At a Glance
Customer: A U.S.-based freight carrier
Service Provider: DATAMARK
Services Provided: Streamline workflow and create efficiencies
Solution: Leveraged Process Migration Methodology and Lean Sigma principles
The U.S.-based freight carrier has been in business for several years with a large fleet servicing the continental U.S. as well as the adjoining countries of Mexico and Canada. The economic downturn forced this carrier to reduce operational expenses associated with lower tonnage per shipping lane, volatile fuel costs, and increased competition due to excess capacity, all this while maintaining its ability to deliver best-in-class service to its clients.
The company’s key service delivery and performance metrics are based on efficient bill processing on a daily basis. Delays have a negative downstream impact on several functions, including delayed customer invoicing, increased terminal time for drivers, delays loading and unloading trailers, unnecessary dock personnel overtime, and missed hot shipment guarantees.
The company was experiencing the following issues:
1. Errors in critical fields required for load factoring and billing as well as Haz-Mat instructions and accessorial charges
2. Limited training materials coupled with complex services made it difficult to maintain a competent, yet cost effective, work force
3. Inbound and Outbound “cut times” were not being met
4. Near round-the-clock processing requirements mandated staffing multiple shifts, which introduced additional costs and or required unplanned overtime
5. The company realized that in order to effectively manage its operating expenses it must address these immediately.
The company partnered with DATAMARK to implement a Freight Billing Services (FBS) solution leveraging its unique Process Migration Methodology ultimately producing a blend of skilled onshore and offshore bill entry resources that solved the company’s critical billing issues.
DATAMARK’s PMM leverages Lean Sigma principles in conjunction with deep experience managing customer transitions. PMM’s core tenets of Quality and Innovation drive continuous improvement during both the transition and on-going production. DATAMARK’s best practices for resource and asset management are coupled with Lean Sigma to eliminate waste and create highly efficient transactional processing. DATAMARK’s domain expertise in operations and transition management facilitated a smooth and easy exchange from internal to outsourced business model.
Resource efficiencies- DATAMARK was able to quickly employ a blend of global resources working first and second shift whose transactional throughput steadily improved beyond the current corporate guidelines.
Turnaround time improvements- A “Clean Desk” policy in all of operations to ensure work is completed the day it arrives. An activity-based compensation program anchored by quality, was introduced, which rewarded employees for achieving higher throughput.
Error rates were reduced by more than 10%- DATAMARK’s compensation, coupled with its extensive analysis and corrective action program, steadily reduced error rates over the first six months of the project and still do so today.
Company’s expenses reduced- Improved accuracy and throughput reduced the company's business costs as it quickly eliminated billing errors. With DATAMARK, productivity has increased as dock personnel no longer face significant delays waiting for the manifest to be created.
Customer satisfaction and bottom line revenue impact- The net result for the company is that it has been able to focus on its core business while offering its customers greater value in terms of faster turnaround and nearly error-free billing, resulting in six-figure cost savings and significantly reduced revenue adjustments.
For more information on how DATAMARK’s business processing solutions can reduce operating costs while improving efficiency, flexibility, and customer satisfaction, call 800-477-1944, or email info@DATAMARK.net
DATAMARK, Inc. 43 Butterfield Circle, El Paso, TX 79906 USA, www.DATAMARK.net
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