Telecom expense management (TEM) vendor selection is becoming more formalized, with
Essential Components of an Effective TEM RFP
To help you maximize your time with a TEM vendor, three key considerations during the RFP process should be detailed requirements, software vs service, and vendor stability. Let's take a look.
1. Detailed Requirements
One of the key reasons new programs fail (whether internally or externally developed) is that the initial requirements were not suitably defined. To ensure that you don't make this mistake with your TEM program, you can view an RFP as essentially being an opportunity to identify and present your requirements, as accurately as possible.
TEM is a process that touches many users, systems, and other company processes, and so every enterprise has their own unique (and often complex) requirements. For this reason, a considered approach is necessary.
Take the time to describe your environment, how things work today, and how they should work tomorrow. Describe the challenges you're facing and what you're trying to improve. And very clearly describe what functions/tasks/processes you want to handle internally vs those you want your TEM provider to perform. A RACI (Responsible, Accountable, Consulted, and Informed) matrix can be a great way to crystallize and present your vision of program ro
2. Clarity of Software vs Service
It's important to understand the distinction between vendors that only deliver software and those that also provide a TEM service. Do you really just need a software platform that your team will use to manage your TEM environment or a service partner who will take responsibility for many of the day-to-day tasks that are required to manage enterprise telecom?
Once you've defined requirements and expectations, the level of service you need should be fairly clear. In our experience, it often derives from the structure and composition of your company. For example, if you have a large telecoms department, the level of service you need may be lower.
If you do decide that you need a service partner, three key areas to focus your questions on are service-level agreements, service quality, and service teams:
Service-Level Agreements
Sourcing managers need to ensure that TEM contracts comprise performance-based service-level agreements (SLAs), which are frequently lacking from less established TEM vendors. In your RFP, ask for clear and quantified information on SLAs. Some of the key points to investigate are:
- System availability: A robust TEM system should have no/very little unscheduled downtime.
- Help desk response time and availability: A TEM provider should help you choose the support level that's right for you. They should then commit to how they will deliver this support and the corresponding timescales.
- Invoice processing time: Not just the time it takes to load an invoice, but also to validate it, add G/L codes to all charges, and submit to you for payment approval.
- Bill payment timelines: There should be a guarantee included that the provider will reimburse you for any late fees, incurred as a result of processing or payment delays.
- Order submission: The time between a mobile or fixed order being placed with the TEM vendor and the TEM vendor successfully ordering the service from the telecom carrier.
Finally, there should be agreed-on penalties in place that are triggered if any SLAs are not met. You should be compensated if the TEM vendor you choose does not deliver.
Service Quality
Detailed questions about the level of service the vendor will provide are highly recommended. It's the consideration of service options that differentiate TEM solutions from procuring other enterprise software, for example, SAP or Office 365.
Many TEM firms are not versed in global back-office processing and payment servicing and cannot provide the gains that come with a full-service solution. And, with just software, you run the risk of querying inadequate results with your vendor only to be met with "you engaged us to provide TEM software. We provided the software. Our agreement was fulfilled".
Service Teams
It's wise to find out how the service teams are arranged and will respond to your needs. You should be assigned a team of specific people and not expected to contact a generic call center. That way, you get to know your assigned team members and vice versa. Really, the TEM team should simply feel like an extension of your internal team.
Each region of your enterprise should be supported with in-region resources –both because of availability issues and familiarity with that region's telecom environment, vendors and processes.
TEM service should complement and build upon the value that the software brings. The service should be delivered by a team with expertise in telecoms, asset management, and carrier billing – a team that can take control of accounting rules, change management, and any obstacles that might be thrown their way.
3. Vendor Stability
If you are looking for more than just a software provider – but rather a partner for the long haul – stability and longevity matters. With numerous vendors owned by short-term investors, we'll see that many won't actually exist in three to five years. The pain of service disruption or expense of repeating implementation projects is not to be underestimated.
So, in your TEM RFP, state that you require:
- Audited financial statements and information about the company's ownership. Income statements, balance sheets, and cash flow statements will provide you with a good sense of whether your vendor has the financial foundation to be a long-term partner.
- Clear information about the long-term strategy of the company.
- To see evidence that the history of the company supports that long-term strategy. For example, if the company states it's committed to a single platform and will be a long-term player in the market, but its history is full of acquisitions, multiple platforms and short-term investors, their credibility then becomes questionable.
The Bottom Line
Ultimately, a good TEM RFP should stem from the question – what problem am I trying to solve? The biggest problem is that many organizations are struggling to control their telecom service spending.
Topics: TEM
