scl event celtic manor - workshop

Delivering End to End Supply Chain Visibility and Integrity

18th March 2015

© British Telecommunications plc

Barbara Anderson

Head of Inventory Management

BT Supply Chain

Welcome and introduction

David Mackenzie

Head of Supply Chain Programmes

BT Supply Chain


The next 30 minutes

We will attempt to answer several questions:

• What do we mean by ‘End to End Supply Chain Visibility’?

• What would we do with it if we had it?

• What and why is supply chain integrity so important?

Share with you what this means in our BT world:

• A whistle-stop tour of the BT supply chain

• Some of our challenges and how we are addressing them


What do we mean by ‘E2E Supply Chain Visibility’?

Can mean different things to different people:

• ‘Visibility of information relating to inbound and outbound orders from order placement through to delivery’

• ‘The extent to which all participants in the supply chain collaborate and share information which is mutually beneficial’


What would we do with it if we had it?

• Improve customer service

• Drive down inventory

• Reduce supply chain costs

• Increase agility

• Improve supply chain integrity


BT Supply Chain


Welcome BT is the major provider of telecommunications networks and services in the UK. We are now an established global communications company serving customers in more than 170 countries.


Device, repair & OEM spares

suppliers

BT Supply Chain national

distribution centres x 2

Framework Agreements with Suppliers –SLAs & SQM

Fault Report/Schedule Maintenance

Part repairs; Warranty management

BT Supply Chain

customers

BT Supply Chain control tower

Orders SLAs aligned to criticality of event

Warehouse Stock Orders

98 forward stock locations

incorporating manned kit rooms

BT Supply Chain rapid response

logistics

FSL/MKR Orders

FSL Replenishment &

DC Stock Orders

Overnight Deliveries/Collections of returned stock (good & faulty)

Rapid Response Orders

Rapid Response Orders Placed in

locker for collection

Replenishment & Return

Orders

FSL/MKR orders delivered for collection: same-day

Intelligent lockers

Over-the-Counter

Collection & Return of

Orders

Rapid Response

Orders Direct to Engineer

Collect orders & repairs returned for collection

Engineer conducts repair / maintenance /

installation

Overnight Deliveries of customer orders to electronic lockers. Opportunities for advance

stocking in Lockers for customer same-day collection

Returned items collected from electronic lockers

FORWARD & REVERSE FULFILMENT START POINT - Orders made though customer order channels, online, via

mobile etc.

End users/ customersEnd-customer orders

feed forecasts &daily order placement

volumes

Replenishment of stock; Warranty returns

Resellers

Repair agents

BT Supply Chaintesting & refurb

services

Returns checked & sent; recover % of trade price

Part repairs & refurbishment; Repairer performance reporting

Parts screening, testing, refurbishment

Field engineers

Direct fulfilment

Consumers

BT Supply Chain logistics

Consumer collect

orders & drop-off returns

Delivery to customer premises -POD

Strategic distribution partners

Consumables for return provided

Return Collection

Order Placement

TradeRetailer NDC’s

BT Supply Chain E2E operations


9

Inventory Management Operating ModelThe Inventory Management Centre (IMC) facilitates End 2 End supply chain visibility, managing inventory on a centralised basis, providing high support and high challenge to the BT Lines of Business (LoBs)

Group Finance

Suppliers

BT Procurement

Technology Enablers

Inventory Management

Centre

Supply Chain Operations Control

TowerProduct sourcing &contract negotiations

Demand forecast and order information

Contracts*

Supply forecasts & replenishment orders

Demand forecasts &planning information

Technical product specification & requirements Inventory service level

specifications

BT Entity 3rd Party

BT Supply Chain

LoBs


CEO Agenda – Business Pressures

Margin Pressures

• Global competition

• Limited pricing power

• Economic uncertainty

• High product clock-speeds

Customer Expectations

• Product & service innovation

• Higher quality & speed

• Channel demand variability

• Decreasing customer loyalty

Compliance & Risk

• Corporate governance

• Industry regulation

• Communication standards

• Environmental

Operational Coordination

• Complex value chains

• Global logistics mgmt

• Contract mfg / outsourcing

• Customised products

Suppliers

Your

Company

Customers


Supply chain integrity “Information about the package is as important as the

package itself..” Frederick W. Smith, Chairman and CEO

What is supply chain integrity?

- The process of managing your own companies

internal operational capabilities, but also those of

your partners, suppliers and even your supplier’s

supplier.

Impact of poor supply chain integrity?

• Supply chain disruptions

• Product recalls

• Delays to product launches

• Brand image & customer perception

• Financial loss

Operational

Quality

Productivity

Financial

Reputational

Brand

Investor

Compliance


BT’s Approach to building supply chain integrity

• Technology investment – global inventory & finance platform, business intelligence & portals.

• Tracking investment – serial number & product life cycle tracking through the supply chain.

• Supplier Evaluation– contract award subject to risk & compliance adherence.

• Supplier Watch – multi-criterion risk assessment across top suppliers as ‘early warning signal’.

• Supplier Collaboration – active management & support of suppliers to improve risk.

• Make-Buy & Sourcing Decisions – vertical integration to manufacture cable.

• Inventory Management Centre of excellence

• Fulfilment Enhancements – use of intelligent lockers forward stock locations.

Rethink what your supply chain can deliver

scl event celtic manor - workshop

Business

supply chain integrity

supply chain costs

end supply chain visibility

e2e supply chain visibility

orders repairs

orders dropoff

point orders

outbound orders