How to Reduce Overage Costs


When I joined my most recent company, I noticed a number of vendor accounts had recurring monthly overage charges.  These are the charges that occur above and beyond the contracted vendor monthly retainer.

The reasons for these problems ranged from technical issues with the system or requests from business units for special servicing.  After I identified the problems, I was able to quickly eliminate recurring overages.  Moreover, I was able to transform usage of the existing hours from maintenance to enhancement requests that deliver more value.

How was I able to do this?

  1. I had the vendors switch to open platforms that our company could centrally and remotely manage.
  2. I developed company Subject Matter Experts (SMEs) that would act as the central point of contact between the business units and vendors.  These SMEs were empowered to solve maintenance issues.
  3. I created training tutorials, videos for each tool/SOP and posted them in as easy to find location on the Intranet.
  4. I held weekly meetings with each vendor and reminded them overage charges are unacceptable.
  5. On a weekly basis, I reviewed monthly hour burn to determine who and what is eating monthly hours.

All these steps in concert eliminated overage charges and optimized our vendor partnerships to drive more value on a monthly basis.