1. Transforming Supply Chains
into Integrated Value Systems
arvato Supply Chain Excellence
Telecommunication – Overview Vers. 3.1
Guetersloh, December 2011
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2. Overview
Some Key Questions to Supply Chain Managers
Agile Organizations
Global Trends and Impacts on Supply Chain Management
Process Landscape Telecommunication / Digital Supply Chain
arvato´s Supply Chain Excellence
Why using arvato Templates?
Industry Templates
Supply Chain Template Layers
Carbon Footprint – Green Logistics
Telco specific Processes
Business Intelligence & Performance Measurement
Architectural Benefits
Financial Benefits
arvato Service Offerings
arvato Trusted Partner for Market Leaders
arvato Value Proposition
Contacts
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3. Some Key Questions to Supply Chain Managers
 Is your Supply Chain influencing your business strategy?
 Is your Supply Chain really connected?
 Are you adapting and agile?
 Do you manage Supply Chain complexity?
Is customer and supplier on-boarding complicated, time
consuming and expensive?
Does your IT architecture support your supply
chain strategy sufficiently?
 Does your Supply Chain Strategy
serve your customers better?
arvato as your Supply Chain partner gives the answers by implementing the SAP based
Supply Chain Template. A Best Practice based IT solution adapted to your requirements. Supply Chain Template
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4. Agile Organizations
Characteristics Supply Chain Challenges
 Agile organizations establish synchronized inter-
Supply Chain Networks require:
organizational processes, designed to enable a rapid
 Forecast Collaboration
response to shifts in demand or supply.
 Capacity Collaboration
 Processes and systems that facilitate real-time-transfer
 Inventory Collaboration
of information and plans among multiple functions.
 Transportation Collaboration
 Cross-functional synchronization is especially critical,
 Controlling Collaboration
with shared goals and metrics that support agility.
When opportunities arise, agile companies respond
quickly if they have designed processes in place.
From Enterprise Resource Planning to Supply Chain Collaboration
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5. Global Trends and Impacts on SCM
Global
Economic Situation Global Networks Increased Risk
Trends
Global
Battlefield
Fluctuating Demand & Lack of Network-wide
Impacts Inefficient & costly Logistics
Supply Collaboration
SCM
Inventory Control Distribution Strategy Visibility and Collaboration
Challenges
Prepare the Enterprise Reduce and optimize Drive greater flexibility Supply Chain Template
for rapid Change costs across the enterprise
Stakeholder´s
Goals Slash operational and
Increase organizations ability to
Become comfortable with maintenance expenses by
make advantage of new
unpredictability and adept at maximizing everyday efficiency
revenue opportunities and
anticipating and managing to survive the current economic
address competive threats as
change. climate but also to succeed
they occur.
over the long term.
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6. Process Landscape Telecommunication
Upstream Logistics Downstream Logistics
D2C
Supplier
Terminals & Sim Cards
Buy Move Sell POS (own shops)
Supplier
Accessories
Retail
Core Processes
Order Management & Order Tracking
Affiliation of Contract /
Channel Allocations Blacklists Confidential Customers
Airtime Management
Commissions Pull Replenishment Acquisition / Retention Warranty Management
Value
Plan Source Putaway Manufacturing Putaway Added Pick Pack Ship Returns
Services
Article
VMI / VMR Kitting Labelling Zooming Activation
Substitution
Third Party Serial Number Serial Number
De-Kitting Auctioning Swap Devices
Business Handling Handling
Master Data Management
Distribution
Shops Serial Numbers Article Numbers Vendors Customers IMEI MSISDN
Centers
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7. Process Landscape: Digital Supply Chain
Upstream Logistics Downstream Logistics
Order-to-Cash
Processing, Integration
Order Management & Order Tracking
Order Components Production Finished Transportation Order Order Order Payment
Placed available Executed Goods Planned Picked Shipped Delivered
available
Physical Supply Chain
Value
Plan Source Putaway Manufacturing Putaway Added Pick Pack Ship Returns
Services
Digital Supply Chain
Production & Content Management Ordering &
Content Ingest Tracking & Reporting
Transcoding & Integration Transmission
Media Asset External Service Integration physical
Customer Service Accounting
Management Providers Supply Chain
Digital Supply Chain involves the process of transferring digital content from the content provider to the end consumer online and in a suitable format.
arvato Business and
SAP Standard Components
Supply Chain Template Process enhancements
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8. arvato´s Supply Chain Excellence leverages your business
arvato Supply Chain Excellence
Logistics Execution Supply Chain Excellence
Returns Management Program Management
Value Added Services Network Management
Warehousing Inventory Management
Transportation Distribution
Performance & Functionality Flexibility & Customizing
 Moving from ´make & sell to ´sense & respond`
 Customer centricity becomes increasingly important
 Build IT system to enable modular setup of business requirements
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9. Supply Chain Excellence
Supply Chain Excellence
Supply Chain Consulting
Processes Best Practices
IT Architecture Technologies
Business Intelligence
arvato Supply Chain Template
arvato provides an integrated architecture based on leading IT-
solutions offering highest client value.
