This explains the relationship between PB and Cisco.
So it would appear that the TZ deal with Cisco financially is a big one. We're not just talking about mailroom lockers but possibly also a whole distribution solution. If the latter is included, then it is a major multi-million dollar deal.
Cisco Systems Inc. provides end-to-end networking solutions that customers use to build a unified information infrastructure of their own. Cisco Systems also offers expertise in network design and implementation, technical support and professional services to maintain and optimize network operations.
In the high-tech industry, the integrity of a company's distribution system is as important as the quality of the product it manufactures and the services it provides. That is why Cisco Systems, the worldwide leader in networking for the internet, chose Pitney Bowes Management Services to support its America's Business Services at it's Corporate Distribution, which includes Mail, Desktop Delivery, Shipping, Receiving and its MobileWork program.
Before PBMS, Cisco Systems Corporate Distribution relied heavily on temporary labor. Because Cisco was growing at an alarming rate, Corporate Distribution Services was overwhelmed by the sheer demand for service. Add to that demand a transitory population and high employee turnover, and the result was lost product, delayed mail and unhappy customers. This fell short of Cisco's high standards of customer satisfaction.
How was PBMS hand-picked by Cisco? Cisco sent out an RFP and PBMS responded with a plan to maintain the integrity of the inventory and a solid training structure. Scalable solutions coupled with the Pitney Bowes Management Services reputation as a recognized leader in the industry helped cement the deal.
The Cisco Systems and PBMS partnership began in September 1997 and was prompted by several challenges. How do you manage a distribution process that is efficient yet, flexible and scalable to support a population that is doubling every year? In three years time Cisco Systems world headquarters in San Jose increased from 2 buildings and 21 temporary labor/Cisco employees processing mail and packages for 5500 employees to 50 buildings, 86 PBMS employees that processes mail and packages for 21,000 employees. Not only did PBMS increase staff and services within headquarters but also grew internationally with Cisco. PBMS also manages 9 additional locations with an additional 40 employees, servicing an additional 10,000 Cisco employees. Additional services offered at other locations include lobby ambassadors and facilities coordinators.
When PBMS came on board at Cisco, the first phase included training, learning the Cisco processes in place and implemented technology such as the automated Receiving tool. After significant growth occurred within Cisco, the second step was to assemble an on-site management team to integrate people and processes with technology, globally. A PBMS National Support team was implemented to coordinate efforts with other Cisco locations and PBMS city offices.
Once completed, PBMS went on to phase three: processes and technology. PBMS developed metrics and instituted Business Practice Standards to improve processes, which ultimately resulted in controlling shrink and increased customer satisfaction.
Moreover, Cisco needed a partner that understood their culture as well as the industry. "In our business the life cycle of a product is weeks or months," says, Tom Wirth, Manager of Americas Business Services. PBMS manages the daily operations receiving and distributing high-value product such as prototypes worth millions of dollars. Due to Cisco's needs, deliveries are crucial. That one-of-a-kind, high-value responsibility for PBMS meant being in the spotlight. Working with Cisco, multiple enhancements on the internal automated receiving system have occurred to meet the increasing demands of the system.
In June 2000 both management teams began working on what is called a 'wheel and spoke' delivery system, which would allow delivery personnel to reside in the buildings and receive product: a Centralized Delivery System (CDS). CDS consolidated both distribution routes for mail and desktop distribution and would decentralize 70% of the PBMS staff. Ironically while CDS was being considered, Cisco like many other tech companies experienced the effects of the economic slow down. In April of 2001, PBMS formally proposed CDS and within a year it was implemented. The CDS model saved Cisco $50,000 per month by reducing the vehicle fleet by over 50% and staffing was reduced by 10% and productivity increased by 20%. "The last two years business process improvements have substantially helped the business", says Tom Wirth CDS created a higher level of customer service by stationing PBMS staff in the buildings. They were able to interact with customers and act as "building ambassadors". According to Bruce Nelson, Facilities Services Manager, "understanding the customer is the best resource you can have to improving customer service." CDS achieved customer satisfaction, cost/value management and was a tremendous value added service that strengthened the partnership.
In January 2001, Cisco developed a Non-Production Automated Shipping Tool, NPAST as it is more commonly known as, that would allow its customers to process outgoing packages on-line at their desk. Cisco partnered with PBMS in development, rollout, and training. Alpha and beta tests were performed by PBMS at 2 Cisco locations. After successful rollouts at each location, Cisco decided to go live at WHQ. In July 2001, the tool was rolled out to Cisco's corporate headquarters with approximately 16,000 end users. Concurrently, PBMS is working with Cisco on a strategy to rollout the tool globally.
Additional value adds: partnering with vendors, in order to train on distribution processes and customer service. PBMS conducted 'train-the-trainer' courses on Suspicious Package/Substance awareness, Bomb Threats and Safety Awareness. The Cisco, senior management team is said to be very impressed with the signage that promotes safety and shrink.
Cisco and PBMS have extended their partnership globally with PBMS providing services to Cisco Systems in World Headquarters, San Jose, CA; Boulder, CO; Austin, TX; Richardson, TX; Toronto, Canada; Maple Grove, MN; Herndon, VA; Chelmsford, MA; Dallas, TX; and Research Triangle Park, NC.
"As a valued Cisco partner, PBMS continues to provide best in class services in the Business Support area. The visit by Mr. Critelli was an excellent example of the strength of the Cisco-Pitney Bowes partnership."
TZL Price at posting:
25.4¢ Sentiment: Buy Disclosure: Held
(20min delay)