Maximizing profit means minimizing expenses, but you must do this without compromising the quality of resources your company relies on. Your telecommunications expenses are a perfect candidate for cost minimization. Clients working with the Profit Advisory Group understand that up to 12% of telecom charges – in up to 80% of invoices – can be made in error, and that streamlining the telecom vendor interactions can represent big savings for their companies. One national retailer discovered just how much they could save.
What was the retailer’s situation?
This leading national retailer came to PAG needing to strategically source their voice, data, wireless, and internet services, as well as their telecommunications equipment. With $10 million annual spending on telecommunications expenses and 575 global locations, they needed a solution that could handle their demands and not introduce any headaches into the process.
What special challenges did the client face?
As with many companies in the retail sector, the client had extensive data-collection and analytics needs. They also had to achieve consensus with a number of company stakeholders, given the scope of their telecommunications use. An enterprise-wide technology upgrade was on the table as part of an ideal solution, requiring that the new provider solution be able to handle upgrades and support throughout all locations. The retailer also wanted to lower across-the-board costs and acquire more favorable terms and conditions from the new strategically-sourced provider.
What was the solution?
Profit Advisory Group provided a data collection process which fed into the retailer’s analysis of the project scope. This allowed the retailer to determine how much telecommunications spend was to be sourced. Two strategies were drafted, each with their own benefits. One strategy proposed keeping the basics of the retailer’s current telecommunications setup, but optimizing each element in place. The other proposed moving to a converged solution, streamlining vendor relationships. After deliberation, the client’s IT sourcing committee opted for the converged solution. Based on these specifications, PAG drafted a detailed Request For Proposal, which was sent to seven vendors identified by the IT sourcing committee. Each vendor then drafted a proposal, demonstrating how they would meet the client’s business requirements. Technical requirements, commercial terms, and preliminary pricing information was discussed, and PAG worked with the IT sourcing committee to score the responses. The top three providers were asked to present their solutions to the committee, and to provide final pricing quotes. After these presentations, two companies were asked to set up pilots which PAG and the IT sourcing committee could evaluate.
Did it work?
By opting for a converged telecom solution rather than an optimization-in-place, the retailer was able to move from a 10-vendor solution to a single-vendor solution. The IT staff were able to upgrade their equipment, resulting in enterprise-wide improvements to performance. And the retailer was able to cut their telecommunications expenses by 40% – a success by any measurement.
[author_bio username=”Ken” name=”yes”]