Credit/Rebill – Field Service Incorrect Billing

The Problem We are generating invoices for service calls on machines that have contracts, are IKON fixed assets, or are included in a Management Services contract. This is impacting:  Customer Retention (erode current base billing)  Future Sales (Sales Rep turnover, forfeit potential base billing)  Overstated AR (invalid AR on the books)  Inappropriate Collection Attempts

Project Definition n Big “Y” = Too many Credit/Rebills n 2 nd Level “y”= Invalid field service invoices n Possible “x”s: n New Equipment – contract not set up yet n Contract set up incorrectly n Install Base incorrect – system problems n Service call set up with wrong serial number n Tech clears call incorrectly Objective: Reduce the number of invalid field service invoices

Process Background

Project Team  Project Champion:Gary Daut - Sr. Mgr Field Service Support  Black Belt:Heather Franek - Operations Process  Master Black Belt:Bob Conrad - Six Sigma Academy  Financial Analyst:Kyle Scott – Management Services  Wave 1 Black Belt:Marcus Downey - Professional Svcs.  Process Owner:Gary Daut – Sr. Mgr Field Service Support

Functional Team n Cyndi BrowerCredit/Rebill team n Rebecca BryantData Analyst - AR n Gail LawsField Service Support n Esther Davis ?Logistics n ?Order Coordination n Kim BennettDeployment Team - FS

Data: Status Goal: Reduce Bad Service Invoices Measure: 1) How many service invoices n In September service invoices (78432 were $0) n In September 7472 service invoices printed 2) How many service invoices are credited n In September 8256 credits, 165 rebills (?) 3) Reasons for bad invoices n Credits – sort by reason code, identify pertinent credits n Suspect Invoice reports – manual review one invoice at a time. This only identifies invalid invoices after a contract is set up (I.e. it won’t capture new equipment issues).

Anticipated Financial Impact n Expected Headcount Reduction: n 2 Credit/Rebill n 1 Collections n 1 Field Service n Total Headcount Reduction: 4 in Atlanta and 4 in Houston = 8 n 8 x $31,250 = $250,000 Other Benefits: Reduce A/R Bad Debt, Improve Customer Satisfaction, Better Rep Retention, Increase Future Base Billing