The Client

A retail company with hundreds of stores across the United States, specializing in fashion and apparel. Headquartered in a prominent U.S. city, the company has a significant presence in the retail market. The projected annual telecom spend for this initiative was $2.79 million, covering voice and WAN services.

Scenario

The company was faced with a multitude of issues managing hundreds of different telecom providers. Some stores had negotiated residential-type services, while others had blocks of stores tied to commercial contracted structures. This fragmented approach led to inefficiencies, higher costs, and a lack of centralized control, making it difficult to manage and optimize telecom expenditures. The company as a whole was not being treated as an enterprise-level customer, which was necessary for an organization of its size and telecom spend. The requirements for services were not complex, but navigating each store’s telecom footprint was becoming impossible.

The objectives were to: 

• Find an aggregator to consolidate telecom services. 
• Create an enterprise-level contract. 
• Obtain an enterprise-level account team. 
• Migrate services from existing providers.
• Disconnect from existing providers rapidly without conducting a full RFP.

Result

The company engaged ProcureLogix to facilitate a rapidly deployed RFQ specifically for telecom aggregators. ProcureLogix brought multiple aggregators to compile competitive bids. After two rounds of pricing, the company down-selected one vendor and aggressively pushed forward.

Within six months, the RFQ was closed, the contract was negotiated, and migration began immediately. This rapid deployment was crucial to minimize disruption and quickly realize the benefits. The result was a 42% cost reduction, including an aggressive credit structure to offset early termination fees from previous providers. Utilizing an aggregator also enabled redundancy via wireless services. The overall project closed with a 34% cost reduction, accounting for redundancy, early termination fees, and the applied credits.

By consolidating services under a single aggregator, the company not only achieved significant cost savings but also gained better control over its telecom infrastructure, improved service quality, and enhanced operational efficiency. Additionally, the company now benefits from a unified enterprise-level contract and a dedicated account team, significantly improving the management and efficiency of their telecom services.