The Service Provider Consulting Practice of Advocate Networks is dedicated to serving CLECs, MSOs, Wireless operators, Conferencing companies and other types of providers. Network Cost Management for these players is critical and typically represents the largest piece of cost of goods sold. Network cost management engagements with Advocate Networks typically include one or all of the following services: Assessment of spend and contracts, Inventory building, Pricing Benchmarking, Network Optimization, RFP Development and Strategic Sourcing.
The Advocate Networks team understands best in class pricing, the telecom players, the process, the network, the contracts and can partner with your company to accelerate results and maximize returns. Typical annual savings results through Advocate Networks’ Strategic Procurement engagements range from 15 to 25%. Each Advocate Networks engagement is structured to be self-funding, where savings achieved provide a strong return for our customer. Whether it is assisting with one vendor negotiation or managing an 85-Vendor RFP across the U.S., Europe and Asia Pacific, Advocate Networks can partner with your team to maximize success.
Network Cost Management Services
High-Level Benchmark / Potential Project Assessment
Advocate Networks typically provides this service free of charge in order to establish a viable savings opportunity and ensure a high-ROI project. Customers will need to sign a Non-Disclosure Agreement, share spend data, and Advocate Networks will conduct pricing benchmarking and share the results. Contact Advocate Networks today to learn if your company is paying above-market pricing.
Data Gathering / AP Reconciliation
An accurate spend view and centralized invoices and contracts are paramount to maximizing leverage of your spend. Reconciliation against Accounts Payable ensures 100% of spend is included from project start. Advocate Networks will work with your team to ensure all necessary project information is centralized, inventoried and ready to use throughout the project.
Spend Assessment
Advocate Networks will build a detailed spend inventory off of invoices or Cost of Goods Sold internal data. A comprehensive data view by provider, class of service and geography is essential to procurement success. This inventory will also establish a cost per unit view, allowing for circuit and class of service specific pricing benchmarking.
Contract Assessment
Underlying contracts, amendments and service orders must be fully assessed to succeed in achieving savings opportunities. Advocate Networks can help your company achieve the following:
- Obtain and centralize all contracts, amendments and service orders
- Compare current contracts against best in class terms and conditions
- Identify all revenue and circuit commitments
- Identify onerous terms to change during procurement
- Establish a clear view of commitments and what spend can and cannot be moved to alternate providers
Pricing Benchmarking
Advocate Networks is in the business of regularly conducting RFPs for both enterprise and wholesale clients, and we understand best in class pricing and how to achieve it for our customers. Pricing Benchmarking identifies where spend is above market and establishes a blue print for procurement implementation. Pricing benchmarking includes the following:
- Comparison of existing price per unit versus best in class pricing
- Benchmarking conducted for each class of service at the circuit level
- Identification of key areas where spend is above market
- Client is positioned for building a detailed Savings Roadmap, the blueprint for Procurement implementation
Network Optimization
An effective telecommunications assessment addresses both underutilized circuits that can be groomed and architecture improvements that reduce cost and improve efficiency. Advocate Networks can partner with your team to generate savings in both of these areas. Network utilization analysis typically includes the following:
- Review of network utilization by class of service
- Identification of circuits to disconnect for immediate savings
- Identification of improved network design and resulting network optimization
Strategic Savings Roadmap
Prior to procurement, Advocate Networks will establish a Strategic Savings Roadmap, identifying all steps and strategies to generate savings. The Strategic Savings Roadmap is the blue print for procurement implementation, based on pricing benchmarking and all other savings opportunities identified. The steps below are designed to position for maximum success during procurement:
- Build a step-by-step project implementation plan for strategic procurement
- Each step identifies savings by class of service and provider
- Procurement strategy identified based on providers and savings opportunities
- Breakdown of savings by level of effort (low, medium & high based on zero or complicated network moves required)
- Breakdown of savings by type:
- Network Optimization
- RFP-based savings (contract change vs. Circuit moves)
RFP and Strategic Sourcing
Advocate Networks will develop, structure and manage an RFP that will have existing and new vendors competing aggressively for your business. Vendors do not respond with their best price when clients knock on their door individually. A professionally managed third-party RFP will put incumbents at risk, as acquisition-based pricing is offered by new participants. Please see some of the principle steps of our RFP engagements below:
- Development of all RFP documents and vendor communication
- Global RFP Kickoff with all Vendors
- Management of 3 Rounds of an RFP
- Setting RFP pricing targets by for each RFP round
- Management of a Best and Final RFP round
- Calculation of savings results at the close of each round
- Management of all vendor Q&A and interaction
- Recommended savings to pursue via changing existing contracts, new contracts and moving business
Contract Implementation
Advocate Networks regularly negotiates final contracts for its customers with all wholesale players. The contract is the last but critical step to lock in savings and ensure best in class terms and conditions. Equally important to pricing are revenue commitments, SLAs, discount incentive tiers as business grows, termination liability, chronic outage termination rights and other key terms and conditions. Advocate Networks’ work is not complete until a final contract is positioned for your signature. Contract implementation typically includes:
- Identification of savings and contracts to be negotiated
- Negotiation of all pricing, commitments and terms and conditions with each provider
- Interaction with customer on commitments, SLAs and key terms and conditions
- Review of final contracts prior to signature