Challenge

A wholesale provider of data services was concerned that there could be revenue and cost savings opportunities that were undetected by its internal resources. The company was particularly interested in auditing four critical areas: line costs, switch audits, service delivery and revenue assurance.

TMNG Global Solution

TMNG Global was commissioned to assess the critical areas and to construct a line cost reduction framework to help the client achieve alignment across all of its internal functions. We devised a two-pronged approach for this project.

For the first phase of the engagement, TMNG Global conducted a 60-day operational performance assessment of each of the four critical areas. The objective was to find actual and potential opportunities to improve revenue or reduce costs. At the end of the assessment, we submitted a detailed management report providing the status of each area in terms of performance optimization and opportunities for revenue enhancement. The section of the report describing opportunities for improvement specifically suggested improvements addressing both revenue and costs.

The second phase of the engagement focused on line cost reduction. We worked with the client’s staff to uncover the line cost savings opportunities that had been uncovered during Phase I. The core focus of our efforts included:

• wireless access charges that were being charged to client in error,
• payphone surcharge overcharges,
• operator and calling card overcharges, and
• meet-point billing inaccuracies.

Benefits to the Client

At the end of Phase I, we were able to provide both quantitative and qualitative data to the client that helped to influence the scope of the project:

• TMNG Global’s thorough operations analysis of this client’s internal resources uncovered immediate savings of $770,000 that could be realized in the current quarter -- representing a 2 to 1 ROI.
• The qualitative benefits included discovery of new cost savings opportunities; validation of many areas that were functioning well, and others that needed attention; and knowledge transfer from TMNG subject matter experts to employees.

Our Phase II consulting efforts yielded the client savings of over $4,000,000, which represents an ROI of over 4 to 1.

Although this was not a process driven project, we also provided the client with specific “quick fix” process re-engineering.