Wipro Transforms SCM Function for a

Leading Telecom Company

The client's primary objective was to achieve

cost reduction in capital and operational
expenditure and also standardize processes
across its Supply Chain. Wipro's consulting
practice not only brought in strategic cost SNAPSHOT
reduction but also completely transformed
ORGANIZATION
the client's SCM function across the ! A leading Telecom services provider
enterprise.
INDUSTRY
! Telecom

CHALLENGES
Client Overview ! Standardization of SCM Process
The company is a leading telecommunications services provider in India. ! Spend Visibility
Its business is structured as Mobile services, Broadband & Telephone ! Spend Management
(B&T) services and Enterprise Services. The mobile services group ! Supply Chain Organization
provides GSM mobile services across India in all the telecom circles,
while the B&T business group provides broadband & telephone services SOLUTION
in 90 cities. The Enterprise Services group provides end-to-end data and ! Supply Chain Policy
Enterprise services to corporate customers by leveraging its nationwide
! Standardized Supply Chain process
fibre-optic backbone, last mile connectivity in fixed-line and mobile
! Item categorization & Supplier rationalization
circles, VSATs, ISP and international bandwidth access through
! Sourcing strategy & framework for spend
gateways and landing station. visibility

BENEFITS
The Challenge
The company has ambitious growth plans and the Supply Chain ! Significant improvement in bottom line

Management (SCM) function plays a pivotal role in this growth vision. ! Standardized purchasing process across all
Business Units
The projected spend for the company in 2009 is expected to be INR
! Rationalized supplier base
16,000 Cr (Capex & Opex put together).
! Improved buying
The SCM function was faced with two challenges which were
hindering growth plans and efficient spend management:
! A highly de-centralized buying model across Strategic Business
Units (SBUs) leading to:
o Reduced buying power because of absence of
aggregation and consolidation
o Absence of cost control measures
o Poor spend visibility
SEI CMMi
L E V E L 5 Company
CASE STUDY | Wipro Transforms SCM Function for a Leading Telecom Company

! Non standardized SCM process leading to: Wipro's Solution

o Disparate processes or lack of processes Wipro adopted a dual-mode approach to address the client's
requirements – Process Standardization & Spend
o Lack of co-ordination within SBUs
Management.
o Tacit Knowledge base
o Transaction intensive processes Process Standardization: Wipro first studied the As-Is
process across the nine racks and designed and
o Multiple suppliers for same commodities
implemented the To-Be processes. For this, Wipro
within SBUs
undertook the following activities:
The client engaged Wipro with a mandate to bring in ! Understanding current pain areas across SBUs
Supply Chain transformation and cost optimization. The ! Defining the “To Be” Process and “Ways of
primary objective was to achieve cost reduction in the area Working”
of Capital and Operational expenses. Wipro was also
! Defining Key Performance Indicators for all
required to understand SBU specific requirements and
processes
arrive at standardized, integrated and scalable processes
and systems across the supply chain at the organization ! Jointly working with the IT-solution vendor to
level. The customer identified nine racks/parameters for achieve IT enablement of the “To-Be” processes
this standardization. ! Item categorization and Segmentation
! Supplier Rationalization

Nine Racks
Material/ Partner Price Organization Purchase Physical Accounting Payment & Performance
Service Relations Discovery Entry Trigger Flow & Post Purchase
Identification Ownership Tracking

Phase wise Implementation

Data Analysis, Measure & Monitor

Cleaning, Modification
Standardization
Best Practice (SMEs)

Process Specific
Policies
SBU Specific
Teams

Plans

Mobilise Discovery Envisioning Solutioning Implementation

Change Management

Consulting Framework

©Copyright 2009 Wipro Infotech

CASE STUDY | Wipro Transforms SCM Function for a Leading Telecom Company

Spend Management: Wipro carried out a detailed Spend The critical factors in the success of the program
Analysis across all SBUs with the aim of identifying areas were:
of cost reduction and identifying common items across the
! Wipro's strong program management capabilities
SBUs to achieve purchase synergies. The Spend Analysis
included: ! Availability of technical assistance to segments
! Supplier Spread analysis ! Availability of benchmarks
! Part Spread analysis ! Availability of external business and functional
expertise
! Opportunity Assessment
! Availability of sounding board to the top
! Spend prioritization
management
! Finance Data analysis
! Idea generation through conceptualization workshops
! Cost Saving Identifications
! Detailed Spend Analysis
o Reverse Auctions
! Identification of correct negotiation strategy and
o Supplier Rationalization execution
o Cost Driver Analysis

Customer Benefits
On the process front, Wipro designed the To-Be ! Significant improvement in bottom line
processes. Integration with IT enablement is in
! Standardized purchasing process across all Business
progress. Vendor Analysis for rationalization has been
Units
carried out for A & B class suppliers. The focus is now
! Rationalized supplier base
on C & D class suppliers which constitute 80% of the
supplier base. Item analysis and categorization have ! Improved buying
also been completed, while preparation of item
catalogs as per project plan is underway.

On the Spend Management side, detailed Spend

analysis was carried out. Reverse Auction (eSourcing)
has picked up momentum with 10 events successfully
completed in the last quarter. This includes standard
items like Fire Extinguishers, Aviation Obstruction
Lamps, Stationary and Paints & Primer and
customized items like POP material, SIM cards, etc.
In the Cost Driver Analysis, the biggest Spend item Read other Wipro Case Studies
(Tower) was identified and final reports submitted.
! Turnkey Retail Solution Implementation for a Petroleum
Major
! Business Continuity Solution for a Leading Private Sector
Bank

Contact Us
©Copyright 2009 Wipro Consulting Services
For more information on this case study,
email wipro.consulting@wipro.com