Telecom Inventory Management System- Get A Complete Record Of Your Telecom Expenses

Telecommunications is the nervous system of every business as no communication (other than face to face communication) would be made possible without it. Whether it is the wired or the wireless technology both come under the telecommunication. By allowing the businesses to make their connections worldwide, the telecom industry gives them an opportunity to grow. However, it is not only the business industry that depends on the telecommunication, but the world we are living into would not be same without it.

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Coming back to the point, telecom forms a big part of every business because business’s mobility depends on it. The internet services, voice, mobile and data services are an important part of the business. However, as the world is becoming digital, businesses’ dependence on the telecom industry is increasing. And in such a situation, it is really essential for the organization to keep a clear and detailed record of all telecom inventory.

Furthermore, telecom inventory management is really crucial to know how much you have spent on the telco services/products, how much of that you have utilized and where it is utilized. Through the inventory management, you would have a control over your telco purchases and utilization. However, as mentioned above, the needs for the telco services and products have grown to a great extent and it has become really difficult for the businesses to manage all this manually. Even after recruiting sufficient staff for that, the chances of errors in the reports reside there.

However, by spending on an efficient telecom inventory management solution, the organizations can eliminate these errors. Such a system will not only help them in the management of purchased services/products and their usage but will also help in the complete telecom procurement. A complete telecom solution will not only help you manage the inventory and related expenses but will also help you with the telecom eProcurement procedure.

For an instance, before making a purchase, you would be able to choose the best option by getting a number of suppliers responding to your RFP. Rather than depending on a single vendor for your telco purchase, you would be able to get multiple suppliers offering you the required services and thereby, you can choose the one that meets your requirements at pocket-friendly rates. And the inventory management system will keep a complete record of all these offers, the finalized contract, the items/services purchased, whether the contract is completed or still active, the overall spending and more. Thus, you do not need to mess up with all this, manually; the software will keep track of all the entire procurement procedure.

That’s not the all; a telecom inventory management system also compares the month on month usage for the telecom sources. And depending on those comparisons, it will alert you if your usage is exceeding the limits. Therefore, if you are looking for a complete solution that would let you manage the entire telecom procurement procedure along with having an eye on the usage and expenses, you must consider spending in a telecom inventory management system.

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What Can The Companies Do For Effective Telecom Invoice Management

Talking about the communication services, they are no more limited to just telephones. No doubt the traditional wireline technology still plays an important role in the industry but even its standards continue to evolve with a wide array of features. And the wireless technology is also becoming an indispensable part of the business industry. Whether it is the data transfer or the internet access, both are necessary and both offer a number of choices to the consumers.

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Actually, both the wireline and wireless technologies are being combined for addressing all levels of need, and this creates competition among the telecom companies. One of the main advantages of this competition is that services are made available at less rates. But still, the organizations are facing the difficulty of telecom invoice management and expense management. It is because of the reason that more and more services are becoming essential for an organization and their spending levels are increasing. These services include wireless services, broadband access, storage services, video conferencing and more.

Furthermore, managing all these expenses becomes difficult as the size of the organization increases. For a small company that accesses a limited number of telecom services, the telecom payment management can be an easy task as it would take just a few hours but for a large enterprise that has thousands of monthly invoices, it would really be a stressful task. Even the simplest invoice processing consumes much time in such organizations because there is no particular billing format.

Managing all these tasks manually is really a difficult task. Not only that, it consumes a lot of time and the chances of errors are also more in such a case. But as accurate reports let the organizations view all their expenses, it becomes easy for them to analyze their profits, losses and savings. It also gives them an idea that where they can reduce their expenses and increase savings. Focusing on all these things, the TEM (Telecom Expense Management) solutions have been designed to help the organizations.

A telecom invoice management solution not only lets the business organization have a detailed report of their expenses, but it also ensures the accurate reports with no errors. Also, as it reduces the manual work of managing the expenses, it reduces the company’s staff cost. Moreover, these solutions are specially designed by focusing on the needs of the business organizations and thus, most of them offer support for the entire telecom procurement procedure. For an instance, such a solution helps to create RFPs, compare different offers and make a valid choice depending on your requirements.

Thus, a TEM is the perfect solution that companies can utilize for effective expense management. All the business organizations, regardless their size, can use these solutions for managing their telecom procurement and related expenses.

Three Main Steps Of The Telecom eprocurement Procedure

When it comes to telecommunications, it normally accounts for a majority of the IT infrastructure costs. The telecom equipment and services come in varied costs and these costs can be minimized to an extent by doing proper planning for procurement procedure. Even the small savings, in a big corporation, can help in saving thousands of dollars.

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No matter how much experience you are having, negotiating on the large corporate WANs is always a big challenge. It is always due to the complexity involved in the process. The aspects like quality, the length of the transition process and the high costs are not easy to map. So, in order to let your telecom eProcurement process go smoothly, you must be well aware by the different steps involved in the process and should have a proper plan in hands. For your convenience, here we are going to explain the procurement procedure.

Procurement Process in detail

There are mainly three steps in the telecommunications eProcurement procedure, which are:

  • RFP (Request For Proposal Process)

    In this, the products/services are procured by requesting the proposals from the suppliers. Buyers write a telecom RFP on the basis of their business objectives, requirements (products/services they want to buy), budget and more. It is an RFP that lets the suppliers know what the buyer is looking for; clearly it is written, better will be the understanding on the side of the supplier. And, this would let the buyer get attractive offers from the suppliers.

