KEY SELLING POINTS SCM PROJECT ASSIGNMENT Submitted By: Pankaj Kotwal (Roll No. 46) SUPPLY CHAIN MANAGEMENT - Dr. Nitin Seth EPGDIB-VSAT 2011-12 (Term II) DEEP DIVE INTO SCM PRACTICES IN TELECOM SECTOR
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KEY SELLING POINTS
SCM PROJECT ASSIGNMENT Submitted By: Pankaj Kotwal (Roll No. 46)
SUPPLY CHAIN MANAGEMENT- Dr. Nitin Seth
EPGDIB-VSAT 2011-12 (Term II)
DEEP DIVE INTO SCM PRACTICESIN
TELECOM SECTOR
KEY SELLING POINTSSupply Chain Management in Telecom
- Why telecom is complicated ?
EPGDIB-VSAT 2011-12 (Term II)
Not only physical products flow through the supply chain, but also services. There are different types of suppliers for a Telecom operator, some suppliers provide physical products; some provide pure services; and some provide both.
KEY SELLING POINTSSupply Chain Management in Telecom
EPGDIB-VSAT 2011-12 (Term II)
COMPONENT
USED
KEY SELLING POINTSSupply Chain Management in Telecom
- Supply Chain of a TSP
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KEY SELLING POINTSSupply Chain Management in Telecom
- Telecom Value Chain
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KEY SELLING POINTSSupply Chain Management in Telecom
- Supply Chain of Vendor
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KEY SELLING POINTSSupply Chain Management in Telecom
- Supply Chain of Vendor
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KEY SELLING POINTSSupply Chain Management in Telecom
- VAS Value Chain
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KEY SELLING POINTSSupply Chain Management in Telecom
- AS-IS To TO-BE
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KEY SELLING POINTSSupply Chain Management in Telecom- Collaborative Product Commerce(CPC)
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Elevating Product Knowledge to an Enterprise Asset. Creating Inter-enterprise Collaboration.
Utilizing Collaboration Portals.
Timely and accurate information.
Maximize existing investment in information technology.
KEY SELLING POINTSSupply Chain Management in Telecom
- Vodafone
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World’s Leading Telecom Service Provider Vodafone spent more than £23.8 billion purchasing products and services from more than 40,000 suppliers in 2007/08.
KEY SELLING POINTSSupply Chain Management in Telecom
- Current Trend
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Removing the traditional Tier I of our supply chain, dealing directly with contract manufacturers. For example, Vodafone is working directly with original design manufacturers to produce Vodafone-only branded affordable handsets.
KEY SELLING POINTSSupply Chain Management in Telecom
- Current Trend
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• Prices range from $20-$45 for 2G handsets This will enable many more people in emerging markets to afford access to mobile technology and the benefits it brings for the first time. In India, for example, handsets such as the Vodafone 25, 225 and 226 have proved very popular.
KEY SELLING POINTSSupply Chain Management in Telecom
- Challenges for SCM
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Challenge Drive savings via material category plans. Improve supplier performance. Exploit scale & scope through global framework agreements and global price books. Leverage spend through electronic sourcing and collaboration with suppliers. Execute goal agreements with key suppliers.
KEY SELLING POINTSSupply Chain Management in Telecom
- Supply Chain Process Overview
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MAKE
Make Product
Enable Make
ORDERMarket Product
SOURCE
Source Product
Enable Source
DELIVER
Deliver Product
Enable Deliver
PLAN
Plan Supply Chain Enable Plan
Su
pplie
rs
Cu
sto
me
rs
RETURNHuawei RETURN
Customer-oriented, process-based, building partnerships and sharing information
Integrated high-efficiency and open supply chain with advanced IT tools
KEY SELLING POINTSSupply Chain Management in Telecom
- Critical Success Factors
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• Most innovative products and/or services.• Fastest response to customer requirements.• Fastest time to market for new products and services.• Highest level of product/service reliability.• Best value for the money.
KEY SELLING POINTSSupply Chain Management in Telecom
- Vodafone Global SCM Initiative
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1. Replace Supplier Centric Model with Material-Category Centric Model2. Supplier Performance Assessment3. Leaner, faster and more transparent sourcing decision-making process
for supplier selection via e-HUB.4. Reduce Total Cost5. Collaboration with Suppliers
KEY SELLING POINTSSupply Chain Management in Telecom
- Models
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Research Paper by E2OPEN : “ Vodafone leverages economies of scale and scope over its distributed global supply chain network”
KEY SELLING POINTSSupply Chain Management in Telecom
- Supplier Performance Management Process
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KEY SELLING POINTSSupply Chain Management in Telecom
- Supplier Risk Assessment Tool
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KEY SELLING POINTSSupply Chain Management in Telecom
- Supplier Risk Assessment Tool
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KEY SELLING POINTSSupply Chain Management in Telecom
- Supplier Risk Assessment Tool
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KEY SELLING POINTSSupply Chain Management in Telecom
- Method of Selecting Best Supplier
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KEY SELLING POINTSSupply Chain Management in Telecom
- e-HUB facilitates Decision Making
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• Global Price book data• Global Standard Configurations• eHub provides business intelligence, including automated savings tracking against global sourcing decisions across operating companies, and • Provides compliance measurement reports across operating companies
KEY SELLING POINTSSupply Chain Management in Telecom
- Total Cost Reduction
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Providing a single Vodafone “face” to suppliers across Vodafone operating companies Process Efficiency Increasing revenues by enabling VMI Collaboration Model
KEY SELLING POINTSSupply Chain Management in Telecom
- Collaboration with Suppliers
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• Vodafone has deployed an extended supply chain management eHub to connect Vodafone and its strategic suppliers into a powerful supply network.
KEY SELLING POINTSSupply Chain Management in Telecom
- B2B Model
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KEY SELLING POINTSSupply Chain Management in Telecom
- Advantages
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• Cost and Material Savings Steve Pusey, Vodafone’s chief technology officer, said that Vodafone had delivered cost savings of £410 million ($815 million) since May 2006.
• Improved Supplier Performance• Leverage Spending
KEY SELLING POINTSSupply Chain Management in Telecom
- Bibliography
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• Vodafone Annual Report 2007-08• Boston Development Analysis On VAS in India• IEEE Explore• www.nokiaforums.com• www.iec.org• Vodafone Leverages economies of Scale and Scope over its distributed global Supply Chain Network- E2OPEN.com
KEY SELLING POINTSSupply Chain Management in Telecom
EPGDIB-VSAT 2011-12 (Term II)
Thank You
KEY SELLING POINTSSupply Chain Management in Telecom
EPGDIB-VSAT 2011-12 (Term II)
KEY SELLING POINTSSupply Chain Management in Telecom
EPGDIB-VSAT 2011-12 (Term II)