Success Story: Audit & Optimization Case Study
As a worldwide, leading beverage manufacturer this enterprise client spent over $50 million annually to ensure that employees had reliable telephone, e-mail and data communication services. With an organization of this size, expansion and downsizing were part of the normal business process. Without an accurate inventory of services by location, oversight of these changes was becoming difficult to manage. Although telecom services and invoicing were partially centralized at the corporate level, the Telecom Expense Manager wished to streamline invoice processing and increase visibility into existing inventory by location.
SITUATION
IQ Telcom proposed a pilot project to reduce expenses and provide a detailed inventory at a facility that had undergone downsizing over the past year. This Houston facility had 400 employees and an annual telecom spend of $600,000. A thorough inventory of lines, circuits and associated hardware was warranted to assess the services required to support the current business needs at this location
SOLUTION
IQ Telcom's "best practice" methodology combined a detailed analysis at the line level with a high level evaluation of the facilities business needs as it relates to telecom. The process began with the collection of invoices and customer service records to create an exhaustive cost inventory. Detailed charges were recorded, contracts rates were validated, ring tests were performed to test functionality and technicians were dispatched to identify the site’s hardware inventory. After analysis of the data, IQ Telcom made recommendations to optimize by: correcting billing errors, filing disputes, changing rate plans, disconnecting lines and organizing the telecom infrastructure to suit the specific business environment.
RESULTS
Results of the site survey found 67% of copper lines were either not working nor required based on the current staffing needs. Other lines were re-rated for lower monthly fees. 45% of dedicated circuits were found to be in excess due to the recent downsizing. 80% of data backup lines could be eliminated as well. In addition, frame relay circuits that were being charged to the client did not actually belong to them, and credits were pursued with the providers.
The recurring annual savings totaled $88,000 and a one-time credit of $70,000 was also obtained. In addition to these hard savings, multiple invoices from the same vendors were consolidated saving internal soft dollars by reducing invoice processing time by staff.
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