Benchmarking for Cost Optimization and Plan Restructuring | Wireless

Problem Statement:

A leading global consumer goods company needed to assess their wireless spend due to a high number of zero usage devices they were still paying for following organizational changes. They wanted to do validation and benchmarking exercises of the costs associated with their current provider before the end of their agreement. The analysis resulted in better providers, leveraging renewal credits, significant cost-savings, and better overall terms for their contract.

Solutions: 

• Utilized a vendor within ITC2’s extensive network to do an accurate benchmark and determine if they could negotiate a better price, better long-term solution, and better wireless plan (minutes per month and devices) with a different vendor.
• As a Gartner partner, ITC2 was able to obtain information on leading technologies in the space – content and data – which are significant to the decision-making process for cellular providers in the space.
• The client utilized the information ITC2 provided them with, including a competitive rate that would result in approximately $26k in monthly savings if they switched to the new vendor. 
• The alternate solution would also eliminate the zero usage charges they were paying on their current devices with just one month of savings. 
• The client took the information and rates back to their existing vendor to negotiate a better rate for all devices, negative zero usage, and a better plan.

Results:

• The benchmarking exercise resulted in the client saving $26k/month or $936k in  savings over a three-year contract.
• The customer took the assessment back to their current provider and negotiated a better contract, an upgrade on their phones, elimination of the zero usage charges, and the ability to leverage renewal credits.
• During the procurement process alone, there was an additional $20k-$30k savings because of changing their plan right away per ITC2’s recommendations.