You’ve learned a lot by surviving through tough economic times. Among other things, you’ve no doubt learned that cost centers are the first places where enterprises go looking to cut expenses. And, let’s face it; you’re still not totally safe from the threat of new cuts. This makes telecom expense management even more critical this year.
I give you these six pragmatic ways to decrease telecom expenses. These will serve as an important first step as you work to optimize expenses:
1: Start with Inventory: Know your inventory and then validate it. You must account for all systems and devices with a particularly keen eye on orphaned wireless devices. The goal here is also to work toward creating one integrated database. Eventually, all telecom expense data needs to be stored in one place, so that you have true process efficiency, expense validation, and reporting consistency. See for yourself, but this is a surefire way to tighten expenses.
2: Reconcile MACD (Moves, Adds, Changes, Deletes) to Billing: This may seem like a daunting exercise at the beginning, but with a strong telecom expense management solution in place, you won’t have to do it manually. To reduce telecom expenses, you must reconcile all contracts with the services being provided. Validate that service disconnects are removed from billing. And, to circle back to #1 above, make sure you aren’t still paying for services on orphaned wireless devices. This is an instant cost-cutter.
3: Focus on What’s Most Expensive: This will vary depending on your business, but I’d recommend looking at circuits (especially older ones), in order to flag non-working lines and pinpoint the root cause of circuit outages. Also, know where your company’s longest calls occur. You may be able to adjust service plans for certain departments or functions that rack up big bills. It’s a simple premise, but if you know what costs the most, you can streamline those places first.
4: Validate Taxes: This frequently gets overlooked, but you need to validate the application of taxes on your telecom bills. You need a system for validating rates and calculations, as well as surcharges and fees against line item invoice charges. You’re likely paying the government more than you need to.
5: Better Manage Mobility: Mobility management is a big can of worms, I know. I could go on infinitum on this subject, but in an effort to keep it short, I’ll tell you to start by reconciling your HR files with your billing records. Stop paying for services for former employees! It’s a no-brainer, but it happens all the time. Also, optimize all service plans to actual monthly usage. And, don’t forget about international services. You can get crushed with international roaming charges, if you don’t plan for it.
6: Eliminate the Time Wasters: You’ll save a lot of time and money by centralizing the management of telecom contracts. Start by identifying who owns all telecom contracts for your enterprise. Find out how you currently reference contracts to get the best pricing when placing service order activity with carriers. You’ll likely discover inefficiencies that can be quickly resolved and expenses that can be cut.
Let me close by saying that although some of this advice may sound daunting, a comprehensive TEM solution makes all of it quite easy. Trust me; you can increase the overall health of your business through TEM. Get in touch or send me your comments/feedback to go deeper into the conversation.
