What's Happening?
Telecom operators are increasingly focusing on tail spend management, which accounts for approximately 20% of procurement budgets but represents 80% of transactions. This shift is driven by the need for agility
and compliance in a rapidly changing market. Tail spend, often overlooked, is now seen as a strategic opportunity for digital transformation. By combining Artificial Intelligence (AI) with Human Intelligence (HI), telecoms can manage tail spend more effectively, ensuring compliance and driving innovation. AI platforms can process large volumes of transactions quickly, flagging anomalies and recommending suppliers, while human expertise provides the necessary judgment and negotiation skills. This approach not only enhances visibility but also aligns procurement with strategic business goals.
Why It's Important?
The transformation of tail spend management in telecoms is significant as it can lead to substantial savings, estimated between 5% to 15%. For large operators, this translates to millions of dollars that can be reinvested into network development, product innovation, or customer experience improvements. Effective tail spend management also enhances resilience against supply chain disruptions and geopolitical volatility. By leveraging AI and HI, telecoms can streamline procurement processes, bringing niche suppliers to the forefront and fostering innovation. This strategic approach to tail spend is crucial for telecoms to remain competitive and compliant in a global, regulated industry.
