Contract Termination/ Save the Customer Accountability

Black Belt-G.K. McCown Service DivisionBU – Dallas, TX.

2

Project Overview

IKON is not successfully "saving", or proactively attempting to save, leasing customer relationships at

1) the time of an early termination request from a customer, 2) lease expiration.

This project is currently focused on improving/establishing standard lease customer retention reporting processes in an effort to improve the expiration report accuracy.

Goal: To improve Retention Rate 5% or $736,000

3

Current Process Capability

0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

LSLTarget

Process Capability Analysis for % by Month

USL

Target

LSL

Mean

Sample N

StDev (Within)

StDev (Overall)

Cp

CPU

CPL

Cpk

Cpm

Pp

PPU

PPL

Ppk

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

PPM < LSL

PPM > USL

PPM Total

*

0.700000

0.750000

0.629393

100

0.109043

0.114783

*

*

-0.37

-0.37

*

*

*

-0.35

-0.35

840000.00

*

840000.00

865646.44

*

865646.44

853311.58

*

853311.58

Process Data

Potential (Within) Capability

Overall Capability Observed Performance Exp. "Within" Performance Exp. "Overall" Performance

Within

Overall

The overall IKON target is the LSL-75% and the minimum target is 70%. We are currently performing at 62.9% overall (south Region) and have a goal to improve by 5%.

4

Project Strategy

18 Month Lease expiration report accuracy Move to 67% from current 62.9% lease retention

Focus on Oracle Data Base Validation

5

DISCOVERIES in Sales

The OSO Lease expiration report: Meeting with several Sales Managers and Sales Reps we learned that

they do not use the expiration report consistently.1. Cannot reliably retrieve report2. Does not show all of the opportunities in their territory3. Redundant equipment shown for upgrades4. Lacking additional information

Sales cannot consistently utilize the report for their forecasting practices and upgrade potential.

WHY?

6

Additional Report Requirements

Third Party Lease expirations not available Monthly equipment (Only) payment Upgrade Quote (At time report is generated) Buyout to return quote (At time report is generated) Buy out to own quote (At time report is generated) Service information populated

When service is built into lease i.e.…Image Management Monthly equipment payment = X Monthly Service Payment = Y Copy Allowance Actual volume being ran Overage Rate

The current expiration report does not provide the above requirements easily, if at all.

7

The DATA between IKONICS and Oracle!!!

MATCHED data? NO! Originally we learned that we were not running an unmatched report

similar to the unmatched report between IKONICS and On-Target. This report tells us what asset records are not matching between the two DATA bases.

OBTAINED new data! YES! After working with the Oracle team we were able to create this unmatched

report. The results were ALARMING! We started with over 12 thousand records

which was too large to manage and analyze.

CHANGED our data focus? YES! Investigate why we have so many records unmatched.

8

Data Errors: Unmatched Records

0200400600800

10001200

Failures

9

Additional Discoveries

Some equipment on the unmatched report did not convert over from OMD to the install base which still have current existing leases.

1. Some equipment shows that it went to whole sale but was still in the field.

2. Some equipment showed to be picked up but IOSC still has active leases on them.

Manual processes need validation

10

Detailed Process MapThe need for

New CustomerLease Net New

Oracle Salesentry Online

(OSO)

Sales Input of order Legal Name Address Contact Name Billing Info Telephone Number Equipment Info. Qoate Dollars Credit Check Have SSA setup

Customer Process Qoate Submit

Sales Rep. SubmitsOpportunity into

(OSO)

OrderManagement

Log into Order Organizer Validate hard paper w ork

to info. entered by sales(OSO)

Move hardw are Dollars to(DFF)

Send originals to HoustonCCC

Y= EnteredStatus

Y= BookedStatus work

flownotification to

Sales Mngt.and sales Rep

Supply Chain

Assembly Item # Job # Demand on Equipment Warehouse Buils Assembly Shop Line Copy to Order Schedulers Serial Number (Oracle) WIP to Assembly # Assign Assembly Serial # (Oracle) Enter Shop

Resources Move to staging area Delivery and Acceptance

Draft (DNA) Contact Customer for delivery (Oracle) Print Final DNA Deliver Enter Confirmation in Oracle Enter meter and ID# into install

Base (Oracle) ITT Input

IKONICS DataBase

Oracle DataBase

Lease Data Entry to CLasinterface

Service Components Address Legal Name Accessories Invoice After DNA paper

w ork returns

CLas EntryInterface betw een

CCC and IOSC

OrderPackag

e

Houston CCC

Order Validatedmanually w ith

hard copies

Y= ShippedFulfilled Orderto Customer

Customer ReceivesShipment and signs

DNA

IOSC

Information enteredfrom Houston CCCready for interfacingw ith IOSC to IKONCS

IOSC extracts ordercomponents andenters into IKONICSData Base

FundedTransaction to

IKON

Legacy Data

Non-Value Add

Value Add

Business Value Add

Manual Processing Steps for retrieving final pickup tickets

11

Order Management and Supply Chain

Central OC TermsLease in the

system

Is Lease Term Leo orw ithout any physical

bank checks?

Yes

No Central OC sendsLease to be

termed by IOSC

Dallas orHouston

Trish Key scansthe pick up ticket

into N:\

Ruth McCuescans the pick up

ticket into N:\

Dallas Houston

Yes

Pick up is enteredinto the system

3PO Logisticspicks up

equipment

Sales Rep submits:-Pick up

-Buyout to ow n-Buyout to upgrade

-Upgrade

Equipment isreturned to

thew arehouse

Central OCreceives

paperw ork

No

Central OC w aitsuntil they see the

pick up ticketinformation

scanned into theN:\

Is pick up ticketscanned into the

N:\ ?

Field OC approves thisw orkflow so equipment canget picked up and forw ards

paperw ork to Central OCgroup

Field OC receivestheir w orkflow

Pick up/Buyout/Buyout + upgrade/

Upgrade paperw orkis forw arded to

Central Leasing OCgroup

Once an order is complete and sent to Houston they depend on the warehouse to scan the pickup ticket into PDF format and upload to an “N” drive that is located on the Sanarray Server.

12

Next Steps…

Scaled down with new amendment: Scale the focus down to the actual DATA and Lease Expiration

report accuracy between IKONICS, Oracle and OSO (Oracle Sales Online)

Develop Team of FSS’s and Oracle/OMD experts to: Analyze filtered data Explore solutions Build recommended action list.

Focus on manual steps in supply chain and Order management process.