American Red Cross - Case Study

March 20, 2013

Author: Larry Garver, March 20, 2013

In 1999 CBI had just completed a telecom audit for the Great Lakes Region of the American Red Cross. Our thorough review of vendor contracts and detailed invoice audit process allowed us to identify charges that were not billing per contract rates. Working with the offending vendor, CBI corrected the billing and got the vendor to go back and re-rate the incorrect charges to the contract inception date resulting in a one-time credit of $256,000. Additional optimization of wire line and wireless services brought a total of over $327,000 in cost savings.

Word-of-mouth within the Red Cross soon had CBI engaged with multiple entities which comprised the organization’s Midwest Business Unit. CBI was ready and able to expand our efforts to meet our client’s needs by deploying a project manager and a consultant team approach custom designed to fit the scope of work. CBI became familiar with the American Red Cross organization, learning the unique needs for disaster recovery and redundancy networks as well as the unique tax-exempt nuances on a state-by-state basis. CBI brought significant savings via elimination of charges on telecom invoices from which they should have been exempt, along with appropriate re-rate credits. All land lines and circuits for each physical location were identified and CBI was able to reduce expenses via elimination of “over-trunked” sites. Once sites were “right-sized” CBI conducted a Request for Proposal (RFP) that greatly reduced monthly expenses. CBI’s “outside-the-box” thinking included getting this the Red Cross a membership to an association at nominal charge to take advantage of the association’s pricing structure, for which they would otherwise not have been eligible. When all was said and done, the Midwest Business Unit’s 10 entities had realized telecom savings in excess of $1,275,000.

When the American Red Cross conducted RFP # 300723 to obtain the services of a telecom expense management (TEM) firm, CBI Telecommunications Consultants was awarded the national contract. As of August 2012, the American Red Cross has realized gross credits and cost savings of over $3,970,000. Through CBI efforts the overall telecom and data budget was reduced in the Biomedical Regions by an average of 38%.

Additional Savings & Credits

 

Total Credits Oct 2009 thru August 2012

Total Savings Oct 2009 thru August 2012

GRAND TOTAL
Oct 2009 to August 2012

NHQ

$ 45,824.38

$ 290,175.98

$ 336,000.36

South-Central

$ 36,015.91

$ 239,341.07

$ 275,356.98

Southeast

$ 243,149.01

$ 523,571.95

$ 766,720.96

Northeast

$ 26,329.51

$ 335,342.20

$ 360,807.72

Ohio MI

$ 326,513.82

$ 313,709.97

$ 349,012.09

Western

$ 80,053.61

$ 266,046.90

$ 343,854.00

Mid America

$ 1,191.59

$ 128,018.28

$ 123,909.47

Heritage

$ 13,292.91

$ 163,760.49

$ 173,838.06

 

$ 772,370.00

$ 2,259,966.00

$ 3,032,336.00

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