Trucking Company Finds Annual Budget Rising, Reduces Telecom Costs

A regional trucking company consisting of eight terminals was planning for their annual budget.  In this process, they found their telecom costs had been trending upward over the last couple years, but very few changes had been made to cause such an increase.  They had started working with their local telephone companies, but were getting very little response after a couple of months.

Operating Challenges

  • Telecom costs had increased by almost 20% over the last couple years.
  • There was little knowledge of current contractual obligations so exploring alternate solutions was deemed to be premature.
  • The customer had a solid understanding of their primary services, but there were numerous costs that could not be confirmed as valid.
  • Overall, the customer received 17 telephone bills across all their terminals and the payment process was excessive.
  • It was unsure if their current network capacity would address expected changes moving forward.
  • The lack of response from their incumbent carriers was delaying their budget process.

Project Steps

Orion Communications collected two months of billing from the customer for all their terminals.  These bills were carefully reviewed and the following deliverables were provided.

  • A complete inventory of services for each clinic including circuit IDs, telephone numbers, features and contractual obligations.
  • A secondary document was provided detailing the current monthly costs for each of the bills.
  • Orion worked with the respective carriers and generated capacity and bandwidth utilization results for the current network.
  • Recommendations were made by Orion to adjust monthly costs and provide on-going savings.

Project Outcomes

With these deliverables in hand, Orion was able to work with the customer to achieve the following results:

  • Many of the services were out of contract resulting in much higher monthly costs.
  • The customer had concluded an upgrade of their Internet services and the previous services had yet to be disconnected.
  • Although the majority of the long distance and toll free was billing accurately, there were some services that had reverted to casual rate billing at a much higher rate.
  • After carefully reviewing the inventory of services and working with the customer, it was determined many of the analog telephone lines at the terminals were no longer required.
  • Many of the telephone lines such as security and elevator lines included charges for features not needed and were removed.
  • Overall, the customer was able to reduce their monthly telecom costs from $7,200 to $5,800 (19.5%). In addition, Orion obtained a $9,800 one time credit for the excess Internet charges from the expected disconnect date.

Other Results

  • Orion obtained bandwidth utilization reports on the data network finding a range of 30 to 60% utilization. This was deemed adequate for potential changes.
  • Orion also received capacity reports on their voice services and the customer was significantly overtrunked. Although the customer wanted to maintain the available capacity, changes to service were implemented which increased Internet capacity by 300% AND reduced monthly costs by 10%.
  • Invoices were eliminated or aggregated to reduce the bill quantities each month from 17 to 8.
  • The updated inventory of services provided a change management tool for future consideration.
  • Orion continues to provide consultative services for the customer in regards to their telecom services across their enterprise.

Due to the original delays with the customer working directly with their carriers, Orion was unfortunately not able to align our results with their budgeting efforts.  However, the final results exceeded their expectations.  The deliverables provided by Orion also set them up to better manage their telecom services into the future