Operating in a highly competitive and investment intensive environment presents large sourcing challenges for operators and service providers. With the recent rapid development of mobile broadband, declining ARPUs, and a consolidating infrastructure vendor ecosystem where vendors are becoming more selective and risk averse, traditional procurement is oftentimes not adequate. Northstream believes in strategic sourcing as a tool to increase profitability and optimize CAPEX and OPEX.
The critical success factor in achieving maximum value from a sourcing project is through structure, momentum and knowledge – this enables fast turnaround times, clear communication and swift decision-making. To consistently deliver this, solid methodologies, experience, people skills and world-class industry insight are required. Our clients can attest to our strength in these areas and our results.
Northstream holds two key principles that make strategic sourcing efficient and effective:
- Vendor engagement: It is crucial to convince potential vendors of the importance and long term relevance of the scope of the sourcing activity in order to create a real interest for participation and bidding. There must be a competitive environment established, which from there creates a market.
- Transparent process: This is necessary in order to build trust towards the vendors, and we do so by delivering definitive and reliable time schedules as well as clear and constructive feedback and information at all times.
Northstream’s approach to sourcing is one of the most powerful in the industry and is currently being used in the procurement of 4G (LTE) networks by major operators. Northstream has significant experience in the sourcing of WCDMA/HSPA, GSM, CDMA and WiMAX networks, CPEs and devices, as well as outsourced operational services on a global basis, and has led and negotiated numerous outsourcing deals for network and IT operations.
Using Northstream’s sourcing support has, in all cases, lead to significant cost savings and operational efficiencies, and as a rule ensures short payback time and high return on investment. Other key benefits of our structured approach include a solid framework for continued supplier and contract management. Having worked with sourcing for more than two decades, we believe that our strategic sourcing practice will make bottom line impact to your business.