Case Study #1
US Chemical Distribution Company
A US Chemical Distribution Company with approximately 170 nationwide locations wanted to organize their telecommunications program. Each location was responsible for their own wireless program and as a result, there were a total of 11 vendors providing service, 4 of which were outdated, grandfathered “blanket” contracts (with at&t, Verizon, Sprint, and T-Mobile). The provision of wireless service for 2,861 devices resulted in 289 invoices with an average monthly cost of approximately $339.3K. In addition, this Chemical Distribution Company had no dedicated communications support within their organization which resulted in no company-wide standards or policies.
After performing an RAK Consulting audit, we negotiated new contracts with Verizon WIreless, at&t Mobility, Sprint/Nextel, and T-Mobile. This provided deeper discounts on service and equipment as well as additional concessions such as Early Termination Fee (ETF) waivers, annual “lump sum” credits, and new line activation credits.
The services and invoices were consolidated to 4 carriers and 4 invoices, utilizing pooled voice plans. Unnecessary features were also eliminated while all lines were identified by employee or position and inducted into a cost-coding system. Moreover, RAK Consulting established Employee Sponsorship Programs with Verizon Wireless, at&t Mobility, Sprint/Nextel, and T-Mobile which provided on-going service and equipment discounts for all employees and their families who enrolled.
In addition to cost-savings and organization, RAK Consulting established and implemented company-wide standards and policies to reduce confusion and increase the efficiency of the telecom program.
Upon completion of the implementation phase, RAK Consulting provided on-going management consultations and continuing refinement of the wireless program. This resulted in an an annual average of $41K in additional savings.