Leading Edge Technology. Supply Chain Digitization for Omnii-Channel Retailing. Michael Bragg General Manager Supply Operations NBN Co

Transcription

1 Leading Edge Technology Supply Chain Digitization for Omnii-Channel Retailing Michael Bragg General Manager Supply Operations NBN Co

2 Bringing broadband to life The establishment and ongoing development of the NBN Supply Chain

3 Today s discussion will provide a short explanation of the NBN followed by a summary of what was required to develop and stand up the NBN Supply Chain. This includes: 1. Strategy, structure and systems; 2. Supply chain visibility and distribution; 3. Material planning and forecasting; 4. Performance management; and 5. People Agenda

4 Evolving Supply Strategy Timing Early to mid 2010 Occurrence Supply thinking evolved from Procurement Strategy All material managed via external supply chains with exception of strategic spares. Key elements planning & forecasting, distribution model, IT requirements, visibility & good process design. November 2010 Nov 2010 to Dec 2011 December 2011 Oct 2011 to Dec 2012 October 2012 January 2013 GM Materials and Logistics Appointed Developed initial work streams focussed on Network Spares models, Event Monitoring, Performance Reporting & Demand Management. Supply mandate finalised and endorsed by Executive 10 key projects focussed on delivering specific capability EGM Supply Appointed Supply Mandate updated and endorsed by Executive and Board

5 NBN Co Supply Strategy Today Supply is responsible for the coordination of material supply being accurately and timely planned for, ordered and delivered for consumption by both internal and external parties across the build program as well as the ongoing maintenance of the network and is accountable for inventory management and control.

6 The NBN Co Supply Mandate as of January 2013 Supply Planning Supply Operations Supply Development Supply Optimisation Short-term and long range material demand forecasting and inventory plans Logistics and Warehousing Management of 3 rd party logistics and warehousing Supply Systems, Business Improvement, Performance Reporting and Analytics Supply Chain modelling future view Material order management and control including financial and reporting oversight Development and deployment of inventory models for nationwide support of network construction, activation, operation and assurance Material change impact analysis and management related to network architecture / equipment changes Monitor and Mitigate Actively monitor key events across both the internal and external supply environments Scenario Planning and Rapid Response Warranty Claim Management Supply Practice Governance Ensure effective supply practice is deployed across NBN Co New three year strategy to be completed by June 2013

7 The Supply IT Roadmap Project Name Automated inventory planning / replenishment Internal Stock Transfer Automating 3rd Party Inventory Transactions Demand / Supply Balancing Tools Event Monitoring and Exception Management Ticket Management Solution Returns Management Supply Performance Reporting Customised Supply Planning Reporting Supply Chain Network Optimisation Tools - SNOW Spares Modelling Tool Ongoing ASCP Integration & Reporting to support Planning to Handover future capability Event Monitoring and Exception Management Phase II Inventory Optimisation Tools Collaborative Planning, Forecasting and Replenishment Status Complete Complete Complete Complete Complete In Progress In Progress In Progress In Progress Scoping Scoping Scoping Not yet commenced Not yet commenced Not yet commenced

8 Material Planning and Forecasting The Supply Planning framework should be seen in the context of the end-to-end supply chain, with all participants having visibility of the One Number Plan The End to End Supply Chain Primary Focus of Integrated Supply Planning Materials Specification NBN Co Work Allocation Contractual Framework Further Upstream Suppliers Component Supplier Materials Orders Material Supplier CMSD 3 Materials Orders Delivery Partner Materials Requests Sub- Contractor Upstream Forecasts Demand Forecast Vendor Material Schedules Demand Forecast Contractor Material Schedules Consensus Plan 1. MESSA = Master Equipment Supply Services Agreement 2. MA = Master Agreement 3. CMSD = Contractor Material Supply Deed

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10 Challenge Distribution and Delivery Models Current State 3 rd Party Logistics Partner is CEVA Logistics Strategic Spares Supply Delivery Models Allocations and footprint developed cross functionally with final sign off on all trade-offs by Strategic Spares Management Committee Three key supply models developed and have proven utility to support all variations of Construction and Activation operating models MODEL NONM NBN Owned / NBN Managed (Internal) NOSM NBN Owned / Supplier Managed (Hybrid) SOSM Supplier Owned / Supplier Managed (External) Demand Planning Order Mgmt Inventory Control Distribution Payment to supplier by NBN Co NBN Co NBN Co 3PL / NBN Co NBN Co NBN Co NBN Co Supplier of service / Contractor NBN Co Supplier of service / Contractor Supplier of service / Contractor Supplier of service / Contractor Supplier of service / Contractor NBN Co Supplier of service / Contractor

11 Supply Chain Visibility The NBN Supply Coordination Centre is located in Melbourne to monitor supply chain events throughout the network build, and to manage responses to exceptions. This major capability is the key to ensuring success across the complex transactional environment particularly in the external supply chain. Investment in IT and reporting tools is ongoing.

12 Supply Chain Visibility Over the course of the deployment, modelling predicts at peak there will be up to approximately 430,000 events to be monitored per year; at a rate of approximately 1,700 per day

13 Supply Key Performance Measures

14 NBN Supply Chain Today

15 Building The Team NBN Supply commenced building a team with members having: deep specialist skills in supply chain, not necessarily Telco experienced Project focussed, responsive to, and comfortable with rapid and constant change Most remain in the team as we have moved from start-up to rapid growth Many now seeking advancement within Supply as new opportunities arise Our aspirations for NBN Supply team members are: All members have clear potential for upward mobility; NBN Supply offers career progression opportunities for all; NBN Supply is an organisation where supply chain professionals want to work; and NBN Supply is a place where supply chain professionals are recruited from - but they generally stay with us because NBN Supply is a great place to work!

16 Where To From Here.?? In the short to medium term future NBN Supply will: Pursue improvement of our material forecasting and material delivery processes Explore alternate Supply delivery models where opportunity exists to be more effective in supporting our stakeholders Review and improve stakeholder engagement across the end to end supply chain Continue delivery of capability via the extended IT Roadmap Prepare to support the shift from a Network Roll Out focussed NBN to one focussed on Customer Activations and Network Assurance Our Aspiration In 3 years NBN Supply will be recognised as smart, savvy, optimised, and industry leading.