The Problem - Regional company operates in a tri-state region with separate branch offices that support a distribution network of hundreds independent retailers. The cost of telecommunications between these locations was a fixed expense that was adversely impacting the company’s expense ratio.

The Approach - Review the feasibility and implemented an IP (Internet Protocol) Telephony project that leveraged the company’s existing data network between offices to enable voice communication and minimize or reduce telecommunications speed between branch offices.

Implemented Solution(s):

• Fortified the existing data network by upgrading to a fully redundant Layer 3 switches fed by fiber-optic connections.
• Source and procured a VOIP (Voice over Internet Protocol) phone system that leveraged the newly fortified network to deliver voice and video to a phone device plugged into standard computer jack by an already existent data resource within the IT team.
• Analyzed call routing, hunt groups, voicemail and service messaging queues in existing analog system and optimized them in the new VIOP solution.

Results:

• Transformed annual telecom spend from a fixed number representing a large percentage of the IT budget to zero after the capitalized expenditure was paid off over three years.
• Improved the efficiency of call handling and routing between offices and re-purposed one full FTE (approximately $45k annually plus 35% benefit load) who previously dedicated 100% to the receptionist job.
• Enabled the self-servicing of customer accounts through use of a voice activated response system. These allowed customers access to account information 24/7 and to make payments online. This resulted in the re-purposing of multiple customer service representatives (annual cost of $45-70k plus 35% benefit load) to higher and more valuable customer operations.