When this company contacted RadiusPoint they were manually keying information form over 10,000 telecom invoices for their corporate office and branch offices. There were three major problems that this company was encountering each month with their payment process:

First, there was no verification of the charges that were being billed on the invoices. The telecom department had time constraints that did not allow for a monthly review and the accounts payable department did not have the expertise or the time to check the accuracy of the invoices.

Secondly, the locations needed to see their monthly billings; however, those were being sent to corporate for payment. The only alternative for a location was to ask the AP department to fax or send a copy of the bill to them. 

Thirdly, the number of invoices and size of those invoices made it impossible to create any type of understandable reporting system that could be reviewed on a monthly, quarterly or yearly basis.

Solution
RadiusPoint recommended the Cost Efficiency Review, which for this customer reduced their monthly telecom budget by 18%. The savings realized amounted to over $1 million per year. Errors uncovered on the telecom billing totaled almost $500,000 and eliminated over 400 unnecessary phone lines.

The second step to solving their problems was the recommendation of the Expense Management Business Process Outsourcing. This enabled the company to have an audit on each bill before the bill was submitted for payment with RadiusPoint’s ExpenseLogic engine. The software allowed the client to set specific parameters on each line item on every telecom invoice. If a line item increased above the parameter, a flag was thrown and the bill was researched before payment was requested. A few months into the contract this client was hit by a long distance scam with the damages totaling over $30,000 for the month on several different bills and locations. ExpenseLogic flagged the fraudulent charges, which were placed in dispute and were not submitted for payment. This customer got to keep their money in the bank instead of paying it out to the vendor and then waiting several months for refunds.

RadiusPoint was able to reduce the number of invoices by half and offered all locations the ability to view their invoices and various reports online in real-time. This enabled the locations to review their bills before they were submitted for payment and paid by the corporate office. The reports allowed them to track their spending, and to forecast their budgets.

BPO Return on Investment
The savings realized by this company was over 40% of their budgeted spending for the administrative costs of the accounts payable department. Those costs were detailed as staff, staff's time involved in processing the billing, postage and check costs, elimination of late fee's and saving interest on dollars paid in error.