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Looking to improve efficiencies BOC utilised Cumulo9’s C9 Transact services for their high volume transactional email delivery.
Energy
BOC is a Member of The Linde Group, which supplies compressed and bulk gases, chemicals and equipment around the globe. BOC New Zealand has three major production sites and employs around 250 people. BOC is a supplier of gases to many different industries including engineering, atmospheric, hospitals and the general public - you name it they probably do it.
The Challenges
Like most innovative and forward thinking companies BOC are continually looking to improve efficiencies in their operations. One area of significant opportunity for improvement was the delivery of their invoices to customers. Historically BOC had high levels of returned letters and consequently non-paid invoices. BOC did not have the ability to email invoices to customers. The BOC online customer portal gave customers the ability to download their invoices so it made sense for them to receive them electronically as well.
Delivering client success
Solution and results
The Solution
The answer was Cumulo9’s C9 Transact* that NZ Post rebrands as VPost - a high volume transactional email delivery solution. With exceptional measured delivery rates of 99.9%, C9 Transact provides the assured delivery BOC needs to send important documentation to their customers. NZ Post partnered with Cumulo9 to bring C9 Transact to BOC, a product focused on providing a reliable and cost effective answer to electronic transactional document delivery.
The Results
Once BOC customers understood the advantages of receiving their invoices by email compared with traditional post they were quick to sign up. BOC now deliver over 50% of all invoices going out via email and a positive ROI was achieved right from the start with key results being:
- Higher and more efficient invoice delivery rate – BOC experienced a significant reduction in the “Gone No Address” (GNA) mail and VPost improved their ability to get invoices out in time.
- Since implementing VPost cheque payments have reduced steadily with more customers taking up the option of Direct Debit and Direct Credit payments and payments are quicker with BOC’s over 60-day debt now very low in comparison to overall debt.
- Improved efficiency for customers with invoices delivered directly to customers inbox allowing them to upload them directly into their own accounting systems.
Reduction in Day’s Sales Outstanding (DSO) - BOC has always had a good DSO record however since the introduction of VPost they are now achieving less than 38 days DSO - key factors contributing to this include:
- Getting the invoices to the customers faster
- Not having the mail ‘go missing’
- More expedient turn around of ‘bounce back’ emails
- Ability to concentrate more resource on GNA mail
BOC’s monthly spend on regular mail has decreased by approximately $7 - $8k per month, giving them an annual savings of almost $100,000.
I would definitely recommend Cumulo9’s C9 Transact product, the transition was really simple and customers were very accepting of it - it is just a far, far easier way of doing business
Sally Van Gaalen
Business Support Manager, Credit and Asset Management, BOC New Zealand
