Lowering Telecom Costs Case Study
An American multinational e-commerce corporation, based in the west, that facilitates consumer-to-consumer and business-to-consumer sales through its website. The organization is a multibillion-dollar business with operations in about 30 countries having a spend of over $40+ million in telecom expense.
The Challenge
Looking for ways to reduce its telecom expenses, this e-commerce company turned to a leader in technology expense management solutions that could help to identify savings and efficiencies while fostering business growth with new methodologies and innovative solutions.
The company was searching for a trusted partner who could understand how to operate in a risk-averse corporate culture and provide a smooth, non-disruptive conversion, if necessary. It needed a partner to deliver quick, sound financial results. The inventory of the company was not well kept and uncertain. It needed support to clean up its inventory and define the services it no longer needed, such as legacy voice, data, and mobility services to negotiate a new agreement. The company’s missing and outdated records were driving higher costs, not savings. It also created a liability around new commitments, without having a grasp of services currently in use. An example is the company was still being invoiced for old rates after negotiating new rates that were never properly implemented. This created a loss in excess of $1.2M over the prior three-year period.
RESULTS
Intelligent Bills found
But that's not all!
Our team of seasoned subject matter experts quickly began working with the client on the data-gathering effort. The key to this effort was capturing all the billing, contracts, and network inventory, normalizing them into one system and bringing them into uniformity. The billing inventory alone was comprised of 150k different line items that also included mobility.
Strategy:
- Engaging senior carrier management to establish decision criteria.
- Develop a detailed inventory of services used as a baseline for comparative analysis.
- Use our intellectual property database to develop a demanding set of requirements to focus on the negotiations.
- Engage multiple carriers in simultaneous negotiations along a tight but achievable timeline.
- Supplying key requirements to bidders to expedite decision-making.
- Performing complex analysis of the client’s network to support RFP analytics to properly exercise fiduciary responsibilities.
- Developing award scenarios and multi-carrier views within the customer’s business units concurrent to the RFP response timeline.
- Utilize the pending contract expiration to jumpstart the negotiation process.
Intelligent Bills successfully negotiated multiple new best-in-class carrier agreements that enabled this
enterprise to balance the needs of its distinct business units with the overall company goals whilst
recovering monies it overpaid for services.
The above along with other billing errors uncovered by the audit, and subsequently acted upon by the team, resulted in $10M in savings the first year alone, providing the client a budget-neutral win for the organization, as our fees were covered by the credits obtained..
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