Skip to main content

Life Science Giant Saves $400K in Annual Telecom Costs

A global life sciences company was encountering difficulties with telecom and mobile expense management, due to decentralized inventory. When it came time for a network switch, the company knew they had to regain control. So they chose to work with an experienced partner who could help them re-strategize. Tangoe stepped in to build, realign, and optimize their IT invoices and inventory.

Read the TEM case study below, or download the PDF version.

Quick Summary

  • The customer: This global leader in pharmaceuticals, consumer health, and life sciences develops innovative products and solutions. They have more than 100,000 employees spanning 87 countries, with annual revenue over $56 billion (€48 billion).
  • The challenge: The customer already used some of Tangoe’s technology in a limited, manually managed capacity. But as the company grew, so did the complexity of their IT invoices, contracts, and regulations. They were paying for services that were no longer being used, and they knew there were opportunities to save money that they couldn’t see. On top of that, they needed to prepare for their large network migration.
  • Tangoe’s strategy: We did a complete inventory build, audited historical invoices, centralized all order and inventory management, and improved workflows through consulting and automation.   
  • The outcome: With better control over their telecom and mobile spending, the customer was able to focus on their network migration, reduce telecom spend by 38%, and reduce overall spend by $400K per year. 

Details

Below, the full mobile and telecom expense management case study explains the challenges and solutions in detail.

Growing Company, Growing Complexity

The life sciences company initially had a limited engagement with Tangoe technology; they had an internal team to process, audit, and manage their own invoices. But they weren’t utilizing the automations and hands-on support that are part of the full Tangoe One experience.

As the company grew, they encountered more problems with managing telecom and mobile expenses:

  • Contracts got more confusing, along with service interdependencies.
  • The accounts payable (AP) team was processing many invoices but had minimal resources and knowledge to fully audit those invoices.
  • Asset cost allocation data was inaccurate and scattered.
  • The device-ordering system and procurement process were decentralized, which was inefficient and risky. (Each office had purchasing power.)
  • Regulations weren’t standard across contracts.

These problems led to more problems – like late fees and paying for services that weren’t being used. Because ordering and procurement were decentralized, the company was missing out on bulk pricing and negotiating better terms. Finally, telecom and mobile spend analysis was nearly impossible, as the data was rarely standardized.

All these complexities needed to be sorted out before a successful network migration could happen.

So the company asked Tangoe for help, and we got right to work.

Tangoe’s Approach

As the company began preparing for the large network migration, Tangoe recommended a complete, centralized inventory build to understand what would need to be migrated. This had two additional benefits: It gave the company visibility of what services they had and who used them; and it safeguarded against expense leakage, such as paying for unused or overlapping services.

The Tangoe team took a three-part approach to managing the exploding telecom and mobile spend and designing a new workflow for the customer’s invoice processing:

  1. Managed Services. We revised order and procurement workflows so that automations within the Tangoe One platform could manage all orders and validate expenses.
  2. Historical Audits. Tangoe performed a thorough historical audit of past invoices, discovering misapplied rates, phantom fees, keying errors, and non-standard transactions.
  3. Centralized Inventory. We integrated all telecom and mobile inventory records with provisioning and full-service expense management data. The goals: Improve billing accuracy, and reduce overcharges.

“91% of our monthly telecom invoices in the USA no longer need human intervention for processing and payment; we continue to recognize this value every day.”

– Vendor Manager

Results

By the numbers:

  • $400K savings per year
  • $700K+ recommended annual savings
  • 38% lower telecom expenses

From an operations standpoint, these solutions led to far less manual work for this busy life sciences enterprise. From a financial standpoint, positive results included less maverick spending, clean and up-to-date data, and pain-free spend analysis due to reporting features. With inventory centralized, billing accuracy improved and overcharges decreased drastically. The historical audits of mobile and telecom expenses resulted in a clear hit list of contract inefficiencies and pricing problems to resolve.

As the customer’s vendor manager summarized it, “These results reflect a well-managed and controlled category of external spend.” Support did not end with this mobile and telecom expense management case study – Tangoe continues to provide ongoing auditing, consultation, and technology solutions.

If your enterprise needs strong technology management solutions too, contact Tangoe today or request a demo of Tangoe One.