Resources

Keep up to date with our news and thoughts about Telecom Expense Management, Contract Value Intelligence and Spend Analytics.

Posts about Spend Analytics:

Category Management - Six Ways to Reduce Telecom Costs & Complexity

Category Management - Six Ways to Reduce Telecom Costs & Complexity

Factors such as bundling services and keeping copies of contracts have their roles to play in reducing telecommunications costs, but many organisations are still failing to investigate a range of unnecessary hidden expenses, and the complexity of telecom category management for enterprise procurement teams continues to increase.

Whether your organisation is paying for disconnected services or suffering from internal usage abuses, the six cost reduction methods listed in this article will help to reduce telecoms costs, improve total contract lifecycle value and optimise technology spend.

Despite the difficulties associated with telecom cost management, we will also look at the practical solutions to unlocking significant savings on your technology and telecom spend.

To truly optimise this process and maximise reductions, working with Thinking Machine Systems automates the investigation and visualisation of data as well as simplifying strategic recommendations which are quickly actionable.

Category Management Analytics drives Business Digital Transformation.

Category Management Analytics drives Business Digital Transformation.

Imagine this: your team has found itself over budget after a challenging year of technology migrations and changing suppliers. You and your team need to find where the problems lie but no-one has enough spending analytics associated to your contract lifecycle management to fully understand the actual services being delivered within your technology and telecom supplier contracts in order to decipher the mess of documents and clearly articulate what your additional value and future cost reduction recommendation could be extracted from your suppliers. 

You might have experienced this exact scenario yourself recently. It’s a common experience that has plenty of advice, from contract lifecycle management tips of how to find the most useful information through to hiring an outside cost optimisation consultant to do the work for you. 

The thing is, manual approaches to this problem are prone to human-error, and even for the perfect human investigator, there’s a high chance that not every issue is found. 

Technology and telecom contracts cover a huge number of different services, which can be configured in different ways, and for every different configuration carries different contractual terms and pricing considerations. 

We explore the challenges to accurately deciphering technology contracts against their invoices, and how category management analytic solutions can handle all of the contractual landscape for that category and simplify the process for your procurement teams.

Digital transformation with spend analysis software

Digital transformation with spend analysis software

Enterprise digital transformation occurs when digital technology enables businesses to function better than before, improving efficiencies and business processes. At the core of this process is the transition of analog information to digital formats, with significant value available to organizations that adopt the right cost reduction strategies, spend management strategy, spend analysis process, and expense management software while doing so.

The ability to decipher detailed data about complex services can unlock immediate and long-term value, both in terms of savings and overall efficiency. Tackling the right pain points with the right technology results in an enhanced approach to transformation.

To achieve these outcomes, organizations require a spend analysis solution that can improve supplier management and performance. Charging inconsistencies can commonly be traced back to the supplier, due to factors such as inaccurate data and methodologies.

A subset of improved supplier performance is cost savings, and the right technology can enable you to optimize existing service plans without having to renegotiate deals. These improvements can be taken a step further when service data is aggregated across multiple suppliers, resulting in better deals.

Contract Value Intelligence: Optimise your Telecom contract savings

Contract Value Intelligence: Optimise your Telecom contract savings

As a buyer, how do you prevent Value Leakage in your complex Telecom contracts? Simple, Spend Analytics! 

Telecom is increasingly a prominent feature in enterprise budgets. Annual spend on Telecom equates to an average 1-2% of enterprise revenue. Therefore, significant savings and efficiencies found in Telecom will make a significant impact on the bottom line. To beat bad data, information silos and increasing value leakage, enterprises must focus on spend analytics.

Today, a fragmented information environment characterises Telecom category management for buyers:

  • Contracts and invoices hold tens of thousands of line items containing references to different definitions.
  • Definitions made up of implied rules defined somewhere else across the contract or standard supplier T&Cs.
  • Implied rules are tangled in an undefined web to other sets of definitions.
  • ‘Shifting sands’ of contract variations and regular updates of standard supplier T&Cs.

As a result, Telecom Category Management has no standardisation and will mean something different depending on who you ask. Eliminating value leakage is not seen as a routine operational activity today because there has been no feasible way to systemise operations. When enterprises perform related activities, they are performed manually and only done at significantly timed events due to the high time, effort, and specialisation required to complete the work. These significantly timed events typically are: 

  • During the RFQ / negotiation stage, when price benchmarking is completed to give the buyer an indication of what they should be paying.
  •  Resolving a longstanding commercial issue, when billing issues have compounded to the point that extraordinary intervention is required to get things under control.