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Health Care Products Company Annualized savings of $7.4M

Midwest Health Care Products Company

With over 11,000 corporate-liable cellular devices and $1.1M in monthly expenses this company lacked any automation or repeatable methodologies for determining optimization savings and identifying unneeded devices. Before contracting with MobilSense, this company hired a seasoned cellular management expert to bring focus to their wireless program. This expert not only saw an immediate need for greater control but an opportunity to reduce expenses. The expert recommended going to RFP and selected MobilSense as the vendor.

90-Day Trial

MobilSense was selected to perform a one-time, 90-day optimization in November of 2017. This company had limited cellular expense oversight for an extended period and utilized (unmanaged) voice and data pooled plans, which produced massive billing pool overages. In addition, there was limited visibility into zero use service lines resulting in termed employee devices billing for up to a year past termination.

In the first three months, MobilSense demonstrated their expertise by bringing down a $1.1 M in monthly cellular expense to $850K along with reducing their active device count from 11,000 devices to under 9,000.

Solution

What started as a 90-day project grew into an ongoing engagement. From November 2017 to March 2019, MobilSense and the company’s cellular team partnered to further cut monthly expense by more than 50% to $550K and reduced the device count by 20% to 8,700, for an annualized savings of $7.4M!

Following is a list of highlights and success factors:

  • Restructured a primary carrier’s rate plans from data and voice pools to “packaged” plans and optimized existing packaged plans for another primary carrier representing 52% of overall savings.
  • Introduced International Passes for their two primary carriers contributing 30% to overall savings.
  • Via reporting, empowered aggressive action for termed employees and zero use device cancellation representing 18% of overall savings.
  • Within the broader population, focused on a Miami-based group with extensive Latin American travel, to reduce roaming from $28K to under $1K per month, and overall monthly charges from $61K to $17K – a savings of almost 400%!
  • Called out poor management and oversight by one carrier, which facilitated a change in vendor personnel, and through this change brought the expertise needed to focus on plan management, aggressive new contract rates, and improved customer support.
  • With the MobilSense unique reporting, the company’s cellular team was able to gain visibility and perform extensive analysis including high data users and other metrics used by its sourcing department for contract negotiation leverage.
  • MobilSense reporting also assisted Finance to identify incorrectly coded employees for accurate chargeback’s and support a complex cost allocation process utilizing two different financial systems.
  • Provided mobile industry expertise and on-demand consultation for “best practice” process improvements.

Conclusion

The outcome for this client was a tremendous financial and process improvement success, which illustrates that when collaborating with dedicated customer resources and employing industry best practices, astonishing results can be achieved – in this case, a 56% drop in monthly spending.

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