Mobile corporate communication is part of everyday business for modern companies. Since the COVID-19 pandemic, when nearly 25% of companies had to transition their employees to remote work, mobile communication has become indispensable. More than 10 million employees in Germany are currently working remotely and rely on mobile devices.
But how much effort is actually involved in independently managing a mobile fleet? We will show you the hidden costs, drawing on experience reports from more than 7 years and statistical data.
The Process
In this report, we will simulate the procurement of 100 mobile devices using Muster GmbH as an example. Together, we will look behind the scenes and highlight the limitations of self-managed mobile device administration.
In our model, Muster GmbH is a medium-sized company with approximately 150 employees, 100 of whom are equipped with mobile devices. In June 2021, the contract term for Muster GmbH’s current smartphone generation expires. Mobile contracts are ending—requiring renewal or renegotiation, old hardware must be retired, and new devices procured.
A process that sounds very simple at first glance and is often delegated to departments such as procurement or corporate IT. These seemingly quick tasks are, in reality, significant time and resource drains. For this reason, let us examine the comprehensive procurement process.
Procurement
The approach to smartphone procurement varies from company to company. However, Muster GmbH decided in the first step to inventory its current smartphone stock. After completing this count, often using Excel spreadsheets, it was determined that a total of 112 devices belong to the corporate fleet.
This corporate pool has a certain residual value. Researching current market prices, contacting various buyers, and ultimately achieving the best possible price is usually time-consuming and costly. Time that an IT manager often does not have. As a result, devices are often sold in advance to a buyer at reduced prices. During the return process, they are then delivered to this buyer. Resources and capital are lost.
After Muster GmbH calculated its capital and assessed its financial options, the question arises: which smartphones should be selected and how should they be procured? A comprehensive evaluation of all devices and the options for integrating them into the company takes time and, once again, resources.
Muster GmbH decided on a total of 80 iPhone 11 devices with 128 GB and, for management personnel, an iPhone 12 Pro with 256 GB, and immediately began searching for the best price. Once again, Muster GmbH faces a long task list full of meetings with distributors and carriers. Among all the offers they will receive during this time, we offer you this insight:
You will never receive the best possible price. With a purchase volume of 100 devices, Muster GmbH has no leverage with the carrier or device distributor and operates only slightly below list price.
Additionally, availability is often an underestimated risk. In the current environment, it is challenging to place a bulk order of 100 devices and receive them by the desired delivery date. In our example, we assume that Muster GmbH successfully overcame all procurement hurdles. What happens next?
Rollout
In this sub-process of hardware integration, the effort is regularly underestimated. This is not simply a hardware replacement.
All smart devices already contain important contact and corporate data. Without proper instructions and GDPR-compliant backup, important data is lost. Furthermore, corporate communication must be maintained at all times, meaning no device downtime can be risked.
- Shipping 100 devices to 100 different employees across various branches, home offices, and other locations.
- Creating step-by-step instructions for replacing old devices.
- Creating step-by-step instructions for installing new devices.
- Performing GDPR-compliant data deletion.
- Providing a helpdesk for potential inquiries and emerging challenges.
The procurement process has been simplified here! However, the challenges in the B2B market are significantly more complex and demanding:
After analyzing several hundred customer datasets, we have estimated the procurement process—consisting of ordering, receiving and booking new devices, DEP/MDM registration, staging, packaging, and shipping devices—at an average of 1.5 hours per device, plus material costs for staging and shipping.
Throughout the entire lifecycle of the devices, various challenges arise with and around the equipment. In addition to daily inquiries about topics such as SIM PIN and declining battery performance, larger issues must be addressed. In the following sections, we will examine classic damage and repair cases as well as employee onboarding and offboarding with Muster GmbH.
Damage and Repair Cases
Let us now examine the classic damage or defect case of a device. Should an employee’s device fail, regardless of whether due to user error or technical defects, maintaining communication is the top priority.
Typically, important tasks such as certified data deletion or repair of the defective device often fall by the wayside. Independent replacement and repair services affect an average of 10-20% of the smartphone fleet—differences depend on the company’s field of activity, such as construction sites, offices, or field service.
We calculate the following work steps for a typical damage case
- Damage report
- Installation of replacement device and device exchange
- Inspection and certified deletion
- Shipping to repair company
- Return of device to replacement pool
- Invoice processing and documentation of exchange in asset manager
In total, for Muster GmbH, a damage case involving up to 20 devices results in an effort of over 28 hours during the contract term. The processes must be designed to be efficient and responsive.
But how can this efficiency be ensured? Often, corporate IT is involved in this process, which represents a resource- and time-intensive task for which optimized workflows frequently do not exist. As a result, these tasks often get lost in the hectic day-to-day business.
The challenges surrounding employee onboarding and offboarding are obvious.
- Return old device
- Certified data deletion
- Refurbish device, staging, and if necessary, replace SIM card management and number transfer
- Plan adjustment
- Onboard new employee and provide device
Employee onboarding and offboarding often present companies with hurdles that not only occupy one department but also become cost drivers and resource drains.
Conclusion
The effort required to manage a mobile fleet is enormous. In most cases, it does not represent a dedicated position for a specialized employee but is distributed across various business areas. Frequently, procurement specialists, IT managers, accounting, and internal service management are confronted with challenging tasks. Resources are tied up, and essential tasks and processes suffer as a result.
Hiring a specialist is often not worthwhile. The processes are irregular and vary greatly in intensity. A repair with replacement can take hours, while employee onboarding and offboarding can become a complex matter involving numerous departments.
Fixed costs are difficult to quantify in this way. The most common cost drivers are personnel expenses, overly expensive plans, and high hardware procurement costs.
Companies waste resources and incur costs through the complicated processes of independently managing their mobile fleet—costs that can be avoided.
The Solution – TKD LifeCycle Management
With TKD LifeCycle Management, we solve the time- and resource-intensive tasks surrounding the management of your mobile fleet. At TKD, you receive a dedicated contact person who handles your daily challenges. From procurement to distribution and management of mobile devices to employee onboarding and offboarding as well as buyback—we take over all processes of your IT asset management.
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