City of Warren, Michigan - Case Study

September 4, 2013

By CBI Telecommunications, Author:  Larry Garver

City profile

Warren is a city in Macomb County in the U.S. state of Michigan. The 2010 census places the city’s population at 134,056—making Warren the largest city in Macomb County, the third largest city in Michigan, and Metro Detroit’s largest suburb.

Business situation – The Problem

The City of Warren conducted an RFP (Request for Proposal) for auditing utility bills to insure the utility providers were billing at the correct rate, the City was receiving services billed, and that the services received were optimally configured.  The RFP goal was selecting an auditor that would perform the specified tasks effectively with a minimal disruption to the City’s operations.

Technical situation – The Solution

Options CBI Telecom was awarded the business of this RFP.  Due to staffing changes and reductions, it was difficult for the City to provide copies of past invoices to CBI for audit.  CBI proposed securing vendor online access to invoices where possible, and offered to send CBI staff to City Hall to make copies of invoices, in keeping with the project goal to minimize disruption of City operations.

CBI went on-site to make copies of telecom invoices, and thru thorough audit of vendor contracts and invoices, confirmed that a recently-implemented contract was indeed billing correctly.  However, CBI did uncover several services that had “double-billed” (moved to a new vendor, but services kept billing with the old vendor).  Most significantly, CBI discovered some antiquated, non-contracted (high priced) AT&T services, and provided alternative service options to the City.

Solution- The Results

CBI obtained a $291 one-time credit from vendor for the period of double-billing.  Regarding the high-priced, antiquated services, CBI helped identify some that were no longer being utilized (full disconnect), and for the used services helped the City migrate to a much more cost-effective service solution, bringing a bottom-line annual savings of $55.528 to the City of Warren—an over-all 21% cost reduction based on combined benchmarked cost of all accounts included in the audit.

Conclusion

CBI provided a telecom expense management partner for the City of Warren, to fill in for staff changes and reductions, bring bottom-line savings to the City’s budget without disruption to City operations.

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