Majority of large-scale enterprises utilize telecommunication services from a number of suppliers, irrespective of whether or not their telecom expenditure is outsourced. The reasons for utilization of the services of several different suppliers include their requirement to get the lowest possible telecom costs and the associated risk reduction. For the efficient functioning of the enterprise, it is vital that suppliers get periodically evaluated on the basis of their performance. Suppliers are integral components of any enterprise’s operations and, therefore, any deficiency in their services can majorly impact the enterprise.

Supplier Management is the process of ascertaining the architecture of how relationships between the enterprise and its various suppliers will be established and controlled. It also includes establishing particular standards and ensuring that those are met.
The Supplier Management process comprises supplier evaluation, supplier ratings, and supplier relationships.

Supplier evaluation
In this component of the supplier management process, suppliers are given quantitative ratings for different functionalities, such as service, technical aptitude, responsiveness, and cost.

Supplier ratings
As part of the supplier ratings process, suppliers are rated on a scale of 1–5 or a similar measurement parameter. After repeated ranking, the highest rankers are given more orders and the lowest ones are replaced with new suppliers to improve the service received by the enterprise.

Supplier relationships
Enterprises can embrace different practices to enhance their supplier relationships. Preferred suppliers can be awarded with more orders or appreciation certificates.

Avotus’ comprehensive Expense Management (EM) and eProcurement (eP) solutions empower enterprises to match supply with demand, while forging optimal liaisons with suppliers.