Procurement and Vendor Management Working Group

The objective of this group is to share experience within the procurement and vendor management area and explore areas on common interest, primarily within IT and Networks.

It is essential to have a well defined and structured way of working to be able to fully take advantage of the Vendors offerings and potential in the company’s own customer offering. To be able to utilize and take full advantage of the Vendors business offering it is essential to have a thoroughly knowledge of the Vendors market, market situation and the Vendors cost drivers, etc. It is also essential that the company, when approaching vendors, and in the continuous relation with vendors, applies a one company approach.

The company’s relation with vendors and vendors relation with the company is always business driven, it is therefore crucial for the sourcing organisation to know and understand the Vendors business as well the Company’s customer offerings.

The vendor knows a lot about your company. What do you know about the vendor?

Basically, the overall goal for the Working Group is to understand how a Telco can in an efficient way, run a Procurement department with focus on Right level of people, Smart contracts, Skills needed, Rules and Processes – Best practices!

An internal Procurement Survey has been carried out to get a better understanding of the situation in the different companies. This Survey serves as a basis to prioritize future work.

Objectives of the Working Group

Define a framework for Measuring Procurement Contribution

• How to measure ‘delivered IT, Network and Contracting services’
• Governance of Vendors

Determine the best practice within Governance of Vendors

• Benchmarking
• Involvement in the budgeting process
• Implementation of the contract and the business case realization
• Risk rewards models  
• Incentives model on Offshoring – risk/rewards

Define the Procurement & Vendor Management tasks and functions

• Positioning of Procurement group to maximize the value
• Vendor Management – Paper Roles and Responsibilities in Sourcing
• Supporting infrastructure and processes

Deliverables

Procurement and Vendor Management Working Group works to build adequate models or frameworks in parallel to it’s objectives. For this, the Group will concentrate it’s efforts to provide the deliverables within a prioritized manner.

Participants include:

TeliaSonera (Chair position), BTC, CYTA , KPN, eircom, TDC, Slovak Telekom and Turkcell