6 Telecom Expense Management Best Practices
Learn how to effectively manage telecom expenses without putting a damper on your business.
When it comes to managing business expenses and working with reduced budgets, it can often be quite a task determining just how to cut expenses with the telecom programs currently in place. Moreover, many C-level executives are faced with growing complexities in the organization such as increasing mobile workforces to use of data-rich services.
There isn’t any doubt that communication is the lifeblood of any enterprise, whether it is communication with clients, vendors or coworker to coworker. Telecom is the critical element of communication that is essential for the success of any business. So, how can you effectively manage telecom expenses without putting a damper on your business? Read on to learn more.
Manage Your Inventory
It goes without saying that the lack of automation and tracking of telecom issues can quickly and easily lead to out-of-control telecom spend. The first step to reigning in expenses is through asset management. This means that you automate tracking of telecom inventories and contract dates. It’s truly difficult to manage what you don’t know. Here are things to look for:
- Get to know who has what devices and where.
- Understand what wireline assets are needed against what you already have.
- Find and eliminate unnecessary redundancies.
- Replace obsolete services with more cost-effective solutions.
- How well telecom services are configured and utilized at each location.
Another issue with out-of-control telecom spend is the lack of tracking or recovering of billing errors. The objective is to use methods that allow you to process invoices more effectively while significantly reducing human error. Although this can be a complicated task, it can be done when you create and implement a repeatable set of processes. In addition, you want to import invoices into a validation & exception handling system. Furthermore, compare any changes in assets with your current inventory list to ensure accuracy. After that, it is important to track exceptions, resolve disputes and manage changes to telecom spend in order to review them in future invoices.
Optimize Your Expenses
Naturally, you want to make the most of what you already have. To do this, you should begin by analyzing your rate plan and future usage. Expense optimization is something that you must do consistently in order to keep your telecom budget in line. You want timely analysis for errors and wasteful spending. You should also implement comprehensive cost and usage reporting by cost centers, service type, location and cost per employee.
Use Web-Based Software for Procurement
The last thing you want to do when managing telecom expenses is to rely on antiquated paper invoices that can easily get lost or misunderstood. The only solution is to utilize e-procurement, which instills an automated and repeatable process that can give you a list of your inventory in real time. Not to mention, it helps with optimizing costs and usage, validating contracts, managing assets and reconciling payments.
Offer Help Desk Support
You want to keep only a single point of contact when it comes to moving, adding, troubleshooting, resolution, changing and reporting of your entire telecom inventory. If you have a large network of users within your business, they are bound to have technical difficulties. A quick resolution process helps to increase both efficiency and productivity.
Continue to Monitor Contracts and Policies
According to a Gartner study, “2 year old contracts spend 20%-35% more per year on voice/data services compared to recently negotiated contracts.” Gartner also found that 80 percent of corporate telecom invoices are incorrect with an average of 6-8 percent in over billings. So, you must be precise when it comes to managing the terms & conditions while following up to make sure that the negotiated terms are met by both parties.
When it comes to managing telecom expenses, the ball is in your court. All it takes is a proactive approach to telecom expense management to ensure your company is no longer wasting money.