Logistics Leader Drives $1.4M in Telecom and Mobile Contract Savings

Maximum rate savings delivered 3 months faster with expert negotiators handling renewals

The Challenge: Renegotiating Complex Contract Renewals

Dependability is a core value for this shipping and logistics leader, and that meant finding a partner they could trust to successfully renegotiate their telecom and mobile service contracts. The IT team wanted to strike while the iron was hot, but they lacked the right negotiating power. Decision-makers didn’t want to switch services or go through arduous RFP processes — rather find a way to leverage their sizable financial outlays to pocket near-term savings from incumbent carriers.

The logistics company was already using the Tangoe One platform for technology expense management and managed mobility services, so it was aware of Tangoe’s track record in leading direct contract negotiations to secure the best deals and terms from major carriers. Thus, company leaders tapped into Tangoe’s Advisory Services to light a fire under their renewal processes and reliably lead the way.


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The Solution: Support that Speeds Savings 3 Months Faster

Tangoe’s team of cost management consultants and negotiation artists immediately went to work on five expiring contracts – three for fixed wireline telecom services and two for wireless mobile services. Their goal: to urgently drive and maximize savings.

Tangoe helped offload the intensive work of the company’s contract negotiations, including:

Auditing and Benchmarking Existing Costs
Leveraging the Tangoe One platform for centralized information gathering, Tangoe reviewed the company’s telecom and mobile invoices line-by-line to create a baseline of their current assets and spending. Benchmarking processes pinpointed savings opportunities by comparing existing costs, contract rates, and terms against industry-leading services and pricing from other major carriers.
Market price intelligence was critical at this stage, as it provided much-needed negotiating power. Tangoe gleans this intelligence annually by tracking $34B in tech spending, negotiating roughly 400 contracts on behalf of clients, and engaging in hundreds of cost optimization consultations.

Just as importantly, Tangoe ensured IT assets and usage were aligned with business needs. Negotiators drilled down into the company’s current state to validate spending, identify waste, and know where they could take concessions — removing any unnecessary services.

Negotiations: Going to Bat with Large Carriers
With complete spending visibility and a precise measurement of exactly how much money could be saved by switching providers, Tangoe was armed to negotiate competitive pricing and terms. Securing the best deal isn’t something everyone can do. Telecom technologies are complex, and mobile service offerings are constantly changing. Tangoe’s professionals brought in industry expertise alongside the skills to pressure, persuade, and persistently wade through multiple rounds of negotiations. The result: cornering the market to drive savings.

The Outcome: $1.4M in Savings, 1,100 Hours in Productivity Gains

To date, the logistics company reduced their contract rates, producing $1.4M in total savings — $1M in on telecom contracts and $400,000 in mobile contracts. In addition, they saved over 1,100 hours in productivity, recognizing savings faster than they could have on their own. All in all, the team leveraged their sizable spending as negotiating power and used Tangoe to accelerate their procurement timeline by 3 months — an opportunity cost valued at over $182,000. Without Tangoe, speed-to- savings would not have been possible.

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