What are Telecom Expense Management (TEM) Best Practices?

Best practices in telecom expense management (TEM) require a focus on the entire enterprise telecom lifecycle, which encompasses all events from procurement to payment: sourcing, provisioning, inventory management, invoice management, usage management, telecom invoice audit, invoice payment and even dispute management. 

Today’s TEM best practices illustrate how organizations are evolving from departmental silos responsible for discrete functions and transactions, to collaborative teams working on continuously improving processes. In many organizations, however, the silos remain. The IT and procurement departments procure, and the AP department pays. The extent to which these teams remain disconnected, the more difficult it is to manage telecom spend, maintain telecom inventory, enforce corporate policy and ensure telecom contract compliance.

In contrast, organizations that view telecom expense management as a business process operate with best-in-class tools that support visibility and collaboration. For example, contracts are stored in the telecom expense management (TEM) software application. Contract terms and conditions are used to develop business rules. These rules are the basis for automated telecom invoice audits. Such audits ensure that the dollars you actually pay are consistently aligned with the terms of your telecom contracts. Most importantly, vast amounts of spend data are organized for analysis purposes. Future business decisions – including sourcing decisions – can be based on a complete understanding of costs, usage and other trends.

Why Adopt a Formal Program to Manage Telecom – from Procurement to Payment?

A significant opportunity exists to reduce costs, improve service levels, and mitigate risk when you view the entire telecom lifecycle as a continuous business process. Common benefits of a formal telecom expense management program include:

  • Reduce invoice processing and payment costs
  • Eliminate duplicate payments and overpayments
  • Minimize late fees and shutoffs
  • Identify unauthorized, unnecessary and unused services
  • Ensure contract compliance and recovery of billing errors
  • Gain control, visibility and accountability over all expenses
  • Establish and maintain an accurate telecom inventory
  • Optimize asset and usage utilization
  • Leverage buying power and negotiate the best rates
  • Increase capacity of staff or realign to strategic goals

Telecom inventory management

For more information about working with Cass to manage your telecom lifecycle, view our white papers or contact us today.