Even though you’re well aware of the hype surrounding Telecom Expense Management (TEM), you’re still unclear on what savings it can produce for your business. Well, implementing TEM can positively impact your company’s bottom line in several different ways:- Reduces the overall costs associated with telecom services
- Increases labor efficiency
- Produces a number of additional indirect and miscellaneous savings
A cursory inspection of most companies’ technology infrastructure will reveal an assortment of “legacy” technology solutions that are both outdated and inefficient. With the continued use of these antiquated systems, wasteful and unnecessary expenses can pile up while bothersome billing errors are common. By contrast, going to a TEM platform will result in:
- Labor-intensive tasks become increasingly automated;
- Significant savings accruing from cost avoidance
- More frequent refunds from carrier billing errors
- Additional credits and benefits
Decrease in Overall Telecom Expenses
The way Move, Add, Change, and Disconnect (MACD) activity is recorded and represented on a telecom billing statement is a common source of overcharges. Because a typical telecom carrier can have anywhere from four to 80 technicians involved in their MACD process, the potential for billing errors is always present. These errors are often the result of the way service contracts are structured, along with unique pricing arrangements for some bills. TEM aids in reducing future expenditures and improved cost avoidance that can result in additional savings when combined with improved contracts and better-negotiated rates. In addition, by opting for fixed services, businesses can realize savings from eliminating underused services while increasing the capacity of their pre-existing services at reduced costs.
TEM also affects savings by identifying services without contracts, and eliminating penalties that stem from service interruptions, late payments, misplaced bills, and nonpayment issues. In addition, by optimizing an installed wireless network, businesses can match their consumption of data and voice to their specific needs, avoiding overages fees. There is also no longer a need to purchase voice plans with large minute allotments that often go partially unused.
Reduction of Labor Costs
Additionally, TEM can help a company reduce labor costs. With a TEM platform, many manual processes are outsourced to contractors at a reduced rate. These can include invoice validation and management along with procurement and inventory management. Other ways that TEM increases labor efficiency while reducing the volume and frequency of bill payments are automated invoicing, automated invoice processing, and invoice consolidation. Reporting of usage charge-back also contributes to these savings.
Indirect Savings
Implementing a TEM system can also result in indirect savings. TEM works to:
- Improve collaboration and unify processes
- Consistently apply procurement procedures to obtain volume discounts
- Organize data and information for the purposes of negotiating new contracts and making sourcing decisions
- Free up working capital
- Focusing staff on revenue-producing project and other areas where they increase value
Emptoris and Tellennium are companies that aid clients in managing their telecom costs and processes. To save their clients money, Tellennium is currently offering a TEM platform, Tellennium’s Integrated Management Systems (TIMS). TIMS is a cost-effective database and management solution, which both reduces expenses and decreases the number of billing inaccuracies that stem from legacy telecom systems. Properly implemented, TIMS truly pays for itself.
Emptoris, meanwhile, has a full suite of services and products that are designed to meet a company’s specific telecom requirements and business goals. Called eXPERTSolutions, it provides a flexible and comprehensive package of managed services that offer top-of-the-line outsourcing of all your businesses’ vital TEM needs.
By now, it should be clear that your business needs TEM. Legacy telecom systems are inefficient and outdated, and they cost your business money. Purchase a TEM platform today to see your businesses’ expenses plummet and operational efficiency soar.
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