PROACTIS, a global Spend Control and eProcurement solution provider, today released findings of a new European study aimed at assessing organisations spend on fixed and mobile communications. The survey of over 100 business decision makers finds that the vast majority of organisations lack a clear understanding of telecom usage and costs that help them to procure telecom services on enhance terms. The study was conducted by Efftel, a specialist telecom and mobile expense management provider and category supply partner of PROACTIS.
"Fixed and mobile communications services are among the top five business expenses, yet most organisations do a poor job of managing this spend," said Simon Dadswell, Marketing Director of PROACTIS. "Procurement professionals spend the majority of their time managing the big core areas of spend where the numbers are larger and savings are more quickly won; and rightly so. However, few have the necessary insight into their telecoms expenditure; established an inventory of billed services and ensure they are all correctly accounted for; conducted a thorough tender process; or manage the on-going reporting and control of the supplier contract."
David Rosenthal, Managing Director of Efftel added: "The survey reveals that by focusing on these different cost areas in a systematic way, many organisations can make an overall 30% saving on landline and mobile contracts, generate savings by terminating redundant services, and reduce administration costs by cutting the number of suppliers to a single provider."
Research highlights include:
- 5% of telecoms invoices contain billing and tariff errors
- Top performers realise >£100 pa / per user in cost and resource savings
- A clear understanding of usage and costs helps organisations to procure mobile services on enhanced terms at typically up to 30% cost reduction
- With constantly changing tariffs any new agreed tariffs are often delayed or not implemented and therefore the benefit of the cost reduction is not being realised
- Typically, 20%-30% of calls relate to personal usage and can represent up to 30% of the mobile bill equating to costs of between £50 and £90 pa / user
- 1 in 20 company mobile phones are not in use or are used by a former employee
- Around 10% on average of 'zero-use' mobiles can be identified and re-assigned
- Accurate processing of supplier invoice data helps to identify and remove typically 5% supplier billing errors
- Cancelled assets / services continue to be billed unnoticed and charges billed for non-agreed services
- Redundant assets / services continue to be paid and assets / services not billed but reclaimed later
Telecom Expense Management is a specialised category service and part of the PROACTIS Tail-Spend Management platform - a combination of technology, services and partners designed to help organisations improve control and reduce the cost of all spend with all suppliers.