arvato sytems supply chain excellene overview_telco vers.3.1.1

arvato systems_Supply Excellence_Overview_Telco 1

arvato Supply Chain Excellence Telecommunication – Overview Vers. 3.1

Guetersloh, December 2011

Transforming Supply Chains

into Integrated Value Systems


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 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.

Some Key Questions to Supply Chain Managers

Is your Supply Chain influencing your business strategy?

Are you adapting and agile?

Is your Supply Chain really connected?

Do you manage Supply Chain complexity?

Does your IT architecture support your supply

chain strategy sufficiently?

Does your Supply Chain Strategy

serve your customers better?

Supply Chain Template

Is customer and supplier on-boarding complicated, time

consuming and expensive?


Agile Organizations

Characteristics

Agile organizations establish synchronized inter-

organizational processes, designed to enable a rapid

response to shifts in demand or supply.

Processes and systems that facilitate real-time-transfer

of information and plans among multiple functions.

Cross-functional synchronization is especially critical,

with shared goals and metrics that support agility.

Supply Chain Challenges

Supply Chain Networks require:

Forecast Collaboration

Capacity Collaboration

Inventory Collaboration

Transportation Collaboration

Controlling Collaboration

From Enterprise Resource Planning to Supply Chain Collaboration

When opportunities arise, agile companies respond

quickly if they have designed processes in place.


Economic Situation Global Networks Increased Risk

Fluctuating Demand &

Supply Inefficient & costly Logistics

Lack of Network-wide

Collaboration

Inventory Control Distribution Strategy Visibility and Collaboration

Prepare the Enterprise

for rapid Change

Reduce and optimize

costs

Drive greater flexibility

across the enterprise

Become comfortable with

unpredictability and adept at

anticipating and managing

change.

Slash operational and

maintenance expenses by

maximizing everyday efficiency

to survive the current economic

climate but also to succeed

over the long term.

Increase organizations ability to

make advantage of new

revenue opportunities and

address competive threats as

they occur.


Impacts

Global

Trends

SCM

Challenges

Stakeholder´s

Goals

Global Trends and Impacts on SCM

Global

Battlefield


Process Landscape Telecommunication

Core Processes

Order Management & Order Tracking

Supplier

Accessories

Supplier

Terminals & Sim Cards Buy

D2C

POS (own shops)

Retail

Upstream Logistics Downstream Logistics

Pick Pack Ship Returns Manufacturing Value Added

Services Plan Source Putaway Putaway

Affiliation of Contract /

Airtime Management

Commissions

Channel Allocations

Pull Replenishment

Blacklists

Acquisition / Retention

Confidential Customers

Warranty Management

Master Data Management

Shops Distribution

Centers Serial Numbers Article Numbers Vendors Customers IMEI MSISDN

VMI / VMR Article

Substitution Kitting Labelling

Third Party

Business

Serial Number

Handling De-Kitting

Serial Number

Handling

Move Sell

Zooming Activation

Auctioning Swap Devices


Upstream Logistics Downstream Logistics



Order-to-Cash

Processing, Integration

Order Management & Order Tracking

Order

Placed

Components

available

Production

Executed

Finished

Goods

available

Transportation

Planned

Order

Picked

Order

Shipped

Order

Delivered

Payment

SAP Standard Components arvato Business and

Process enhancements Supply Chain Template

Digital Supply Chain

Content Ingest Production &

Transcoding

Content Management

& Integration

Ordering &

Transmission Tracking & Reporting

Media Asset

Management

External Service

Providers

Integration physical

Supply Chain Customer Service Accounting

Physical Supply Chain

Process Landscape: Digital 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´s Supply Chain Excellence leverages your business

Distribution

Inventory Management

Program Management

Supply Chain Excellence

Transportation

Warehousing

Value Added Services

Returns Management

Logistics Execution

arvato Supply Chain Excellence

Moving from ´make & sell to ´sense & respond`

Customer centricity becomes increasingly important

Build IT system to enable modular setup of business requirements

Network Management

Performance & Functionality Flexibility & Customizing


arvato provides an integrated architecture based on leading IT-

solutions offering highest client value.


