Analysis first, procurement second in the race to increased profits
We’ve been working on various areas of the telecoms suite with a new PLC client of ours recently and as part of the main major analysis of the telecoms and data lines, we’ve also noticed some issues with the ‘small stuff’….
To take you through some of it, this particular Client has a number of revenue streams being generated from inbound calls to their own 0843’s, 0844’s, 0871’s delivering a revenue just short of £40,000. Nothing to see here, you say… Almost all PLC’s do it, and we’ve written about some of the issues in using 08’s in the past.
In addition, this £40k is, in the scheme of things for this particular client, a drop in the ocean in terms of the overall telecoms landscape for them, but, after a couple of hours analysis (and some sharp thinking) from us on the data given to us by the provider, we think we can find improvements to the tune of £8,500 (20%) by combining 3 different types of savings across 2 different areas:, namely:
1) Better management of usage, and
2) Better revenues and lowering cost
Notably, the first of those areas is NOT ‘procurement’ related. Its ‘analytical and strategic thinking’ related. Admittedly, there are still a lot of assumptions around how the network in the future will fit together, however this is an area that has been completely overlooked historically, would never have been fully visible to the Client without our input and could create an net improvement to the bottom line of £8,500 p.a., completely free of charge, indefinitely and with no real change to service, system or operation.
This links nicely into our regular assertions that good procurement habits are only part of the story… There is a great deal to be had in accurate analysis in the right areas and adaptation to existing behaviour of users. We obviously can’t get too deep into the specifics here, for similarly obvious reasons, but the overall total we think can be delivered, without any significant alterations or cancelling of contracts adds another £21,000 (over another 5 or 6 areas) to the above inbound revenue solution, making a total of £29,500 in savings without our Client lifting a finger… And this is BEFORE we even BEGIN to think about procurement in the traditional sense.
All of this just goes to show that focusing on the details and on the amalgamation of small gains can reap great rewards, no matter what your overall costs are. It also shows that, regardless of the size of a business, anyone can be guilty of taking their eyes off the ball on the incidentals.
Our passion is to simplify the working lives of the people we work with. It’s a happy coincidence that this also creates additional profits. Let us worry about the details and you can get back to doing the job you wanted to do in the first place…
Lee Freeman is an Overhead Management Specialist at Auditel in Leeds and loves the details… It’s all in the details.