How to Modernize Telecom Expense Management with Sakon

Managing finances in today's fast-paced business world can be overwhelming, especially when it comes to handling telecom expenses. With the proliferation of remote work and digital communication, the complexity of Telecom Expense Management (TEM) has increased significantly. For businesses to stay ahead, modernizing their Telecom Accounts Payable (AP) processes is no longer optional—it's a necessity.

The Need for Modern Telecom Expense Management 

In the era of digital transformation, traditional methods of managing telecom expenses are proving to be inefficient and error-prone. Companies are dealing with numerous invoices from multiple vendors, often in different currencies and languages. This complexity can lead to delays, errors, and increased costs.

Businesses need to modernize their telecom AP processes to ensure accurate and timely payments, reduce manual intervention, and gain better visibility into their telecom spend. Modern TEM solutions offer automation and data-driven insights that streamline these processes, making them more efficient and less prone to errors.

Pain Points in Traditional Telecom AP Processes

• High Volume of Invoices: Businesses often handle thousands of invoices monthly, each with unique service line items. This sheer volume can overwhelm AP teams.
• Manual Processing: Many companies still rely on manual processes to handle invoices, leading to errors, delays, and high labor costs.
• Lack of Visibility: Without a centralized system, gaining a holistic view of telecom spend is challenging, hindering effective decision-making.
• Currency and Language Barriers: Global companies face the additional challenge of managing invoices in multiple currencies and languages, complicating the payment process.

Benefits of Modern TEM Solutions

Automated payment solutions are revolutionizing the way businesses manage their telecom expenses. These solutions leverage advanced technologies like AI and machine learning to automate invoice processing, approval workflows, and error detection. By reducing manual intervention, businesses can save time, cut costs, and enhance accuracy. They can also promote more sustainable workflows that reduce your negative impact on the planet.

Let’s look at some of the key benefits of modern (and proven) telecom spend management solutions.

• Efficiency: Automation streamlines the entire payment process, reducing the time and effort required for manual tasks.
• Cost Savings: By minimizing errors and avoiding late payment penalties, automation helps reduce overall costs.
• Enhanced Visibility: Modern TEM solutions provide a single source of truth for all invoicing and expenses, enabling better spend analysis and decision-making.
• Improved Compliance: Automated systems enforce standard processes and controls, ensuring compliance with industry regulations.

Case Study: Goldman Sachs and Sakon

Goldman Sachs, a global investment banking, securities, and investment management firm, faced significant challenges in managing its telecom expenses. With offices in 33 countries and over 1,000 locations, the firm handled more than 3,000 telecom invoices monthly, covering 65,000 unique service line items billed in over 15 currencies and languages.

The disparate processes and resources used across the globe led to chaotic and inefficient invoice intake, chargeback, and payment processes.

Modernizing Goldman Sach’s Telecom AP Process

Goldman Sachs brought Sakon on board to transform its global telecom spend management practice, starting with the AP invoice automation process. Here’s how Sakon helped Goldman Sachs achieve remarkable improvements:

Step 1: Data Ingestion and Translation

Sakon’s platform ingests invoice data as vendors publish the bills, translating it into English and USD where needed. This ensures that all spend details are captured accurately down to the service level.

Step 2: Vendor Integration

Sakon integrates with all of Goldman Sachs’ global vendors, including major telecom providers like China Telecom, Orange, and Verizon. This integration ensures seamless data flow and consistency across all invoices.

Step 3: Automated Validation

Once the invoices are in the Sakon platform, they are automatically validated for accuracy using Sakon’s automated rules and workflow engine. This process includes a three-way match, checking the invoice against the contract and current inventory.

Step 4: Charge Allocation and Approval

The platform then allocates charges to cost centers, business units, GL codes, and locations before routing them for payment approval. The user interface provides efficiency and ease, allowing designated approvers to quickly review and push payments through.

The Results

The transformation led to several key benefits for Goldman Sachs:

• Increased Efficiency: The entire global telecom invoice management process is now handled by just two in-house employees, reducing the need for manual processes by over 80%.
• Improved Spend Control: The cloud-native Sakon platform provides deep insights into invoices, enabling better decision-making and vendor contract negotiations.
• Immediate ROI: In the first month, Sakon identified a billing error that had gone unnoticed for 12 months, resulting in a $400,000 credit for Goldman Sachs.
• Reduced Service Disruptions: Turnaround time for invoice processing decreased from 10 business days to under 5, minimizing late fees and service disruptions.
• Global Consistency: Sakon’s platform standardizes invoices in a common language (English) and currency (USD), making the process user-friendly for AP teams across different regions.

What Can Sakon Do for You?

Modernizing telecom expense management is crucial for businesses aiming to stay competitive in today’s digital landscape. As shown in the Goldman Sachs case study, Sakon's TEM solutions can significantly improve efficiency, accuracy, and cost control. By automating and streamlining telecom AP processes, businesses can achieve better financial performance and operational resilience.

Ready to transform your telecom expense management? Discover how Sakon can integrate AI into your TEM strategy for better efficiency and cost savings. Schedule a free demo today!