- 31 March 2004 15:30
River Dynamics Takes its Intelligent Supplier Management System to New Markets
31 March 2004, Sydney…Australian software company River Dynamics is launching into new markets with its flagship product smartAlloc, a system for intelligent work allocation to suppliers. The company is expanding from its established base in insurance to new business sectors both here and overseas. These sectors include government, health, banking & finance, telecommunications and utilities.
Originally developed for insurance companies to manage external service suppliers, smartAlloc is applicable to any business managing a number of external or internal service suppliers. Work can be allocated to suppliers in real time based on their historical performance against defined criteria.
Within the insurance sector, the criteria most commonly used to assess performance are the cost, timeliness and quality of suppliers’ work. However, the system can use any quantifiable outcome measure to assess performance, with different measures weighted by the client to meet particular business needs.
In addition to its primary purpose of intelligent work allocation, smartAlloc also improves communication between clients and suppliers through its electronic messaging, document storage and online invoicing features. Reports within the system allow the client to compare the performance of different suppliers, to evaluate the impact of supplier management strategies on outcomes, and to assess the performance of internal staff dealing with suppliers.
smartAlloc is a web-based system which is easily implemented without disruption to normal business activities. Installation and training generally takes two days, and users find the system straightforward to use. The savings achieved following implementation rapidly offset the transaction-based fees for the system.
Existing clients have achieved savings of up to 30% within 3 months of implementing the system, as well as improvements in supplier timeliness and work quality. An additional benefit for staff dealing with suppliers is their reduced workload and less time spent dealing with queries from suppliers.
Supplier response to the system has been extremely positive. Suppliers have welcomed the improved communication channels with the client, knowing what criteria their work will be measured against, and getting feedback about their performance relative to other suppliers.
“Following the success of smartAlloc in insurance, we are confident that the product will provide similar benefits to other business sectors. In particular, we think there are opportunities in government, health, telecommunications and utilities”, said Derek Brand, Sales and Marketing Director for River Dynamics.
“The benefits from smartAlloc are apparent so quickly, and the implementation costs so low, that any company dealing with suppliers can manage this aspect of their business with minimal risk and with the expectation of reduced costs, improved outcomes and better supplier relations.”
QBE has been using smartAlloc since 2000. “The adoption of smartAlloc has provided the business with an effective capability to monitor the performance of suppliers, streamline work practices and achieve cost savings without compromising the quality of our service,” said Grant McDonald, QBE’s National Claims Manager, Workers Compensation. “We plan to extend the use of the system to other supplier chains. smartAlloc will enable us to measure and optimise the value of our interactions with suppliers for the benefit of both our clients and QBE.”
In parallel with its expansion within the Australian market, River Dynamics is also looking at international opportunities. Last month the company signed an agreement with its first international reseller, a South African company already in talks about smartAlloc with a number of large organisations in that market. River Dynamics is also in the early stages of looking for partners in the US and Europe.
With an Australian patent for the management of suppliers based on their historical performance, and worldwide patents pending, the company is well positioned for this planned expansion.
River Dynamics won the 2003 Innovation in Claims Management Award presented by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF), and is a finalist for the 2004 iAwards presented by the Australian Information Industry Association (AIIA).
About River Dynamics River Dynamics, an Australian software company established in 2000, is a leading provider of supplier management software to the insurance industry. Privately owned and funded, the River Dynamics is currently developing partnerships to assist in its expansion into additional markets in Australia and overseas.
smartAlloc, the company’s flagship product, already installed in a number of major insurance companies, including AAMI and QBE, uses a patented process to allocate work to suppliers in real time based on their historical performance. It also provides a variety of features, such as electronic messaging and online invoicing, to facilitate communication with suppliers. The overall result is optimisation of the outcomes achieved from suppliers. www.riverdynamics.com
For further information please contact: Derek Brand River Dynamics 0407 689 994 Shuna Boyd BoydPR 02 9418 8100