Case Study: Off-Net Optimization Produces Off-the-Charts Results

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Are you one of these? This article's for you!

  • Carriers
  • Telecom Service Providers
  • Communication Service Providers (CSPs)
  • Virtual Network Operators (VNOs)
  • Mobile Virtual Network Operators (MVNOs)
  • Network-as-a-Service (NaaS) Providers
  • Data Center Providers
  • Colocation Providers
  • Infrastructure Providers
  • Network Wholesalers
  • Network Aggregators
  • DIA Resellers
  • Managed Service Providers (MSPs)
  • Broadband Providers
  • Enterprise Network Providers
  • Internet Service Providers (ISPs)
  • Wholesale Bandwidth Providers
  • Peering Providers
  • Ethernet Service Providers
  • Dark Fiber Providers
  • Telecom Infrastructure Resellers
  • Wholesale Internet Providers
  • Carrier-Neutral Network Providers
  • Wholesale Voice Carriers
  • Fiber Optic Network Providers
  • Wholesale SD-WAN Providers
  • Wholesale MPLS Providers
  • Hybrid Network Providers
  • Cloud Connectivity Providers
  • Regional Network Providers
  • OTT Providers (Over-the-Top Providers)
  • CLECs (Competitive Local Exchange Carriers)
  • ILECs (Incumbent Local Exchange Carriers)
  • IXCs (Interexchange Carriers)
  • CDNs (Content Delivery Networks)
  • PON Providers (Passive Optical Network)
  • IP Transit Providers
  • WISP (Wireless Internet Service Providers)
  • LPWAN Providers (Low-Power Wide-Area Networks)
  • IoT Network Providers

I know I'm leaving money on the table... I just don't know where

How AMI Gave a Telecom Service Provider $5M Reasons to Celebrate

The Off-Net Balancing Act in the Industry

As a Carrier or Telecom Service Provider, finding the sweet spot between optimizing margins and maintaining quality in your off-net telecom inventory is a constant challenge. One often overlooked opportunity lies hidden within the vast array of carrier invoice line items that frequently go unvalidated. These items are typically shielded by a series of labor-intensive processes, making it nearly impossible to spot billing errors—let alone recover credits from the carriers at fault.

As your sales grow, the complexity of these invoices—and the effort required to validate their accuracy—grows as well. This creates a challenge that in-house tools alone struggle to meet.

In this case study, we highlight the significant impact of AMI’s Invoice Lifecycle Management services on a carrier aggregator responsible for managing carrier circuits on behalf of their enterprise clients. Leveraging AMI’s cutting-edge technology and expertise, this data center client was able to effectively navigate the complexities of carrier invoicing, correct billing errors, and achieve substantial savings—exceeding $5 million to date.

Client Profile

This AMI client is a key player in the technology infrastructure ecosystem, supporting a wide range of corporate customers, including many Fortune 1000 companies.

Their Challenge

As a carrier wholesaler (VNO), this company aggregates and resells network circuits to its end clients. This role requires managing a complex array of carrier invoices for multiple end customers across thousands of corporate locations.

Supporting clients with multiple locations means dealing with a high volume of change activities. As clients open or close locations or transition from legacy network technologies, the related carrier circuit invoices are inundated with changes. This made it nearly impossible to maintain accurate timing and cost validation with their existing in-house tools.

Before partnering with AMI, their process for handling carrier invoices was labor-intensive and manual. They lacked a streamlined method for receiving, auditing, managing inventory, tracking expenses, analyzing data, and billing clients efficiently.

The company's objective was to find a partner capable not only of automating their Accounts Payable processes and facilitating rebilling but also skilled in identifying those elusive billing errors. Ideally, this partner would also take responsibility for recovering erroneous charges from their carriers.

AMI’s Solution

Within 90 days, AMI successfully implemented a solution to manage approximately 500 invoices across 50+ carriers, totaling over $70 million in annual circuit spend.

AMI’s automation tools, including SmartCMDB™ and SmartAudit™, were deployed to retrieve, import, allocate, and analyze invoices for the wholesale services obtained from other carriers. These tools automated a wide range of processes, including invoice receipt, error identification, and charge allocation.

This solution not only freed up internal resources but also eliminated manual entry errors, significantly improving efficiency and accuracy. The client gained access to a comprehensive, centralized platform to monitor expenses, analyze trends, and address discrepancies swiftly.

By taking full responsibility for recovering erroneous charges, AMI enabled the client to focus on their core operations while gaining assurance that their carrier invoices were accurate and optimized.

