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Insurer saves $4 Million by Outsourcing Its Records Management

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		·  Sourcing Support
		Related Areas of Expertise
		·  Shared Services ·  Records Management
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		·  Reduce Costs and Save Money ·  Focus on Your Core Business ·  Automate Your Environment

Overview:

This insurer achieved annual savings of $4M by identifying the key drivers and opportunities in its current business processes related to records management and making appropriate process and partnership changes.

Client: 

One of the largest multiline insurers in the property/casualty field, this client is a diversified worldwide insurance service organization.

Challenge:

Due to the recent implementation of “on-demand” ordering of office supplies, this client had a substantial amount of excess space in its central warehouse facility.  Immediate disposal of the facility was not possible, despite the strong real estate market, because record management activity was taking up space within the building.  Given the potential opportunity for savings if the facility could be sold, and the rapidly changing technology options available, management hired EMS to evaluate the potential of outsourcing the records management function.

Solution:

• Establish a cross-functional task force, including representatives from the company’s records,  administrative services, finance, IT and internal audit departments, that assessed the records  management environment, including facilities, policies, processes and technology. 
• Define the baseline.
• Conduct a strategic sourcing initiative to assess available providers of services and technology and  determine the most effective solution for the future. 

Results: 

• The company realized more than $4 million in hard-dollar savings annually.
• The company automated and streamlined the storage and retrieval processes, and implemented  cutting-edge technology to track and monitor records by outsourcing records management services  to a third-party provider. 
• The company identified the key drivers and opportunities in its business process and made the  appropriate process and partnership changes to realize significant savings and deliver improved  service to its internal customers.