CASE STUDIES
- Financial
CLIENT PROFILE
Type: Super Regional Financial Services Institution
Assets: $23,000,000,000
Employees: 7,800
Geographic: 124 sites plus corporate and administrative facilities spread throughout a southwestern state
Years Utilizing Specialty Underwriters: 11
CORPORATE HISTORY SINCE 1990
Total Maintenance Contract Spend: $15,707,040
Hard Dollar Cost Savings (verified by reviewing current maintenance contracts): $2,617,841
Total Invoices Processed by SU: 55,629 (vendor invoices sent to SU for review and payment)
Administrative Savings: $2,781,450 (client verified internal cost of $50 to process invoice and remit payment)
THE ISSUE
Senior Bank Officers recognized the need to centralize the on-going management of equipment maintenance and reduce both the administrative burden and ever increasing expenses. The client had over 100 separate contracts (over 1,500 pieces of equipment), with multiple vendors, numerous expiration dates and in some cases, similar vendors servicing the same equipment in the same building. The Bank selected Specialty Underwriters to conduct a financial survey and recommend cost reduction initiatives that would accomplish their goals.
THE SOLUTION
A new maintenance delivery system was implemented in October of 1990. By capturing and analyzing all necessary data, SU’s proprietary SUMIT™ software easily identified equipment types where substantial savings could be realized.
The SU program allowed the client to dramatically reduce costs, and outsource administrative tasks such as; purchase order issuance, invoice audit and review, and vendor payment processing. With these results, the Bank decided not to add additional staff since SU was performing all of these functions within the program for no additional cost. SU has also been able to assist the client in consolidating their overall vendor base, resulting in improved response time, and consequently, less equipment downtime.
According to Bank officials, the on-going management reports provided by SU has enabled the staff to pinpoint areas of equipment failure within their branch network and make informed decisions when purchasing new hardware.
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