Unleashing the Benefits of Spend Management in the Telecom Industry – A SpendEdge Success Story
Spend Management in the Telecom Industry
About the Client
The client is a leading telecom industry player, headquartered in North America. The client’s proven ability in offering robust communication and broadband services have helped them secure a leading position in the global telecom market.
The Business Challenge
Spend management challenges for telecom industry players include those arising due to the lack of control over unmanaged spend and spend data visibility. Performed systematically, spend management can help enhance business efficiency. But navigating the processes involved in business spend management without the necessary expertise and knowledge is not an easy task. Businesses who bite the bullet without effective strategies can find themselves without any tangible spend data, despite the time and money invested by them.
Effective spend management in large global enterprises with hundreds of categories can be complex and difficult. Many businesses today employ manual processes and legacy systems that require a lot of time and effort to execute routine transactions. This not only increases the complexities surrounding spend management but also leads to several other challenges such as- decreased spend visibility, higher transaction costs, poor spend compliance and longer cycle times. Interestingly, it is possible to tackle all these challenges through robust spend management solutions. Effective spend management offers a number of strategic, operational and financial benefits.
Leading telecom companies are turning to spend management to reduce costs, mitigate risks, and increase profitability. Are you?
Top Challenges Faced by the Telecom Industry Player
Problem Statement 1
Due to their inefficient spend management capability, the client lacked complete visibility into processes and failed to analyze spend patterns in terms of suppliers and categories in order to gain full visibility into their processes.
Problem Statement 2
The second obstacle that the organization faced revolved around the lack of knowledge of its scale of spend and diversity within their organization. In an attempt to establish a degree of control and understand key spend areas the client wanted to develop an accurate spend management system to enhance visibility across every area of spend.
Problem Statement 3
The inability to measure indirect spend proved to be a major bottleneck that scaled down their organizations spend management ability. Hence, the client wanted to streamline their sourcing and spend management to better monitor and measure their indirect purchasing performance.
When you control indirect spend more effectively, you immediately create more opportunities for savings. Even a single-digit reduction in annual indirect spend can lead to significant savings that boost your bottom line. Want detailed insights? Request a Proposal.
Solutions Offered and Value Delivered
To get the most out of your business spend data, you need to develop a strategic approach to building and maintaining a robust spend management system. The spend management solutions offered by the experts at SpendEdge involved a well-executed approach to spend management that successfully addressed every spend category within the organization, empowering the client to drive momentous value to the otherwise unaddressed spend categories.
The spend management experts at SpendEdge devised a comprehensive approach to spend management that helped the client make informed decisions about their future procurement decisions. The solutions offered were divided into the following phases:
Phase 1: Consolidation of business spend data
The client’s spend data was spread across different departments within the organization. Therefore, it was imperative to identify their source and consolidate them, making it easier to analyze and draw conclusions. To do so our spend management experts devised a comprehensive approach to gather spend data from disparate sources across the organization. The solutions offered by our spend analysis experts also helped the telecom industry company to identify payments and invoices from all sources and consolidate them in order to gain an integrated view of all spend categories.
Phase 2: Standardization of spend data
The second and the most important phase of this engagement revolved around standardizing the gathered spend data prior to analysis. In addition to standardizing the spend data, the spend management experts played a key role in helping the client track the source of spend and devise effective solutions to eliminate duplication of spend data.
Phase 3: Spend categorization and prioritization
The final phase involved the categorization of spend data into diverse groups based on their source. By doing so the client was better able to understand the category needs and effectively allocate resources.
The spend management solutions offered by SpendEdge helped the client to achieve economies of scale facilitating greater scrutiny of suppliers and their contracts. This helped them keep track of maverick spend, increase the amount of spend under management while enabling access to spend information across all business categories. These capabilities enabled the client to increase spend visibility, accountability and also simplified cross-functional collaboration.
Why partner with SpendEdge?
SpendEdge has been a forerunner in offering smart procurement solutions to 500+ enterprises across the globe. We specialize in offering in-depth, powerful insights that help our clients to develop effective procurement and sourcing strategies to maintain a winning edge in the market. Our unique approach to procurement transformation encompasses robust procurement strategies and technological innovations to help businesses rapidly transform themselves, building the infrastructure to fuel high-performance digital procurement enterprises. Also, we combine our dedicated procurement offerings with best in class innovative solutions to tackle all spend management challenges. What’s more, our customized procurement solutions not only act as a key enabler of productivity and but also accelerate the overall impact on the organization.