A rapidly growing pharmacy benefits management (PBM) company had undertaken a rationalization of its member communications operations, in order to reduce redundancy by consolidating the operations and systems used to create administrative and direct marketing communications. The company hired Doculabs to develop a strategy incorporating industry best practices for the processes and technology supporting the publishing of these communications.
Doculabs assessed the current state of the client’s publishing in four areas: Message Classification, Publishing Process, Financials, and Technology. Doculabs then developed recommendations in each of these areas and a roadmap for executing on the recommendations.
Doculabs identified opportunities to rationalize messaging, publishing processes, and the technology portfolio of systems supporting the client’s member communications. The client’s initial inventory ofsystems considered for rationalization had annual operating costs of $40 million. Doculabs identified a number of additional systems for rationalization costing an additional $15 million annually.
Overall, Doculabs recommended a rationalization of 15 systems down to 3 systems, at a cost of $9 million over 5 years, resulting in total savings of $15 million (postage, production, IT) to the client over an annual spend of $55 million–a 20 percent cost reduction, of which $3 million in savings was attributed to Doculabs’ effort. Doculabs’ fee for the project was $317,000.
The ability for Doculabs to help us save more than $3 million will allow us to pass on those savings to our customers!