Processes Best Practices

IT Architecture Technologies

Business Intelligence

arvato Supply Chain Template

Supply Chain Consulting



Why using arvato Templates?

Goals of Template Roll Outs

Harmonization of IT landscape

Reduction of integration gaps

Reduction of maintenance costs

Reduction of hardware costs

Reduction of license costs

Implementation of new technologies

Process optimization

Process harmonization

Improvement of data quality

Improvement of transparency and monitoring

Centralization of global support

Total Cost

of Ownership

Business

Improvement

Industry specific Templates

Logistics Service

Providers

Telco

Media

Retail

Food

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;

Advantages

Pharmaceuticals


Automot. LSP Media Telco Chemicals Pharma Food Retail


ERP Financials

Operations

Human Resources

Corporate Services

SCM SRM

CRM PLM

Industry Solutions (IS)

SAP Business Suite

Processes Configurations

Reporting Output

Bespoke Work Master Data

Integration Interfaces

Industry and

process specific

adaptations and

enhancements

Best

Practices &

Technology

Supply Chain Execution

Supply Chain Planning

& Consolidation

Customer Relationship

Management B

usin

ess M

od

els

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.

Carbon Footprint Innovation

Supply Chain Architecture

Business Intelligence &

Performance

Measurement

Industry Templates

../O2/arvato_O2_Presentation_20110620_Vers2.1.pptx


Supply Chain Template Layers

The Supply Chain Template is comprised of 4 major process layers:


SAP Standard

Components

arvato Business

and Process

enhancements

Customer Relationship Management

Contact Managment

Opportunity and sales history

Order Tracking

Customer Analytics

Customer Life Cycle Management Customer Integration

Supply Chain Planning &

Consolidation

Global view on all orders

Available to Promise and Replenishment

Order consolidation

Supplier assignment

Billing and Controlling Fourth Party Logistics (4PL)

Supply Chain Execution

Distribution Execution

Transportation Management

Warehouse Management Third Party Logistics (3PL)


Key Performance Indicators

Business Analytics

Reporting




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.

Quantifying existing carbon emissions from Supply Chains and Distribution Networks

Supply Chain Carbon Emissions

Product Carbon Footprint (PCF)

Calculation of the proportional Carbon Emission per product/product group

Optimization Measures

Methodology for optimizing the Carbon Footprint

arvato Supply Chain

Template provides

methodology and

tools to optimize the

Supply Chain Carbon

Footprint .


Carbon Footprint – Green Logistics


Order-to-Cash

Monitoring a

nd R

epport

ing

Purchase-to-Pay

Store Supply

Financial

Integration

Master Data Management

Returns / Lust-to-

Dust

Telco Data Integration in Sales Order, e.g.

zooming and activation flag, IMEI

maintenance

Sales Channel Allocation (Pre- and Post

Allocation)

Replenishment and Forecast

Kitting / VMI

Substitution

POS Integration

Affiliation of airtime / contract management

Commission Handling

Warranty Management

Article status (swap device, refurbished)

Processes Functions Process Integration

Vendors Articles

Sales Channel and Organizational Structure Listing / Exclusion

Serialnumber Handling / IMEI / MSISDN Confidential Customers

Customers Digital Asset Management

Master Data Distribution

Main processes are being conducted

through an integrated IT architecture

Logistics execution is embedded in

process activities via well defined

interface scenarios (Partner On-

boarding)

