How Manufacturers Can Cut Telecom Expenses

It started with an email. Ruby+Solberg auditors noticed unusual telecom charges for their client Schnitzer Steel. The manufacturing company was getting billed for numerous and repetitive calls going from one number to the same internal number. The rate was $.16 per minute, when it should have been $.049 per minute.

When auditors dug further into the details, they found that the vendor changed the phone rate more than three times without a service order charge. In the end, Ruby+Solberg saved Schnitzer Steel more than $50,000 with proper telecom expense management (TEM).

Manufacturing companies face the same telecom expenses as other industries, primarily data and landline charges. But more often than not, these companies have multiple locations — Schnitzer Steel has more than 100 locations across the U.S. and Canada — making TEM an onerous task to handle internally. In addition to incorrect bills and double charges, telecom invoices are often riddled with unauthorized maintenance and labor fees when a phone line goes down or when the internet isn’t working.

When Schnitzer Steel doesn’t know who to call, they call Ruby+Solberg. As the outsourced TEM provider, Ruby+Solberg digs into the details of each telecom bill, maintenance charge and service contract on the manufacturer’s behalf. With an initial telecom cost audit and monthly maintenance, Ruby+Solberg ensures the manufacturer’s services are uninterrupted and without errors.

In short, they prevent that $.16 per minute charge from turning into a $50,000 mistake.

Schnitzer Steel

Schnitzer Steel is a global leader in the metals recycling industry. Founded in 1906, the company collects, processes and recycles raw scrap metal, and provides processed scrap metal to mills and foundries around the world.

The company also operates used auto parts stores across the U.S. and Canada, and has a steel manufacturing facility which transforms recycled scrap metal into finished steel materials such as rebar, wire rod and other specialty products.

Schnitzer Steel has been a Ruby+Solberg customer for more than a decade. With Validated Telecom Billing (VTB®), all of the company’s telecom invoices are reviewed each month. Once reviewed, Ruby+Solberg disputes and resolves overcharges, validates and approves all other charges, allocates internal accounting codes and even pays bills on the company’s behalf.

VTB® also provides Schnitzer Steel with a customized general ledger report which seamlessly uploads into their specific accounting systems, and provides the company’s accounting departments with allocation reports based on each location.

With telecom bills accounted for, Schnitzer Steel has a thorough overview of the company’s data expenses and can better focus its resources on financial forecasting and the business at hand — to be the global leader in the metals recycling industry.

 

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