adtran presentation
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ADTRAN:The Network Access Company
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Telecommunications
Multi-billion dollar industry
Voice and digital data transmission
Carrier and End User
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Where we are today
Product portfolio - 1,400
16 year profitability history
2004 revenue - $454 million
2004 units produced - 2.3 million
1,674 employees
Huntsville, Alabama
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“Disruptive” Market Strategy
Identify proven, high-volume market opportunities
Out-engineer the competition
Re-engineer/cost-reduce products
Drive for market share leadership
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Carrier Global Enterprise
Solid Customer Base
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The Winning Edge Engineering innovation
In-house silicon development Instrumental in industry standards development Proven engineer development program Culture of cost engineering Released 241 new products in 2003
Manufacturing efficiencies Advanced supply chain management High-volume production
Superior customer support Attentive pre- and post-sales technical support Comprehensive training programs Supportive installation and maintenance programs
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Supply Chain Overview
200 Employees Planning Purchasing Transportation / Logistics Manufacturing / Outsourcing Raw Material / Finished Goods Warehouses Finance Systems
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Supply Chain Mission & Strategy
Charter
To Be A World Class Telecommunications Supply Chain Focused On Customer Service, Quality
And Financial Performance
MissionOur Mission Is To Develop And Implement “Best In
Class” Supply Chain Processes and Strategies
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OUTSOURCE MANAGEMENT
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OUTSOURCING CONSIDERATIONS
Global Services Supply Chain Align Outsourcing Strategy with Corporate Strategy Define Scope
• Manufacturing• Supply Chain Management / Logistics• BPO
Define Specific Objectives Tactical
• Reduce Operating Costs; Reduce Capital Expense; Demand Variability Management; Supply Chain Optimization
Strategic• Leverage CM Core-Competency; Improve Internal Business
Focus; Shared Risks; Supply Chain Leverage; Global Footprint Benefits DF Model
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OUTSOURCING CONSIDERATIONS Service Provider Selection
Considerations• Global Footprint; Process Maturity; Sectors Serviced; Scope of
Services; Certification / Industry Specifics; Process Controls; IT- System Capabilities, Integration Opportunities; Supply Chain - Organization, Annual Spend, Processes
Partnership Model • Drives Best Long-Term ROI
– Involvement in business goals and development of associated strategy
• Improves Risk Management– Contingency planning
• Associated Communication Flow Process– Robust data exchange– Focused resources
• Supply Chain Initiatives– Cost reduction– Enhance flexibility / Reduce liability
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PARTNERING FOR SUCCESS
ADTRAN GLOBAL MANUFACTURING
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Supply Chain
MIGRANE
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Negative Impacts
• Asia Trade Lane Capacity-Congestion• Supply Chain Complexity• Security Regulations-Initiatives• Carriers Market• U.S. Logistics Infrastructure
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Offensive Logistics Strategy
• Leveraging your transportation spend
• Plan what-if scenarios with executive management
• Partner only with 1-2 major service providers
• Take control of your inbound freight spend
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Offensive Logistics Strategy
• Offer incentive based contracts
• Share capacity forecast with primary carriers, daily, weekly, monthly
• Plan alternate ocean methods to intercept or transfer containers on the west coast
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Offensive Logistics Strategy
•All water routes through the Panama Canal to East Coast Ports
• Negotiate flat all-in rates to include surcharges, with tiered pricing negotiated in advance for Peak
• Set clearly defined performance expectations with carriers
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Offensive Logistics Strategy
• Maintain high corporate visibility at VP and CEO level
• Campus visit and supply chain operations tour
• Establish penalties for damaged, late, bumped freight