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Global Supply Chain Management

Role of Emerging Economies


An

S Asokan
Director Supply chain
Contact# 98182 39393

Perspective

Rev 1.2

Supply Chain Management

A Quiz

When was the term Supply Chain Management first used in the public domain?
1982
Keith Oliver a consultant with Booz Allen Hamilton used the term Supply Chain
Management in an article published in the Financial Times on June 4, 1982..
He described the overall process of Planning implementing and controlling what goes on at
the supply chain in order to satisfy customers needs in a quick efficient manner as Supply
Chain Management.
1986 : PRTM began using the term in manufacturing strategy training conducted for the American
Electronics Association.
1992: Organizing the detail findings of a multi-company, cross-functional Supply Chain Benchmarking study,
four key supply chain elements are organized as Plan/Source/Make/Deliver*
1996: Supply-Chain Council and PRTM co-develop the "Supply-Chain Operations Reference-model" (SCOR).
2005: Council of Logistics Management (CLM) changed to Council of Supply Chain Management
Professionals (CSCMP).

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Supply Chain Management

A Quiz

Which company first formally embraced the term supply chain by naming a vice
president, integrated supply chain?
1982
Xeroxs Steve Tierney became Vice President, Integrated Supply Chain
A Good Move. The position previously referred to as Vice President Corporate Logistics and
Asset Management a.k.a VP CLAM
1994: AT&T, Digital Equipment Corporation, IBM, and Xerox formed a consortium to develop a standard
set of definitions and metrics that companies could use to define this thing called the supply chain.

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Supply Chain Evolution

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Supply Chain Management

A Look Back

EVOLUTION

Extended Enterprise

Supply Chain Management


Strategic Sourcing
Materials Management
Traditional Procurement
1960s-70s

1980

1985

1995

2000

EOQ

MRP
DRP

JIT
QR

VMI

ERP

SCHEDULING
Moving towards an Extended Enterprise: Creative Partnerships
Co-Creation is the key
Need both technological capability and a high level of trust.
Company culture that de-emphasizes short-tem company specific gains in
favor of a network of supply chain partners
Greater information sharing, developing trust and encouraging relations at
all levels.
Integrating suppliers with leading-edge practices

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2005 and beyond

APS
CPFR
EOQ

Economic Order Quantity

MRP

Material Requirements Planning

DRP

Distribution Requirements
Planning

JIT

Just in Time

QR

Quick Response

VMI

Vendor Managed Inventory

APS

Advanced Planning Systems

CPFR

Collaborative Forecasting Planning


and Replenishment

Supply Chain Progression

Stage 1
Functional
Focus

Supply chain processes and data flows are well documented and understood
Resources are managed at department level and performance is measured at the functional level

A company wise process and data model exists and is measured at company, process, and diagnostic

Stage 2
Internal
Integration

level
Resources are managed both functionally and cross functionally

Strategic partners collaborate to identify joint business objectives and action plans

Stage 3
External
Integration

Stage 4
Cross-Enterprise
Collaboration

Strategic partners collaborate to enforce common processes and data sharing


Strategic partners collaborate to define, monitor and react to performance metrics

Collaborative supply chain enabled by advanced IT for alignment of supply chain partner's business
objectives and associated processes.
Collaborative supply chain enabled by IT for real time planning, decision making and response to
customer requirements

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Differentiation Telecom Vs Manufacturing

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Supply Chain Differentiation Service Vs Manufacturing


Price is Key

Supply Chain
(Indirect)

Offering/
Process
Development

Customer
Relationship

Production
Management
Supply Chain
(Direct)

Infra
Management

Price is Key

Price is Key

Supply Chain
(Indirect)

Information
Sources
Value/Cost is
Key

Buy Side

Market
Insight
Distribution
Chain

Manufacturing Supply
Offering/
Process
Development
Service
Provision &
Operations
Infra
Management
Inside

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Customer
Relationship
Market
Insight
Distribution
Chain

Sell Side

Differences
In Service SC Human labor
forms
a
significant
component
Not entirely possible to
have
standardized and
centralized procedures and
controls in Service SC as
many of the decisions are
taken
locally
and
the
variation and uncertainties in
outputs are higher because
Chainof the human involvement.
Focus of efficiencies in
service supply chains is on
management of capacity,
flexibility
of
resources,
information flows, service
performance and cash flow
management.
Similarities
Demand Management
Customer
Relationship
Mgmt
Supplier Relationship Mgmt

Service Supply Chain


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Supply Chain Differentiation Telecom Complexity


Supply Chain
(Indirect)

Information
Sources

Offering/
Process
Development
Service
Provision &
Operations
Infra
Management

Differences
Both Direct &
Buying as in Mfg.

Customer
Relationship
Market
Insight
Distribution
Chain

Indirect

VAS & Content Buying


Concept of Right to Use.
Co
Creation
&
Ownership Concepts.

Co

Focus on Value Vs Cost.


Customer
critical.

Experience

is

Service Supply Chain Huge CAPEX costs.


