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Client Profile
$3 Billion Global Company operating in over 35 markets worldwide.
CIO mandate to reduce Telecom Expenses.
IT department still somewhat divided between voice and data operations.
Majority of billing received via paper invoice.
Loose, informal process for order placement and tracking.
One dedicated resource for tracking invoices.
Company conducted a formal audit using a major TEM provider about 18 months prior, so it is unclear if additional savings can be achieved.
Solution
Collected and analyzed more than 100 paper invoices containing hundreds of accounts and sub-accounts.
Performed detailed analysis of every telecommunications contract.
Developed a complete inventory of all voice/data telecommunication assets.
Introduced a central repository for inventory management going forward.
Introduced a contract tracking mechanism to provide a single location for information about contract expiration, term/revenue commitment, renewal terms, termination notice requirements, etc.
Converted approximately 80% of paper invoices to CD for simplified management and reporting. *Client wasn’t ready or willing to receive electronic feeds from their providers.
Formalized telecommunications (MACD) move, add, change, and delete process.
Renegotiated the majority of client’s contracts to improve terms, conditions, and pricing.
Cost-Savings Achieved
One Time Credits - $250,000
Identified multiple billing errors, services that were thought to be disconnected, and overcharges for contracted services.
Requested, tracked, and confirmed all credits, and required one provider to submit a check to the client for $124,000.
Negotiated a $100,000 contract renewal bonus.
Cost Avoidance - $233,000
Found that client had an expired contract and provider was going to impose $233,000 in back-charges.
Negotiated new terms & conditions for the client and provider waived the back-charges.
Annualized Savings - $526,000 / Savings Over 3 Year Term - $1,578,000
35% reduction in paging service charges and the addition of unlimited usage.
Optimized wireless pooling plan.
Client paying a MUG (Minimum Usage Guarantee) under-utilization penalty every month. Renegotiated with their provider and had the MUG completely eliminated.
25-32% reduction in monthly charges with major providers.
Improved provider service levels by renegotiating SLA’s and increasing the financial impact for violations.
Summary
By performing detailed invoice/contract analysis and improving internal processes, Network Advisor produced significant savings for the client. In addition, the client will benefit long term from the significant improvements in contract terms & conditions, pricing, and SLA’s.
*These additional savings were implemented just 18 months after another major TEM provider completed a full audit. Unfortunately, they left a LOT of money on the table!
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