Telcos procure different services and products from many different carriers to support the delivery of their products.
Circuit inventory over time can become sub-optimal due to changing operating needs, underutilization, and changing wholesale pricing due to being in a market dominated by volume and sharp yearly price declines.
These circumstances often result in significant complexity and lack of clarity regarding cost attribution to products and customers, as well as on carrier costs, contractual arrangement, and performance.
We assist in reviewing, augmenting and challenging the supplier base to ensure cost competitiveness and an improvement in interconnect input performance.
We can help with:
- Carrier selection and on-board — Tender document definition, RFP/RFI process management; response benchmarking and supplier selection, contract negotiation support; supplier transition, integration and migration.
- Carrier base commercial assessment — Validating inventory/traffic and billing; benchmarking supplier commercials; e.g. spend analysis and concentration; comparative commercial benchmarking; assessing cost compliance agreements; contract re-terming negotiation support.
- Carrier performance management — KPI extraction, SLA/SLG monitoring and enforcement; carrier dashboard creation.
Case Study Reference
- Optimizing Supplier Costs for an International Telco: Our client received 50+ proposals generating an annual savings of approximately 10% of circuit spend. We were further engaged to support other carrier supply management activities.