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Case Study - Bank A
Bank gains storage space… and enough money to fill it.
SUMMARY: Financial Institutions across the board are looking for ways to improve efficiency, reduce waste, reduce costs and ultimately increase profit. See how one bank in the southwest participated in the Systemax WOW Analysis of their Drive-Up Envelopes, Teller Supplies and ATM Supplies and emerged with a Materials Management Solution that
- Saved them 32% on Operational Supplies
- Condensed a 4 Hour Process to just Minutes
- Improved Cost-Accounting Accuracy
- Strengthened Branding
- Upgraded to 4 Color, CMYK
- Provided more Storage Space for Higher Dollar Items
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Challenge
In 2009, “Financial Institution A”, a bank located in the Southeast region was experiencing issues with lack of storage space and possible inefficiencies in inventory and fulfillment of supplies to individual branch locations.
The bank had grown into about 215 Branches and ATMs. Their storage facility was becoming crowded with furnishings, equipment and other items from various branches, as well as, operational supplies.
Their Drive-up Envelopes alone were eating up 10% of their crowded storage space… and a bank employee had to fit in the time-consuming task of keeping track of inventory along with all of his other duties. I immediately knew that we could help improve the situation.
—John Bybee, Systemax Corporation
Order fulfillment to the individual branch locations and ATM servicers was a process that needed serious attention. The process of ordering and shipping was not automated and they struggled with cost accounting. Production costs for the operational supplies were presented in one large bill, leaving the bank challenged to find a way of charging back those costs to individual branches. In addition, the bank’s only option was to have their 3 color logo printed in just 1 color on their Drive-Up Envelopes because of the vendor’s lack of capabilities. Further, the vendor with whom the bank had done business for years had not kept pricing competitive, leading to the bank paying costs that were needlessly high.
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WOW Analysis
John Bybee and the Systemax team reviewed these challenges in great detail along with the entire process for purchasing and branch fulfillment as part of a Systemax “Wow Analysis.” They used the analysis to formulate a solution that would dramatically improve the process for the bank… and ultimately, contribute to furthering the bank’s success.
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Materials Management Solution
Systemax provided a two-part custom solution for the production, storage and fulfillment of operational supplies.
Drive-Up Envelopes and Teller Supplies
Systemax produces these supplies and stores for them free. Then, the bank requests a monthly release via Systemax e-Solutions** be sent to the bank’s central warehouse for distribution to individual branches. This intuitive solution allows the bank to produce supplies in larger quantities for better pricing and minimizes the space that the supplies take up in the bank’s central warehouse or branches.
ATM Supplies
Systemax produces these supplies and stores for them free. Because ATM supply fulfillment is required much less frequently, the bank places orders on Systemax e-Solutions and the ATM supplies are shipped directly to the individual bank branches and/or ATM servicers. Thus, no storage whatsoever with the bank is required. This process also allows for direct charging of supply expenses to individual branches.
Across the board, Systemax was able to provide lower pricing on the bank’s supplies.
Systemax was also able to provide the bank with 4 Color Printing of their drive-ups, teller tickets and ATM Receipts for a lower price than the 1-Color printing which was previously their only choice. The bank took advantage of this opportunity to establish correct branding with their logo while adding 4-Color Marketing messages to cross sell on these daily consumables.
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Results
How does the Materials Management Solution truly benefit the institution?
By dramatically reducing the space needed to house low cost operational supplies, the bank has more space for higher priority or higher ticket items.
What does that really mean?
Imagine that the bank needs to purchase some new equipment. There is a substantial cost savings to purchasing 3 units, and they know they will need them all within a year, but they only need one right now. They could store the other two in the space that no longer houses the supplies and save money on the purchase price of the new equipment.Additionally, the task of keeping inventory of the supplies as well as ordering and fulfilling branch requests has been dramatically reduced which leaves the Procurement Officer with more time for higher payoff activities. The process of ordering and fulfilling ATM Supplies has been reduced from a 4 hour process to one that takes just minutes.The accounting process has been improved for greater accuracy in charging back operational costs to the individual branches. And, because of the dramatic reduction in the cost of the supplies, the bank has actually saved over 32% in operational expenses.The bank has also acquired a revenue builder out of this experience. Using their operational supplies like Drive-Envelopes, Teller Tickets and ATM Receipts to drive their Marketing Messages has increased the exposure for their Marketing Campaigns which can ultimately increase revenue.
