| According to the Telecommunications Industry | | | | reconcile, due to their volume and complexity. |
| Association, the total spending in the U.S. | | | | Today, invoices have electronic counterparts, |
| telecommunications industry in 2005 amounted to | | | | which make computerized invoice management |
| $856.9 billion with an expected growth of 9% per | | | | much more feasible. |
| year through 2009. International spending | | | | A further complication is that many different |
| (excluding the U.S.) for 2005 was at $1.8 trillion | | | | vendors may be involved in providing telecom |
| and expanding even more sharply. This explosive | | | | services. Integrating invoices from all these |
| growth fuels the need for Telecom Expense | | | | different vendors into the invoice management |
| Management (TEM), of which Invoice Management | | | | system can be a major challenge. Some vendors |
| is a major component. | | | | may provide paper invoices only, requiring manual |
| Invoice management includes the administration, | | | | data entry, while others may use a variety of |
| verification and reconciliation of invoices. Benefits | | | | electronic media. |
| of an automated Invoice Management system | | | | Fortunately, there is a move towards |
| include: | | | | standardizing electronic invoicing in the industry, |
| * Prevention of penalties for late payments | | | | but even so the invoice level of detail may vary |
| * Reduction of telecom costs by catching billing | | | | from vendor to vendor, which adds to further |
| errors | | | | complications. In selecting a telecom expense |
| * Verification of invoices against contracted rates | | | | management system, it is vital to select a |
| ensuring negotiated rates are being applied | | | | system that can deal easily with these disparities. |
| * Having an accurate inventory of existing | | | | Once an invoice management system is |
| telecom facilities relative to billed facilities, which | | | | operational, the time and cost savings can be |
| might save another 5-25% | | | | considerable. Depending on the size of the |
| * Reconciliation of actual calls based on CDR from | | | | enterprise, this can amount to many thousands of |
| PBXs and wireless devices against invoiced calls | | | | dollars, which means the system will pay for itself |
| from carriers | | | | in short order. Savings can be even greater if |
| Historically, telecom invoices were issued in paper | | | | effective inventory control is instituted as part of |
| form. Large enterprises might receive hundreds of | | | | the (TEM) strategy. |
| them and they were a nightmare to verify and | | | | |