Logistics outsourcing case study: See how ADEC USA delivered growth and cost savings to a major Logistics company.
Overview
For Logistics companies, precise cash application is critical for maintaining profitability. Facing the challenge of managing a high-volume, complex, and nuanced cash application process, our client, one of the Top-5 Global Logistics providers, needed an effective solution. Although technology could handle a significant portion of transactions, manual processing of exceptions was necessary to maintain low costs.
ADEC USA implemented a hybrid outsourcing model that combined onshore resources in the USA with offshore teams in Kenya and the Philippines. This approach significantly lowered operational costs while improving cash application accuracy. Another upside of this solution is the wider social benefit achieved by creating employment opportunities in local communities in Nairobi through Impact Sourcing practices.
Our solution delivered exceptional accuracy and managed vast transaction volumes, leading to millions in revenue being correctly realized annually. Moreover, it reduced the overall costs for our client's cash application processes and ensured a seamless transition.
The Challenge
Our Global Logistics client sought to optimize costs while ensuring top-notch performance metrics for their cash application processes. A quick 24-hour turnaround time was crucial, as was reducing the percentage of unapplied cash to less than 3.0%.
The client also faced challenges in managing significant volume growth and required a team with a deep understanding of their business, systems, and processes.
Our Solution
ADEC USA designed a service that operates 24/7, efficiently managing high-volume transactions at a competitive cost structure. We created a hybrid solution that integrates automation with manual verification and processing, utilizing our workforce onshore in the USA and offshore in Kenya and the Philippines.
Since the beginning of our engagement in 2009, ADEC USA has shown adaptability and flexibility during periods of change, such as reductions in client employee numbers, while maintaining seamless process continuity, high metric performance, and overall cost reductions.
The Result
Our logistics BPO (Business Process Outsourcing) have become an integral part of our client’s operations, consistently delivering on key performance metrics. The percentage of unapplied cash for the Global Logistics company consistently remained at 2.5%, surpassing the target of less than 3.0%.
ADEC USA also maintained consistent 24-hour processing times while handling over 10 million transactions on an annual basis.
The Highlights
In FY 2023 and 2024, ADEC USA continued to demonstrate the effectiveness of our solution, consistently achieving:
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Unapplied cash at 2.5% against the target of < 3.0%
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24-hour turnaround times met consistently
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More than 10 million transactions processed annually
Get Started with ADEC USA
Ready to optimize your logistics operations with proven, cost-effective outsourcing solutions? Connect with ADEC USA today to discover how our customized services can elevate your business performance.
Contact us to schedule a consultation and start transforming your processes with excellence.