Case study: Cost Planning
“Given the complexity of the services that our company offers, counting on MyABCM has enabled us to manage costs in a dynamic fashion, making it an important piece in our growth, enabling us to analyze costs per transaction for every process and calculating our profitability per product, channel and client.”
Servipag is a leading company in the billing and payment transaction market, and it was founded in 1990 by two of the country’s main financial institutions: Banco BCI and Banco do Chile. The company aims to support Chilean banking operations and seeks to broaden the services of these institutions as well as execute billing and payment transactions between national level companies (ranging from telecommunications, gas, and tolls to pensions and other forms of payment) and the consumers of their services.
Servipag offers multi-channel services to its clients that wish to effect billing and payment transactions through a network with 361 offices distributed throughout Chile and 1,400 Servipag Express agencies, as well as Servipag.com, which is considered the best billing portal in Chile.
Currently it meets the needs of an average of 3.5 million users who make payments or bill the services of roughly 1,300 companies, with an average of 9 million transactions per month.
Our commitment is to provide the greatest satisfaction to all our clients, by always seeking to meet their expectations, offering quality services that are also simple, agile and secure.
This project arose out of the need to have monthly cost information. The previous model used Excel and was not run on a monthly basis. It didn’t meet Servipag’s need to manage its costs with a view of its clients and products as well as measures of its performance in its various channels. All of this also had to be detailed enough so that decisions could be taken based on this information.
The second challenge was to align the strategies of different businesses and channels by being able to simulate various scenarios. It’s essential in managing the charge for each client to analyze the performance of the client to whom we offer our billing and payment services. We also need to analyze the impact of new projects, analyze transaction cost increases and decreases, and use the best costing practices.
We had to make sure channel and support area managers would be able to manage their costs with a high degree of accuracy. In this way, tracing costs and distinguishing between an object’s costs and received costs were also necessities that our project had to provide.
MyABCM’s planning and cost and profit analysis system was chosen as one of the company’s strategic pillars for managing costs. First, the costing model was migrated from the Excel spreadsheets to gain some immediate advantages, which led to the generation of automatic monthly results without errors due to manual calculations.
The next step was to redo the modeling in MyABCM in order to incorporate relevant modifications that would meet the project’s needs like revising and updating our activities and processes, redefining drivers and including new services, as well as calculating costs per client.
Currently the costing model is run monthly with the complete process, including the loading of the data, taking 1 day and the model’s calculation taking just 5 minutes.
Among the main benefits that have been obtained are the efficient cost tracing of the main expenses with detail per channel, and the monthly contributions of the different clients that use our various billing and payment services by product and by channel.
It allows us to transfer the service costs between the participating areas of the main processes in a transparent manner, such as assigning the support area costs to the various lines of business.