Introduction

In today’s fast-paced business environment, managing telecom expenses is not just about cutting costs; it’s about leveraging strategic insights to drive growth and efficiency. For over two decades, Torch Services has partnered with one of the largest Fast Moving Consumer Goods (FMCG) companies in South Africa, providing tailored Telecom Expense Management (TEM) solutions that have consistently delivered significant savings and operational efficiencies. This case study highlights the transformative impact of our strategic TEM approach on this industry giant.

The Challenge

The FMCG company faced mounting telecom expenses despite a decrease in office usage and telephone activity post-pandemic. The outdated contracts and lack of internal expertise to manage the complexities of telecom expenses led to unnecessary costs, hindering the company’s financial performance. With multiple divisions and over 100 manufacturing and administrative sites across South Africa, the company’s telecom environment was vast and intricate, necessitating a comprehensive and strategic TEM solution.

The Solution

Torch Services embarked on a thorough audit of the FMCG company’s telecom expenses across three distinct projects in 2008, 2015, and 2023. Leveraging our proprietary software, TorchLight, and over 20 years of industry expertise, we implemented a strategic TEM approach that encompassed:

1. Data Collection and Analysis: We amassed all telecom billing data, making sense of the complexities and uncovering opportunities for savings.
2. Contract Auditing and Benchmarking: Torch discovered contracts that had not been correctly instantiated by service providers and identified credits due. We benchmarked rates against market offerings, recommending fair price points.
3. Infrastructure Rationalization: Over the years, we rationalized the telecom infrastructure, ensuring that the company only paid for necessary and relevant services.
4. Proactive Cost Management: Implemented a proactive cost management strategy, ensuring ongoing savings and efficiencies.

Results

Within six weeks of our latest engagement in 2023, Torch Services delivered remarkable results:

– Significant Savings: Torch identified and eliminated unused equipment costs and secured substantial credits due to incorrect billing by service providers.

– Operational Efficiency: Streamlined the telecom expense management process, reducing administrative burden and enhancing resource allocation.

– Ongoing Savings: With a commercial model based on a percentage of the savings, the project was savings-positive from day one, ensuring continuous financial benefits.

Different Approaches to TEM

Torch Services offers two distinct approaches to Telecom Expense Management:

1. Consultative Engagements: As demonstrated with the FMCG company, we conduct periodic audits, rationalize infrastructure, and negotiate commercial terms with telecom vendors on behalf of our clients. This approach suits companies that prefer to bring in consultants to work alongside their IT and procurement teams for specific projects.
2. Managed Services: For other customers, Torch Services has provided end-to-end lifecycle management since 2004. This approach involves our managed services team overseeing the entire telecom environment, leading to year-on-year decreases in telecom costs, consumption, and the number of assets. By acting as a trusted advisor, we ensure continuous cost optimization and strategic management of telecom resources.

Why Torch Services?

The FMCG company chose Torch Services as their trusted advisor for telecom savings and optimization multiple times over the past 15 years. Our commitment to underpromising and overdelivering has cemented our reputation as a reliable partner. Our proprietary technology, industry expertise, and proactive approach ensure that we deliver measurable results, driving cost efficiency and strategic value for our clients.

Conclusion

Torch Services’ strategic Telecom Expense Management has transformed the telecom landscape for one of South Africa’s largest FMCG companies. By uncovering hidden savings, optimizing contracts, and implementing proactive cost management strategies, we have maximized ROI and driven substantial operational efficiencies.

Partner with Torch Services to unlock the full potential of your telecom expenses and drive strategic growth for your business.