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 | 13P094 Presented By: Nitin Dangwal | Section B | 13P094
Research using
Primary &
Secondary Data
Explore Service
Providers with
expertise
Define outsourcing
Model
Develop
implementation
plan
Timeline Timeline
Project Phases Project Phases
II II II III III IV IV
Outsource In-house
Typical Org Set up Mailroom
Introduction Introduction
Objective of Project: Explore Outsource Model for Mailroom Objective of Project: Explore Outsource Model for Mailroom
Vertically Integrated
Manual Process
Mailroom
Management
Courier
Mgmt
Accounts
Handling
Data
Entry
Billing
Primary & Secondary Research
Research Papers
on BPR
Mail 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 Research Exploratory Research
Research- Secondary Data
Business
Process
Reengineerin
g
Changes &
Trends in
mailroom
Mail room
technology
Current
practices in
Insurance
Industry
Combination of both Research using primary & secondary Data Combination 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 Contacts
Developing
Questionnaire
Telephonic
Interview
Benchmarking
Results
Findings
Not Utilizing
Technology
Doing NVA
Activities
Max Life TATA AIA Reliance DHFL Kotak
Data Recording
Post Status Viewing
Performance
measurement
Workflowmgmt
SW
Printing
Process Benchmarking Process Benchmarking
Benchmarking Matrix Benchmarking Matrix
Aviva
Not Best in
Class Process
UnIntegrated
Work Flow
Findings Findings
How our Mailroom Process compares with the competitors How our Mailroom Process compares with the competitors
At par
Best
Behind
Manpower
Dependent
No tracking of
performance
Outsourcing Advantage Outsourcing 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 Vendors Market Exploration for Vendors
Vendor Websites Industry News References Local & International
Steps Followed Steps 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 Solutions Avon Solutions Mega Caliber Mega Caliber TGH TGH Nestien Nestien Datamark Datamark Ddcos Ddcos Outsourcing
Service Pro
Outsourcing
Service Pro
Basis for process Reengineering
Monitor & Control
Information
Systems
Proven Business
Processes
Flexible 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 competencies focus time and talent on your core competencies
No investing in fixed costs equipment or facilities No 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 & Control
Information
Systems
Proven
Business
Processes
Flexible
Systems
Cost
Advantage
Competitive
Advantage
Outsourcing Guideline Outsourcing Guideline
Process Outsourcing Process Outsourcing
Features of Mailroom Features of Mailroom
High
High
Low
Low
Strategic importance
P
r
o
c
e
s
s

C
o
m
p
l
e
x
i
t
y
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 Process
Information
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 tallying Bill tallying
Zone wise report generation Zone wise report generation
Courier performance Courier performance
Dept wise costing Dept wise costing
13/20 steps involve excel
Data sorting, filtering inefficient
Reduced productivity
Features of Mailroom Features of Mailroom
Process Outsourcing Process Outsourcing
Non Core Process
Information
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 Outsourcing Process 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 Process
Information
Systems
Proven
Business
Processes
Flexible
Systems
Cost
Advantage
Competitive
Advantage
Process Outsourcing Process Outsourcing
Non Core Process
Information
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
N
u
m
b
e
r

o
f

M
a
i
l
s
Month
Monthly Volumes (in '000)
Total Mails Mailroom mails
Mailroom
22%
vendor
78%
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 Outsourcing Process Outsourcing
Non Core Process
Information
Systems
Proven
Business
Processes
Flexible
Systems
Cost
Advantage
Competitive
Advantage
Average Document Volumes
Mailroom + Vendor (monthly): 295,968
Mailroom (monthly): 64,884
Existing (In-house)
Staff: 8
Productivity: 250
Proposed (Outsourced)
Staff: 4
Productivity: 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 Outsourcing Process Outsourcing
Non Core Process
Information
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 Outsourcing Process Outsourcing
Scope of Work Scope of Work
Reengineer existing mailroom process
Mail Information SystemPlanning
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
Controlling
Real Time Data
Updation
Report 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
Vendor Vendor
Aviva Aviva
Deliverables Deliverables
Vendor Comparison Vendor Comparison
Avon
Solutions
Avon
Solutions
Mega
Caliber
Mega
Caliber
TGH TGH Nestien Nestien Datamark Datamark Ddcos Ddcos
Outsourcing
Service
Outsourcing
Service
Work Experience
in similar sector
Clientele List
Proximity of Work
Location
Workflowmgmt
SW
Clarity in
presentation
2 1 3
Thank You Thank You