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10. Why using arvato Templates?
Advantages
 The template comprises the whole bunch of functionality a specific industry needs to fulfill their business
successfully and competitive;
 Template based technology is faster, more stable and more secure as well as easier to maintain;
 Template based implementation is adaptive and does not require detailed and time consuming as-is-Analysis;
 Template based implementation in conjunction with a prototype provides additional security to guarantee
optimal requirements realization;
Goals of Template Roll Outs
 Harmonization of IT landscape Industry specific Templates
 Reduction of integration gaps Logistics Service
 Reduction of maintenance costs Total Cost Providers
 Reduction of hardware costs of Ownership Telco
 Reduction of license costs
 Implementation of new technologies Media
 Process optimization Retail
 Process harmonization
 Improvement of data quality Business Pharmaceuticals
 Improvement of transparency and monitoring Improvement
 Centralization of global support Food
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11. Industry Templates
Supply Chain
Template Chemicals Pharma Food Retail Automot. LSP Media Telco
Customer Relationship
Processes Configurations Management
SAP Business Suite
SCM SRM Supply Chain Planning
Interfaces Integration
Business Models
& Consolidation
CRM PLM Industry and Best
Practices &
Industry Solutions (IS) process specific Technology
ERP
adaptations and Output Reporting Supply Chain Execution
Financials
Operations enhancements
Human Resources
Corporate Services Business Intelligence &
Master Data Bespoke Work Performance
Measurement
Innovation Carbon Footprint
Supply Chain Architecture
The template based development and implementation strategy guarantees that all relevant core processes for each business
model will be implemented in SAP as a process template to ensure that future customer/business model implementations can be
carried out with a minimum need of time and cost with a high level of flexibility.
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12. Supply Chain Template Layers
The Supply Chain Template is comprised of 4 major process layers:
 Contact Managment
Customer Relationship  Opportunity and sales history
Management  Order Tracking
 Customer Analytics SAP Standard
Components
Customer Integration  Customer Life Cycle Management
 Global view on all orders
Supply Chain Planning
 Available to Promise and Replenishment
&
 Order consolidation
Consolidation
 Supplier assignment
Fourth Party Logistics (4PL)  Billing and Controlling
Supply Chain Template
Supply Chain  Distribution Execution
Execution  Transportation Management
 Warehouse Management
Third Party Logistics (3PL)
arvato Business
Business Intelligence & and Process
 Key Performance Indicators
Performance Measurement enhancements
 Business Analytics
Reporting
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13. Carbon Footprint – Green Logistics
Methodology for optimizing the Carbon Footprint
 Quantifying existing carbon emissions from Supply Chains and Distribution Networks
Value
Plan Source Putaway Manufacturing Putaway Added Pick Pack Ship Returns
Services
Supply Chain Carbon Emissions
Supply Chain Template
 Calculation of the proportional Carbon Emission per product/product group arvato Supply Chain
Template provides
Product Carbon Footprint (PCF)
methodology and
tools to optimize the
Supply Chain Carbon
Footprint .
Optimization Measures
 Evaluating alternative modes of procurement, manfucaturing and distribution with a lower level of carbon emissions.
 Developing plans to reduce CO2 emissions, by modifying transport and facility usage in the Supply Chain.
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14. Telco Specific Processes
Processes Functions Process Integration
 Telco Data Integration in Sales Order, e.g.
Order-to-Cash zooming and activation flag, IMEI
 Main processes are being conducted
maintenance
through an integrated IT architecture
 Logistics execution is embedded in
Purchase-to-Pay  Sales Channel Allocation (Pre- and Post
process activities via well defined
Allocation)
 Replenishment and Forecast interface scenarios (Partner On-
 Kitting / VMI boarding)
 Substitution
Monitoring and Repporting
Store Supply  POS Integration  Planning decisions have to take into
account a variety of variables and
information that are generated along
Financial  Affiliation of airtime / contract management the processes
Integration  Commission Handling  Distributed End-to-End processes are
build based on Process Integration
Returns / Lust-to-  Warranty Management Infrastructure
Dust  Article status (swap device, refurbished)
Master Data Management
Sales Channel and Organizational Structure Listing / Exclusion
Serialnumber Handling / IMEI / MSISDN Confidential Customers
Customers Digital Asset Management
Vendors Articles
Master Data Distribution
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15. Business Intelligence & Performance Measurement
SCPM Scenarios
Standard SAP
Extractors & Data SCOR Plan Source Make Deliver Return
Supply Chain Council
Services Integrator Order Supply Chain Return on Return on
Cash to Cash Perfect Order Cost of Goods
Fulfilment management Working Supply Chain
Cycle Time Fulfillment sold
Cycle Time Costs Capital Fixed Assets
Pre-defined SCPM
cubes and mapping
rules
SCOR Model
KPI hierachy
Work books &
Flex Reports
Admin Workbench
SAP Business Objects
Supply Chain Template
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16. Architectural Benefits
Traditional Supply Chain Solution Template driven Supply Chain Solution
 Batch process  Real-time data
 Fragmented systems  Integrated systems
 Blind spots  End-to-end supply chain visibility
 Outdated systems (legacy)  SAP standards solutions
 legacy systems with tangled processes  modular approach with sourcing option
 Inefficient Logistics processes  Improves logistics efficiency
 Slow response to inventory outages  Improved inventory accuracy
 Delays in customer response  Improved customer response
 Expensive and time consuming integration  Cost effective alternative also for small
projects and midsize suppliers and customers
Supply Chain Template
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17. Financial Benefits
arvato´s Supply Chain approach addresses shareholder targets.
