Telecom
Expense
What is Telecom Expense
Management (TEM)
?
ü
TEM is the management of inventory, spend
reporting, auditing and optimisation
ü
TEM services help to provide and support
corporate communications services
ü
Continued growth of enterprise telecom services
is prompting firms to look to TEM to improve
procurement and cost management processes
Your Challenges.
For most companies, fixed
and mobile communications
services are among their top
five business expenses - they
can account for as much as
20% of their IT spending.
The continued growth of enterprise
telecom services, driven by the increased use of video and wireless technologies, is causing telecoms estates to become increasingly complex, often spanning multiple services, providers, contracts and tariffs.
Managing telecoms estates and related costs can be challenging due to limited funding, internal resource constraints and lack of visibility of data. Some of the toughest challenges for enterprises include:
ì How do I gain control over my device inventory?
ì How do I effectively manage my spend?
ì How can I get a consolidated view? ì How do I develop and implement a
strategy to maximise my telecoms estate?
• With the majority of CFOs (80%) prioritising cost reduction for the next 12 months, a key challenge is to ensure these savings are sustainable and remain in line with corporate strategy • Changing the cultural approach will
give better results than tactical short-term initiatives; by embedding cost control as an ongoing discipline within your organisation, you will avoid last
• Empowering your teams and making them accountable for cost control will often give outstanding results - traditional procurement and budget-freeze tactics are inefficient ways of driving out small day-to-day costs • Example of sustainable telecoms cost
reduction: One business managed to save 38% on their mobile spend by making data visible to everyone. When
The Business Case for TEM.
ü Companies of all sizes stand to benefit from using TEM services to outsource non-core activities, effectively manage their inventory and optimise related spending
ü Often using a TEM provider is the only cost-effective way to get the programme and service management capabilities they need to control telecom spending because there is no internal “build” option available
ü TEM providers also supply governance capabilities to help manage device diversity and the shift to bring-your-own-device schemes
Keeping an eye on the bottom line
Between 10 and 30% of all supplier invoices
have errors in them, so businesses are
overpaying at least 1 out of every 10 invoices
and in some cases almost 1 in 3 invoices are
incorrectly processed
Although 22% of suppliers offer discounts,
only 47% of businesses actually collect them
– meaning that more than half throw away
savings that the supplier has already agreed to
How PCMG Can Help.
PCMG’s TEM solution has
been designed to address
your telecoms pain points
and solve the need for
visibility and control across
the whole range of your
telecoms management
activities.
Our solution provides an intelligent platform to support the management of inventory (including MDM – Mobile Device Management), provisioning & ordering, spend reporting, auditing and optimisation.
We deliver savings to your bottom line through tight expense and process management, whilst providing choice in the form of distinct modules and strong service management. TEM also provides access to business intelligence and detailed analytics via a live web-based TEM portal.
PCMG’s TEM solution can help you to: ü Control your costs
ü Manage your assets ü Transform your business
Our TEM system is a suite of services designed around the
requirements of our customers; built on an intelligent platform,
it enables the customer to better support the communications
needs of their business by providing visibility, control and
management of their telecoms resources.
Sourcing
Management
Management
Inventory
Invoices & Contract
Management
Management
Usage
Dispute
Management
Reporting & Business
Intelligence
Ordering & Provisioning
Sourcing management enables buyers to negotiate prices, terms and conditions for strategic contracts for communications services.
Invoice and contract management combines the invoice audit function with the accounts payable invoice-processing function. Dispute management ensures the recovery of credits and the management of short-pay and no-pay decisions. Using third parties for disputes can optimize expenditure, greatly reduce the cost of disputes and increase corporate liquidity.
Inventory management applies to processes and services that provide one or all of the following for fixed-mobile services and fixed-mobile devices: asset discovery; asset management; asset database/repository; asset portfolio management; and tracking of purchases, leases, contracts, and disposal relating to telecom assets and expenses. Links to general ledger accounting system modules, such as the capital asset ledger, are common. Usage management helps identify cost objectives and usage permissions by using call accounting and invoice data. Usage is tracked to allocate costs by individual, department, cost centre or other category across any number of locations. Usage management can also identify
Illustrative Cost Saving from
Implementing TEM
Benefits of TEM.
PCMG can help you:
Understand the real cost
of your Telecoms inventory
by aggregating, consolidating and managing multiple services, costs and bills using PCMG’s TEM analytics portal
Manage your assets and
inventory
by using TEM to administrate MACDs, automate cost allocation and monitor utilisation via advanced business analytics toolsControl and optimise
spend intelligently
by taking advantage of spend insight via business intelligence reporting, spend analytics/dashboards and tariff optimisationMinimise the impact of
billing errors
with bill validation and cost recoveryEnable technological
transformation and
innovation
by automating day to day telecoms management processesEmpower management
and staff
to make better day to day decisions based on facts and hard data, not assumptionsDrive accountability
across the workforce
using spend reporting, Personal Call Management and policy management to track costs to individuals and departments
£3,000,000 £3,500,000 £4,000,000 £4,500,000 £5,000,000 £5,500,000 £6,000,000 £6,500,000
Year 0 Year 1 Year 2 Year 3
Cost of doing nothing Single Audit Audit plus TEM Example customer
starts with annual Telecom Expense of £4.5m Achieves 10% reduction as a result of an audit TEM prevents expense creeping by 4 - 25% per annum 1 2 3 1 2 3
Why PCMG
?
PCMG are an industry leading cost management and optimisation
company with a rich background in Telecommunications cost
recovery and reduction. Our goal is to enhance our clients’ profits by
applying highly specialist expertise to reduce their operating costs.
PCMG Fast Facts...
ü
Established in 1993
ü
Work for half of the FTSE 100
ü
We enhance your profits by applying specialist
expertise to reduce your operating costs
ü
£301 million of recoveries secured to date
ü
Industry leading specialists in Telecoms, Energy,
Water and Accounts Payable cost recovery
Part of Alma Consulting Group since 2008, we have a
Independence
Unlike many TEM providers we are completely independent and carrier agnostic and can give you a balanced view on your procurement and provider performance
Expertise
Our powerful software is a platform for our industry leading experts - you can access attentive account management and an unprecedented level of telecoms experience and specialist expertise from our multi-disciplinary team
Experience
Unlike many of our competitors, PCMG have 23 years of experience in the UK Telecoms market
and have an unprecedented understanding of the telecoms market and regulatory landscape
Added Value Services
As PCMG are Telecoms cost
management experts we are able to deliver added value professional services such as site surveys,
benchmarking and technology reviews
Security
PCMG is ISO27001 certified which means we keep confidential information safe, minimise risk exposure and provide you with assurance that you will receive a consistent, compliant and secure service
Software
The back end of PCMG’s TEM solution is powered by Anatole, a leading TEM vendor in Europe. Anatole is recognised within Gartner’s Magic Quadrant for Telecom Expense Management as a leading global player in TEM
Get in touch...
Contact us today to speak with one of our experts and find out more about how Telecom Expense
Management could help your organisation.
[email protected] +44 (0)1253 361 600 www.pcmg.co.uk
Professional Cost Management Group Limited, Progress House, Avroe Crescent, Blackpool Business Park, Blackpool, Lancashire, FY4 2DP
