The Pathway to Strategic Cost Savings in 2010
By Gerry Carson, Managing Consultant, Advocate Networks, LLC
Does your company have a step-by-step plan to save on telecommunications costs in 2010?
Advocate Networks has the process, the expertise and the track record to help clients accelerate their telecommunications savings results. Savings can be generated through procurement, disconnects, billing recoveries, and/or technology optimizations. The strategic savings roadmap Advocate Networks prepares for its clients will classify all savings opportunities by type, degree of difficulty and timeline to achievement. This timeline and action plan serves as the basis for implementing savings results and achieving maximum in-year impact.
- Assessment
The first step to achieving telecommunications cost savings in 2010 is establishing an accurate view of telecom spend by class of service and by units. At Advocate Networks, this is called the assessment phase, where an accurate view of costs is built off of the client's invoices and accounts payable system. Success is based on accurate information and creating a precise baseline.
- Price Benchmarking
The next step is price benchmarking. Price benchmarking is based on comparing a client's current cost per unit versus best-in-class pricing. Best-in-class prices are the lowest prices Advocate Networks sees being obtained in the marketplace by similarly situated customers. This third-party view of pricing is extremely valuable; the Advocate Networks team constantly sees pricing for all voice and data services through strategic procurement projects for its customers. Price benchmark analyses will show if the client is paying above or below market rates. This serves as the basis for the overall savings opportunity pursuit.
- Strategic Savings Roadmap
Once the assessment phase is complete, a detailed strategic savings roadmap is built, including all steps necessary to generate savings. These steps include all savings to be generated by disconnects, optimizations and procurement. Each step is prioritized by the degree of difficulty of achieving the savings, thereby establishing a timeline to achieve savings and a clear view of return on investment.
- Strategic Procurement
Strategic procurement is the fourth step, and is the implementation of the strategic savings roadmap. Implementation usually includes request for proposal (RFP) management with all of the client's current and prospective vendors. Results are more effective when competition is stimulated by a third-party managed RFP.
- Implementation and Contracts
At the close of the RFP, existing contracts must be modified and new contracts created. Attention to best-in-class terms and conditions, including service-level agreements, is critical at this stage. Once contracts are complete, any procurement-based savings begin to impact the bottom line.
To learn more about the Advocate Networks strategic cost-savings process, please contact Gerry Carson at (678) 987-5905 or gerry.carson@advocatenetworks.com.
