Push-To-Talk Over Cellular Services Category Procurement Intelligence Report

A changing ecosystem within the Telecoms market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Push-To-Talk Over Cellular Services. Suppliers have historically gained handsome margin-on-margin by sub-contracting a part of their work to another contractor. However, Buyers are now delving deep into the business models of suppliers and negotiating hard to avoid further sub-contracting. In cases where it is imperative to sub-contract, category managers are employing should-cost models to keep supplier margins on sub-contracting to the minimal.

Suppliers are shedding the category expert tag and moving up the value chain to offer an integrated approach to their services. With this new approach, suppliers can offer a wide portfolio of services and position themselves for large contracts that go beyond just Push-To-Talk Over Cellular Services.

Many companies are looking to engage Push-To-Talk Over Cellular Services supplies in a long-term partnership to derive the highest ROI possible and creating an environment of trust and collaboration that allows for new optimization strategies.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Push-To-Talk Over Cellular Services. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers should evaluate the true costs of each product and service within the scope of work for supplier, and also understand the hidden costs associated. This can help them to set accurate targets for cost reduction for their suppliers, and effectively monitor and evaluate their performance against industry benchmarks.

Category managers must explore opportunities to integrate planning and management activities of categories using analytics, to gain better control over category spend. This will also allow them to consolidate their supply base easily, as well as to segment suppliers based on requirements and spend on each supplier.

Benefits of an integrated program are more apparent over a period of 5-7 years, and the goal in such relationships is to achieve cost savings and improve performance in the long run. Buyers should opt for suppliers that have a track record of long-term engagements as this will increase the probability of these suppliers sustaining in a mutually beneficial relationship for a longer duration.

Push-To-Talk Over Cellular Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Push-To-Talk Over Cellular Services procurement. Some examples include: