Billing System Transformation Drives £16M Cost Savings | HCLTech

Postal giant stamps out inefficiency with billing system transformation

Examine a £16 million cost savings and revenue growth project in the postal and courier industry
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Overview

Our client is a leading postal service and courier company in the United Kingdom. They undertook a major billing system transformation project, decommissioning their legacy TODS (Tracked Order Delivery System) and transitioning to a new Event Processing System (EPS).

The client sought the expertise of HCLTech to lead the complex transformation process. The project involved migrating billing capabilities, repointing interfaces, creating new functionalities and providing ongoing support and maintenance. The engagement covered the transition from the legacy system to the new EPS, integration with existing systems and establishment of new billing capabilities for our client.

The Challenge

Overcoming legacy system limitations

The client faced numerous challenges with the outdated TODS system. Since it was not scalable, the client could not process additional Sales Order loads during peak periods, leading to weeks of delayed billing and increased operational costs. Further, a key challenge was to decommission TODS and shift to a new EPS seamlessly.

The challenges
  • High annual licensing costs and technical limitations of the legacy system
  • Inefficiencies in billing processes and potential revenue losses due to delays in billing
  • The need for a seamless transition to avoid business disruptions and minimizing potential revenue loss during the transition period
  • Managing the complexity of repointing interfaces and creating new functionalities within EPS
  • Ensuring the staff were adequately trained on the new system to maintain operational efficiency

The Objective

Streamlining billing operations for enhanced efficiency

The primary objective of this extensive program was to decommission the TODS billing system and transition all billing capabilities to EPS. The aim was to create a modern, efficient billing environment while ensuring minimal disruption to ongoing operations. The client was trying to reduce licensing costs, improve billing efficiency and timeliness, create new functionalities within EPS, such as Sales Order Error replay and Sales Order View and provide seamless integration with existing systems, particularly SAP.

Postal giant stamps out inefficiency with billing system transformation

The Solution

Transitioning to a modern Event Processing System

HCLTech utilized a phased implementation approach, including requirements gathering and analysis, design and architecture, development, testing, deployment, training and documentation, rollout and adoption and maintenance and enhancement. The team leveraged best practices to accelerate delivery and ensure a smooth transition.

Solution
  • Moved the billing capability from TODS to EPS and repointed the interface from TODS to SAP to now connect EPS to SAP
  • Created a Sales Order Error replay functionality on EPS – BMS through Azure interfaces and implemented a Sales Order View on EPS – BMS
  • Designed data models and system architecture for the new billing landscape
  • Established governance and continuous improvement processes
  • Executing a detailed implementation plan covering requirements gathering, design, development, testing, deployment, training and ongoing support

The Impact

£16 million in cost savings and revenue growth

Strategic IT modernization can have a substantial positive impact on the business. HCLTech successfully executed this complex billing system transformation, enabling the client to operate with modernized billing capabilities while achieving substantial financial benefits.

Impact
  • £6 million annual savings in licensing costs due to TODS decommissioning
  • £10 million increase in billing revenue due to more timely billing to customers
  • Additional unquantified cost savings beyond the licensing cost reduction
  • Enhanced SAP processing capability reduced the daily processing of Sales Order time by 80% since the EPS was able to process Sales Order data in record time
  • Improved operational efficiency through new functionalities like Sales Order Error replay and Sales Order View
  • Enhanced system integration, particularly with SAP, leading to better data flow and business process efficiency
  • Modernized infrastructure positioning for the client for better long-term technological adaptability
  • Seamless business continuity throughout the transformation process

HCLTech also ensured that the client was ready would be well-equipped to handle the dynamic nature of the digital economy. We laid the foundation for future digital transformation initiatives so the client can efficiently adapt to modern technological advancements.