  • Supplier’s Proposal Process

    After receiving a proposal from the buyer and verifying their capability of providing the products/services, the suppliers move further with the process. They introduce their products/services to the buyers, do technical discussions on it and give a response to their RFPs.

    On the basis of all the proposals from the suppliers, the buyer chooses the one that meets his requirements effectively at best prices.

  • Follow-On Purchase Process

    Once both, the buyer and supplier, are satisfied with the contract conditions, the contract is finalized between them. They agree to each others’ conditions and move further with the purchase process.

It’s all that is involved in the telecom eProcurement process. Furthermore, as a buyer, you have the choice of limiting the number of suppliers and qualified suppliers who would be permitted to participate in the procurement procedure.

In order to find the best contracts, the buyers are required to create highly effective RFP. Though many companies prefer writing it themselves or hiring professionals, nowadays the trend of using telecom eProcurement platforms is increasing. Such a platform/software not only helps the buyers in the creation of an effective RFP, but it guides the buyer throughout the procurement procedure.

Myths Related To Telecom Reverse Auctions

A reverse auction is just opposite to the general auction; in this, the role of buyer and seller are reversed. Contrary to the general auction, the buyer is the organizer in the case of reverse auction and he invites the suppliers to compete for meeting the best purchasing conditions.

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Reverse eAuction, the term used for electronic reverse auction, is an important part of telco eProcurement, where suppliers compete online to deliver their services/products at best prices. Actually, it has changed the way the business organizations used to select and deal with the suppliers. Telecom reverse auctions act as a negotiation tool; the contracts are finalized by selecting one among the various contract proposals after ensuring that the delivery conditions would be effectively met.

Though reverse auctions are the way to make sourcing process more effective for the buyers and let them have access to the new suppliers but at the same time, it also offers advantages to the suppliers. For an instance, it creates a leveled playing field for the suppliers and offers full transparency of the negotiation process. However, there are some myths related to the telecom reverse auctions. Here are those myths and the reality behind them.

  • Suppliers don’t like the reverse auctions

    Most of the people believe that suppliers do not like reverse auctions. They think so because suppliers need to compete and reduce the prices for their services and products. Well, the reality is non-incumbents like the reverse auctions, provided that the rules are clear to them. No doubt the suppliers need to compete for selling their telco products and services but it also provides them full transparency of the negotiation process.

  • Reverse auctions are used in the case where the main decision variable is price

    It is a common myth that reverse auctions are used only in the case buyers need to reduce their expenses. But in reality, various criteria are defined in the reverse auction, which include average prices, delivery time, warranty periods and some others that influence bid’s final score. It is not only the price, but all purchasing factors are included in the telecom reverse auction procedure.

  • Reverse auctions are not good for buyer-supplier relationship

    It has been believed that reverse auctions do not lead to the healthy buyer-supplier relationships. Well, the relationships are well established when suppliers are clear about the rules and know why they have been selected (as it lets them deliver what is expected from them). And if their services/products are meeting buyer’s requirements and are available at affordable rates then there is no hurdle in the way of buyer-supplier bonding.

If you are planning to organize a telecom reverse auction for completing the sourcing process, then you need to mention your requirements and rules clearly. This would let only the relevant suppliers bid for your auction (who would be interested in delivering their telco services/products as per your recommendations) and you would be able to find the best contracts by creating competition among the suppliers.

Reverse Auction – A Weapon You Can Use For Negotiating On Your Telecommunication Services

Telecommunication industry is much vast and there is a lot of choices that you can get while buying mobile or data services. However, the problem is people don’t know about the different sellers and as a result, they just rely on the one that is trusted by most of the people and is known as the best. And by just buying from the only trusted supplier, the buyers don’t get to know about the offers that local telecom suppliers offer to them and lose the chances of reducing their telecommunications cost.

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Well, don’t need to worry. If you are wondering that how you can know about the services and offers that different sellers are offering then reverse auctions are the answer to that. It is the perfect tool that you can use to find attractive deals on the telco services and to negotiate on them. However, before moving further with the negotiation power of the telco reverse auction, let us provide you a brief description of the term.

A reverse auction works in the opposite way as compared to the direct auction. In this, the suppliers compete to get the business by bringing their selling prices down. A reverse auction is created by the buyers where suppliers bid and re-bid by reducing the price at which they are willing to deliver their services or products. Thus, it gives the buyers a chance to buy best services at minimum rates. And this makes a reverse auction the weapon that you can use to negotiate on telecommunication sourcing process.

Always remember that a reverse auction is not the negotiation process, but it can be a part of the negotiation process. You cannot use the reverse auctions to negotiate the total cost of the deal. Also, there are some complexities for using telco reverse auctions, like varying pricing structures from different suppliers, differences between one-time costs and recurring charges, and other considerations. And even for the discrete telecom services, where reverse auctions are practical, you can use them as a part of the negotiation process. These services are the ones that have straightforward pricing models and can be easily compared when offered by various suppliers.

Moreover, an auction should be the final step in the sourcing process. The one who wins the auction should get the business. And before that, you need to issue a telecommunication RFP to the vendors mentioning all your requirements and initial pricing proposals. An auction should always be executed effectively, otherwise, it can bring opposite results than expected.