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Outsource billing puzzle of the week

You are planning to outsource billing operations and you are in a good position. You have analysed all the activities and unit costs and you know that it currently costs €14.00 to issue each monthly bill to a customer. You have shortlisted two suppliers – Supplier A has quoted €8.00 per bill issued and Supplier B has quoted €7.00 per bill issued.

Screen Shot 2015-06-04 at 18.43.14Both have guaranteed service quality and are willing to sign up to punitive service credits, if they fail to meet billing accuracy and quality metrics. You are thinking supplier B is the right choice, but then you call a friend who always has the inside track on these things, and she sends you the following diagram with one condition – you can’t show it to anyone, even your boss.

Now what do you do?

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