telecom expense management (tem) the challenge “the average fortune 500 company spends about $116...
TRANSCRIPT
Telecom Expense Management
(TEM)
The Challenge
“The average Fortune 500 company spends about $116
million on telecommunications services each year.”
“On average, 8 to 12 percent of telecom expenses are in error.”
“The cost of telecommunications now ranks in the top five expenses for most companies, up from about
No. 10 a decade ago.”
$116m spend x 10% errors = $11.6m LOST each year
But That Is Only Part Of It …
• Gain overall visibility into, and control over, telecom spend
• Manage explosive growth of wireless devices
• Properly allocate telecom costs
• Support business growth and M&A
• Reduce or redeploy staff
• Optimize network/wireless price and performance
• Plan network strategy and justify decisions to management
• Provision network conversions and new assets
• Effectively negotiate contracts
Curing the Problem
Traditional approaches treat the symptoms • Manual/outsourced invoice auditing – often done on a “point” basis• Spreadsheets• Static inventory database or manual updates
To cure the problem, you need…• Automated Telecom Expense Management
(TEM)• Across the telecom asset lifecycle• For every telecom asset
Wireless Data
Voice
Monitor, Analyze, Plan, Optimize
Internal Charge-Backs/Cost
Allocation
Automating the Telecom Lifecycle
Automatic Invoice Processing & Auditing
Validation With Assets/Inventory In Use
Order/Procure
Workflow Tracks/Alerts on Progress and Issues
Processes Orders & Service Requests
Provisions Transmits Invoices
Asset Database/Inventory Automatically Updated
Telcos
Enterprise
Validation AgainstContracts (Rates, Service
Level Agreements, MARC, etc.)
Gaining Visibility & Control
Summary Dashboards for Visibility-‘At a Glance’ visibility into Key Performance Indicators- Alerts users to potential issues
First Click: Access Detailed Info- Provides more information to diagnose potential problem areas
Second Click: Take Control- Access to the system where data
can be input and action taken
Results
• Base system:– 7%-40% of processed telecom spend saved annually– 50% labor reduction – 3-12 month ROI
• Additional services:– Sourcing: 25%-50% of renegotiated telecom spend saved– Auditing: 10-20% of processed spend saved
Results
Examples Cost SavingsGlobal 500 Food Service Provider
• Reduced wireless costs by 25%, over $1 mil/year
Fortune 1000 Manufacturer
• Reduced telecom costs by 7%/year, $2.5 mil/year• Over $15 million saved to-date• Redeployed 80% of order and invoice processing staff
Fortune 500 Hospitality Company
• Identified and helped to plan a VPN conversion resulting in $16mil/year in cost savings
Tips to Save Millions
Tip #1: Consolidate• Centralize all billing to a TEM team for processing and approvals• Consolidate the number of vendor invoices
• Savings can be significant by reducing amount of checks produced
Tip #2: Validate• Match every expense to a VALID employee or location • Go after low hanging fruit first:
• Validate most expensive circuits, costs per minute, etc.• Remove known waived charges (COC, ACF, Install)• Analyze long and expensive calls
Tip #3: Negotiate• Negotiate better contracts by knowing what you have• Establish company procurement people in the contract
• Savings can be dramatic by reducing non-authorized purchases
Tip #4: Optimize• Automate as much of the lower value activities as possible• For wireless devices, make voice plan optimization Priority #1• Communicate the costs of 411 on wireless devices
• Emphasize free options such as 1-800-GOOG-411
Tips to Save Millions