Advatix transformed the claims management process for a leading alcoholic beverages eCommerce business by reducing operating costs by 28%. It reduced the claims turnaround time to under 20 days and achieved zero backlogs through strategic process redesign and technology integration.
Understanding the Client
A leading B2C eCommerce business in the alcoholic beverages industry delivers wine, beer, and other spirits through partnerships with 450+ companies across the U.S. However, the company faced a series of operational challenges, including inefficient claims management, high operational costs, and a lack of synergy between geographically dispersed teams.
It was time to make a change. So, the company sought the help of experts at Advatix to optimize their supply chain and related processes.
Challenges Faced by our eCommerce Client
Advatix hit the ground running and identified crucial pain points. Some of the main challenges identified were huge backlog of claims, knowledge gaps, and a few more operational inefficiencies. These challenges impacted on the company’s ability to scale operations and meet the growing customer demand.
- Backlog of Claims: Claims were often pending for over 30 days, causing delays and customer dissatisfaction.
- Operational Inefficiencies: Teams operating out of different locations lacked synergy, which led to slow decision-making and missed opportunities.
- High Dependency on Tribal Knowledge: The absence of a centralized knowledge base left teams relying on informal, inefficient processes.
Advatix’s Data-Driven Approach to Streamlining Processes
Streamline operations, reduce costs, and elevate
customer satisfaction with our intelligent, data-driven solutions.
To combat these challenges, Advatix recommended the adoption of a metric-driven claims management process by leveraging technology solutions for ensuring a smooth information flow among departments.
Advatix’s strategy was centered on two main objectives:
1. Reduce Operational Costs
Advatix’s strategy to adopt a hybrid operational model and redefine team structures led to a 28% reduction in operating costs. This provided a strong foundation for further improvements.
- Hybrid Operational Model: By strategically combining on-shore and off-shore resources of the company, Advatix optimized labor costs without compromising service quality.
- Team Structure Redesign: Redefining roles and responsibilities for teams helped streamline operations and eliminate redundancies.
2. Improve Turnaround Time for Claims
After redefining processes, Advatix leveraged technology to reduce turnaround time and increase customer satisfaction.
- Web-Based Claims Forms with Chatbot Support: Customers could submit claims easily via a user-friendly, chatbot-enabled platform. The system automated ticket creation and routed claims to the relevant teams, ensuring efficient processing.
- Defined SLAs and Governance: Real-time analysis dashboards, combined with clearly defined SLAs, enabled effective ticket management, reduced delays, and ensured robust governance on claim status.
- Rule-Based Validation and Refund Processing: Predefined rules validated claims, allowing for faster and more accurate refunds while minimizing human error. Thresholds and authority levels for refunds were well-defined, ensuring consistency and control.
- Automated Alerts and Follow-Ups: The system generated alerts for claims nearing SLA deadlines and automated follow-ups with carriers. Weekly connects ensured aligned claims status, while automated updates kept stakeholders informed.
- Feedback and Continuous Improvement: Feedback loops to fulfillment centers and operations leaders addressed recurring issues. A streamlined refund process integrated the Accounts Payable (AP) team for seamless execution.
- Quality Framework Implementation: A robust quality framework, combined with Business Quality (BQ) management, enhanced the claims process. It ensured continuous monitoring and ongoing improvement.
Key Outcomes and Success Metrics
Advatix’s strategy not only improved internal operations but also enhanced the business’ ability to meet customer expectations in a highly competitive eCommerce market.
- 28% Reduction in Operating Costs: Adopting the new hybrid operations model and restructuring streamlined processes, facilitating better resource utilization.
- Turnaround Time Reduced to 20 Days: Claims that once took over 30 days to resolve were now completed in under 20 days.
- Zero Backlogs: The new approach and technology integration gradually reduced the claim count, resulting in zero back logs.
Conclusion
Advatix’s data-driven solutions and strategic interventions transformed the claims management process for this eCommerce client. By implementing streamlined workflows, advanced technology, and a hybrid operational model, the company achieved faster turnaround times, reduced costs, and zero backlogs.
Advatix’s expertise in optimizing logistics and claims processes empowered the client to scale their operations, enhance customer satisfaction, and thrive in a competitive market.