* For more information about the Systemax “Wow Analysis”, visit http://www.systemaxsolutions.com/ser_wow.shtml.
** Systemax e-Solutions is a fully automated online ordering system that provides controlled ordering for banks. For more information, visit http://www.systemaxsolutions.com/ser_convenient_services.shtml
Case Study - Bank B
Bank saves 50% on Envelopes and gains total control of their Operational Supply Process.
SUMMARY: Financial Institutions across the United States, no matter how large or small, are challenged with finding ways to improve efficiency, reduce waste, reduce costs and ultimately increase profit. In Case Study A, you read about a bank in the Southwest with over 215 Branches. This is the story of a Midwestern bank with 3 branches that participated in a Systemax Wow Analysis and came out ahead with a Materials Management Solution that:
- Saved them 50% on Envelopes
- Provided Control over Supply Distribution to Branches
- Improved Cost-Accounting Accuracy
- Strengthened Marketing
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Challenge
In 2010, “Financial Institution B”, a bank with 3 locations, planted in the heart of the Midwest already had a materials management program in place with another vendor. The problem was that the program was inefficient, lacked control and provided no way for the bank to accurately charge the expenses against the individual branches. They admittedly had no idea what supply quantities each branch was using.
The bank had to store all of their supplies at their main location and managers would casually stop by and grab supplies without any formal record. The vendor was coming in and recording inventory which took up time with the bank staff and was recommending production quantities for re-orders that were simply not cost effective for the bank.
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WOW Analysis
Sr. Consultant, Patrick Brue and the Systemax team reviewed these challenges in great detail along with the entire process for purchasing and branch fulfillment as part of a Systemax Wow Analysis. They used the analysis to formulate a solution that would dramatically improve the process for the bank – ultimately contributing to the bank’s success.
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Materials Management Solution
Systemax provided a custom solution for the production, storage and fulfillment of operational supplies.
The first thing we did was bring all of their supplies to Systemax, where we store them for free and instantly helped them gain control over distribution to the individual branches.
—Patrick Brue, Systemax Corporation
Systemax became the central storage location for all of the bank’s operational supplies. Systemax managed the inventory and monitored usage. All requests for individual branches were made formally through the Systemax e-Solutions online ordering system and then fulfilled by Systemax. The bank then received a single bill each month with breakdowns showing usage by branch.
As part of the new solution, their envelopes were produced in a higher quantity that would last longer and provide dramatically better pricing and Marketing Messages were added to the Drive-Up Envelopes.
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Results
How does the Materials Management Solution truly benefit the institution?
By moving the storage and fulfillment process to Systemax, the bank was able to gain control of their inventory and cost-accounting.
They were also able to eliminate the time they had spent on the previous vendors visits to take inventory counts.
Because Systemax looked at usage and recommended printing the envelopes in higher quantities, the bank saved an incredible 50% on their envelopes alone. The bank looks forward to greater cost-efficiencies across the board as they produce more operational supplies with Systemax.
Additionally, the bank is very happy with the cross-selling opportunity that placing marketing messages on the Drive-Up Envelopes has provided. They are currently looking at ways to get even more branding and marketing value out of other operational supplies.
Perspective
In the transition, the one thing the bank had mentioned that they would miss was having their previous vendor rep calling on them in person. After working with Patrick Brue and the Systemax Team for just a few months, they confessed that not only were they thrilled with the service and personal attention they were getting but also, they realized just how time consuming the previous vendor visits had been and were relieved to have such an efficient process now in place.
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Update
The Materials Management Solution is in place and working as planned. In addition, Systemax further assisted the bank in converting all of the teller line and operational forms to support CARLAR Imaging.
* For more information about the Systemax “Wow Analysis”, visit http://www.systemaxsolutions.com/ser_wow.shtml.
** Systemax e-Solutions is a fully automated online ordering system that provides controlled ordering for banks. For more information, visit http://www.systemaxsolutions.com/ser_convenient_services.shtml