A Telecom Giant Achieves Operational Efficiency While Reducing Capital Expenditure
Wireless division of the largest telecom company in the U.S.
The client is involved in financing CPE (Customer Premises Equipment) for its customers, collecting a monthly lease for the equipment. In line with its corporate directive to reduce capital expenditure, the client would like to move away from financing. Instead, it will partner with third-party financing companies (TPFC) to provide financing options for its customers.
Project: Equipment Leasing Solution
The client will manage the billing and collection of monthly lease payment from its customers, and will make the payment to TPFC, while retaining a service fee for the transaction. The payment terms in the initial contract will continue to be used for the billing. For a stringent control on spending vs. revenue, the client will not pay the TPFC until it receives payment from its customers on the invoice.
The client endeavored to automate the process of contracts and payment collection.
Avant-Garde designed a CPE Leasing Solution, based on SAP CRM to meet the client’s objectives. The solution manages and maintains the Financial Services (FS) contracts for equipments and services financed by the TPFC.
The SAP CRM solution is connected to a front-end legacy system in order to enable user-friendliness and ensure data integrity. The solution uses a simple and efficient workflow for the contract process:
The billing process is also made hassle-free by the CRM system:
- Legacy Systems send customer invoice and payment file feed to CRM system
- Billing block on CRM Contract removed programmatically after customer makes payment
- CRM Billing Engine generates billing documents for pass-through payment schedule items (without billing block)
- CRM billing documents transferred to accounting department
- Payable accounting documents posted in FI-AP
- Reduction in Capital Expenditure
- Improved Quality
- Streamlined Processes & Operational Efficiency