Great River Energy

Telecom Expense Management (TEM) is a comprehensive approach that organizations use to monitor, manage, and optimize their telecommunications expenses. Traditionally, TEM encompasses several critical aspects, including invoice management, inventory management, usage optimization, and contract management. With the increasing complexity of telecom services and the persistent problem of data accuracy, TEM has become more crucial than ever. This article explores the significance of TEM, its core components, and how it can deliver substantial cost savings, improved efficiency, enhanced visibility, and control for businesses.

What is Telecom Expense Management?

• Invoice Management: TEM involves the careful scrutiny of telecom invoices to ensure accuracy and completeness. This step helps identify billing errors, discrepancies, and overcharges.

• Inventory Management: Keeping track of telecom assets such as mobile phones, landlines, data plans, and associated contracts is a fundamental aspect of TEM. An up-to-date inventory serves as the foundation for managing and optimizing expenses.

• Usage Optimization: Monitoring and analyzing how employees use telecom services can reveal opportunities for cost reduction. For example, identifying data plan overages or underutilized features can lead to immediate savings.

• Contract Management: TEM professionals review existing contracts and negotiate with telecom vendors to secure favorable terms and competitive rates. This proactive approach can lead to significant long-term cost savings.

Complexity and Data Accuracy Challenges

The ever-evolving landscape of telecommunications services can be overwhelming for businesses. Telecom expenses can quickly spiral out of control due to the complexity of services and the constant changes in technology. Additionally, ensuring data accuracy in telecom billing remains an ongoing challenge, making it imperative for organizations to adopt TEM.

The adoption of tem can yield a wide range of benefits, including cost savings, improved operational efficiency, enhanced visibility and control over expenses, and better decision-making

Benefits of TEM

The adoption of TEM can yield a wide range of benefits, including cost savings, improved operational efficiency, enhanced visibility and control over expenses, and better decision-making.

Great River Energy’s need for Telecom Expense Management

In 2006, Great River Energy (GRE) embarked on a significant telecom infrastructure expansion project. This involved deploying a private wireless network that connected 600 locations using 100 communication towers, along with over 450 leased circuits from 32 local and national telecom providers. Initially, GRE partnered with a local TEM provider to manage moves, adds, and changes to help manage this network.

• Invoice Management and Contract Optimization

GRE's TEM provider began by reviewing all telecom invoices meticulously to ensure accuracy. Any errors or discrepancies were promptly addressed, and the provider worked closely with telecom providers to correct mistakes and ensure GRE received the appropriate credits. Moreover, they ensured that GRE was benefiting from optimal contract pricing and terms.

Expanding Services to Mobility Spend Management

As GRE's telecom needs continued to evolve, their TEM services expanded to include mobility spend management. This was particularly critical as the costs associated with mobile devices were on the rise. GRE had more than 700 mobile devices spread across two major carriers.

• Inventory Management: The TEM provider maintained an accurate inventory of all mobile devices and associated plans, allowing GRE to make informed decisions about their mobile assets.

• Spend Management: By closely monitoring mobile expenses, the TEM provider helped GRE identify opportunities for cost reduction. This included optimizing international travel plans, tracking and communicating with high data users, and managing user account pools effectively.

Conclusion

GRE's partnership with a TEM provider has yielded impressive results:

• Wireline Spending Savings: GRE has saved over $2 million in wireline spending, thanks to accurate invoice management, contract optimization, and ongoing cost control efforts.

• Wireless Spending Savings: The adoption of TEM for mobility spend management has led to savings of over $1 million in wireless spending.

In conclusion, Telecom Expense Management is a powerful tool for businesses seeking to control costs, enhance efficiency, and gain better control over their telecommunications expenses. GRE's success story illustrates how TEM can deliver substantial savings and provide the visibility and control needed to thrive in a rapidly changing telecom landscape.