Shareholder Value Supply Chain Metrics Supply Chain Impacts
 High margins
Revenue  Improve customer service and
 Customer retention
response
 Optimize inventory flow,
Profitability utilization and productivity
 Obsolescence
Costs
 First time fix  Best-in-class customer
Shareholder
Value relationships
Return on  Differentiated service
 Inventory pooling
Invested Capital
Working  Speed instead of inventory capabilities
Capital  Virtual warehousing
 Information instead of inventory
 Best-in-class strategic
Invested
supplier partnerships
Capital
 Leverage outsourcing of
business processes
Fixed  Outsourcing
 Centralization  Unique supply chain models
Capital
and asset utilization
Logistics has a significant impact on shareholder value. Effective Supply Chain Management can increase Return on Invested
Capital by 30% and more.
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18. arvato Service Offerings
arvato Supply Chain Excellence
Consultancy
Analysis &
Planning Supply Chain Check Logistic Check Business Strategy Analysis & IT
Green Logistics – Carbon Footprint Strategy
Performance Improvement Designing the Supply Chain Template
Optimization & Implementing the Supply Chain Template & Change Management
Implementation
Business Process Outsourcing (BPO) & Application Management
SAP Services
ERP Projects & Implementation Managed Services
Financials Manufacturing Business Process Application
ERP & Managed Outsourcing Maintenance
Services Supply Chain Customer
Management Management
Business Process Off Shore
Human Resources Business Intelligence Optimization Center of Excellence
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19. Supply Chain Value Proposition
arvato is one of the leaders in advanced supply chain management for several industries. Our unique insight and long
term experience into what is required and expected allows us to fulfill supply chain requirements very effectively. We have
Our
risen to the top of our sector because of our extensive industry knowledge, as well as where our focus is placed: our
Proposal
customers – we listen to what your needs are, and meet those needs. As a result, we provide the most predictable and cost-
efficient way toward the complete delivery of your supply chain – on time and on budget.
We manage the project, co-ordinating all activities and taking full responsibility to ensure your supply chain is in production on
One
schedule. Cost overruns, time delays and unwanted surprises typical are thus minimized, making the whole process more
Partner
effective and, more importantly for you, far more economical and transparent.
Predictability means you get what you expect. When you work with us you know you’re dealing with agreed conditions and
schedules. Everything is transparent from the very beginning. Time delays and unexpected difficulties are minimized through
Total
our delivery process, and quality requirements are met. Our projects finish on time and on budget. This predictability is our
Control
guarantee that your business requirements will be met, without fear of hidden costs or delays. We have proven it over and
over again.
Our project delivery methodology ensures a fast delivery based on using business process templates, and thus greatly
compresses the schedule. Our approach to integrated qualification (process specialists instead of function specialists)
Shorter Time
leverages our efforts in the workshops to a maximum, drastically reducing spent time. This translates into tying up capital for a
to Market
shorter period of time, advancing speed-to-market and revenue generation, as well as, conserving valuable company
resources. Also, by being faster, you may defer your investment decision.
Modular services and IT systems allows maximal flexibility for your supply chain. Accessibility for operation is addressed and
Flexbiility future modifications of your business becomes easy. With the modular system your business can easily and with minimal
disruption be expanded when market demand grows or can be adapted to any other changes.
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20. Contacts
arvato systems | Technologies GmbH
An der Autobahn 220
33333 Gütersloh
Michael Eckensberger Christoph Tieben
michael.eckensberger@bertelsmann.de christoph.tieben@bertelsmann.de
phone: +49 5241 80 888 16 phone: +49 5241 80 89336
mobile: +49 171 319 5636 mobile: +49 174 323 5249
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