WEBVTT 00:00:00.017 --> 00:00:04.058 There are three areas of value for procurement functions 00:00:04.058 --> 00:00:05.859 that are really on tap. 00:00:05.859 --> 00:00:07.219 Guillaume, Matt, welcome. 00:00:07.219 --> 00:00:08.540 Guillaume to you first. 00:00:08.540 --> 00:00:10.980 What's happening in telecoms right now 00:00:10.980 --> 00:00:14.021 that's putting procurement in the spotlight? 00:00:14.021 --> 00:00:18.103 So something is not new, it's external spend represents 50% 00:00:18.103 --> 00:00:19.543 of the telco revenues. 00:00:19.543 --> 00:00:21.744 So this is by definition the key topic. 00:00:21.744 --> 00:00:23.824 What is new is headwinds. 00:00:23.824 --> 00:00:26.865 Headwinds around supply chain and stability. 00:00:26.865 --> 00:00:30.587 Headwinds around pressure on margin with inflation, 00:00:30.587 --> 00:00:33.067 headwinds around power balance, 00:00:33.067 --> 00:00:36.108 moving from telcos to giant tech companies. 00:00:36.108 --> 00:00:37.949 Of course, there are also tailwinds 00:00:37.949 --> 00:00:40.750 that telco can play with, firstly GenAI 00:00:40.750 --> 00:00:43.191 and Matt will be coming back to that in a minute, 00:00:43.191 --> 00:00:45.951 but also technological shift that will allow them 00:00:45.951 --> 00:00:48.872 to create more margin in the future. 00:00:48.872 --> 00:00:51.353 Matt, there's a lot of opportunities in this space, 00:00:51.353 --> 00:00:54.114 but which do you think that telecoms operators 00:00:54.114 --> 00:00:57.155 are not seizing when it comes to procurement? 00:00:58.195 --> 00:01:01.756 Telecoms operators have built strong procurement functions 00:01:01.756 --> 00:01:04.637 that are really good at aggregating spend 00:01:04.637 --> 00:01:08.239 to drive commercial advantage from suppliers. 00:01:08.239 --> 00:01:12.280 They've got robust processes that are technology enabled. 00:01:12.280 --> 00:01:16.321 There are three areas of value for procurement functions 00:01:16.321 --> 00:01:18.202 that are really untapped. 00:01:18.202 --> 00:01:21.043 The first one is around shaping demand. 00:01:21.043 --> 00:01:24.604 We see when we run cost optimization programs with clients 00:01:24.604 --> 00:01:26.404 that two-thirds of the benefits 00:01:26.404 --> 00:01:28.205 are coming from shaping demand, 00:01:28.205 --> 00:01:32.086 influencing specification and demand levers. 00:01:32.086 --> 00:01:36.287 The second one is around the untapped value of GenAI, 00:01:36.287 --> 00:01:40.529 and this is both internally in automating processes, 00:01:40.529 --> 00:01:43.850 in using it to extract more value from the supply chain. 00:01:43.850 --> 00:01:46.371 For example, negotiation agents. 00:01:46.371 --> 00:01:49.091 And also capturing the benefits 00:01:49.091 --> 00:01:52.212 that suppliers are receiving from GenAI 00:01:52.212 --> 00:01:55.133 and that might be things like in software development 00:01:55.133 --> 00:01:57.094 and software development suppliers. 00:01:57.094 --> 00:01:59.975 Then thirdly, in supplier innovation. 00:02:01.055 --> 00:02:03.616 Those organizations that are most successful 00:02:03.616 --> 00:02:05.297 in driving competitive advantage 00:02:05.297 --> 00:02:08.258 from their supply chains are working with their suppliers 00:02:08.258 --> 00:02:12.579 to bring innovation to drive real competitive advantage. 00:02:12.579 --> 00:02:13.699 To you both. 00:02:13.699 --> 00:02:16.100 In your view, what should telecoms leaders 00:02:16.100 --> 00:02:18.661 be doing right now to strengthen their position? 00:02:18.661 --> 00:02:19.701 Guillaume? 00:02:19.701 --> 00:02:22.142 They should continue to position procurement 00:02:22.142 --> 00:02:25.823 at the highest level in the organization to reduce cost, 00:02:25.823 --> 00:02:28.824 drive innovation, manage risk, and so on. 00:02:28.824 --> 00:02:30.825 I think what is critical as well 00:02:30.825 --> 00:02:34.546 is they could leverage procurement to free up cash 00:02:34.546 --> 00:02:36.827 to fund their own transformation 00:02:36.827 --> 00:02:39.227 because there's massive transformation ongoing 00:02:39.227 --> 00:02:40.628 and you need cash to do so. 00:02:41.028 --> 00:02:41.828 Matt? 00:02:41.851 --> 00:02:42.371 I would add two points to that. 00:02:42.371 --> 00:02:44.092 I would add two points to that. 00:02:44.092 --> 00:02:46.892 Firstly, data and data transparency 00:02:46.892 --> 00:02:49.173 are incredibly important. 00:02:49.173 --> 00:02:52.094 Procurement is this exciting nexus between 00:02:52.094 --> 00:02:54.095 internal and external data. 00:02:54.095 --> 00:02:56.255 In pulling this information together, 00:02:56.255 --> 00:02:59.096 procurement can provide a commercial window 00:02:59.096 --> 00:03:00.417 that helps the business to make 00:03:00.417 --> 00:03:03.378 much, much better commercial decisions. 00:03:03.378 --> 00:03:04.698 And the second point I'd make 00:03:04.698 --> 00:03:07.299 is around proximity to the business. 00:03:07.299 --> 00:03:11.340 As GenAI and digitalization automate the operational 00:03:11.340 --> 00:03:13.861 and transactional processes that procurement 00:03:13.861 --> 00:03:17.142 is going through, there's now more priority 00:03:17.142 --> 00:03:19.903 on change and change management being driven 00:03:19.903 --> 00:03:21.704 by the procurement function. 00:03:21.704 --> 00:03:24.304 And leading procurement organizations 00:03:24.304 --> 00:03:28.266 are getting closer to the business and shaping relationships 00:03:28.266 --> 00:03:31.667 to drive better commercial outcomes. 00:03:31.667 --> 00:03:33.467 Matt, Guillaume, thank you so much for your time. 00:03:33.467 --> 00:03:34.308 Thanks a lot. 00:03:34.308 --> 00:03:35.108 Thank you very much.