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2019 ipsm conference_10_irada veliyeva

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Irada Veliyeva presentation for IPSM First International Conference in Procurement and Supply Chain
June 5-6, Kyiv, Ukraine

Published in: Business
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2019 ipsm conference_10_irada veliyeva

  1. 1. Presentation title – Client name 1
  2. 2. ©VEON Ltd 2016 DIGITAL TOOLS IN SCM – INVENTORY MANAGEMENT ©VEON Ltd 2016IRADA VELIYEVA
  3. 3. Reduced unit cost • Organizational structure alignment • Portfolio optimization • Warehouse space optimization Inventory management • E2E process optimization • Demand and forecast planning • Reverse logistics • KPIs monitoring • Automation and analytics Payment terms difference • Short-term Supplier financing • Full turnkey contracts • Supplier Performance improvement SUPPLYCHAINWORKING CAPITAL –WAYSTOUNLOCK
  4. 4. ISSUE LONG PROCESS OF EQUIPMENT INSTALLATION ON SITE PAYMENTTERMSIMPROVEMENT INITIATIVES FULL TURNKEY PARTNERSHIP AGREEMENTS WITH THE KEY VENDORS RE-NEGOTIATION OF THE AGREEMENTS INTRODUCTION OF OPERATING WORKING CAPITAL KPI VALUE EQUIPMENT SALES AND MARGIN INVENTORY (WORKING CAPITAL) AND DOI (DELIVERY TERMS, 0- INVENTORY) FREE CASH FLOW (PAYMENT TERMS) BRAND AWARENESS, MARKET SHARE, SALES (PROMO CAMPAIGNS AND ACTIVITIES) CUSTOMER PAYABLES LONGER THAN INVENTORY TURNOVER RE-NEGOTIATION OF THE AGREEMENTS INTRODUCTION OF OPERATING WORKING CAPITAL KPI
  5. 5. INVENTORYMANAGEMENT- SupplyChain Performance Defining As-Is status via quick supply chain assessment by OpCo Supplier Operation and Inventory Channels By Product + By Supplier Order Fulfilment lead time (days) OTIF % (On Time and In Full) Number of models Slow moving models % DOI (Days of Inventory) Inventory Value & Q.ty Slow mover Value & Q.ty Inventory aging Turn around time Internal lead times FTEs By Channel Forecast Accuracy % Slow Mover % On Shelve Availability % Return Q.ty % SCM Process optimization
  6. 6. INVENTORYMANAGEMENT– DemandandForecastPlanning S&OP process owner Demand Planning ►Forecast demand and continually improve forecast accuracy Category Management ►Provide additional input for forecasting. Procurement ►Generate a procurement plan constrained on the basis of demand and current inventory Financial ►Assess financial consequences of proposed scenarios and tracks overall SC finance performance Logistics ►Establish and maintain goods movement and inventory management process Category management Devices Supply Sales channels Devices Procurement S&OP Sales channels ►Integrate the Sales channels sales planning to S&OP process, transforms revenue sales plans to demand in units Demand planning Finance ►Takes overall responsibility for S&OP process implementation and operations. Responsible for final decision and S&OP KPIs
  7. 7. AutomatedDistribution& PlanningSolution Weekly shipments calendar Old stock sell-out Individual portfolio Commercial redistribution ADS Inventor 85days DOI YTD Is designed to transport non- demanded goods from PoS to CWH for further redistribution or sell-out Is designed to adjust goods mix at PoS to maximize sales through inventory optimization Will allow to decrease volume of low DOI / aged devices presented at PoS to maintain target 15% Is designed to control overstock at PoS through weekly correction of shipments volume ONGOING ONGOING ONGOING ONGOING
  8. 8. INVENTORYMANAGEMENT– REVERSE LOGISTICS ▪ Improve working capital & eliminate waste ▪ Enhance warehouse space utilization ▪ Maximum return on values of excess inventory ▪ Recurring process of cleaning the waste ▪ Standardized inventory aging classification ▪ NW: 180 Days ▪ Devices: 85 days Value retention (illustrative) Return for refund where favorable rate available Use to fulfill demand in another OpCo Sell to 3rd party if resale value is sufficient Maximize value from recycling Sell at discount (3rd party) Transfer to other OpCo Recycling (local disposals) Return to supplier (“Barter Trade Option”) 5% 15% 50% 30% Inventory which can’t be used Value retention % Value retained Objectives
  9. 9. INVENTORYMANAGEMENT - VEON Marketplace 9 OpCosuploaddata VEON Marketplace X-OpCo transfer Selling to 3rd Party Local disposals Planning As per approved processes from OpCos, HQ Finance and Technology Execution PMTUpdatePMTUpdate ▪ Enhancing collaboration between OPCOs for maximizing value retention by X- OPCO transfers ▪ Onboarding global vendors ▪ Standardized processes across OPCOs ▪ User friendly tool
  10. 10. ©VEON Ltd 2016 THANKYOU

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