Originally Published on: SpendEdge |Why it’s So Hard for Telecom Companies to get the Procurement Strategy Right?
Navigating a Complicated Landscape: Crafting Progressive Solutions for Tomorrow
The current valuation of the global telecom market stands at an impressive $1,900 billion, poised for a significant twofold expansion by the end of the decade. Despite substantial growth propelled by sectors like e-commerce, retail, film, print, radio, television, IT, healthcare, transportation, and distribution, telecom companies grapple with the intricacies of refining their procurement strategies. The highly anticipated 5G revolution, with assurances for both B2B and B2C domains, faces obstacles such as high deployment costs and outdated infrastructure, prompting a critical strategic reassessment.
Why Telecoms Must Transform Legacy Infrastructure
Legacy Systems Challenge: Progress in digitization is impeded by extensive reliance on outdated systems.
Potential for Cost Reduction: Proactive modernization holds the potential to cut service costs by 30% to 50%.
5G Rollout: Navigating Challenges Beyond Velocity
High Deployment Costs: Significant financial barriers arise from spectrum licensing, regulatory fees, and hardware expenses.
Skill Shortages in Developing Markets: A scarcity of skilled resources for deploying 5G technologies poses hurdles to progress.
Challenges on the Supply Side: Navigating Risks and Enhancing Performance
Globalized Supply Chain Risks: Telecom sectors grapple with supply shocks due to cost hikes and delays.
Optimizing Network Equipment Usage: Operators explore strategies to extend asset life and diversify their supplier base.
SpendEdge's Innovative Solutions: Pioneering Excellence in Telecom Procurement
Cost Competitive Services: Our experts optimize supply chain costs, ensuring competitiveness without compromising efficiency.
Data-Driven Supply Chain Performance: Real-time monitoring and market intelligence empower proactive decision-making.
Compliance-Focused Procurement: Crafting supplier strategies that prioritize performance and align with environmental, social, and governance (ESG) standards.
Success Story: Reshaping Cost Structures
Amidst rising inflation impacting profit margins, our client, a telecom industry leader, collaborated with SpendEdge. Through a comprehensive cost-benefit analysis, our tailored telecom procurement strategy focused on cost efficiency. This empowered the client to renegotiate with suppliers, ensuring a streamlined and cost-effective supply chain.
