Friday, September 24, 2010

50 Telecom Procurement Best Practices

Research and Analysis1. Spend Analysis – What, When, Volume, Price, Whom, Approvals
2. Supply Options– Vendor Landscape (Local, Regional, Global)
3. Risk Analysis- Vendor, Country, Component, Material
4. Tax and Duty Analysis – Savings in Bundling, Country of Origin, Local Content, Green

Procurement Strategy, Models and Options5. Global, Regional, Local, Strategy
6. Category Plans – Strategy, Terms and Conditions
7. Global Category Consolidation – Country by Country Analysis – Standardize on Low Cost
8. Breaking up Categories– Cut vendor markups and direct purchase of third party items
9. Multivendor Strategy – Dual Vendor Strategy
10. Benchmarking Internal vs. External, Make vs. Buy Analysis
11. Business Model – Outsourcing, Leasing, Capex vs. Opex, Vendor Financing
12. Risk and Reward- Outcome Based , Revenue Sharing with Vendors

Vendor Selection Process and Vendor Relationship Management13. Vendor Prequalification Process – Relevant Criteria, No Criteria Biasness
14. Tiered Vendor Rankings – Preferred Vendor Status
15. Vendor Rationalization – Few Strategic Vendors
16. Vendor Awards, Certifications
17. Investment in Vendor, Acquiring Vendors, Backward Integration
18. Collaborating with Competitors for Vendor Development
19. Forecast Sharing with Delivery Commitments
20. Vendor Innovation Day
21. Vendor Factory/ Facility Visits
22. Details of Vendors Key Subcontractors and Quality Audit

Pricing and Discounts
23. Reverse Auction – Indicative Volume and Result Commitment
24. Target Pricing
25. Volume Commitment with discounts
26. RFP Process
27. Quarterly updated price list
28. Discount Coupons for future purchases

Contracts and Terms and Conditions
29. Long term contracts with flexibility of renegotiation
30. Legal Inputs Taken – Showstoppers
31. Contract Compliance Management – Trackable
32. Amendments – Approval, Uploaded, Trackable
33. MSA , Statement of Work (SOW)
34. Vendor SLAs or KPIs
35. Customer Exclusivity
36. Late Delivery Penalty- Delivery Commitment
37. Inventory Commitment
38. Extended Warranty with specific warranty conditions
39. Local Content
40. Quality Certificates

Processes41. Specs Analysis – Check for Biasness and Neutralization
42. Sample Testing Process
43. Equipment Monitoring - Life cycle Measurements for Warrant Conditions and Analysis
44. Standard Procurement Guide (used and updated regularly)
45. Standard Templates utilized across company
46. Procurement Policy and Exception Handling
47. Dispute Resolution Process
48. Transparency and Visibility
49. Web based or Automated Procurement system and processes – Invoices, Budget Management, Payment Log – Searchable, Reporting, Monitoring
50. Project Closure Analysis, Procurement Best Practices, Lessons Learnt
51. Continuous improvement process – Lessons Learned and Best Practices implementation

Personnel and Intra Department Collaboration
52. Specialized Personnel – Analytics, Research, Category Specialist, Business Unit Procurement Managers
53. Rotation – Procurement and Business Users
54. Project Management and Procurement Linked – Project Closure Analysis
55. Design Cost Savings – Collaboration between Procurement and Business Units
56. Procurement KPIs aligned with Business Unit KPIs



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Website/ Where to buy -

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Website/ Where to buy -