Results Since Project Start and Impact

Operational Efficiency
After partnering with AMI in 2021, the client streamlined their invoicing process, reducing manual effort and eliminating errors associated with data entry. The automated systems ensured that all carrier invoices were promptly validated and analyzed, providing a clear view of expenses and billing discrepancies.

Cost Savings
The advanced capabilities of SmartCMDB™ and SmartAudit™ enabled the client to uncover hidden billing errors, recover overcharges, and optimize their carrier inventory. These measures resulted in cost savings exceeding $5 million, a testament to AMI’s proficiency in managing telecom expenses.

Scalability and Flexibility
AMI’s robust solution empowered the client to keep pace with their growing sales and the increasing complexity of their operations. By handling a diverse range of carriers and customers across thousands of locations, AMI ensured the client could maintain high service levels without additional resource strain.

Improved Client Relationships
With greater accuracy and efficiency in rebilling and expense tracking, the client was able to provide transparent, timely, and reliable billing to their end customers. This strengthened trust and fostered long-term relationships with enterprise clients.

 

What Have You Done for Me Lately? 2024 Results

Ongoing savings continue as AMI analysts discover and dispute circuits with delayed disconnections, incorrect billings for new services, improper late fees, and more. Between January and November 2024, more than 200 disputes cases have been successfully negotiated with this client’s carriers, resulting in over $746K in credits that have been verified on actual invoices.

Projects are also underway to facilitate the integration of the NOC ServiceNow outage tickets to the AMI dispute process, as well as the integration of Salesforce quote and order into the change validation process.

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Final Thoughts

The challenges of managing off-net inventory and carrier invoices are complex and ever-evolving. By leveraging AMI’s cutting-edge Invoice Lifecycle Management services, this client not only overcame these challenges but also realized significant operational and financial gains.

This case study underscores the value of partnering with a seasoned expert like AMI, who brings the technology, expertise, and dedication needed to transform invoicing from a tedious burden into a strategic advantage.

David Sonenstein - Vice President of Product Strategy

AMI Strategies

With over 20 years in the industry, David helps orchestrate AMI’s vision for vendor hyperautomation. While contributing to AMI’s adoption of automation technologies, system integrations and technology frameworks, his research focuses on enterprise market and technology trends and where automation solutions can help organizations achieve their desired business outcomes. He currently serves on the executive board of the Enterprise Technology Management Association (ETMA) and is an associate of the Technology Business Management (TBM) Council. 

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Fractured Inventory

Invoice
Cost & Usage Details

General Ledger
Cost Centers

Human Resources
Business Owners

Procurement
Contracted Rates & Terms

IT Asset Management
Hardware Details

MDM/UEM
Software & Applications

Information Security
Policies

Information Technology
Backup & Maintenance Services

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AMI's Average Turnaround

Across All Customers, Categories & Invoices Processed

Before Invoice Due Date

Fully Allocated

Fully Audited

Sent to AP for Approval and/or Payment

Self-Service Portal

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All Credits Allocated Back

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2023 AMI Dispute Activity

33,076 System-Generated Flags

20,176 Flags Investigated by Analysts

 

$2.9M Largest Dispute Recovered / $0.01 Smallest Dispute Recovered

 

42% Cases filed for under $100      31% Cases filed between $100-$1,000      21% Cases filed for between $1000-$10,000     6% Cases filed over $10,000

$101.7% Average AMI dispute recovery rate inclusive of taxes, fees and surcharges
freelancer

Invoice Lifecycle Automation

Fully audited and allocated invoices delivered weeks before their due date

Every Billing Error & Savings Opportunity Uncovered

Invoice auditing, contract/rate validation and dispute management services

Clean Inventory Data

Understand what you have, where it is and how much it costs – Everywhere

Fearless Change Management

Centralized procurement, changes and support delivered via ServiceNow

Single Source of Truth

View all dimensions of your vendor relationships in one pane of glass

Never Pay More Than You're Supposed to

Complete confidence, transparency & accountability for every dollar spent

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AMI Dispute Manager

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Monthly Invoice Audit Against Contract
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Manual Equivalent of AMI's Automation

Customer Case Study

Invoice Retrieval: 

27.08 Hours

PO Verification & Financial Allocation:  

93.75 Hours

Approving Invoices for Payment: 

97.08 Hours

Sub Total:<br 218 Hours (5.5 FTEs) + 5-60min per P2P Fallout Issue</br

Accurate Organizational Chargebacks

1,000.8 Hours

Complete Validation of All Cost Items: 

3,543.2 Hours

Additional Time: 4,544 Hours (113.5 FTEs) + 5-60min per Disputable Charge

Total Time to Replicate AMI's Automation?

