SITUATION
Multiple clients have had recent discussions with Value Sourcing Group (VSG) regarding strategic sourcing and contract negotiations for their corporate wireless services. The common theme is the desire to renegotiate with their current wireless voice and data provider(s) to obtain current and competitive rates without disruption to the client’s user base. After an evaluation of other options in the market, as well as assessing their own internal capabilities, each client elected to engage Value Sourcing Group’s wireless targeted contract negotiations methodology. This solution allows the client to work with VSG in the development of a comprehensive strategy, while empowering VSG to execute on their behalf with the help of proprietary software, access to up-to-date market rates and seasoned telecommunications contract negotiation experts.
SOLUTION
The first phase of each specific project involved Value Sourcing Group performing a detailed market rate analysis benchmark to determine how well the current deal(s) stacked up against best-in-class deals recently obtained for similar sized companies. After this initial benchmark, VSG’s analysis indicated the client’s potential annual cost reduction and savings. Upon conducting a Strategy Development Session with the client and analyzing current market conditions and vendor mix, VSG’s team issued a Request For Offer (RFO) to the existing wireless service providers requesting improved pricing, new rate plans and enhanced contract terms and conditions. Responses were received, analyzed and compared for presentation to the client and subsequent use during face-to-face negotiations sessions with each wireless provider. Multiple negotiations sessions were held until final deals were completed for each provider including lower pricing, new cost saving voice/data/text plans and improved or new contract terms and conditions. Recommendations were then made to the client senior management for decisions on forward going providers.
ADDITIONAL BENEFITS
Besides the attainment of lower rates, Value Sourcing Group includes the following in each wireless targeted contract negotiations project:
- Initial compliance review of current contract rates and discounts to ensure provider has been billing services correctly
- Knowledge and introduction of new bundled (voice/data/text) plans previously negotiated with prior engagements with that specific wireless provider
- Recommendations for new technology, plans and/or features specific to the needs of the client’s corporate liable users
- Analysis of current users plans and volumes to develop recommendations for the optimization of services utilized which further reduce overall costs
- Validation of first month’s bill which includes the new plans and/or changes to ensure the provider is invoicing correctly, made the proper changes and the estimated cost savings are indeed being received
RESULTS
Based on the average of all recently VSG-lead wireless projects, the following results reflect the savings obtained, ensuring a dramatic positive impact to their bottom line:
- Reduction in contract rates of 19.4%
- Additional reduction via optimization of user plans of 12.1%
- Recovery of contract compliance billing errors equal to 4.3%
IN CONCLUSION
The corporate wireless services landscape has become increasingly dynamic and competitive. New options are being developed and delivered to enterprise organizations as a result of third party knowledge and assistance in contract negotiations. Competition for shifts in enterprise’s wireless market share allocation is driving down the average cost per user. Through strategic sourcing and re-negotiation activities, significant savings are available regardless of the status of current wireless contracts.
VALUE SOURCING GROUP OVERVIEW
Value Sourcing Group, LLC was established in 2007 with offices in Atlanta, GA and Franklin, TN (Nashville) to serve clients throughout the United States. Founded by two senior telecommunications consultants with over 34 years of combined directed negotiations experience, Value Sourcing Group provides tried and proven methodologies, processes, research, analysis and expertise in driving high value results for its client base. With access to multiple pricing data repositories plus key research and analytical resources, VSG enters all projects with current market place rate knowledge as well as factual and relevant industry information. Exceptional savings results and enhanced contract terms and conditions are the rule rather than the exception due to the level of experience and knowledge possessed by each negotiator.