Teledyne provides enabling technologies for industrial growth markets, having evolved from a company that was primarily focused on aerospace and defense to one that serves multiple markets that require advanced technology and high reliability. Teledyne’s growth has been augmented by acquisitions where the company leverages its operational excellence to rapidly integrate all of the businesses it acquires.
As companies were acquired managing Telecommunication expenses began with a series of spreadsheets and manual processes. It was not a system wide approach and it did not produce the anticipated results. The company identified several key areas where improvements to Telecom Expense Management were necessary:
- Update an antiquated manual process that was ineffective and labor intensive
- Create a truly centralized Telecom Expense Management (TEM) system with the ability to see across the entire enterprise, allowing for clear insight into inventory and spend as well as targeting key areas for savings
- Establish and leverage a database of competitive market pricing
- Deploy a strategic RFP sourcing exercise for Wireless, Wireline and Conferencing
- Optimize assets and services
- Identify and systematically resolve billing errors that resulted in significant accounts payable issues
- Establish a system that would serve to speed up acquisition integration and resulting cost savings
Teledyne had attempted to work through the issues internally with mixed results so they determined that in order to reach their goals, they needed outside expertise.
In October 2011, Comview, through its strategic partnership with Siemens, was introduced to Teledyne. The parties immediately identified Wireless, Wireline and Conferencing TEM as immediate needs. Comview proposed a solution that became the foundation of what is today a truly successful partnership. Later, Teledyne would also turn to Comview for the Strategic RFP sourcing exercise, also identified as a key area for improvement.
For the first phase, Comview proposed its Total Talk Management, a fully integrated Telecom Expense Management Solution, with a focus on Wireless and Wireline. The specifics of the fully integrated Telecom Expense Management Solution included:
- Integration into one comprehensive platform
- A database containing asset and service inventory with related attributes and vendor information
- Invoice presentation for both electronic and paper media across all vendors with a focus on eliminating paper
- Invoice processing including approval workflows and notification
- General Ledger and Accounts Payable feed(s) to be built
- Wireless Device Management, Optimization and Audit Service with Data Mining and Reporting
- Ability to inventory and manage all Wireless Devices
- Investigation into areas for potential savings and increased efficiencies
- Comview’s Hosted Web Portal for 24/7/365 anywhere access
- Unlimited training
- Robust reporting
- Comview’s Savings Guarantee
Subsequent phase included a Strategic RFP Sourcing initiative for Wireless, Wireline and Conferencing. Based on the existing TEM engagement, a proposal of a finite set of deliverables necessary for creating the right information for the vendors to receive, ensuring the best possible outcome, and minimizing the cost to Teledyne was created. These deliverables included:
- Business objectives, goals, and key success metrics
- Review of Teledyne’s master plan as it related to both infrastructure and carriers
- Onsite meeting with key stakeholders
- Organized invoice and inventory into a “book of business” that was detailed down to the individual site level
- Created a final RFP for distribution to 15 targeted domestic and international vendors
- RFP Analysis and Recommendations
- Summary Score Card – analyzing and rating vendor responses according to objective criteria
- Recommendations in presentation form
- Contract Negotiations including co-termination
Before Comview, Teledyne employed manual processes using a system of spreadsheets for over 60 locations. Now all major contracted services across all divisions are centralized in one location, one view with the remaining domestic and international services in progress. The TEM engagement provided for a billed concise inventory of all assets and services subsequently leveraged in the RFP project. It’s an enticing argument for companies to do data gathering prior to negotiations allowing for enhanced knowledge of accurate inventory and costs. It is an effective sequence of events –if savings are possible through the TEM work (and they almost always are) you have the entire requirements all inventoried for easy presentation in the RFP.
Comview also consolidated all of the invoices across all divisions and manage them through one consolidated billing system regardless if the service was wireline, wireless and conferencing. The engagement resulted in first year soft cost savings of $315,000 along with first year hard cost savings of $650,000. Hard cost savings in years two and three are $250,000 and $200,000 respectively. The engagement also resulted in Teledyne acquiring a new, fully meshed secure global MPLS/SIP/Dedicated Internet Network. Additional soft cost savings required by RFP responders, included technical and project management resources. Some of the benefits include:
- One invoice system available across the entire Teledyne business hierarchy
- Through the platform, the ability to process and pay for all services (Conference, Wireline and Wireless)
- Invoice consolidation, accurate reporting, standardized GL coding and centralized bill pay has all contributed to less Teledyne internal resources in the magnitude of 50-60 hours per week.
- Corporate wireless subscribers continuously monitored and adjusted to the correct plan(s) based on need and title.
- Expanded insight and the ability to provide subscribers with individual billing details.
- No “finder’s fee” results in all savings realized by Teledyne.
- Diminishing volume of vendor billing issues due to TEM provider oversight.
- Repeatable proven RFP approach and process utilizing invaluable market insight and benchmarking
- Partner who typically spends up to two hours a day with the Teledyne team
- Process to merge remaining services and new acquisitions into a stable platform.
For more information:
Comview’s flagship offering, Total Talk Management, combines Telecom Invoice Processing, Wireless and IT Asset Management, Procurement and Call Accounting in a single integrated platform. Comview’s managed service/BPO approach and “customer for life” philosophy provide customers with the highest level of service and support and sustainable ROI. Comview’s services are used by major organizations throughout the U.S. and abroad.
This case study is provided by the TEMIA member company, ComView who are solely responsible for the content.