Price Support (Vendor Rebates) Outside Vendor Window Black Belt: Debbi Youmans-McCreary Division: INA - eIKON BU – Ops/Vendor Credits/Southeast

2 Project Charter n START POINT: Receipt of registration from Canon, CSMP, or Ricoh, DMAP, for price support credits by IKON-SED n GOAL: Maximize credits received by IKON n END POINT: Credit application by IKON A/P Let the opportunities begin!

3 n Use C&E, FMEA and detailed flowchart to find problems and focus data collection n Extrapolate, from sample data,: 1. Number of registrations with errors and number of claims not filed 2. Number of claims not credited n Continue data collection plan 1. Build ACCESS database to compare vendor to IKON – Why aren’t claims visible? 2. Utilize new Rejection reports for Vendor Credit Specialists – Why aren’t claims filed within the vendor terms? Strategy for Data Collection

4 What are we dealing with?

5 Cause and Effect Score Invoice and Serial Nos. 32% VCS Error Resolution 9% ROL Submission 15% Sales Entry 29% Canon Submission 15% 61% of errors are due to Invoice/Serial or Sales Entry Problems – we think…

6 Detailed Process Map: Where are the issues? RTP=51% if failure is discrete (Validation in progress) 37% of registrations sampled are entered incorrectly 19% of claims sampled are late

7 FMEA: Sales Entry Errors Score FMEA Risk Scores Data Sample # of Errors

8 FMEA: Invoice and Serial Number Errors Score # of Samples Data Sample FMEA Scores

9 Data Collection: Get visibility to claims to file for credits! Registration Claims to Credits 10% Loss Rate 16% Reject Rate

10 Problem Statement “Crystallized” n IKON loses credits! n Incorrect entry of CSMP or DMAP equipment registration information to Oracle n NO entry of registration number n IKON misses vendor deadlines to file claims for credits! n Serial numbers are missing or not linked to the mainframe n Invoice numbers and/or copies are not present How do I know this? Six Sigma tools!

11 Preliminary Recommendations PROCESS: Centralize entry and control of who files, enters and monitors registration information  Eliminate lost registrations  Build standard for entry of registration information  Give direct responsibility to one Team IT: Automate process control n Build web-form for Sales to request registration from VCS who would file with the vendor  Add edit to OSO field standardizing numeric and formatted information  Build EDI or ACCESS database to ensure vendor to IKON reconciliation

12 Next Steps…  Focus Data Collection  Validate benefits in terms of dollars  Obtain invoice information to find specific issues with D&A, Install Base and serial number errors  Continue building ACCESS database to obtain visibility to vendor registrations not entered to Oracle  Request Process Change  Institute standard registration number format between vendor and IKON  Add edit to OSO field requiring entry of numeric and formatted information  Determine feasibility of centralization

13 Project DMAIC Checklist/Status Problem Statement: IKON does not currently take advantage of all price support (vendor credits) available on Registered customers. Orders not identified as price supported at the time of booking are not routed to the VCTS system. ODS is used to identify missed opportunities for regions still operating in OMD, but there is no equivalent report available from the Oracle path. The value of unclaimed credits is difficult to pin point without reporting capabilities. It is estimated at $3 million for SED based on the value of credits claimed by FLA. The vendor process includes: Sales, OM, and Vendor Credit Specialists.