Supplier Consolidation Strategy for Sourcing Telecom Services

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By: Haritha GK -- Research Analyst, IT Hardware & Telecom

21 February, 2018

Supplier Consolidation Strategy for Sourcing Telecom Services
ARTICLE

Abstract 

Enterprises are focusing on consolidating suppliers as they visibly see an increase in their procurement spend pool. The need for geographical expansion is highly prevalent among large enterprises as they are focusing on attracting global customers. Equally, as business operations are highly dependent on telecom services, enterprises’ procurement spend continually increase due to fragmented supplier base. Further, this increases the risk on supplier consolidation, sustainability, cost saving and vendor lock-in period.  
 
Supplier consolidation for enterprises elaborates on different consolidation models suitable for small, medium and large enterprises in order to concentrate on the procurement spend on limited number of select suppliers. Thus, it addresses attaining improved quality, reducing risk, improving control and visibility on procurement spend.  
 
Key Highlights 

 

  • Challenges: Business dependency on telecom services and the requirement to connect enterprise global locations increases the number of suppliers, such as incumbent operators, local players and third party integrators, and in turn results in additional spend.  
  • Solution: By implementing suitable supplier consolidation models, an enterprise can effectively and efficiently manage suppliers with additional visibility on their spend.   
  • Benefits: Improved cost savings, quality of service can be achieved with a consolidated supplier base. 



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