
Automotive Industry Challenges
- High Mobility Costs
- The automotive industry has a history of high mobility costs that can be avoided!
- Poor Cost Allocations - particularly Global Costs
- Lack of control
- Meager maintaining of inventory and cost allocation
- Upgrades
- Expired contracts
- Result in increased costs
- Fixed Telecom Visibility
- Lack of Wide Area Network internal resources
CBI Offers these Solutions
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Delphi Automotive Case Study
Company Profile
Delphi Automotive PLC (NYSE: DLPH) is a high-technology company that integrates safer, greener and more connected solutions for the automotive and transportation sectors. Headquartered in Gillingham, U.K., Delphi operates technical centers, manufacturing sites and customer support services in 46 countries. 161,000 employees worldwide, 17 billion in annual revenue.
Business Situation - The Problem
Poor Visibility into Fixed Telecom Spend (Voice USA, Data/WAN Global)
Delphi had gone through changes in the management of their Wireline Telecom assets, and lacked a current inventory of Telecom services. Delphi’s Telecom vendor list had grown unwieldy, contracts had lapsed, and their telecom expenses continued to rise. Deployment of SIP/VOIP—already deployed internationally—was stalled in the USA as Delphi did not have a handle on current inventory and usage per location.
Upgrading from legacy TDM to VoIP/SIP for key USA Sites
Many large USA locations had been on TDM voice services with end-of-live PBX systems in place. Contracts had expired on numerous PRI-T1 contracts, leading to cost increases.
Mobility costs unwieldy, poor Global Cost Allocations
Mobility inventory, expenses, and cost allocation had been poorly maintained by Delphi’s incumbent TEM provider.
Global WAN
There was no internal resources to verify new circuits, disconnects or upgrades in service were billing correctly. Cost allocation was inaccurate and a manual process.
Technical Situation - The Solution
CBI conducted a full audit for all Delphi USA Telecom Wireline accounts, reconciling vendor invoices to vendor contracts. An inventory report was created, documenting the services per location with associated features & monthly costs. This visibility into inventory allowed CBI to show instances where a particular site had too many lines, duplicate circuits from multiple vendors, and in some instances services billing at locations that had been closed. CBI also captured Local & Long Distance usage per location and per vendor, with associated rates per call or per minute.
Armed with the knowledge gained from our thorough audit, CBI was able to create a list of sites where the ROI cost-justified migration from TDM to VoIP/SIP. Working with the vendors, CBI helped manage the conversion process, identifying the DID#’s to be ported, coordinating installation, and assuring that once conversion was successful, the legacy TDM circuits were disconnected.
GTEM Solutions provided Delphi with a global platform to maintain Mobility relationships between all mobile telephone numbers, the Employee ID Number per wireless number, and the cost center to which charges needed to be allocated.
Solution - The Results
Fixed Services audit results:
- USA Voice—
- One-time Credits: Billing errors identified and disputed with Telecom vendors have netted Delphi onetime credits in excess of $232k.
- Ongoing Run-rate Reduction:
- $4,194,579 Current/Benchmark Annual Spend
- $1,033,760 Delphi’s Net Annual Savings/Run-rate Reduction (1st 12-months)
- 24.6% Percentage Run-rate Reduction (Net)
- Global Data/WAN
- GTEM Solutions helped identify WAN charges billed to sites that had been decommissioned by Delphi. Elimination of the circuits and services at these closed sites resulted in annual savings of
over 1.2 million.
- GTEM Solutions helped identify WAN charges billed to sites that had been decommissioned by Delphi. Elimination of the circuits and services at these closed sites resulted in annual savings of
After completion of TDM to VoIP/SIP project, 10 USA locations were converted, with a net annual savings realized of $1.3 million.
With weekly Employee and Cost Center updates managed by GTEM Solutions CSMs, and call detail invoice usage and spend imported into our tool for 17 vendors across North, Central and South America as well as the EMEA region, Delphi now has consistent, accurate cost allocations. In addition, GTEM is providing end-user reports on a monthly basis, providing deep-dive visibility to costs, allowing Mobility Managers to address excessive usage, etc.
Conclusion
CBI has provided Delphi with an accurate assessment of their current Fixed Telecom infrastructure for both USA voice and Global WAN network services. Our thorough audit process, inventory reports and invoice-to-contract reconciliation have helped Delphi to streamline the number of vendors and vendor invoices, insuring that billed services are valid, used lines and circuits. CBI guided the SIP/VOIP Project for Delphi in the USA, driving improved functionality and cost savings, and took over Delphi’s Mobility bill review, cost allocations and reporting, creating consistently accurate data and visibility into Mobility spend. Delphi continues to utilize GTEM Solutions managed service to maintain the gains delivered in the CBI audit process, and is looking at other organizational towers that can also benefit from GTEM services. CBI’s ability to provide expertize and the man power to augment Delphi’s internal processes has resulted in workflow efficiencies, cost avoidance, and increased productivity of IT and Finance team members.
- USA Voice—
Benteler Automotive
“In partnering with CBI to cut costs in telecom, we appreciated that CBI recognized our internal processes were serving us well in many areas. During the audit and RFP process, CBI consultants were responsive and flexible to our timeframes and schedules. They exhibited much experience in working with telecom vendors. Their recommendations were unbiased and saved us both time and money. We continue to consider their expertise a value to us.”
Anne Magnuson
Network Administrator