telecom expense management (tem) the challenge “the average fortune 500 company spends about $116...
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![Page 1: Telecom Expense Management (TEM) The Challenge “The average Fortune 500 company spends about $116 million on telecommunications services each year.”](https://reader035.vdocument.in/reader035/viewer/2022070407/56649e235503460f94b118b4/html5/thumbnails/1.jpg)
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Telecom Expense Management
(TEM)
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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
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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
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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
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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.)
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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
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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
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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
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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
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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