McGraw Communications, a leading national CLEC, receives a voluminous amount of invoices in a variety of different media and layouts making the task of managing all of this increasingly difficult to handle in-house. These invoices need to be rationalized and reconciled with growing volumes of usage transactions, order and inventory records, and contract and enterprise data, which are often in disparate formats making it very difficult to match up and validate. McGraw Communications needed tools to manage costs and its rapid growth.
The Vertek Solution
To address these issues, McGraw selected Verteks Financial Assurance offering, or VFA, a hosted data management platform offering state-of-the-art analytical tools specifically engineered to acquire, validate and reconcile the accuracy of communications service providers monthly operating costs and revenue, all at a low fixed monthly fee, without CAPEX or integration expenses. Designed to help growing integrated service providers such as CLECs, ISPs and resellers, VFA addresses their needs for tight control of costs and vendor invoice administration, revenue assurance, product profitability and margin analysis.
Vertek has taken over for McGraw what was its back-office carrier invoice processing. Vertek gathers hundreds of carrier invoices in paper or electronic form and normalizes them into a single database that is accessible to McGraw analysts and executives from a Web portal. In addition to consolidating the cost of goods sold, Vertek compares that information to McGraws end-user billing data to offer them a detailed view of the profitability of every customer down to the call record level.
The Net Result
Our use of Vertek Financial Assurance has resulted in significant cost savings by assuring that our underlying carriers are billing us correctly, said Barbara Dunn, CFO of McGraw. The VFA program has allowed us to consolidate all of the carrier invoices and bill detail that we receive in a variety of different electronic and paper formats into one automated, online format. This enables us to review and validate all inputs, enhance revenue assurance, and perform detailed margin analysis by customer and product. Our relationship with Vertek over the past year has been a win-win situation for us both.
McGraw can now just run reports to see variants in bills expediting time to action. Ongoing expected savings are simply attained from not having to manage the process, and from capitalizing on VFAs detailed financial performance and business information reporting. This makes it much easier to identify one time charges, any billing anomalies and catch billing discrepancies.
McGraw estimates its monthly savings from using VFA to be in the range of thousands of dollars per month. Verteks VFA has removed the considerable time and resources required for McGraw to administer and process vendor invoicing and operating costs, and gives the service provider access to the most meaningful exceptions and analysis of financial performance. Clients like McGraw see great potential benefits of extending VFA to analyze, report and compare actual profitability performance by individual product offers, market locations and sales channels. This type of genuine business intelligence provides service providers a unique understanding of the key drivers impacting their growth and the ability to more effectively manage costs and revenue.