When HSBC 'the world's local bank' wanted to improve local service to the Australian market, they partnered with Corporate Express
Although dealing across several Lines of Business including; Furniture, Promotional, Janitorial, Office Products, Software & Licensing - Print Services is one of the largest expense items and therefore an ongoing area for scrutiny.
John Curtin, Senior Manager Property, Procurement and Admin for HSBC explained the nature of the relationship:
“After 13 years with a previous supplier, we decided it was time to go to tender for our Print requirements and see what was out there. Corporate Express Print Services presented the best deal from all aspects; financial, systems, reporting and demonstrated they could produce significant savings.”
As is the norm with large B2B integrations teething issues were encountered, the nature of which were hard to foresee. These were resolved on a case by case basis, avoiding potential delays. “Positively these experiences resulted in new processes and a greater understanding of each others business.”
Jonathan Dickson, General Manager Print Services for Corporate Express, agrees that large accounts can take a while before both sides are truly ready to square off and leverage the partnership.
“HSBC is a good example of the Enterprise level accounts we manage where in phase one of the relationship we typically deliver savings, meet their expectations and add value. But really it is during that initial period of getting to know each other and working out any kinks where synergy from both cultures kicks in and helps define the way forward. Phase two is all about taking it to the next level. It’s where we show our true strengths as a Procurement Partner, assisting them to drive efficiencies in cost and in service in a true partnering role.”
“a significant 30% saving was achieved”
An example of this was when Print Services proactively reviewed the process that HSBC used to mass market to its customers. This involved the full gambit of design, printing, collating, packaging and distribution - nothing unusual in that. Yet by re-engineering the process, a significant 30% saving was achieved. This is from the Print Services mindset of challenging the norm and aspiring towards excellence.
HSBC utilises Corporate Express for all of their print - from volume stationery, POS and collateral to complex brochure-ware and marketing campaigns. Each of their 25 branches and 5 corporate offices do their own ordering although the option exists for centralised purchasing.
Stock, which is typically another considerable procurement cost, is warehoused at and absorbed by Corporate Express. This is an important consideration as having pre-determined replacement levels guarantees timely delivery.
HSBC uses BUYSMART, an Ariba based system that manages their whole of company procurement, enabling them to optimise their spend management processes and supplier relationships. This is seamlessly integrated into NetXpress through which Corporate Express provides all the fulfilment and MIS reporting. Spend patterns, benchmarking and other requested trends are reported each quarter. Product sets are locked down in NetXpress to ensure compliance but can be changed upon request.
Although going through an independent Agency, HSBC also utilises the Design Shop at Corporate Express for artwork to pre-press as it is both expedient and cost effective. ‘Leakage’ has been eliminated as everything from design to delivery is locked down in clearly defined Service Level Agreements.
“Why Print Services? Since taking over all of our print requirements 15 months ago, they have gone that extra mile to appreciate our culture, processes and customers. Now they understand our business and we are ready to advance to the next level.” said Mr Curtin.
The HSBC Group is one of the largest banking and financial services organisations in the world, with well established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. In Australia HSBC operates out of 25 branches and 5 corporate premises.
