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Telecommunications is a diversified industry: the supply chain varies from the highly configured network equipment to the more fashion-oriented mobile devices, and also includes service providers. Each of these sub-vertical comes has unique supply chain management challenges and requires a tailored solution to addresses complexities.
Network Equipment
High-mix, low-volume, and complex-deep bill of materials (BOMs) are the underlying characteristics that create supply chain challenges for telecommunications companies. Addressing forecast error and strategies for managing long lead-time parts are crucial to gaining control over operations. Customers are looking for reliable fulfillment of parts and services in this challenging environment. To add to this complexity, the “project business” calls for managing the entire quote-to-cash process: participating in a multi-round RFP process, evaluating various drafts of the response, taking the complex order and brokering it to multiple organizations and third-party providers, then delivering the time-phased project and invoicing on milestones to collect payment.
Leading telecommunication companies have adopted the i2 Agile Business Process Platform and closed-loop planning solutions, a part of the i2 new-generation solution footprint, to dependably manage their operations. To offer their customers the best possible service, these companies embarked on a journey to address demand variability through better visibility across the extended supply chain as well as through rapid re-planning to evaluate the best possible scenario to satisfy changes in marketplace. The solution also offers the ability to manage the quote-to-cash process in the most efficient manner.
Mobile Handsets
Mobile handsets are fast following the fashion/retail trend. Quick product ramp-up and end-of-life cause significant challenges in planning and execution. Effectively managing ramp-up, mass production, and end-of-life processes makes a considerable impact on margins. Demand volatility, product proliferation, seasonality, and long lead-time parts contribute to low forecast accuracy and challenges with inventories and customer-service levels.
Handset manufacturers are looking the ability to synchronize across the sales and demand management process; manufacturing and fulfillment process, and the supply sourcing process. Getting a better understanding of the point-of-sale (POS) data and using it for forecasting, the ability to change a manufacturing plan quickly, collaborating with key suppliers and dependably respond to carriers is key to mastering this business.
Top-tier mobile phone manufacturers are utilizing the cutting-edge i2 new-generation capabilities-based collaborative planning solutions to address this extremely volatile environment.
Service Providers
Telecommunication services have become a major global market, and with newer, better innovation constantly coming into play, the industry is set to expand even further. The worldwide industry is dominated by a few large companies. The telecom industry is faced with increasing consolidation through mergers. The companies are focused on gaining market share and providing value-added services. Customer retention is a big challenge in the industry especially in the United States with telecom number portability laws. There is an increasing retail network used by the telecom service providers. The product life cycles are getting shorter, with the product almost becoming a fashion accessory.
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Supply Collaboration
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| Multi-Tier Supply Collaboration |
Distributed and Automated Procurement |
Liability Management |
Environmental Compliance |
Component and Supplier Management |
Transportation Bid Collaboration |
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| Supply Chain Design |
| Strategic Sourcing |
Inventory Optimization |
Network Optimization |
Total Landed Cost Analysis |
| Supply Chain Planning |
| Sales and Operations |
| Data Management |
Master Planning |
Profit Optimization |
Factory Planning |
| Replenishment Planning |
Spare Parts Planning |
Transportation Planning |
Scenario Planning |
| Supply Chain Execution |
| Product Sourcing |
Demand Supply Balancing |
Allocation Planning |
Real-Time Order Promising |
| Multi-Tier Supply Chain Visibility |
| Transportation and Distribution Management |
| Distributed Order Execution |
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Customer Collaboration
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| Channel Management/ VMI Solutions |
Order Configuration |
Order Pricing |
Distributed Fulfillment |
Virtual Direct |
Returns Management |
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| Master Data Management |
Product Info Management |
Business Process Execution |
Planning as a Service |
On Demand/ Hosted |
Performance Management |
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Supply Chain Infrastructure
Agile Business Process Platform |
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