Global Customer Service Outsourcing Project
Global Grocery Retailer
A global grocery retailer successfully transitioned its customer service operations to a BPO vendor in the Philippines across the US, UK, and Australia, achieving over $10 million in annual savings while meeting key performance indicators and enhancing customer experience.
Sector: Retail
Location: UK, US, AUS
Ownership: Privately owned
Duration: Long Term
Challenge
The client was characterised by significant variations between the operations and business processes in the different national markets in which it operated. In the face of growing competition and margin pressures – as well as to attempt to drive consolidation and economies of scale in non-core areas – the client centrally encouraged different markets to undertake a consolidated outsourcing of contact centre activities.
Solution
At an earlier stage of the project potential BPO vendors were narrowed down to a short-list of just two. As we became involved the scope of the project was re-framed to encompass three primarily English-language markets – US, UK and Australia (with some Spanish language requirements for US).
The Philippines was identified as the best location, based on a combination of retail sector experience, market alignment and cost. We acted as the contact centre / BPO subject matter expert and led the definition of customer service processes, data flows, technologies and anticipated volumes which were a basis for the final Request for Proposal (RFP). This included reflecting significant differences in channel usage, business processes, seasonality and technology platforms and / or instances of platforms between the markets. In addition, as one market already outsourced to a Philippines BPO location, another was predominantly outsourced, but in-country, and the third market had a solely in-house, domestic operation, there were varying degrees of experience and comfort in outsourcing. This required management team coaching, best practice and contract governance definition in anticipation of the outsourcing.
We managed the RFP process, documentation, stakeholder management and, as required, acted as a ‘back channel’ source of guidance to the vendors as they developed their solutions and proposals. Ultimately, this led to a final vendor selection which was driven by the client team, based on objective agreed data and assessments.
Outcome
All three markets successfully transitioned their customer service operations to the new BPO vendor, achieving >$10m annual budget savings whilst meeting the client’s KPIs and customer experience targets.