Price Support (Vendor Rebates) Outside Vendor Window

Black Belt: Debbi Youmans-McCreary Division: INA - eIKONBU – Ops/Vendor Credits/Southeast

2

Project Charter

START POINT: Receipt of registration from Canon, CSMP, or Ricoh, DMAP, for price support credits by IKON-SED

GOAL: Maximize credits received by IKON

END POINT: Credit application by IKON A/P

Let the opportunities begin!

3

Use C&E, FMEA and detailed flowchart to find problems and focus data collection

Extrapolate, from sample data,: 1. Number of registrations with errors and number of claims not filed2. Number of claims not credited

Continue data collection plan1. Build ACCESS database to compare vendor to IKON – Why aren’t claims

visible?2. Utilize new Rejection reports for Vendor Credit Specialists – Why aren’t claims

filed within the vendor terms?

Strategy for Data Collection

4

What are we dealing with?

C A N O N

R I C O H

VCTSORACLE SALESON LINE

5

Cause and Effect Score

Invoice and Serial Nos.

32%

VCS Error Resolution9%

ROL Submission15%

Sales Entry29%Canon Submission

15%

61% of errors are due to Invoice/Serial or Sales Entry Problems – we think…

6

B

IKONVendor

SpecialistsIs the vendor

Canon or Ricoh

Key info toSpreadsheet (list

all ACC andEquip.) and send

package withinvoice to Canon

Ricoh

Canon

Enter informationand date sent to

vendor into VCTS;if serial number isnot present thenmust manually

enter serialnumber to VCTS(added per JW 9/

5)

Resolve errorsand sends

corrections toVCTS

Endinstall base information

serial number if applicable

Date and name ofsubmitter

vendor credit registrationreport

Install base

Detailed Process Map: Where are the issues?

registration #Commitment levelstart/end datesType of coverage

Sales Enters committment leveland registration number, startad end dates to appropriate

organization, party/site in OSO

Create opportunity oruses opportunity alreadyset up against correct

org, party /site

Is this a vendorsupported special

pricing?

VCS formats special pricingtable and then advance pricing

team uploads table.

IKONSales

Customer information andplacement opportunity

Sales Rep or submitterreceives registration

number from VCS/vendor/Reps/Admin Assist.

Correct customer setup in Oracle/OSO

Customer contactagreement with customer

Yes

No

Special Pricing table from vendor

Can this orderbe entered in

OSO?Yes

Type of transaction

RTP=51% if failure is discrete(Validation in progress)

37% of registrations sampled are entered incorrectly

19% of claims sampled are late

7

FMEA: Sales Entry Errors

0

200

400

600

800

1000

1200

Registration#

Volume Start/EndDates

Category Customersetup

Initial Sales Entry of Registration Information

Sco

re

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Registration#

Volume Start/EndDates

Category Customersetup

Initial Sales Entry of Registration Information

FMEA Risk Scores Data Sample

# o

f E

rro

rs

8

FMEA: Invoice and Serial Number Errors

0

200

400

600

800

1000

1200

1400

Order # Invoice # InstallBase

D&A Serial #

Invoice and Serial Number errors

Sco

re

0

10

20

30

40

50

Order #,D&A, InstallBase

Invoice # Serial #

Invoice and Serial Number errors

# o

f S

amp

les

Data SampleFMEA Scores

9

Data Collection: Get visibility to claims to file for credits!

CANON: 874

RICOH: 794

VCTS: 9148

RICOH

CANON

IKON:A/P

ORACLE 7593

IKON:OSO - 1492

Registration Claims to Credits

10% Loss Rate 16% Reject Rate

10

Problem Statement “Crystallized”

IKON loses credits! Incorrect entry of CSMP or DMAP equipment registration information

to Oracle NO entry of registration number

IKON misses vendor deadlines to file claims for credits!

Serial numbers are missing or not linked to the mainframe Invoice numbers and/or copies are not present

How do I know this? Six Sigma tools!

11

Preliminary Recommendations

PROCESS:Centralize entry and control of who files, enters and monitors registration

information Eliminate lost registrations Build standard for entry of registration information Give direct responsibility to one Team

IT:Automate process control Build web-form for Sales to request registration from VCS who would file with the

vendor Add edit to OSO field standardizing numeric and formatted information Build EDI or ACCESS database to ensure vendor to IKON reconciliation

12

Next Steps…

Focus Data Collection Validate benefits in terms of dollars

Obtain invoice information to find specific issues with D&A, Install Base and serial number errors

Continue building ACCESS database to obtain visibility to vendor registrations not entered to Oracle

Request Process Change Institute standard registration number format between vendor and IKON

Add edit to OSO field requiring entry of numeric and formatted information

Determine feasibility of centralization