CGI earns Purolator's trust and confidence as a top-notch outsourcing partner

“CGI, in collaboration with Innovapost and Purolator, managed to contain the information systems impact during the power outage, and Purolator was able to maintain nationwide service to our customers. Our competitors were not able to do the same.”

Jim Pearson, Senior Vice-President and Business Technology Officer, Purolator Courier Ltd.

The Client
Purolator Courier Ltd., Canada's leading overnight courier company and a member of the Canada Post family, employs over 13,000 people across Canada. Purolator boasts an extensive network that delivers more packages to destination points in Canada than any other courier. Handling more than 5.5 million pieces each week (pick up and delivery), Purolator's network consists of 143 locations, including three main Hub facilities, 14 regional depot/hubs and 12 foot-courier locations.

In 2002, as part of a 10-year outsourcing agreement, CGI and Canada Post created a jointly owned information technology services company, Innovapost, to provide all IT services, including e business solutions, to the Canada Post group of companies and potentially to other postal organizations worldwide. Purolator is an important component of the agreement. With Innovapost's support, CGI became a full Tier 1 outsourcing partner to Purolator. It was therefore vital that CGI provide Purolator with a solid, seamless transition that assured the integrity of the courier's business and operations and quickly deliver to Purolator the benefits of entrusting its information technology to CGI.

The Challenge
CGI recognized that it would have to achieve a successful transition in order to win Purolator's confidence. Not only would CGI need to transfer operations and people with no negative impact on Purolator's operations, but it would also have to ensure that the new operation added value to the courier's business.

CGI would offer upgraded systems performing at higher levels throughput than previously, while providing greater robustness. These would be located in CGI's world-class data centre, capable of protecting Purolator through a province-wide power outage a few months later. CGI also implemented its security and situation management processes, which would prove beneficial during global computer virus attacks.

The Strategy
CGI made its first priority the building of a strong relationship with Purolator as it set out to organize the key components of the agreement: the human resources transition plan, the physical move, and the transition from Purolator's previous outsourcer and internal IT organization. CGI provided its client with a concrete business plan outlining how it could add value to Purolator's already impressive strengths. Early on, CGI recognized that Purolator's operation could be bolstered and the performance of its systems enhanced by installing new servers rather than moving the old, less powerful equipment. Service levels and throughput could be improved with refreshed technology. Purolator agreed, and CGI managed the transition. Together, they have effectively met Purolator's business requirements.

CGI and Innovapost also pooled their considerable expertise, resources and buying power to provide the added value and stability sought by Purolator. For example, when Purolator's mobile data project rolled out a new dispatch system to Calgary, it became apparent that the PCs in Calgary were not powerful enough to run the application effectively. "Purolator asked CGI, through Innovapost, to get us 12 new PCs immediately, if not sooner," recounted Jim Pearson, Purolator's Senior Vice-President and Business Technology Officer. "They were able to collapse a normal four-week cycle to one week to source and install the machines."

The Technology

• Highly available, centralized UNIX environments based on multiple, partitioned HP Superdomes, SUN and Windows servers processing several million business transactions per day
• Multi-terabyte EMC storage array and storage area network (SAN)
• 3000+ Windows desktops and laptops with distributed file and print services at the corporate locations
• 4000+ distributed desktops on customer premises for direct access to Purolator's Online Shipping services
• Web-based Online shipping services for many more thousands of customers
• Large call centers handling tens of thousands of customer service calls / day

The Results
Soon after the transition, CGI's strength as a world-class outsourcing partner became evident when the partners began to reap the benefits of the new, more powerful servers, which have allowed the courier to extend its billing cut-off window. This in turn has increased Purolator's cash flow by providing the company with the capacity to invoice more volume weekly.

When Ontario and the Northeastern U.S. were hit with a massive power outage in August 2003, Purolator was well protected, thanks to the stability of CGI's infrastructure and the support of the Innovapost team. "CGI, in collaboration with Innovapost and Purolator, managed to contain the information systems impact during the power outage, and Purolator was able to maintain nationwide service to our customers. Our competitors were not able to do the same," confirmed Mr. Pearson.

When the W32 blaster worm overloaded the capacity of the world's networks, CGI's IT specialists and Innovapost's applications experts responded to the crisis with lightning speed, detecting the threat, containing the damage and minimizing the impact on Purolator's operations. "Employees from CGI and Innovapost worked around the clock to recover Purolator's computer network," concluded Mr. Pearson. "In fact, it was the efforts of CGI and Innovapost, collaborating closely with Purolator employees, which helped to minimize the damage and get all systems operational. We, as a company, were grateful for the outstanding teamwork that was demonstrated around the clock until we were back operating as normal."

In addition to providing Purolator with peace of mind with respect to its IT systems, CGI has assured the courier's evolution of technology and continuity of business. In turn Purolator has streamlined its administrative processes, increased its IT buying power and reduced its expenses. Together, Purolator, CGI and Innovapost have set a new standard in IT systems management.