Restricted -Commercial BUSINESS CASE TEMPLATE Provision of Mailing Services to [insert organisation name] Restricted -Commercial Business case -explanation • This document will help postal procurement personnel to detail the potential benefits (financial and non-financial) and costs involved in improving their postal services • It can be used to secure commitment from senior management for changes required to improve performance • It is intended to be a guide and will require completion and tailoring by individual organisations • It draws on the NAO report, “Improving the Efficiency of Postal Services in the Public Sector”, which can be referred to for more information • Note, use of [ ] denotes information that must be completed by the user. Examples have been inserted into this document as a guide to indicate the type of information you may wish to consider inputting. Restricted -Commercial Business case -Contents • Objectives and scope • Summary (including quantified financial and non-financial benefits) • Value levers • Benefits (quantified, where possible, over time) • Implementation tasks and project plan • Key barriers • “Reference” customers • Methodology • Assumptions Restricted -Commercial Business case – Objectives and scope • To reduce spend on postal services • To increase the quality of postal services • This work focuses on postal procurement and management covering mail services • The organisation may wish to take this opportunity to review related areas, such as stationery, printing costs, and use of the Post Office network Restricted -Commercial Business case – Summary • Background: [highlight current spend, volume, suppliers, use of postal services within the organisation] • Potential areas of improvement: [summarise findings from business case analysis] • Potential benefits: [summarise financial and non-financial benefits over time] • Implementation costs and timeline: [summarise implementation activities and costs over time] • Key risks: [overview of risks and mitigating actions to achieving potential benefits] • What next: [detail immediate next steps] Restricted -Commercial Business case – Value levers • [Use NAO postal efficiency improvement tree to highlight primary value levers] Restricted -Commercial Business case – Benefits • Financial benefits • [Methodology for gathering data and assessing benefits]: Benefits can be measured by taking a baseline figure for the Key Performance Indicator (using data from a Mail Audit) and then re-measuring these at periodic intervals • For example, savings due to increased use of workshare products (compared with use of standard tariff) can be measured in this way • Non financial benefits: [summarise key service delivery benefits, eg. reduction in lost mail, quicker delivery times, improved targeting of mail items] Year 1 £ Year 2 £ Year 3 £ Restricted -Commercial Business case – Implementation tasks and project plan • Tasks will likely be around the following topics: Processes Technology Organisation • [customer contact] • [applications and forms] • [mail generation] • [printing] • [sorting] • [integration of systems] • [data cleansing] • [Key Performance ]Indicators] • [postal requirements] • [manage post with print, stationery] • [centralised print centres] • [centralised supplier management] Restricted -Commercial Business case – Implementation tasks and project plan • Costs are estimated at: Cost area Cost Technology £ Process change £ New licenses £ • The project will begin in [month, year] and complete in [month, year], with benefits beginning to be realised by [month, year]. Month 1 Task Milestone Task Task Month 3 Task Milestone Milestone Milestone Restricted -Commercial Business case – Key barriers Can be mitigated through [ e.g.Technology barrier] [action] Can be mitigated through [e.g.Internal resistance To change] [action] Can be mitigated through [Barrier 3] [action] Restricted -Commercial Business case – Reference customers [Audit of mail usage] [Large Local Authority] [Potential annual savings of £50,000] [ ] [ ] [ ] • Other public and private sector organisations have made similar changes with substantial rewards [reference case examples in NAO report and good practice guide]. • For example, [Change, eg. replace first class with second class] [HM Revenue & Customs] [£1.3m estimated savings] [Improve accuracy and management of customer address data] [National Savings & Investments] [Postage savings of £20,000 + processing savings and improved customer satisfaction] Restricted -Commercial Business case – Methodology and assumptions • This business case has been created using the following sources: • [OGCbuying.solutions, postal services team] • [Discussions with existing postal suppliers] • [Discussions with potential new postal suppliers] • [regional procurement group] • [National Audit Office report, “Improving Postal Services Procurement in the Public Sector”] • The main assumptions made for this business case are: • [assumption 1] • [assumption 2]