Contract Renegotiation Case Study
A state energy utility providing electrical power and natural gas primarily in the northwest United States having an annual telecom spend of $3 Million. The utility serves electricity to more than 1.1 million customers and provides natural gas to 750,000 The company has a 6,000-square-mile electric and natural gas service area.
One of America’s premier utility companies had seen its relationship with the incumbent telecom carrier lose its footing. Concerns included invoice discrepancy issues, lack of effective account management, restrictive contract provisions, pricing inflexibility, and deteriorating service levels. In year 3 of a 5-year agreement, the utility company pressed to address these issues with its carrier. After a number of inconclusive discussions, the company teamed with Intelligent Bills to negotiate a new agreement to remedy the multiple concerns and achieve new cost-savings.
Intelligent Bills found
But that's not all!
Having entries at the highest levels of the service provider – and leveraging our intellectual property – Intelligent Bills focused on amending the company’s master agreement to secure contract terms and commitment levels consistent with the market’s leading edge and appending the pricing schedules to arrive at market parity.
Key strategy recommendations included:
- Create a detailed Book of Business and billing audit validation of the current agreement.
- Utilize in-house legal counsel to work with carrier attorneys to expedite issue resolution.
- Leverage personal relationships with carrier executives.
- Layout New Opportunities by resetting partnering expectations with the incumbent.
The conclusion was a successfully renegotiated contract with the incumbent carrier with terms and savings outcomes that exceeded the customer’s expectations. For these types of carriers, the resources on the team had previously worked and prior knowledge on how to negotiate with them effectively. This type of relationship leverage is what sets Intelligent Bills apart from other marketplace bills.
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