Offsite Storage Cost Recovery

Tired of billing errors and being overcharged by your offsite storage vendor? Contoural can save you money, with no risk or up-front costs

A Better Way to Manage Costs

Managing and determining the actual cost of offsite records storage can be both complex and difficult. Offsite record storage vendor contracts tend to be complicated, blending a mix of fixed, per-box charges with a wide variety of variable costs related to ongoing management of inventory, box retrieval and re-storage, records destruction and more. This combination of transactions, combined with the complexity of managing records for multiple groups across multiple locations can lead to confusion, mismanagement, overcharges, over-retention and other problems resulting in increased costs, risk and even compliance issues. Contoural helps organizations identify and receive refunds for overbillings, as well as negotiate future offsite storage agreements that lower fees. These services cost you nothing unless and until refunds or credits are received or a lower-priced agreement is signed.

 

We have subject matter experts who have deep expertise and are qualified to analyze and document any and all errors and overcharges. We don’t get paid for our services until overpayments and billing errors are recovered.

 

Why are Companies Overcharged and Why is this Difficult to Identify and Rectify?

Problem 1: Understanding Costs

Records storage vendors would like you to think that storage costs are easily understood by the cost-per-box (or cubic foot) for storage costs, as this is the most visible aspect of records storage. In reality, other charges comprise more than four to five times these per-box billing charges. Every time a vendor touches a box for inventory, retrieval, or destruction, there are multiple fees and usage transactions. Some vendors even charge a “billing fee” for invoicing their customers. These fees are often deeply hidden in the agreements, and while at first glance appear somewhat non-material, in reality can comprise the bulk of the monthly bill.

Problem 2: Failure to Understand True Record Storage Requirements

Evaluating and negotiating services for offsite storage is not easy. Most procurement departments don’t have the time or in-house expertise to understand records retention and security requirements, or the types of services required by the business functions storing the records. Likewise for most organizations they find it difficult to accurately project all offsite storage costs. The result is that they either overspend, or focus negotiations on the less important elements of agreements.

Problem 3: Identifying Billing Errors

Up to 90% of offsite records storage bills have some type of error, and those errors are almost always in the favor of the vendor. Most of the errors are fairly small, and are hard to identify because the specific terms are buried deep in the agreement. While these individual errors are small, multiplied by thousands of boxes across months or years these errors are large, often 20-40% higher than the negotiated rate.

Problem 4: Auditing for Compliance

Vendor invoicing practices make it very difficult to check for accuracy and contract compliance. Conducting an audit on detailed invoicing is extremely time consuming and complex. One customer department may manage the billing, other groups may request records retrieval, and another group is often responsible for ensuring expired records are destroyed. This complexity makes it difficult to audit bills and ensure companies are being invoiced correctly, and often erroneous invoices are simply paid.

Contoural Offsite Record Storage Audit and Negotiation Services

Contoural provides a variety of services to help companies identify and receive refunds for overbilling, as well as negotiate offsite record services that incorporate all charges to lower costs.

Offsite Record Storage Audit

Contoural will analyze and audit offsite record storage vendor contracts against actual usage and identify overbilling or overpayments. All billable actions/conditions are identified from all vendor contracts and analyzed, including the number of boxes, and all other types of charges. Based upon the analysis, Contoural will provide an executive summary of the discrepancies and estimated refund. Next, Contoural will negotiate directly with vendor on behalf of client to secure any monies due.

 

There is no upfront charge for this service. Contoural receives a percentage of recovered monies, payable when client receives the refund from the vendor.

Offsite Storage Contract Negotiation

Contoural analyzes current and future offsite paper retention needs. Contoural creates a model of future costs for all types of services, including records retrieval and destruction. Using this information, we negotiate favorable terms for offsite paper records and backup tape storage with storage vendors.

 

There is no up-front charge for this service. Contoural receives a percentage of all savings negotiated and received.

Ongoing Contract/Billing Maintenance

Contoural offers a quarterly audit service to assure ongoing correct and vendor adherence to contractual terms.

Why Use Contoural?

Contoural has the expertise and a repeatable methodology for analyzing complex and esoteric billing, spanning years, and finding billing errors that sometimes number in the thousands. We have deep expertise in developing offsite records retention requirements to identify the exact offsite record storage needs. We can forecast total life-of-contract offsite storage costs, not just the most visible components such as per-month cube storage. We are skilled in negotiating with recalcitrant vendors to receive any monies due. No risk, fees are only charged as a percentage of the savings identified.

 

Contoural is confident we can save you money. The first two projects have no risk to you. Contoural does the work and you get the savings.

 

For more information, call Contoural at 650-390-0800 or email us at info@contoural.com.

About Contoural

Contoural is the largest independent provider of strategic Information Governance consulting services, including records management, litigation readiness, privacy and control of sensitive information. Contoural is truly independent. We do not sell any products or records storage services so the advice you get is unbiased Contoural sells no products. We serve as a trusted advisor for more than 30% of the Fortune 500, mid-sized organizations and public sector clients. Our seasoned consulting team, averaging over 20 years of experience, are passionate about driving clients’ success.

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