The SpendEdge team helped us gain quick insights into leading suppliers, spend management strategies, and negotiation strategies. Our team always wanted such accurate insights to manage the procurement process.
Business Challenges Faced
The client, one of the fastest-growing companies in the US telecom industry, doubled in size over a span of three years. This resulted in the dispersion of almost $500 million across the company. The expanded procurement structure lacked clear standardized policies and procedures, standard tools, and consistent responsibilities. With the continued growth, it became increasingly difficult for the client to manage the coinciding spend. Challenges facing the client included:
- Poor spend visibility with no specific pricing insights.
- Inability to leverage spending power across different business units.
- Difficulties in managing contract across the processes and payment patterns
- Decreasing supplier satisfaction due to inefficient processes and payment patterns.
- Inefficiency to gain the most value from purchases.
- Delays in processing purchase orders and obtaining approvals.
In an attempt to manage spend and develop an enterprise-wide procurement strategy, the management decided to collaborate with SpendEdge. They anticipated continued growth and wanted to ensure the availability of funds for future acquisitions and operational improvements by improving spend management through this engagement.
Inability to perform US telecom industry analysis and manage spend can hinder companies from achieving the desired growth rate. Request a free proposal to access our tailor-made solutions.Request Free Proposal
Our Research Approach
The procurement team at SpendEdge conducted a detailed spend and category analysis to identify saving opportunities for the client. They mapped out a plan that could capture the identified savings and help management gain better control over spend with the growth of the company. The plan included detailed insights to revise procedures and policies, process recommendations, key performance indicators (KPIs) and metrics to manage the spend, and procurement best practices to meet business needs.
Furthermore, the US telecom industry analysis revealed opportunities for savings in different spend categories. Strategies developed to realize savings included the soliciting of competitive RFPs, developing negotiation strategies, helping the client in contract negotiation and supplier selection, and providing detailed insights into improving existing procedures.
The solution offered helped the company in the US telecom industry to:
- Yield significant savings across the board, ranging from a 10% reduction in facilities spend to a 35% reduction in procurement spend.
- Reduce the rogue spend to almost zero.
- Transform the procurement process and make better purchasing decisions to sustain savings in the future.
SpendEdge’s customized US telecom industry analysis changed the client’s approach to spend management and helped them better control procurement in the wake of multiple acquisitions. The engagement enabled the company to open an active dialogue with internal stakeholders and external suppliers and identify over $23 million in reduced spend opportunities. This also helped the client to reduce costs across all categories by 12%.
Identifying savings opportunities requires companies to comprehend price fluctuations in the US telecom industry. Request a free demo to access our web-based procurement platform and gain detailed insights into the US telecom industry.