Forecast predicts significant cost savings and revenue recovery

A major central European postal operator has the potential to make substantial operational savings and generate additional income through revenue recovery by implementing an innovative plan suggested by Prime Competence.  This independent consultancy recently conducted a health-check of the post’s current systems.  And it revealed that annual savings of Euros 631,000 could be achieved with prompt return on investment (ROI).

The consultancy session lasted just two days and involved a site visit by the Prime Competence team to review current processes and interview key staff.  The resultant recommendation explored three facets of the business, the first being letters.  Prime Competence estimated that further investment in letter automation, in the region of Euros 500,000, would translate to savings of around Euros 375,000 achieving an ROI of just eighteen months.

Prime Competence is an avid proponent of open architecture platforms as it provides unrivalled automation flexibility in the short and long term.  Adoption of this approach was one of the main suggestions for the post’s parcel operation.  Prime Competence also identified the potential for a 25% read rate improvement on handwritten characters.   Here the estimated cost savings were Euros 114,000 from a Euros 300,000 investment with an ROI of two and a half years.

The introduction of a revenue recovery system for flats, involving the installation of two DWS tunnels is estimated to generate savings of around Euros 142,000 with an ROI of two years. Prime Competence also suggested greater software flexibility, the use of video coding with a memory function to reduce 66% of coding work and implementation of a central database with pre-advised EDI data.

“This is typical illustration of what can be achieved with an automation platform with CEN interfaces and the latest automation technology,” explained Richard Hagen, Prime Competence. “There is a lot to be gained by asking what we can do better and by continually developing the process.”

Quelle: www.primevision.com