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How a Global Telecom Carrier Reduced Vendor Overcharges by 75%
Nobody wants to pay more for products or services than what they’ve agreed to. Nobody. This is a basic rule or principle of doing business. Let’s call it paying our fair share.
This is especially true if you’re the CFO of a telecommunications company. You may have a sneaking suspicion, as did our global telecom carrier client that you’re being overcharged by your carrier vendors for U.S. domestic traffic sent to them for termination. But you don’t know how to prove it. You don’t have the proof. And you don’t know how to get it.
Challenge: Help Carrier Client Validate Overcharges
There’s no process in place to get at the detailed analysis you need to either verify your suspicions, or alleviate your fears. You’re operating on extremely thin gross margins as it is – in the single digits. Any savings could make a big difference to your gross margin. If only you knew where to start and determine once and for all if you’re being overcharged or not.
The answer to that question could save you millions of dollars. It did for our client.
Let us tell you how.
Solution: COS Specialists Develop & Implement Automated Auditing Process
Instead of seeing this be turned into a cold case for lack of sufficient evidence, Rimhub’s Cost of Sales (COS) team was invited onto the scene. Any dispute had to be justified through a detailed analysis of the Call Detail Records (CDRs) leading to certain proof of the overcharges in question. Once our client’s CFO provided system access, Rimhub’s team of COS specialists began to dig into the data.
As you can imagine, the client’s switch files held a massive amount of NPA NXX data. The first step was to compile approximately 5 million CDRs between the client’s switch files and that of the vendors. In order to analyze them at the micro level, Rimhub’s COS specialists went about developing a new automated process, along with a sophisticated auditing program that would analyze and make comparisons between the two sets of data. Looking for and isolating discrepancies, the team was able to show conclusive proof where charges either did, or did not match up with the CDRs between the two parties.
No longer just a suspicion, the process Rimhub implemented now showed indisputable proof that overcharges were occurring, and at significant financial cost. Not only that, they had been occurring regularly over some period of time.
Now, bolstered with these findings, Rimhub’s carrier client was empowered to do something about it.
Result: Telecom Carrier Settles Disputed Claims, Saves over Half a Million
The burden of disputing the overcharges was lifted as a result of Rimhub’s automated auditing solution. The client was able to settle disputes showing clear evidence, and in the process increased profits by half a million dollars, while reducing the discrepancy rate of CDR mismatches by 75%.
Each month the automated process runs to uncover any recent or new discrepancies between the charges and the actual CDRs between vendors and our client. This solution and operation not only helps our client better support disputed claims to improve its margins and cash flow, but has helped to improve relations with its vendors, too. It has made vendors more accountable.
Having a suspicion of being overcharged is one thing, having definitive proof is another matter entirely. Whether overcharges occur willfully, unintentionally or unknowingly, vendors beware; your carrier clients now have the means to scrutinize invoice charges quickly, and efficiently. With Rimhub’s expertise, our carrier client’s claims about overcharges are no longer based on gut feel, but can be substantiated with data analysis.
Are you suspicious of paying too much for traffic terminated by your carrier vendors? Contact Rimhub today, and start putting yourself at ease. Pay only your fair share. We’ll give you the indisputable proof you need.
“Rimhub’s Telco Audit and COS team has literally saved us over a million dollars in annual savings. Their robust audit and analytics-based processes, backed by diligent staff helped quickly identify traffic anomalies and rate element mismatches. Thanks to the Rimhub team, our gross margins have continued to improve every month.” — Client VP of Network Operations