Organizations are facing many factors that are affecting their employee’s ability to successfully manage the services and expenses that are necessary to the day-to-day operations of their business.  Many organizations have turned to Business Process Outsourcing (BPO) to alleviate some of the manual redundant tasks experienced by their staff.   Business process outsourcing (BPO) allows an organization to turn over one or more business processes to an external provider that, in turn, partners with the organization to own, administrate and manage the selected processes based on defined and measurable performance metrics.

RadiusPoint is a business process outsourcing provider that utilizes a Software as a Service (SaaS) model utilizing proprietary software, ExpenseLogic. Reducing costs, increasing productivity and delivering predictable, reliable results allows our clients to realize reduced workloads for their Accounts Payable, Telecom, Information Technology (IT) and Utility or Energy departments while optimizing and reducing costs for the services.

RadiusPoint’s services include  Telecom Expense Management (TEM), Managed Mobility Services (MMS) and Utility Expense Management (UEM) as a core foundation that allows our clients a complete solution to successfully manage each service. RadiusPoint expertly manages your enterprise technology environment – from procurement to payment by providing the monthly invoice processing services by utilizing our robust software, ExpenseLogic which provides Business Intelligence.

Challenge:

A Quick Service Restaurant (QSR) needed telecom, IT, and utility reporting by location to compare to monthly sales to assist them in making quick expense reducing business decisions. With the profit margin for selling a hamburger being very small, it is of the utmost importance to operate efficiently and as lean as possible. This company has 240 locations in five major metropolitan cities and various smaller cities across the United States.

Areas of concern were:

  • Accounts Payable personnel lacked experience with the telecom and utility invoice service type
  • Understaffed personnel couldn’t manage the short invoice turnaround
  • Service disconnects created loss of business
  • Financial reporting was insufficient
  • Inadequate ability to track the consumption measurements i.e., kWh and therms
  • Inability to identify monthly cost of telecom services
  • Undetermined IT Assets at each location

Giving the Accounts Payable team an expense management tool that would provide bill processing and bill pay functionality in a cloud-based SaaS solution was critical as this allowed them to still have access to all accounting information.  Providing vendor management services allowed the telecom, IT and facilities management teams the added benefit of a knowledgeable partner to help with optimization of the services and contract management. This then allowed the team to work together towards cost avoidance and cost reduction in all services.

Opportunity:

Creating a partnership that allows for this organization to outsource their accounts payable, expense management and Help Desk functions was a necessary step.  Providing all of the accounting functions for the telecom, IT and utility or energy invoices allowed their management team the Business Intelligence that was necessary to make quick but informed business decisions.

One of the requirements has to be a consistent focus on capturing the needed data from each vendors invoice on a monthly basis.  There were several opportunities for savings identified by RadiusPoint and a phenomenal ROI was created once each component of the telecom, IT and utility invoices was captured, analyzed, and audited. Having the right level of knowledgeable personnel support to ensure that the correct information is entered into ExpenseLogic was a huge part of the automated process as well as auditing the invoice for inaccuracies and overages.

Solution:

Software as a Service (SaaS) allowed this client to pay a monthly subscription fee to access the hosted application, while allowing their business process outsource partner, RadiusPoint to manage the entire lifecycle of the telecom, IT and utility or energy invoices.   Partnering with RadiusPoint and utilizing their automated software tool, ExpenseLogic, this client was able to have the much-needed reporting just in time and on one software platform. RadiusPoint redirected the monthly telecom, IT and utility invoices to eliminate the need for their staff to handle the invoices each month. In addition, detailed invoice data was entered into ExpenseLogic to provide the monthly cost reporting that had to be compared to the sales reporting for further analysis.

RadiusPoint’s solution involved:

  • One Software Platform for accounting and reporting
  • Eliminated the entering and handling of monthly invoices by the clients accounts payable staff
  • Eliminated the need for further research with Electric and Gas usage spikes
  • Identified areas of hardware improvement at older locations with cost comparisons
  • Contract management to house the contract image with service level agreement details and expiration notification via email
  • Vendor management to ensure optimization and service delivery

Top 5 cost savings results:

RadiusPoint’s partnership allowed the client’s management team to focus on cost reduction strategies by utilizing the robust detailed invoice reporting provided by ExpenseLogic. Having this Business Intelligence each month without the added task of looking at each invoice allowed for quick and efficient cost saving initiatives to be completed in record time.  In addition, reporting the telecom, IT and utility invoices as one operational expenditure at the location level, created a robust level of comparison and analysis against the cost of doing business.

This QSR was able to identify multiple locations that:

  • Could eliminate the DSL for customers use that was no longer needed
  • Needed upgraded HVAC equipment to lower monthly Energy costs
  • Could eliminate regular business lines for POS for a more cost-effective solution
  • Could cost avoid by identify water leaks during the occurrence to eliminate cause and credit back overcharge
  • Eliminate accounts payable staff time that allowed the reduction of one FTE

RadiusPoint utilizes a key metric for calculating return on investment (ROI) to ensure that our client’s experience a cost savings due to errors identified and refunds received, along with process improvement and cost avoidance.   The process improvement alone created the cost of the one FTE salary and the accounts payable standard per invoice processing cost of $13.49 per invoice for 600 invoices or $8,094.00 per month.  The cost reduction and cost avoidance savings for the restaurant industry average for this time period was 201% however this client achieved a 258% average return on investment for their first year.

Contact RadiusPoint today to learn how we can augment your Accounts Payable team to create a positive ROI while providing you exceptional Telecom Expense Management (TEM), Managed Mobility Service (MMS) and Utility Expense Management (UEM) services!