Are all wireless audits the same? Or are there differences between an audit performed by a TEM (Telecom Expense Management) company versus an audit performed by a Consultant? And most importantly, what kinds of savings can you uncover by auditing your Wireless spend?
A TEM audit is provided by a company that will analyze your Wireless spend through their own proprietary software. After conducting an initial audit during the setup of the TEM database, the TEM company provides an ongoing monthly review of your wireless spend.
The TEM Wireless Audit provides a solid set of cost saving recommendations on some key areas of your Wireless spend. Some of the savings recommendations cover the following:
* Overage Charges--Identify exceptional charges that appear each month. Examples include exceeding total shared plan minutes or an individual exceeding their respective text or data plan limits. The solution may be to increase the respective plan(s) to avoid future overage charges
* Unused (Zero Usage) Devices--Identify devices that had no usage for the past month, for your internal review. Various factors need to be considered before canceling a device (# of months of no usage, seasonal devices, backup devices, contract termination dates, etc.)
* Optimization of Plan Minutes--Monitor usage to ensure an agreed-upon utilization rate (i.e. 95% of Plan minutes). Increase or decrease individual plans to achieve the utilization rate.
* Wireless Cramming--Identify/validate subscription services. Some services may be non-business-related, and per your enterprise policy should be cancelled (e.g. $9.99/month additional charges for Ringtones, Quizzes, Games, etc.). Other services, such as medical or legal subscriptions are valid and no action should be taken.
* Text Plan Optimization--Add/Change/Remove Text plans based on current usage.
* Data Plan Optimization--Change Data plans based on current usage.
* Missing or incorrect discounts--Identify and validate discounts.
The TEMIA (Telecom Expense Management Industry Association) has 40 members. While not all members offer TEM services (Inventory, Audit, and Bill Payments), most of the vendors listed do.
A Consultant audit is provided by an individual who will analyze your Wireless spend through their own personal experience and knowledge. The consultant may or may not use software in their analysis. After conducting an initial audit, the Consultant usually provides an ongoing monthly review of your wireless spend.
In addition to the above Wireless Savings recommendations, the consultant may identify the following set of additional savings opportunities, each of which can save an extra 2-10% of your wireless spend.
* Alternative Plans (within a contract)--Some contracts offer a variety of plans with different pricing models based on the type of minutes (peak/off peak, Mobile to Mobile).
* Rearrange Users--The recent Share Everything plans offer different pricing based on the size of the data package. By rearranging users (i.e. combining low data users together, combining high users together), a client can often save money by "Rightsizing" the data plan.
* Standby/Pay as you go plans--For seldom-used basic phones, a more cost effective solution will be to use an upfront prepaid plan, instead of incurring an ongoing monthly charge. Buying 1,000 prepaid minutes for $100/year is more cost effective than paying $29.99/month for the year.
* Association discounts/plans--An organization may be eligible for higher discounts and/or specialized plans. If your company or organization belongs to a trade group or organization, they may have already arranged a larger discount with your Wireless vendor.
* Government plans--If an organization receives funding primarily from a government entity, they may be eligible to take advantage of a Government contract.
* Group Purchasing Organizations or Consortiums--Joining a GPO or Consortium combines the buying power of many organizations into one group. In addition to saving money through lower rates (or higher discounts), a GPO/Consortium can also negotiate better terms and conditions for their members than can an individual organization.
* High/Low Strategy--A minute is a minute. Using a High/Low strategy of blending High-minute plans with low/add-on plans usually provides a lowest cost per minute. Adopting a High/Low strategy can usually save 3%-7% off a wireless invoice.
* Older/Unpublicized plans--The Wireless vendors' primary sales push is on their newest plans. However, older plan(s) may be more cost effective. For example, the Share Everything plans tend to save costs for Smartphone users but actually cost more for basic phone users.
* Seasonal usage--Some users have a significant swing in usage. For example, a retail client may have heavier usage in the Fall, tax accounting firms in the Spring, air conditioning companies in the Summer. Understanding the differences can dictate the types of phones, contract terms, and even vendors. The AT&T plans with rollover minutes are ideally suited for a seasonal business.
* Unpublicized Features--Some vendors provide features (i.e. 250 free texts) on voice plans. However, these features are not automatically added onto your user's plan. Instead, you must explicitly ask for these features to be added.
* Tax exemptions--Certain types of organizations may be exempt from specific state and local taxes. For example, nursing homes in Lakeland, FL are subject to a Communication tax of 16.2%, unless they file the appropriate tax exemption forms.
* Suspension of devices. While the suspension of devices does not eliminate the term, it does defer the end date. For those who maintain a stock of phones/devices, suspending a certain number of devices for a specific period of time will lower the effective cost of maintaining these devices over a longer period of time.
The STC (Society of Telecommunication Consultants) have over 150 members. While not all members offer Wireless audit services, most of the Consultants listed do.
The Consultant audit can be conducted in conjunction with a TEM audit (i.e. an additional review) or on a standalone basis (i.e. if not using a TEM Service).
The bottom line: Historically, a Wireless Audit usually identifies savings in the 5% to 35% range. In selecting a TEM Wireless Audit or a Consultant Wireless Audit, it is important to investigate their experience, work product and follow-up assistance. There can be a wide variation of achieved (versus proposed) savings amongst the Vendors and/or Consultants.
The Society of Telecommunications Consultants is an international organization of independent information and communication technology (ICT) professionals serving clients in all business sectors and government worldwide.