119 FTEs

To Achieve Complete Cost Assurance & Accountability

5-60 Minutes Per Issue

Managing Unexpected Cost Items

Anomaly Research
Evidence Collection
Dispute Process

6 Anomalies = 30-120 Minutes of Manual Work

Requiring Verification in Multiple Systems and Managed by Phone or Email

5 Minutes Per Invoice

Manual Approvals & Payments

Emails
Phone Calls
Initiating Payment by Paper Check or ACH

12 Invoices = 1 Hour of Manual Work

Slow Approval & Payment Processes Result in Late Fees & Service Disruption Risk

5 Minutes Per Page

Financial GL Code Cost Allocation

12 Pages = 1 Hour of Manual Work

Reporting is Limited to Financial Structure, Not Business Structure

3 Minutes Per Line Item

Manually Checking Against the PO

10 Line Items = 1/2 Hour of Manual Work

Big, Deep & Complex Invoices

change-mobility3

Mobility & UEM

inventory-2

Network & Telecom

smart-sustainability-2

Utility Providers

one-screen-3

Public/Private Cloud

Hundreds to Thousands of Invoice Pages

Tens of Thousands of Cost Items

Mission Critical Services

Cross-Department Business Accountability

Impossibly Labor Intensive to Audit

Easy to Leave Money on the Table

5 Minutes Per Invoice

Manual Invoice Retrieval & Processing

Web Portal Download
Locating in Email
Scanning from Paper

12 Invoices = 1 Hour of Manual Work

Missed or Improperly Processed Invoices Create Service Disruption Risk
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Never Miss an Invoice

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Fully integrated with your inventory and validated for cost accuracy

Single Source of Truth

View all dimensions of your vendor relationships in one pane of glass

Never Pay More Than You're Supposed to

Complete confidence, transparency & accountability for every dollar spent

Big, Complex Invoices

change-mobility3

Mobility & UEM

inventory-2

Network & Telecom

smart-sustainability-2

Utility Providers

one-screen-3

Public/Private Cloud

Hundreds to Thousands of Invoice Pages

Tens of Thousands of Cost Items

Mission Critical Services

Cross-Department Business Accountability

Impossibly Labor Intensive to Audit

Easy to Leave Money on the Table

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Valid Rates are Linked to Page and Paragraph in Contractual Document in the
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on Subsequent Invoices

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Business Owners

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Master
Invoice Schedule

Never Misses Invoices & Identifies Duplicates

Automated Invoice Retrieval

RPA, API, EDI & BDF Technologies

Granular
Data Extraction

Lowest-level Cost & Usage Data

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Invoice Inventories

ETL: Inventories Invoice & Flags Changes
Rates, Fees, Quantities, Assets, Service Status, Entities, Addresses, Identifiers & Relationships

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Through our Utility & Sustainability Test Drive, you decide what you would like us to do.

We load three months of gas, water, and power invoices from your largest facilities through our platform. Then, our analysts review the results and prepare a summary of their findings.
What We'll Need:
  • Three months of your PDF invoices from any carrier in your environment (domestic and/or global)
What to Expect:
  • Pre Analysis: A quick call to learn a few things about your current environment and coordinate securely sharing your invoice data with us.
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Through this analysis, we run your latest three mobility invoices through the AMI platform. Then, our analysts review the results and prepare a personalized summary of their findings.
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What to Expect:
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Through this contingency-based analysis, AMI can assist you in reducing your IT budget or unlocking new funds to pursue other projects through a complete MRI of your largest telecom service providers.
What We'll Need:
  • Three months of your PDF invoices from the largest carriers in your environment (domestic and/or global)
What to Expect:
  • Pre Analysis: A quick call to learn a few things about your current environment and coordinate securely sharing your invoice data with us.
  • Post Analysis: A call once the analysis is complete to review our findings.
What We Typically Review:
  • An extensive review consisting of thousands of automated audits that hunt for savings based on known billing errors, NNI/UNI/EVC correlations, filling in data from FCC databases/LERG/NECA/other industry databases, benchmark savings, service provider consolidation, and modernization savings.
How Far Back in TIme Can AMI Dispute Identified Billing Errors?
  • In most cases two years, but in some cases up to seven years.
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