I have a friend that owns a small manufacturing business. He employs just over 100 people. Like most other businesses today, he is doing his best to keep it afloat during the poor economy. Unfortunately for him, there are not many ways to reduce his operating costs without affecting his employees. For a while he had them on reduced hours, and he has raised the amount they must pay for their health insurance. He is constantly working on ways to make his production lines more efficient and looking for vendors who can supply raw materials at a better price. He is still doing OK, but things are still tight.

I Told You That So I Could Tell You This.

My friend's business is unique in that he has very few employees that are not “40 hours a week” line workers. Most other small and medium sized companies have a greater percentage of staff and administration. They may have a large sales force, such as insurance companies, or a major administration staff like an electric company. Those businesses have one aspect of conducting business that can be the target of cost reduction without reducing staff, products or services.

What Is It?

Telecom expense. Today's businesses depend heavily upon telecommunications. Everyone has a cell phone or wireless data device. Offices have a complex system of landline extensions and switchboards. Without the ability to keep in constant contact they would be at a great disadvantage with their competition. With that in mind, it is possible to drastically reduce the amount of money that is spent on telecom, without taking away phones or eliminating features or services.

How Is It Done?

Telecom Expense Management (TEM) is the process of examining every aspect of a company's expenditure, finding ways to save money without degrading efficiency, and putting the savings back into your bottom line. Wireless Expense Management (WEM) is similar to TEM, but deals exclusively with wireless telecom.

There. Now you know everything about TEM or WEM. Yeah…right.

Successfully revamping the telecom expenses of a business requires skilled people who have access to the proper tools. You can't just hire someone off the street and tell him or her to make your telecom expenditure more efficient. It takes professionals to do it right.

What Do They Do?

The following is a very brief summary of TEM or WEM. I can't teach you how to do it in this short article, but it may give you the basic idea. Every aspect of the method depends to some degree on the others, so in no particular order, here are the main points.

Expense Optimization. As the name implies, the team of professionals look at every dollar you spend on telecom. They analyze it and compare it to other ways of accomplishing the same goals. For instance, you may currently have a single vendor for all of your wireless devices. The TEM team might determine that by having several vendors for different types of uses, you could save a bundle. Each situation is distinctive, so that scenario may or may not apply to your company.

Telecom Expense Management companies are usually vendor neutral. That allows them to shop around for the best deals. They know how to find unadvertised specials, group discounts, and how to simply haggle with vendors for a better deal. They can suggest new, more cost effective service contracts, too. Just because the contract you had two years ago was good at the time doesn't mean that there aren't better ones available today. The team researches that kind of thing and makes the proper recommendations for change.

Asset Management. You must know what you have in order to control it. Period. With a computerized inventory system that is kept accurate and up to date, a company can determine who has what, and where it is with just the click of a mouse.

E-Procurement goes hand-in-hand with Asset Management. E-Procurement is a centralized and computerized portal through which every acquisition is made. Whether it is a new lease or purchase, a return or exchange, it will be logged and noted in the inventory.

Another great feature is that it allows only approved devices and/or services be attained. It could be set up with a hierarchy according to an employee's position within the company or to accommodate his or her particular needs.

Invoice Validation is vital to good TEM or WEM. Invoices are notorious for containing errors and discrepancies. Most of the errors are in favor of the vendor. Top it off with the fact that a majority of those erroneous invoices are simply paid without anyone checking for errors, and you can imagine how much money is wasted that way. The TEM/WEM team goes over each invoice and checks it against the reports and information generated by the other facets of the process. The errors are discovered and the money is saved.

The Bottom Line.

My treatise on Telecom Expense Management isn't detailed or complete, but it should give you the incentive to at least contact a TEM/WEM company and see what they can do for you. No…the service is not free, but it can recover more savings for your company than the fees the Telecom Expense Management company will charge. You fatten up your bottom line, and the TEM company makes a profit as well. It is a win/win situation. If there is one thing that might help you remember this, it is the phrase, ”No Risk – All Reward.”

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Robert is currently working for Integrity Communications, a business specializing in Telecom Expense Management. He lives in eastern Kansas. A retired police dispatcher, he now resides in the country with his wife and 2 of his 3 sons. He is a freelance writer who has created articles on subjects such as police work, scanners and 2-way radios, motorcycles and motorcycle painting, promotional advertising products and marketing. Click here to see some of the offerings from Integrity Communications.