Case Study: How a Beauty Retailer Saved Millions Managing MACDs

When a beauty retailer with 500 US locations sought to reduce telecom spend to position itself for growth, it placed its trust in Cass. Since then, Cass has helped the company continuously improve costs and increase efficiencies, supporting its growth to nearly 1,000 locations in size.

The Situation

Moves, adds, changes and deletes (MACDs) are a constant in retail. Like all large retailers, the company opened new locations, closed some and moved others on a regular basis. They had over 13,000 invoices to process, audit and pay in a timely and accurate fashion every year. 

The Solution

Cass took control of managing the MACD process. Disconnecting unnecessary services created substantial initial savings, and this was followed up with a full program of telecom expense management:

  • Eliminating processing and payment overheads for over 1,000 invoices per month, freeing up internal team members for more proactive, strategic projects
  • Automating internal chargeback and allocations to consistently and accurately distribute costs to the appropriate cost centers
  • Establishing a circuit inventory and identifying unnecessary services that should be disconnected
  • Monthly auditing to ensure continued adherence to contract rates and identification and resolution of incorrectly billed services

According to AOTMP the industry average for late fees is 0.63%. With Cass's support, the retailer reduced its late fee spend to a miniscule 0.005%. Within the typical spend of the retailer, this was a difference of nearly $7,000 per month, proving that TEM really is a return on investment service.

During this period, the retailer nearly doubled its US store location footprint and saved nearly $2 million on its telecoms spend and never once experienced a single disconnect. With the support of Cass, it's positioned for years of healthy growth.

Key Stats

locations

962 locations

invoice

13,000 invoices per annum

savings

$2 million annualized savings

circuits

0 disconnects

Key Services

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