Industry:
Government

Annual Revenue:
$1M-$100M

Employees:
2000-4999

Cientec Santiago de Chile, Chile www.cientec.com Cientec provides technology and consulting services strategically focused on business solutions. Industry Professional Services

"Although the Oracle solution won't help us deliver letters faster, it will enable us to be more effective in our job and respond to our customers' needs better." -- Sebastián Levit, Project Manager and Information Safety Department Chief, Correos Chile.

Regarded as one of the most modern postal companies in Latin America, Correos Chile has over 4,900 employees and about $80 million in revenue. Recently, in an effort to improve decision-making and reduce operating costs, the company updated its business systems, choosing Oracle E-Business Suite as its new enterprise resource planning (ERP) solution.

Although the Oracle implementation is still in process--it is phasing in its ERP applications gradually over three years--Correos Chile's operations are currently running at 95% of capacity. "Our business is to deliver letters," said Sebastián Levit, project manager and information safety department chief for Correos Chile. "And though the Oracle solution won't help us deliver letters faster, it will enable us to be more effective in our internal operative process, and respond with more efficiency to our customers' needs."

Central Data Model Boosts Security and Access

Correos Chile had already been using Oracle's database technology platform, so it was a relative simple transition to implement E-Business Suite applications. And thanks to Oracle's open standards, the postal service could integrate additional third-party applications, including the legacy payroll system.

With Oracle Financials--a core set of Oracle E-Business Suite applications--Correos Chile significantly improved its billing operations, which generates $80 million in receivables annually, and boosted cash flow by shortening billing cycles and increasing invoice accuracy. Managers said that internal productivity has jumped 10%, which is translating into better customer service. Another key benefit of Oracle E-Business Suite is its centralized data model, which allows the postal service to put all of its customer information in one place and enhance security and access.

Enabling E-Business

Upgrading its systems helped Correos Chile's comply with government technology guidelines that establish steps that state-owned companies should take to become more efficient, especially in procure-to-pay, accountability, and customers invoicing process. With Oracle's Web-enabled ERPs solution, Correos Chile is now prepared to engage in a range of new e-business activities. "We always wanted to modernize our operations and increase profitability," Levit explained. "Oracle's ERP solution was essential to achieving our goal by improving internal efficiency."

While the savings haven't been fully quantified yet, the system has given the organization tighter control over multi-million dollar accounting transactions. By mid-2005, managers said the postal service should be operating at 100% of capacity. "Our next step is to start leveraging business intelligence to improve our relationships with customers," said Levit.

Why Oracle?

According to Levit, the choice of Oracle was not simple, but "the excellence of its products and the forward-looking approach were key to our decision," Levit said. "In addition, Oracle's financial proposal was very attractive and the best for us in terms of investment cost and benefit."

Implementation Process

Correos Chile started implementing Oracle E-Business Suite in early 2003, enlisting the help of Cientec, an Oracle Certified Partner and one of the country's top integrators. The postal service is completing the implementation in phases in order to ensure an efficient transition for its more than 4,900 employees. With the initial implementation proving a success, the postal service has a plan to extend the Oracle's solution functionalities in the future.

Correos Chile is the national postal service of Chile.