Submitted by: Submitted by jaya4569
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Category: Business and Industry
Date Submitted: 02/01/2011 07:39 AM
Case Study: Revlon
Challenges
Revlon’s claims department was overwhelmed—they received 1,000 claims per day and the highdollar claims backlog was months behind. Low dollar claims were simply not resolved because the anticipated benefit was less than the associated cost—resulting in a significant loss of revenue. Charge-backs for customer deductions were running at 20% of gross sales (double the national average) and more than half of the 71 employees responsible for receivables were dedicated to credit claims resolution. The claims processes were laborious and time intensive, requiring manual collection and matching of documents as well as hand-offs among team members. Claims processors had to collect documents from multiple sources on a variety of media. Their process involved, pulling packing slips at the fiche reader, finding and printing invoices from the mainframe, pulling the paper claim from the file cabinet, and, calling the shipper to fax Proof-of-Delivery if not found. On average, the document collection process alone took 30 minutes per claim. Once documents were aggregated, the claims were manually distributed by type and processors would determine their validity. The hand-offs to the accounts receivable department were manual, as were the recordings of resolutions and communication process with customers. Revlon identified their process roadblocks and realized they needed to leverage business process management to: » Design an automated aggregation and filing process that insures document integrity and instant access Develop an efficient credit claim resolution workflow that automates prioritization and routing of claims
Customer Overview:
Revlon is a world leader in cosmetics, skin care, fragrance, and personal care and is a leading mass market cosmetics brand. Revlon’s global brand name recognition, product quality and marketing experience have enabled them to create one of the strongest consumer brand franchises in the world, with products...