Why TEM Matters

Just a small blog on the importance of TEM as a reminder.

There’s been a lot of talk lately about how using ERP and generic Expense Management software obviates the need for TEM. The argument goes that since network, wireless and telephone services are no different than any other business expenses, why do we need a separate approach?  At the surface that’s a logical question. Scratch that surface, though, and the answer becomes crystal clear: managing those expenses is not just about controlling price and inventory—it’s about the contracts, the usage patterns, understanding trends and changing regulations. There’s a complexity to keeping a company’s communications infrastructure up and operating at peak efficiency for the organization’s needs–and with visibility into costs and usage—that just doesn’t happen with most other corporate expenses.  We’re not talking about cleaning services, paper clips or even laptops or other IT assets.

With this in mind, here are just a few good reasons for Telecom Expense Management, regardless of how you manage the rest of your expenses:

1. Inventory Validation
   Each month it’s critical to know exactly what you have in your communications inventory. You have to:
   • Know what you are paying for and why
   • Look for circuits, licenses, instances or lines at incorrect rates
   • Look for ongoing invoices after disconnects have been placed
   • Identify unneeded or unused services and features
   • Manage contracts to expiration and evaluate renewals
   • Identify long distance casual billing
   • Identify 3rd party/slamming charges to be added without authorization
2. Dispute Resolution
   If you find discrepancies, not only do you have to dispute the charges, but you have to bring them to resolution. This form of management helps drive efficiencies through automation of all telecom invoices and tracks each dispute’s progress life recovering money faster. Most carriers have a formal process for submitting dispute and credit requests and submissions must include proper documentation. A good TEM system allows visibility of all disputes with all carriers to maximize savings.
3. Wireless Optimization
   Wireless assets remain the most dynamic in the telecom environment. Variables to monitor such as pooling, addition of new service, upgraded service, equipment changes, features, overages and other miscellaneous fees can all lend to significant monthly variances. It is pertinent to analysis and monitoring accuracy and ensuring optimization.
4. Invoice Audits and Cost Allocation
   Comprehensive monthly audits are imperative to minimizing or eliminating rising telecom costs. Pricing errors, missing discounts, incorrect service periods, installation fees, licenses, excessive truck-roll charges and add-ons are all possible in going wrong. Identifying such anomalies requires attention to detail to locate an informed carrier representative who can validate the charges.
5. Contract Negotiation
   Contract negotiation should begin 9-12 months prior to the contract termination date to allow for a full evaluation of current market pricing and options. The understanding of the contract structure is mandatory with each carrier- questions like what is the discount and pricing approval process must be known otherwise you are leaving money on the table.

Again the importance of Telecom Expense Management continues to require expertise and ongoing monitoring of all your telecom assets to continue reducing costs and keep an accurate telecom portfolio intact. You can’t get that with an asset management or an expense management package designed for other corporate assets. A TEM solution like Network Control is much more than software; it’s that plus expertise plus experience. Taken all together you get the expense management you need.