| SPECIALTY UNDERWRITERS CASE STUDY F I N A N C I A L |
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| CLIENT PROFILE Type: Super-Regional Financial Services Institution Assets: $23,000,000,000 Employees: 7,800 (in one state) 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 DILEMNA Initially SU explained and demonstrated that with most institutions today there is a quiet crisis in the fact that two out of every ten dollars spent for most maintenance contracts is wasted and unnecessary. The client had 99 separate contracts selected for the program (with multiple vendors and expiration dates) encompassing more than 1,300 pieces of equipment with varying exclusions and limitations. THE SOLUTION Over the course of several months SU in conjunction with the clients CFO, Finance staff and Procurement met to understanding the program, build the financial model and then educate key department heads. The SU program was implemented in October of 1990. Vendor support and response levels have either remained virtually the same or have improved due to the competition for time & material revenue in the marketplace. Through the years the program has survived several changes in administration and even ownership. The client has been greatly assisted through a consultative partnership with SU. For example, SU has been able to assist the client in locating alternative vendors at lower rates, has provided manufacturer �downtime� history when considering buying new equipment and has aided the client in pinpointing high frequency repair items within their organization. In addition, SU policies all vendor service reports, invoices and activity to ensure compliance and integrity with acceptable business practices. The SU program is not a single answer to an inherent problem but rather a series of solutions to multiple problems involving costs, inadequate coverage�s and inefficient delivery systems found in virtually every organization. |
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