The telecommunications sector has undergone revolutionary changes in the last few decades and continues to be extremely dynamic.
- In 2010, telecom passed financial services as the busiest sector for mergers and acquisitions.
- The industry is now highly concentrated, with only 50 companies holding 90% of the world market.
- With over $400 billion in M&A transactions, the new companies are now on the hunt for efficiencies within the supply chain.
Understanding that the newly inherited environment of multiple, disparate ERP systems may take many years to consolidate, procurement departments must find new ways to identify existing suppliers, understand what critical supplier information is missing, and implement processes for onboarding new suppliers.
The profitability and success of these companies depends upon building and efficiently maintaining a large network. This mandates optimal use of suppliers to maintain the most valuable asset: the network. This supplier network varies from in-ground cable installers, to tower companies, to landline repair. All require proper credential and compliance oversight by the telecom company.
What’s more, because of the latest technologies, the number of new landlines is dropping at a significant rate. Wire line companies are making significant investments in new equipment. Many are also spending on infrastructure such as fiber optics, cables, satellites, and antennas. There is increased pressure on sourcing to identify new suppliers, prequalify them, and institute process to monitor their performance.
Finally, as the frequency and size of lawsuits increase, coupled with the dangerous nature of suppliers’ tasks and the proximity to the general population, telecom companies are forced to invest more energy into ensuring suppliers have proper insurance and coverage. And as network downtime plays a critical role in customer satisfaction, revenue, and reputational risk, telecom companies are paying closer attention to the risk and performance of their supply base.
HICX understands the supplier information demands facing telecommunication companies. Our products are designed to enable new suppliers, collect all necessary credentials on a supplier (or supplier-employee), and measure supplier performance and risk.
HICX’s solutions can help you streamline your supply base management – and we welcome the opportunity to show you how.