Recent advances in technology and globalization have compelled companies in the telecom sector to improve their internal process to stay competitive. As a result, companies have now been compelled to improve purchasing and supply chain management capabilities to gain better insights into supplier networks and downstream distribution channels. Through this case study, we have tried to explain the importance of purchasing and supply chain management for entities on both upstream and downstream.
The Business Problem
The client, a leading multinational telecommunications company that employs approximately 40K employees, was facing predicaments due to their decentralized operations and non-standardized processes. Their irregular purchasing pattern was making it difficult for the client to streamline operations in different countries such as the United States, Mexico, Brazil, China, and India. Moreover, the diversified and complex purchasing portfolios, concentrated supplier markets, and faster technological shifts were increasing operating costs and creating the need for improving purchasing and supply chain management.
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Solutions Offered and Client Journey
The experts at SpendEdge identified preferred suppliers based on criteria such as quality, price, and delivery history. They also helped the client to reduce supplier risks and centralize purchasing process, thereby, reducing the likelihood of unprecedented risks and creating close relationships with suppliers.
The devised purchase and supply management strategies helped the client to purchase locally without compromising on quality or price competitiveness and reducing shipping costs. The purchasing methods further adopted made a wider impact on the operational efficiency of the business and provided the scope to negotiate agreements with suppliers and improve the delivery process. This enabled the client to forecast needs to suppliers and reduce inventory by minimizing cost and waste.
Key Findings and Outcome
The purchasing and supply chain management solution helped the client to define a standardize and centralize procurement process within a short span of two weeks. Furthermore, it helped the client to avail the following benefits.
- Reduce turnaround time for processing Purchase Requisition requests by 60%.
- Develop a fast and flexible resource deployment model to align with the client’s business objectives.
- Ensure seamless delivery of goods and services with the help of procurement experts.
- Enhance the productivity and order processing of internal operations.
- Improve operational transparency and controls.
- Boost customer experience by focusing on more strategic priorities and mitigating late shipments from suppliers, errors in distribution channels, and hold-ups on production lines.
- To gain more detailed insights into the purchasing and supply chain management solution offered, request for more information.
What is the Role of Purchasing and Supply Chain Management?
To ensure the supply of goods, production materials, and equipment through the sales process, having a robust purchasing and supply chain management is a must. Companies need to procure goods at the right time in the right quantity to keep themselves stocked with sufficient volume to meet customers’ demands. With the aid of our purchasing and supply chain management solution, companies can easily analyze the market, proactively identify the requirement for goods and materials, negotiate with suppliers, manage prices, and ensure timely delivery of goods to their customers.