There are more than $20Million of revenue adjustments that have to be made each year due to errors along the entire BAX revenue cycle (incomplete tariffs, air-bills not filled out properly, service failures, oversize issues and customer changes not reflected in time etc.) which led to excessive rework, potential leakage, customer adjustments and delayed cash flow. Xavor worked closely with BAX Global to re-engineer its processes of handling adjustments and automated most of the components to bring quick turn around of customer disputes. The web-based system integrates with the mainframe and automatically routes the disputes to the right approvers according to business rules setup. Additionally all escalations when approval window is missed as well as alerts to appropriate people are built-in to ensure timely delivery increase efficiency and productivity. Management is also provided the right visibility to all adjustments so as to pro-actively manage the open disputes. The adjustments and collections process along with customer service is vastly improved by automating this process.
Business Case for building this product or solution
BAX Global was having severe cash flow issues as well as lost revenue (almost 40% of the adjustments were never collected) due to their inefficient process. BAX wanted to make sure that the adjustments are handled in time, all money collected and the customer service is improved.
Benefit to the customer (Financial ROI or productivity improvements)
In the first month of the launch BAX was able to process $1.5M more adjustments than it was ever able to before. The visibility of the open disputes helped domestic and regional management to quickly resolve issues. Customer satisfaction increased tremendously in the first year as they were getting their issues resolved in a timely manner.
The collections increased by $450K/month resulting in about $5.4M of more collections for the year. The productivity of the workers also increased significantly as they were more organized in handling the adjustments, no more lost transactions and significant time savings achieved in processing disputes through integration of the new system to the back-end mainframe system.
Customer testimonial and how solution has influenced BAX
Xavor made a critical contribution to the BAX Global solution. Because of Xavor's ability to understand and capture the needs so effectively the solution came together quickly. In the words of our customer:
"The automation project for the Revenue Adjustment is one of the largest automation projects with the most impact that our company has ever undertaken. Its success has been due to the professionalism and expertise of Xavor and the high quality product that it has delivered.
Xavor stands out in its ability to understand the business requirements and scope projects accurately from the beginning, thus making the implementation both timely, productive and efficient."
Xavor provided the overall business consulting, program management, architecture and development services. Xavor's ability to do this turnkey successfully for a fixed budget has resulted in Xavor getting several additional contracts with BAX for other needs.