Planning decisions have to take into

account a variety of variables and

information that are generated along

the processes

Distributed End-to-End processes are

build based on Process Integration

Infrastructure

Telco Specific Processes



Standard SAP

Extractors & Data

Services Integrator

Pre-defined SCPM

cubes and mapping

rules

SCOR Model

KPI hierachy

Work books &

Flex Reports

Admin Workbench


SAP Business Objects

Cash to Cash

Cycle Time

Order

Fulfilment

Cycle Time

Perfect Order

Fulfillment

Cost of Goods

sold

Supply Chain

management

Costs

Return on

Working

Capital

Return on

Supply Chain

Fixed Assets

SCPM Scenarios

Plan Source Make Deliver Return SCOR Supply Chain Council


Architectural Benefits

Batch process

Fragmented systems

Blind spots

Outdated systems (legacy)

legacy systems with tangled processes

Inefficient Logistics processes

Slow response to inventory outages

Delays in customer response

Expensive and time consuming integration

projects

Real-time data

Integrated systems

End-to-end supply chain visibility

SAP standards solutions

modular approach with sourcing option

Improves logistics efficiency

Improved inventory accuracy

Improved customer response

Cost effective alternative also for small

and midsize suppliers and customers

Traditional Supply Chain Solution Template driven Supply Chain Solution



Financial Benefits

Logistics has a significant impact on shareholder value. Effective Supply Chain Management can increase Return on Invested

Capital by 30% and more.

High margins

Customer retention

Inventory pooling

Speed instead of inventory

Virtual warehousing

Information instead of inventory

Outsourcing

Centralization

Obsolescence

First time fix

Shareholder

Value

Fixed

Capital

Working

Capital

Costs

Revenue Improve customer service and

response

Optimize inventory flow,

utilization and productivity

Best-in-class customer

relationships

Differentiated service

capabilities

Best-in-class strategic

supplier partnerships

Leverage outsourcing of

business processes

Unique supply chain models

and asset utilization

Supply Chain Impacts Supply Chain Metrics Shareholder Value

Return on

Invested Capital

Profitability

Invested

Capital

arvato´s Supply Chain approach addresses shareholder targets.


arvato Service Offerings

arvato Supply Chain Excellence

Consultancy

Supply Chain Check Logistic Check Business Strategy Analysis & IT

Strategy

Performance Improvement Designing the Supply Chain Template

Analysis &

Planning

Optimization &

Implementation Implementing the Supply Chain Template & Change Management

Business Process Outsourcing (BPO) & Application Management

SAP Services

ERP & Managed

Services

ERP Projects & Implementation

Business Process

Outsourcing

Application

Maintenance

Managed Services

Green Logistics – Carbon Footprint

Business Process

Optimization

Off Shore

Center of Excellence

Financials Manufacturing

Supply Chain

Management

Customer

Management

Human Resources Business Intelligence


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

risen to the top of our sector because of our extensive industry knowledge, as well as where our focus is placed: our

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.

Our Proposal

We manage the project, co-ordinating all activities and taking full responsibility to ensure your supply chain is in production on

schedule. Cost overruns, time delays and unwanted surprises typical are thus minimized, making the whole process more

effective and, more importantly for you, far more economical and transparent.

One Partner

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

our delivery process, and quality requirements are met. Our projects finish on time and on budget. This predictability is our

guarantee that your business requirements will be met, without fear of hidden costs or delays. We have proven it over and

over again.

Total Control

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)

leverages our efforts in the workshops to a maximum, drastically reducing spent time. This translates into tying up capital for a

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.

Shorter Time to Market

Modular services and IT systems allows maximal flexibility for your supply chain. Accessibility for operation is addressed and

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.

Flexbiility


Contacts

Michael Eckensberger

[email protected]

phone: +49 5241 80 888 16

mobile: +49 171 319 5636

Christoph Tieben

[email protected]

phone: +49 5241 80 89336

mobile: +49 174 323 5249

arvato systems | Technologies GmbH

An der Autobahn 220

33333 Gütersloh

arvato sytems supply chain excellene overview_telco vers.3.1.1

Business

supply excellence

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