Wireless Expense Management
Wireless Expense Management - Explained
With the advent of new mobile devices, rate plans, data packages, and more, many large government, non-profit, and corporations organizations are starting to turn to wireless expense management for dramatic low-risk cost avoidance.
Organizations could potentially have thousands of subscribers within their mobility budget. With every subscriber, comes different plans, devices, data, roaming, usage..you get the point.
And because employees use their cell phones differently, it's that much more difficult to be sure that the company is not overspending on multiple wireless plans on any given month.
That's where wireless expense management (WEM) comes into play. With two separate methods, most companies can usually find a solution that saves them tens of thousands in cost avoidance every billing cycle.
Software WEM Method
One method involves solely around using a licensed piece of software in-house. This can sometimes be a more cost effective solution for smaller groups of subscribers - however, this requires significant levels of internal resources and expertise to be allocated towards the ongoing management and optimization.
Outsourced WEM Method
Another method is a combination of a process and software which is outsourced to firms specializing in wireless expense management (different from Telecom Expense Management companies). Larger firms benefit greatly from this method, because it often results in much lower levels of cost avoidance than can be achieved relying on internal resources.
4 Elements of WEM
Regardless of method, each have 4 critical elements that are mandatory when managing wireless expenses:
1. Wireless Sourcing - development and implementation of RFI and RPI; solicitation and reception of bids; scaling & ranking responses; moderation of a bidders conference; determine primary, secondary and tertiary carriers; negotiation & finalization of contracts
2. Rate Plan Optimization - identify areas of overspending, implementing action to eliminate unnecessary cost
3. Reporting & Cost Allocation - monthly account overviews, and the ability to drill down costs to an individual user level
4. Ongoing Management/Administrative - trend analysis; invoice aggregation and organization; communication with carriers; billing discrepancies
Wireless Expense Management Costs
Cost can vary between the two different methods, but for the most part, this is how the fee structure breaks down:
Software: One time set-up fee with recurring monthly (or yearly) licensing fees.
Outsourced: One time set-up fee with recurring monthly fee based on percentage of total cost avoided.
If you are responsible for your organizations' mobile expenses, then you could potentially be leaving hundreds of thousands of dollars on the table every month simply because you are not utilizing WEM software or a reputable wireless expense management company.
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