions Provider
How a leading network solutions provider drove efficiency and positioned itself for $50,000 annual savings in its mail and shipping/receiving operations.
About the customer
As a leading West Coast-based IT network solutions provider, this company offers a wide variety of cloud-based networking products and services to customers across the globe. The company's prime focus is simplifying the complex to connect the world. It works with some of the most successful and influential enterprises, building the best networks that are tailored to the unique challenges they face.
Ricoh's responsiveness to our unique needs and accelerated timelines is impressive.
—Alliance Director at a leading commercial real estate services provider managing the network solution provider's facilities.
Challenge
Lack of documentation for manual processes
Desire to reduce costs with improved services and technology
Mail pickup through costly courier service
Need for expertise to drive efficiency and cost savings
The mailroom and shipping/receiving areas at the network solutions provider didn't reflect the company's focus on innovation and simplifying the complex. Processes were very manual and there was no documentation to guide the 10-person staff on workflow and procedures. There was front-end tracking technology in place, however, it wasn't being fully leveraged to drive efficiency and cost savings throughout the operation. And, daily mail pickup at the USPS hub was being handled by a courier service — at a premium cost.
A leading commercial real estate services provider — which we had a strategic supplier agreement with — had recently won the business to oversee management of the network solutions provider's two West Coast facilities. At first, the services provider intended to manage the mail and shipping/receiving areas on its own. But after a thorough analysis, the services provider wondered if our expertise in Customer Communications Management and Mail Services would be a better fit to realize efficiency and cost savings.
However, to make it work required an extremely fast turnaround. They needed our assessment and proposal in just two weeks.
Solution
"Ricoh is a true partner that is helping to meet my customer satisfaction goals."
Absorbed all existing employees
Ceased mail pickup via courier
Created a site procedure guide
Recommended Intelligent Lockers
By the time we delivered our proposal and finalized contract negotiations, there were only three weeks left to implement our solution. We assumed all of the existing 10 employees in the mail and shipping/receiving areas, trained them on Ricoh procedures and began running the operation.
This was not the typical mail services operation. The network solutions provider had a lot of high-value freight and its warehouse management was complex. We created a site procedure guide to document everything from mail and package handling to freight and warehouse procedures. We also redesigned the workflow layout to be more efficient and productive.
To reduce immediate costs, we ended a courier service for retrieving USPS mail and an employee began making the daily pickup. We also took over the existing front-end tracking solution and began to look for ways to improve efficiency and reduce costs. Next, we will implement an Intelligent Lockers system and Intelligent Delivery at one of the network solutions provider's facilities to improve customer service.
Results
$12,000 annual savings by eliminating courier pickup
Potential $50,000 annual savings with Intelligent Lockers
Thoroughly documented procedures
Improved processes, redesigned workflow layout
Immediate savings of $12,000 annually was achieved by eliminating daily mail pickup via courier. When the Intelligent Lockers are installed, the network solutions provider expects to see an additional $50,000 annual savings.
With a site guide that thoroughly documents procedures, employees in the mail and shipper/receiving areas know exactly what is expected of them and they are held accountable. Furthermore, if an employee leaves, that knowledge base doesn't walk out the door with them — anyone can pick up where they left off.
After one year of assuming responsibility for the network solution provider's operations, we are currently exploring ways to further improve the network solution provider's mail and shipping/receiving operations. However, initial enhancements implemented at a very quick pace are already apparent. Processes have been redefined and tightened up with the redesigned workflow. And when issues arise, the company now has the in-house expertise to immediately tackle, investigate and resolve issues fast.