Costs Savings with eStatements
The Company is a large restaurant chain with over 1200 franchisees across Canada.
The legacy reporting system used was based on a locally installed client UI. Although most users could share the reports across the departments, the Company needed to have a more centralized enterprise based reporting system that could be shared via a web based reporting portal.
The restaurant chain uses specific metrics that track the sales of each franchise location for each day. One important metric is to track the sales for a specific day and compare the sale to the previous day, week, month and day of year for the same week date. The information is based on point of sale data for each franchisee and is uploaded and stored in the corporate data warehouse. The data was available in the data warehouse however there was no standard corporate report available to compare the sales by week date.
Another challenge for the Company was that they needed to control the rising costs and expenses to manage the franchisees. For example, mailing the bi-weekly statements which includes the printing of the statements, postage, envelope costs and labor for each franchisee costs the restaurant chain over $20,000 annually in postal expense.
The existing report system was migrated to the IBM Cognos Reporting suite. Users could now access the standard corporate reports using a secured web portal.
The Daily Comp Sales process was developed and implemented. It involves a series of steps that result in creating a report used for comparing the daily sales of the current year with the previous year daily sales for the stores.
To save money on postal costs, the Franchisee eStatement was developed. The design of the production type report copies the existing statement that is sent out every 2 weeks. The statement is created using the IBM Cognos tools and is automatically emailed to each franchisee using the bursting feature that runs the same report filtered by each franchisee number. The report is run every 2 weeks and is emailed to each franchisee’s inbox.
Results and Benefits
Migrating the legacy reporting environment to the web based IBM Coognos portal allows the company to standardize the reports and share the information across the enterprise. Implementing the web solution also makes it easier to share the point of sale data with the franchisees.
The Daily Comp Sales report is used daily by the sales and marketing department. Factors such as promotion campaigns, location, events and even local weather are analyzed and sales are compared based on the date of week over historical periods. Information from this report is used by marketing to define how promotions and marketing campaigns are run.
By creating the eStatement for the franchisees, there was an immediate savings of over $20,000 yearly in postal costs. Franchisees could now access their statements immediately via their email. Although there were additional costs for the development of the report, this was quickly offset by the savings on administrative expenses.