Originally Published on: SpendEdge |Why it’s So Hard for Telecom Companies to get the Procurement Strategy Right?
Navigating a Landscape of Complexity: Building Future-Ready Solutions
The global telecom market, presently valued at $1,900 billion, stands on the brink of a significant two-fold expansion by the decade's end. Despite the massive growth fueled by sectors like e-commerce, retail, film, print, radio, television, IT, healthcare, transportation, and distribution, telecom companies grapple with hurdles in perfecting their procurement strategies. The 5G revolution, touted for its potential in B2B and B2C realms, faces impediments, including high deployment costs and dated infrastructure, demanding a strategic shift.
Why Telecoms Must Modernize Legacy Infrastructure
Legacy Systems Hurdle: Extensive reliance on outdated systems hampers digitization progress.
Cost Reduction Potential: Aggressive modernization holds the potential to slash service costs by 30% to 50%.
5G Rollout: A Challenging Journey Beyond Speed
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 confront 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 Strategic 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: Transforming Cost Structures
In the face of 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.
