Challenge
A Fortune 500 provider of global procurement, payment and travel services, with 181 billion dollars in assets sought to reduce its total cost of ownership (TCO), associated with its front-end and back-end remittance processing, to just 80%. Managing an annual volume of more than 30 MM paper remittances in-house required significant investments in equipment, labor, system licenses, and PCI-compliance audits. To off-set some of these costs, the firm wanted to downsize and consolidate its in-house operations. The firm was also getting bogged down with multiple software licenses, in-house ACH clearing systems, and contracts that were due to expire.
Solution
The firm selected Exela as its primary out-source provider for its remittance processing operations. Currently, Exela processes an annual volume of more than 30MM payments for the firm. Outsourcing its remittance operations, including its manual keying and depository functions, provided the firm with a means of reducing its total ownership costs. The implementation encompassed a phased approach, beginning with front-end operations, and continuing with IT/back-end processes, including ACH clearing, quality assurance and depository functions. Working together with Exela, the firm completed a successful migration from its previous remittance platform, US Data Works, to Exela’s TMS system. The firm’s ACH engine, which was also expiring, was replaced with Exela’s solution.
Today, we provide the full spectrum of paper and electronic payment processing services including:
- - Commercial and retail LockBox processing services
- - Electronic LockBox services
- - Remote remittance LockBox spoke
Benefits
- - Improved processing turn-around times, from 3 ½ days to 48 hours
- - Decreased the firm’s total ownership costs by 20%
- - Dedicated Relationship Management
- - Continuous SLA Achievement: Payment post accuracy (99%); timeliness; duplicate payments; exceptions; decisions processing errors; misposts
- - Continuous Improvement: Since partnering with Exela, this firm has benefited from several system upgrades; process improvements and service extensions.
- - Risk Mitigation: By entrusting it’s auditing and compliance activities to an expert. the firm was able to reduce its risk of regulatory non-compliance
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