Case Study - National Home Builder

Challenge
This client has one administrator in each of the 16 locations struggling to manage their own individual account. While all locations have the same provider, they have not been able to successfully leverage their economies of scale and have been unable to secure consistent pricing models through multiple markets. The administrators are also tied up in other core business related functions, and as a result, are unable to spend the time necessary to research their carrier and properly manage the account on an ongoing basis.

Action Taken
This customer outsourced the overall management and administrative functions of all 16 accounts to CPS. The steps taken by CPS were:

· Implement consistent pricing across markets
· Verify and validate all usage
· Verify and validate all billings/charges
· Implement new plans and pricing structures
· Reconcile all usage and billings on a monthly basis
· Modify exceptions and features monthly as required

Results
This client has realized a 35% external cost reduction with the carrier. Monthly cost per unit declined from $119 to $78. Client saved $41 per unit per month. Internally, 16 administrators were able to reallocate 20% of their time to more profitable functions. By industry standards, that is $144,000 per year in employee time reallocated to the core business.