Kelly saves leading auto company $8M

09/16/2020

With no consistency across three suppliers—the client was lacking visibility into vehicle inspections, and losing money. A Kelly BPO quickly turned things around.

 

Results at a glance
Challenge The OEM was using three providers to outsource roughly 120K vehicle inspections each year, which delivered inconsistent service and results.
Solution Moved all services to a Kelly BPO solution for savings, and deployed a new inspection platform that feeds back-office systems for actionable insights.
Result nitial savings from 23% cost reduction per inspection, for $8+ million in contract value across 36 sites, plus reduced downtime for vehicle re-sale.

A large OEM was outsourcing vehicle inspection services for its Fleet  Remarketing Operations, about 120,000 inspections per year, to three providers. That separation was leading to variable results in service delivery, KPIs, SLAs, proprietary technologies, and disparate pricing. Without a common platform, the client was lacking visibility into data collection and reporting. Analysis was taking place outside of the group’s internal Remarketing Inventory Management System (RIMS). 

Experts at Kelly saw an opportunity to rationalize the supply base and drive cost savings. They offered to collaborate on a new inspection platform that would also feed directly into the back-office RIMS system, and give the client ownership of the data for more actionable insights. The client saw Kelly BPO as an ideal partner for outsourcing all of its the remarketing vehicle inspection services across 36 auction and marshalling sites. 

The team quickly collaborated with an app developer and the OEM to develop an internal client-owned platform and app for capturing Field Inspector claims, providing real-time access to data with detailed electronic reports. Kelly used proven techniques to replicate the program’s business processes into a defined delivery team of experienced Body Repair Inspectors, for a robust solution that covered all damage and defect inspections, customized to the client’s requirements.

Supplier rationalization helped to drive a secure solution with access to real-time data management, and reduced risk compliance for the automotive giant. Meanwhile, the customized inspection platform ensured electronic data exchange and optimal integration into the client’s direct workflow processes in their RIMS system. That enabled full access to electronic reporting, standardized inspection procedures, plus standardized cost calculations and determinations for excess wear and tear.

By moving all outsourced services to the Kelly BPO, initial savings captured from the program showed a 23% cost reduction per inspection performed. This translates to savings of more than $8 million in total contract value. Efficiencies have also reduced another critical metric: downtime for vehicle re-sale.

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