Supply Chain
(Indirect)
Supply Chain
(Direct)

Offering/
Process
Development
Service
Provision &
Operations

VAS
Content

Infra & Asset


Management

Buy Side

Inside

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Asset
Management
becomes key portfolio
Similarities: Critical

Customer
Relationship

Demand Management

Market
Insight
Distribution
Chain

Sell Side

Customer
Mgmt

Relationship

Supplier Relationship Mgmt

Telecom Supply Chain


9

Airtel Supply Chain

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Airtel Supply Chain Model


Develop New
Acquire & Manage
Markets & Products Customers

Planning &
Analysis

Marketing

Market &
Brand
Strategy

Product
Mgmt

Product
Planning

Sales

Customer
Mgmt &
Care

Sales
Channel
Strategy

Customer
Strategy
& Care
Mgmt

Develop & Provide


Network Services
Billings &
Collection

Direct &
Control

Network

Network
Planning & Operations &
Deployment Maintenance

Network Planning
Billing
Strategy

Retail
Logistics

F&A

P2P
(Direct, &
Indirect)

Supply
Planning

F&A
Strategy

e-RFX

Inventory
Inventory
Mgmt
Mgmt
(Mobiles
(Mobiles)
&
Accesory

Asset
Mgmt

Supply Planning
Demand Planning

Brand
Mgmt

Operate &
Execute

Service
Assurance

Manage Enterprise

Marketing,
Comms & Product/
Promotion Service
Devpmt &
Retirement
Market/
Customer
Research
& Analysis

Sales
Channel
Mgmt

BSS:

CRM
Support &
Readiness

Billings &
Collection
Mgmt

Sales IBM Commercial in Confidence

Execute &
Manage Campaigns

Supply Chain:

Service
Mgmt &
Readiness

Customer Contact
Operations
OSS:

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Customer
SLA/QoS
Mgmt

Asset Mgmt
Network
Device & Inventory Mgt
Supplier Spare Parts
Order
& Field Force
Mgmt
Mgmt

Real
Estate
Mgmt

Contract
Mgmt

Supplier Performance Mgmt & Reporting


Problem
Reporting
& Mgmt

Warehse Accounts Catalogue


Mgmt
Mgmt
Payable

Warehouse & Logistics Mgmt

Logistics
Financial
&
& GL
Transport
Reporting
Services

Maintenance
Mgmt
Service
Activation Service
Performance
Service
Problem Mgt
Mgmt
Resource Provisioning

PO/
SOW
Mgmt

Airtel Supply Chain Innovation People and Processes


Supply
Chain

PEOPLE

SME

Relationship
Focus

Team
Work

Communication

Governance

OME
Matrix Org Design
Automated

Easy

PROCESSES

Flexibility

Self
Governing
Sourcing Process

iSupplier Portal

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Airtel Supply Chain Innovation Partnerships


NETWORKS

Consolidation

IT Infra

Strategic

Call Center

Collaborative

Long
Term

Towers
Joint Go to Market

Co Create
IT & Telecom solutions Marketing & Products Web Based Services

M COMMERCE
EMAIL
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Positive Sum

Performance

Airtel Supply Chain Innovation Productivity


Approach:
Review

Phased Approach for ramp-up


National Rate Contracted
Items/Partner
Selection at Sub-Family level

Analyze

Phase II
Apr'09 ~ Jun09

PRODUCTIVITY

Bandwidth
Infra Equipments
Recharge Coupons
Transportation*
Routers
Servers
Printing Activity*
Nationalized Services
Contract
Marketing Items*

Phase I
Feb'09 ~ Mar09
Managed Services
Network Electronics
Switching Equipments
SDH,MPLS,DWDM,DSLAM
SIM Cards
Cables & Ducts
CPE Modem, Tel Inst.

Volume: 75.2%
Value: 92.3%

Volume: 38%
Value: 77.7%

One Airtel
Centralized

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Shared Services Center

Synergy

Process
Efficiencies

Continuous Improvement
to cover more Volume /
Value

Exclusions
Circle specific POs/Buying:

Admin Category
Marketing & CSD Items
Services Categories
Office Infrastructure

Physical Receipt/Issue of Material


Customs Clearance
Month End Closures
Inventory Management
Reverse Logistics

Automation

Consolidation

Airtel Supply Chain Future


Old Approach

Arms length; interfaces totally


defined and controlled

ARCHITECTURAL INNOVATION

Current

Future

Collaborative; but constrained by


prior workshare arrangements

Collaborative and seamlessly


integrated, enabling architectural
innovation

 Major modification of how components in a system / product are linked together


 Significant improvement in system / product architecture through changes in form / structure,
functional interfaces or system configuration
 Knowledge integration over the supplier network (value stream perspective ; prime-key, supplierssub-tiers; tapping supplier technology base)

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Being

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Supply Chain in Telecom

Raw
Material

Produce

Transport

Distribute

Retail

Customer

Retail

Customer

A Typical Supply Chain


To build Service
Infrastructure

Product
Raw
Material

Product/
Service
Service

Right to Build
Service

Right to market

O
P
E
R
A
T
O
R

Distribute

A Telecom Supply Chain


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