How procurement renovation transformed a company’s commercial fortunes

A Turkish telecoms firm has shown how intelligent procurement transformation can pave the way to…...

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A Turkish telecoms firm has shown how intelligent procurement transformation can pave the way to spectacular commercial success.

Turkey’s leading mobile phone operator, Turkcell, has seen revenues soar in recent years, tipping the scales at $4.3bn in its last financial quarter. And the company believes its root-and-branch procurement transformation is primarily responsible for its success.

Turkcell’s Executive Vice President of Supply Chain Management Ali Türk told Gigabit Magazine: “While the role of procurement used to have a supportive and reactive function, it now has a strategic and central role in the organisation. We have a responsibility to contribute to the company’s strong financial structure, leadership in corporate business, and superior customer experience.”

In the space of a few years, the rebooted procurement function has seen Turkcell morph from a mobile infrastructure service provider to an accomplished digital operator, delivering a raft of value-added services. These include its BiP digital communication platform, a music platform (fizzy), a search engine (Yaani), a cloud platform (lifebox) and a digital publishing platform (Dergilik) – all in addition to its legacy communications services. In Türk’s words: “Turkcell has transformed its role from being an infrastructure focused service provider into an experience focused digital operator.”

Türk has been justly rewarded for his efforts with a place on the company’s executive board. By collaborating closely with the company’s finance people and internal stakeholders, he and his team streamlined processes, improved services to internal customers, and presided over improved strategic sourcing and appreciable sourcing savings.

His overhauled procurement practices, he notes, have played a “critical role” in company bottom line cost reduction and increased the top line in the form of revenue growth.

One of the biggest reforms to the procurement process was the decision to consolidate its group spending into one centralised team by bringing 30 companies into the Turkcell umbrella.

As the Gigabit article concludes: “Whilst other telecom companies have struggled, Turkcell has blazed its own path in the sector.”

Nick Ford

Nick has over 30 years procurement experience in consulting, outsourcing and line roles within industry with international experience across many sectors and industries and led many procurement programs with blue chip organisations.

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