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1. Transforming Supply Chains
into Integrated Value Systems
arvato Supply Chain Excellence
Telecommunication – Overview Vers. 3.1
Guetersloh, December 2011
arvato systems_Supply Excellence_Overview_Telco 1
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
arvato systems_Supply Excellence_Overview_Telco 2
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
arvato systems_Supply Excellence_Overview_Telco 3
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
arvato systems_Supply Excellence_Overview_Telco 4
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.
arvato systems_Supply Excellence_Overview_Telco 5
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
arvato systems_Supply Excellence_Overview_Telco 6
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
arvato systems_Supply Excellence_Overview_Telco 7
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
arvato systems_Supply Excellence_Overview_Telco 8
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.
arvato systems_Supply Excellence_Overview_Telco 9
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
arvato systems_Supply Excellence_Overview_Telco 10
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.
arvato systems_Supply Excellence_Overview_Telco 11
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
arvato systems_Supply Excellence_Overview_Telco 12
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.
arvato systems_Supply Excellence_Overview_Telco 13
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
arvato systems_Supply Excellence_Overview_Telco 14
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
arvato systems_Supply Excellence_Overview_Telco 15
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
arvato systems_Supply Excellence_Overview_Telco 16
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.
arvato systems_Supply Excellence_Overview_Telco 17
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
arvato systems_Supply Excellence_Overview_Telco 18
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.
arvato systems_Supply Excellence_Overview_Telco 19
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
arvato systems_Supply Excellence_Overview_Telco 20