- A leading Manufacturer engaged Profit Advisory Group to strategically source their Global spend for wireless services.
- Spend volume: USD 7.6 million annually.
- Project included more than 45 global locations.
Key Challenges & Objectives:
- Challenges included extensive data collection effort with multiple carriers in US, EMEA and APAC.
- Key objective was to reduce cost and gain greater control of the spend worldwide.
- Additional objectives included achieving more favorable terms and conditions through a strategic sourcing and optimization effort.
Profit Advisory Group Solution:
- Extensive Data collection using standard Profit Advisory Group Data Collection processes. Questionnaires were created and sent out to the international sites to gain insight into the current conditions.
- Two projects were created to focus on the different category areas for saving opportunities. Project one focused optimizing the spend based on the user usage profiles with each carrier. Project two focused on getting the best terms and conditions with each vendor, including discounts promotions and incentives.
- Project one: Using Profit Advisory Group’s proven 3 phased optimization process we were able to identify billing errors, waste and purchase maximization opportunities in the current user population. Through extensive analysis of the billing data we developed an accurate user profile for each of the vendors and from there created a Strategy to right size the plans.
- Phase two: Working with the current vendors we were able to insure that the Client was actually receiving “best in Class Pricing” from each of the vendors.
- Profit Advisory Group insured that the client had visibility into the usage data of each of the carriers. This was a challenge in the EMEA and ASPAC regions.
Telecom Audit Results:
Project One: Client was able to reduce the current spend by USD 1.4 Million annually. This was achieved by optimizing the plans and eliminating waste.
Project Two: Client secured new contracts with each of the providers that included better discounts, promotions and incentives from the US vendors. In the EMEA and APAC locations the client was able to get consistent pricing from the major global provider.
[author_bio username=”Ken” name=”yes”]