CASE STUDY - CELLULAR COMMUNICATIONS

Opportunity:

PMA was asked to conduct a cellular telecommunications cost reduction initiative.

Challenge:

The organization has 26 locations across the United States, and had cellular phone plans with 5 major vendors. 91% of the spend was already consolidated with the two (2) top vendors.

Strategy:

There was no complaint with the current vendors’ quality or service. Therefore, PMA employed a restructuring / renegotiation strategy in order to produce the cost savings

Pre-Initiative:

• Average monthly minutes used = 40,000
• Average monthly spend = $11,000
• End users on individual rate plans

POST-Initiative:

• ATotal pooled monthly minute plan = 100,000 (2.5x current amount used)
• Negotiated monthly flat rate = $5010.00
• Negotiated Free equipment = 200 new phones

Annual Savings Achieved = $71,880