4 areas that are key in controlling your telecom expense management.
Recession is the word that has crept across everyone’s lips this year. Consumers and companies are tightening their belts in preparation for a possible economic downturn in 2023. One of the best ways a company can control overspend in their budget is by looking at their telecom expenditure. Whether it’s an expert in your organization or you’re working with a telecom expense management consulting company you could find significant savings that can be allocated to other areas of your company.
Telecom Expense Management
Have you started the process of managing and keeping track of your wireless, voice, and data services to understand total telecom costs? Telecom Expense Management (TEM) is the best channel to control costs and to evaluate ongoing expenses. TEM is generally used for businesses that have significant telecom expenses, however having a TEM is only part of a successful strategy and process. It’s important to implement an audit of the cost, invoices, and contracts with a telecom expert to ensure the business is optimizing the spend, not just managing it.
These are the 4 key areas to help optimize the Telecom Expense Management:
- Inventory Management – Control cost management, cost allocation, and security of sensitive corporate data by having a consolidated and a detailed inventory. Detailed inventory allows for complete month-over-month optimization and enables a comprehensive planning process, which leads to better rates and service agreements.
- Contract Management – Contract management ensures that the contracts negotiated and approved are actually being adhered to when it comes to invoicing. Be sure to document all agreement end dates and renewal terms. Ensure there is no auto-renewal clause and that the agreements are month to month following term, with reasonable rate guarantee. It’s always great practice to consolidate all accounts and all services under one account and coterminous agreement.
- Invoice Management – Industry research shows that 35% of invoices contain errors. Proper invoice management optimizes accounts payable and automates the allocation of telecom costs. Invoice management can also prevent service disruptions, eliminate late payment fees, and lessen error rates.
- Audit and Optimization – Telecom overspend is common for companies due to lack of access or understanding of line level details in telecom billing. To provide a clearer view of your telecom inventory and possible overspend, be sure to review every line item.
Whether the economy is in a bull or bear market, optimization reduces costs and can improve efficiencies, as well as reducing errors and risk. When telecommunication systems perform to their full potential, and costs are justified, the organization can maximize the ROI of its spend.
Now is the time to find those hidden costs and turn them into savings. Read more about how companies have saved on average 33% in telecom spend!