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RadiusPoint was contracted to perform a Cost
Efficiency Review on $36,000,000 in annual
telecom expenses for a Fortune 100 Manufacturing
company. This company has approximately 900
locations worldwide and was seeking the Cost
Efficiency Review as well as the Business
Process Outsourcing service.
RadiusPoint began work on the Cost Efficiency
Review of all invoices and 90 days into the
project was able to provide a report that
detailed the types of services that each
location had and how much was being spent on
these services. Spending was compared to the
contract rates and discrepancies were
identified.
RadiusPoint sent any contract violations and
charges billed in error to the vendor and
refunds for the discrepancies were requested.
During the CER process, the enterprise rolled
out a pilot program with their locations that
included mills and retail establishments. This
pilot program involved RadiusPoint performing
bill optimizations for twenty-five (25)
locations to determine an average of savings per
location.
RadiusPoint performed the bill optimizations on
some of the largest locations that had equipment
issues and on some smaller retail locations. The
average savings equaled 24% per location, which
equated to $235,758.00 annualized savings over a
period of twelve (12) months.
The
optimizations allowed this organization to test
a small amount of locations and expenses to
determine if the time involved would have a
significant ROI. It also allowed each location
to have a specific inventory of each type of
telecom service – all phone numbers and a
breakdown of equipment used at each site.
Contracts and maintenance programs were analyzed
and recommendations were made to move to
corporate contracts, which allowed for greater
savings enterprise wide.
Cellular Project
With the success of the one-time Cost Efficiency
Review and the ongoing Business Process
Outsourcing services, RadiusPoint was asked by
this client to manage thousands of their
corporate cellular users including the contract
terms for each user. They were in the process of
implementing two corporate contracts with
Verizon Wireless and Cingular Wireless and they
requested that RadiusPoint audit all past
invoices to clear up any billing discrepancies
and obtain any necessary credits. They then
contracted with RadiusPoint to manage the
process of moving each user over to the new
contracts.
RadiusPoint managed the Exception report for any
users that were unable to move to the new
contract immediately and began processing the
corporate invoices on a monthly basis and
pinpointed those users that were using a company
outside of corporate allowances.
RadiusPoint also audited and identified users
using the Purchase card system to pay their
invoices. Due to the number of cellular users
this company had, they requested that
RadiusPoint perform a special service for
end-users. They were concerned that most of the
employees would not remember to pull their
cellular invoices so RadiusPoint recommended
that each user be sent their invoice on a
monthly basis. RadiusPoint developed the
software needed to specifically perform the
function of pushing the invoice, including call
detail, to each user on a monthly basis.
RadiusPoint also recommended that wording be
added to the email that assisted the user in
identifying any personal usage and directions on
how to reimburse the company for this usage.
This created a small revenue stream for their
cellular department.
Amazing Results
RadiusPoint was able to collect more than
$450,000 in refunds for this organization.The
company was so pleased with the process and ease
of use for this project that a request was made
for RadiusPoint to manage another $9,000,000 in
allocations on a monthly basis. This involved
creating specific reports for the client to
enable each end user and then the department to
be charged specific corporate wide charges.
Breakdown of Services under the Business
Process Outsourcing Agreement:
$36,000,000 including Data - $ 500,000, Long
distance - $1,000,000, Equant Internet -
$500,000, UUNET Internet - $500,000, and Local
service.
Expanded contract to include monthly Allocations
of $9,000,000 |