Managing the Telecom Procurement Process EffectivelyManaging telecom procurement is crucial for businesses to optimize costs and improve operational efficiency. In this blog, we’ll discuss best practices so that you can manage your telecom procurement process the right way.

Managing the Telecom Procurement Process Effectively

The first element of a successful telecom procurement is timing.  You need to start the process at least nine months before your current agreements expire. Nine to twelve months will allow you enough time to perform a legitimate telecom RFP.

As written before, building leverage is essential, and a lack of time equates to a lack of leverage.

Along with giving yourself enough time, your procurement team needs to be united and working together.  It won’t help if an executive from your company plays a round of golf with an executive from your incumbent vendor, for instance.  It also won’t help matters if any of your branch or regional offices are operating independently.

It’s important that your organization speaks with one voice and communication with vendor representatives is controlled.  Your team wants to avoid vocalizing any hesitation to change.

It’s also important to manage vendor relationships and behavior. Vendor representatives from companies like AT&T, Verizon, and CenturyLink will try to circumvent your negotiation team, and offer percentage savings to avoid an RFP and delay, so you run out of time.

Be prepared and form a strategy for potential conflicts of interest, such as what to do if your vendor is a large customer of your company or if a vendor executive is on your company’s board.

If you need to procure new services during the procurement process, make sure you do so competitively.  Ordering a new internet T1 or PRI from your existing provider won’t help.  Ordering a single circuit from one of your vendor’s competitors, like Level 3, XO or TW Telecom is an opportunity to test that provider and build leverage.

As you can see, managing the telecom procurement process isn’t just about how you conduct a telecom RFP; it involves all your communication with your providers and potential providers, and managing time and vendor behavior.

CarrierBid can help you with any step of the telecom procurement process.  We don’t charge a fee for our service or require a share of your savings.

If you would like to receive more information regarding CarrierBid’s networking and telecom consulting services, please complete the web form on the right side of this page.

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