1. Case Study
International Logistics, Fleet Management, and Truck Rental Company
(Telecommunications Cost Reduction Project)
To date, first year savings for this engagement exceed $7.5 million.
TMR was hired to identify and recommend cost reduction projects and execute them after
management approval. The initial large project covered a division of more than eighty
(80) regional offices and 1,600 operating locations.
Savings were obtained from billing audits, service elimination, rearrangement or
identification of alternate services, as well as long distance cost reduction. Total savings
are $1,795,000. TMR conducted audits of services and expenses. These resulted in
immediate savings of $40,000 annually and a recovery of $508,000.
TMR negotiated one regional local services contract, resulting in $133,000 in annual
reductions.
TMR supported contract negotiation for the renewal of a national agreement for voice
and data services. As a result of TMR’S initiatives, the contract cost was reduced by $2.5
million.
TMR conducted a wireless cost reduction project, using proprietary database and
methods, and produced projected annual savings of $1,519,000.
Telecom Management Resources (TMR), 31275 Northwestern Highway, Suite 230,
Farmington Hills, Michigan 48334
Phone: 248.671.2161 / www.ask4tmr.com
2. International Hazardous Waste Disposal Company
(Telecommunications Cost Reduction Project)
Total annual savings for this client are approximately $2.5 million dollars.
Telecom Management Resources (TMR) was hired to review all telecommunications
costs, develop cost reduction strategies, develop RFQ’S, negotiate contracts, and
implement or manage implementation of all recommendations. The project encompassed
voice, data and wireless services. Voice services included long distance, toll-free calling
with enhanced network service and calling cards. Wireless services included
approximately 1,800 pagers.
Wireless services
Pagers presented a special problem. Our client did not have documentation for most of
their 1,800+ pagers. TMR developed a process to identify and validate them. As a result
of the documentation project, TMR was able to disconnect 600 pagers with annual
savings exceeding $80,000.
TMR also developed pager usage service recommendations. Through competitive
bidding and contract negotiation, TMR was able to reduce pager costs by an additional
$95,000 annually.
Cellular - - TMR reviewed cellular needs and usage, developed corporate policies for
cellular phones and used its proprietary Rate Plan Optimization (RPO) to determine the
best plan for each phone, identifying $140,500 in annual savings. TMR then managed
implementation of the recommendations and manages continuing cost reduction through
periodic RPO analysis.
Long Distance and Network Cost Reduction - - Through its RFQ, analysis, and
negotiation process, TMR negotiated a new contract for voice and data services that
produced annual cost reductions of nearly $2 million.
Project Management - - The long distance and network cost reduction project resulted
in the replacement of the incumbent vendor. TMR managed implementation in a
multivendor environment which included an outsourced IT and network management
vendor, the long distance and network carrier, a national cable and maintenance
contractor, and numerous local exchange carriers (LEC). Using TMR’S internally
developed project management process, more than 300 frame relay network connections
were replaced including many with shared voice and data access. The TMR process
provided our client with its first, fully documented network inventory as a product of
implementation.
Telecom Management Resources (TMR), 31275 Northwestern Highway, Suite 230,
Farmington Hills, Michigan 48334
Phone: 248.671.2161 / www.ask4tmr.com
3. Maintenance Contracts - - TMR identified telephone system maintenance agreement as
a major reduction opportunity. TMR issued an RFQ and negotiated a national agreement
for our client. Annual savings on maintenance exceed $300,000.
International Logistics Company
(Telecommunications Cost Reduction Project)
Identified and achieved savings totaling $201,703.00 (U.S.)
TMR was engaged to audit telecom control and cost management practices and
opportunities. This initially covered U.S. operations and was then extended to their nine
European countries.
U. S. Cost Reduction Audit
We discovered the company’s internal telecom management staff were excellent, and
were able to report to Senior Management that their staff was doing a very professional
job. Nonetheless, through TMR’s specialized processes and experience, we were able to
identify additional opportunities which saved the company $60,500 in annualized
expense.
Europe Cost Reduction Audit
This turned into a very interesting and productive project. During the course of it. TMR:
• Produced a comprehensive inventory of every telecom contract and their
conditions in place for each of the European entities. This inventory showed not
only start and stop dates, but cancellation charges or conditions and, where
appropriate, the previous vendor.
• Management considered this single result to be worth more than the project’s
dollar (or Euro) savings.
Worked with pan European vendors to develop first of its kind cross national contracts
which permitted our client's smaller country entities to share in the lower rates their
higher usage brethren enjoyed.
Telecom Management Resources (TMR), 31275 Northwestern Highway, Suite 230,
Farmington Hills, Michigan 48334
Phone: 248.671.2161 / www.ask4tmr.com