Reach for Low-hanging Fruit to Reduce Your Corporate Telecom Expenses
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Automate Invoice Management to Generate Immediate Hard Dollar Savings
Comprehensive telecom expense management (TEM) solutions have been shown to be highly effective in reducing telecom costs, generating strong ROI and paying for themselves in less than one year of operation. An automated invoice management system will generate hard dollar savings and productivity gains.
The value of reviewing invoices for accuracy before paying them is easy to appreciate. But for organizations that receive hundreds or thousands of telecom invoices every month, manually validating every charge on every invoice is a time-consuming and costly process. Whether deployed as an on-premise or outsourced solution, an effective TEM invoice management program includes four essential components: electronic invoice processing, invoice validation, dispute management, and contract negotiation.
Electronic invoice processing
Invoice management solutions are effective to the degree that the data is made available in electronic form. Invoices received in electronic form can be processed more rapidly, accurately, and at lower cost than paper invoices. Electronic invoices can also provide levels of detail that are critical for thorough and accurate analysis, validation, and allocation.
Invoice validation
To fully verify the accuracy of invoices, charges must be validated against three criteria:
- Usage – Were the services billed for actually consumed? Call accounting systems collect Call Detail Record (CDR) data off the telecom switch that can be used to validate costs. Wireless services do not provide this kind of activity log and are typically validated against charge thresholds.
- Contract terms and company policies – Rates applied to delivered services, as well as taxes and other charges, should be validated against terms defined in the carrier contract. Charged activity should also be checked against company policies governing appropriate use.
- Inventory and MACDs – The inventory of services in effect and the technology deployed are constantly changing. Invoices from telecom providers must be validated against what is essentially a moving target.
Dispute management
An automated dispute management system can help you quickly and efficiently work with carriers to achieve credits and/or corrections for discrepancies identified during the invoice validation process. Best-in-class dispute management systems include an automated workflow component that provides full lifecycle tracking of the disputed charges, including disposition, amount recovered, important dates, and more. Invoices with disputed charges can be paid in full with disputes or short paid.
Contract negotiation and optimization
Negotiating favorable rates and selecting service plans that match usage needs are powerful ways to reduce telecom spend. The spend and usage data collected for other invoice management efforts provides valuable insight that can be leveraged to reduce present and future telecom spend. Data gathered from invoice processing reveals how your organization actually uses telecom services, arming you with the information you need to negotiate the most favorable carrier contracts and wireless plans. Invoice management solutions with spend analytics capabilities can help you analyze this information and project future requirements and costs. Armed with this information, you can enter negotiations knowing exactly what you need, and what you can afford to leave on the table. You will be able to make informed decisions that result in significant cost reductions – such as moving to pooled plans or limited wireless data services – without jeopardizing overall quality of service.
Hard dollar savings and more
An invoice management system encompassing electronic processing, invoice validation, dispute management, and contract negotiation can generate immediate hard dollar savings, such as elimination of overcharges, as well as long-term savings resulting from stronger contract negotiation and compliance. Invoice management helps organizations understand and control their telecom usage and spend.
Reducing Telecom Costs: Why Invoice Management is the Best Place to Start
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Tags: automated invoice management system, Contract negotiation and optimization, Dispute management, Electronic invoice processing, Hard dollar savings and more, Invoice validation, Telecom Expense Management, Veramark
