At first glance, the procurement process for telecom equipment may seem like a piece of cake. However, there is a lot to consider regarding the reliability of suppliers, the cost of equipment and service, as well as savings options that can drastically cut your expenses. Profit Advisory Group is an expert regarding the procurement process, and we can help your business save boatloads of time and money. The following is an outline of our proven strategy for procurement:
Phase 1 of the Procurement Process
During this phase, the first step is to conduct a meeting with all relevant parties from procurement and IT. We then proceed by verifying and accounting for all current contracts and discount programs and create a project plan agreement. Finally, we confirm the Letter of Authorization signature and introduce key vendor account teams.
Next, we request 12 months of invoice data from carriers and start a dialog with them if there are any unanswered questions. We then compile an inventory of current services and contracts. After all of the information has been gathered, we can then perform an audit to look for missed opportunities and wasteful spending.
Bench Marking and Analysis
This crucial step involves contract benchmarking, price benchmarking, identifying consolidation opportunities, optimization analysis, utilization analysis, and putting together a list of providers. In addition, we identify any waste, identify credit opportunities for billing errors, and create a monthly savings potential summary.
In the final step in phase 1, we review all potential savings opportunities and discuss any changes that need to be made to increase savings. Lastly, we create an implementation plan and create a 12 month savings forecast.
Phase 2 of the Procurement Process
This step is different that the similar step in phase 1 because we now need to agree on a vendor strategy before moving forward. In addition, we need to reach a project plan agreement as well as and RFP and negotiation plan.
In this step things start to get exciting as we directly negotiate non-competitive discounts and terms. Additionally, we write an RFX for services where there is competition to garner more favorable results. We also work with current vendors to ensure they are providing you with the best pricing.
Now we need to review your options to select the best fit for your telecom infrastructure. We will review all of the vendor proposals, RFX and pricing results, and determine how your organization wants to proceed.
Implementing and Monitoring
In this final step, the culmination of planning and auditing is finally put into action. We develop an implementation plan and then take action. We also monitor invoices to ensure that you aren’t being unduly charged for services you didn’t order. Finally, we summarize the implemented savings, forecast the next 12 months’ savings, and close the project.
To be successful in any endeavor concerning telecommunications equipment and services, executing the procurement process correctly is paramount to your future. If performed incorrectly, you could miss dozens of opportunities that would have saved your organization thousands upon thousands of dollars in the long run.
[author_bio username=”Ken” name=”yes”]