Summary: The Fidelity story reflects many of the necessary ingredients of a successful outsourcing relationship. The objectives of the relationship are clear and the measurement of metrics ensures that progress is tracked. By applying best practices to each component of the outsourcing project, the partnership will continue to meet and exceed the expectations of both parties.
Overall Cost Reduction: When DistribuTech outsourced the marketing fulfillment operations for Fidelity, the estimated annual budget (excluding printing) was reduced by approximately 50% from $1.6M per year to approximately $.8M per year. The cost reduction was driven by implementing best practices with technology and labour management and effectively managing distribution costs, mainly courier. These cost reductions will continue to be delivered through 2010. DistribuTech and Fidelity have agreed o a Continuous Improvement Guarantee which stipulates a year-over-year cost reduction of 4% for selected service fees. Click here to read more…
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