A large portion of business revenue goes into keeping operations up and running, and there are likely a number of areas where organizations are overspending or under-utilizing available tools. Infrastructure comes complex as more elements are added, making it difficult to track everything accurately. Companies must understand how to reduce operating costs and make the cuts stick for long-term value.
1. Defer noncritical efforts
Organizations might try to incorporate a number of new initiatives at a time, but this can become expensive quickly and can contribute to project failures. Gartner noted that by reexamining key efforts and prioritizing them appropriately, businesses can reduce operational costs. Initiatives that support company goals that need to be completed in the near term should take precedence. Projects that lower cost structure or decrease risk should also rank high on the to-do list. By focusing on priority efforts first and deferring noncritical ones for a later date, organizations can stagger investments and lower operating costs.
2. Reevaluate vendors
A solution that you bought into a year or two ago might not be the best fit for your business for the long term. New products and services come out at a rapid rate to address pain points and better serve organization needs. You might even have a number of different suppliers to supplement a variety of requirements that you found along the way. Houston Chronicle suggested reevaluating suppliers and their offerings. You might be able to find a vendor that provides comparable quality at a lower price than your current setup.
These inquiries might also cause your current providers to cut their prices. You could also find a single vendor and solution that encapsulates a variety of features that are currently being served by disparate parties. This consolidation will save money and improve integration.
"Evaluating telecom costs will reveal old services that aren't being used."
3. Analyze telecom costs
Telecom expenses - everything from telephone to mobile devices to internet and beyond - are ingrained into business operations, and more services are falling under this umbrella as time goes on. Organizations must analyze their telecom costs to have a full idea of their complex infrastructure and identify potential savings. TechTarget noted that this type of evaluation will reveal old services that aren't being used, out-of-term contracts, billing errors, scams and internal usage problems. A capable telecom expense management tool can help keep track of these problems and provide comprehensive reports with suggestions to reduce costs and address these issues.
Operating costs can accumulate quickly as infrastructure becomes more complex and harder to track. By reevaluating your vendors, deferring noncritical efforts and analyzing your telecom costs, you will be able to accurately identify areas that you're paying too much for or that simply aren't valuable to the business anymore. With a capable TEM vendor like Valicom, you can easily track your telecom costs down to the service provider and individual usage levels. This type of information, coupled with extensive reports, will help you make critical cost cutting decisions and better control your telecom spending.
Learn more and schedule a risk-free consultation to see how Valicom can tailor each service to your unique needs while exploring the many benefits Clearview's TEM software can offer you.
About the Author: Chantel Soumis
Chantel Soumis brings over a decade of knowledge in workflow enhancement through the use of technology. Chantel studied marketing communications and business administration at Franklin University and proceeded to work in a fast, ambitious environment, assuring client delight in the healthcare and pharmaceutical industries. Passionate about project productivity and streamlining workflows through the use of technology, Chantel strives to inform organizations of Valicom’s advanced telecom expense management software and services by mastering communications and messaging while delivering helpful information and supporting resources.