Marathon Petroleum Corporation - Case Study

September 4, 2013

By CBI Telecommunications, Author:  Larry Garver

Company Profile

Headquartered in Findlay, Ohio, Marathon Petroleum Corporation (MPC), together with its subsidiaries, including Marathon Petroleum Company LP, Speedway LLC and MPLX LP, is one of the largest petroleum product refiners, marketers and transporters in the United States.

Business Situation – The Problem

Wireline invoices had not been audited thoroughly for several years. There was not staff at MPC with the time and expertise to verify the Wireline services invoices, so MPC did not have a good handle on what products were being billed on their numerous Telecom account invoices for the main Headquarters location in Findlay Ohio.

Technical Situation – The Solution

CBI Telecom was contracted to provide our Telecom Expense Management service for MPC.  Historic invoices were gathered and audited by CBI, as were existing Telecom vendor contracts.  Billing errors were identified and disputed with vendors, seeking correction and retro-active credits.  CBI obtained vendor customer service records and created a thorough inventory of services per account, which provided MPC a visibility into their Telecom assets they had lacked. To help further identify the lines & circuits found in the CBI audit, CBI sent a technician on-site to perform a “Tone-&-Tag” of all lines physically located at the MPC Headquarters, resulting in the identification of numerous lines and circuits that were no longer being utilized.  CBI was able to place disconnect orders to eliminate unused, unneeded services and deliver cost savings to MPC.

Solution- The Results

Through July 2013, CBI efforts have delivered to MPC annual cost reduction in excess of $117k. CBI currently has pending recommendations and orders in process that—when realized—are expected to bring another $55k in annual savings.  Also, a refund one-time credit is being documented for submission to the vendor by CBI that we anticipate will yield a credit of $70.7k.

Conclusion

CBI’s Telecom Expense Management audit service provided MPC visibilities on their Wireline telecom spend that allowed for significant cost-savings through elimination of non-essential lines & circuits.

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