Packaging company finds huge savings in telecommunications cost

star-blue-hollow-icon
Manufacturing

Company Profile

A global specialty packaging company with an NZ Head Office and two manufacturing plants in Auckland.

 

The Situation

After providing them with copies of landline and mobile invoices, a busy IT Manager invited proposals from two alternative Telco providers. Based on the reports he was given, the ultimate proposal he recommended to his General Manager promised savings of approximately $27,000 per annum. Coincidentally, ERA was working with this Client in several other areas so the General Manager asked us to review and comment on the proposal before acceptance.

Our Approach

After carrying out a detailed audit of the Client’s telecommunications expenditure, ERA quickly identified that the preferred solution was based on incorrect assumptions. Instead of saving the Client $27,000 per annum as promised, it was actually going to increase their costs by a similar amount.

 

The Results

With specific and detailed knowledge of the Client’s needs and the benefit of our
benchmarking data, ERA went to the market on their behalf and achieved quantified savings more than $22,000 per annum (16.5%). Further, by including data costs in the process, an additional $37,500 (or 25%) was achieved. Non-financial benefits were unlimited data traffic and data speed is increased by 800%.

"A 'saving' that would have increased costs…until ERA cut through the ‘smoke and mirrors’ and replaced it with real savings of 16.5% on call costs and 25% on data costs."

A few more example