Reverse Logistics A Competitive Edge

Transcription

1 Orange County Convention Center Orlando, Florida May 15-18, 2011 Reverse Logistics A Competitive Edge ] Pat Sarkar CSCP, Six Sigma BB, SAP Academy, PMP, MBA Executive IT Director Formerly Carestream (Kodak) T-Mobile

2 [ Disclaimer This presentation was created before the announcement of AT&T s T-Mobile acquisition plans This technical presentation makes no reference to, and is not cognizant of potential impacts from, the announced acquisition For information about the acquisition, please contact the spokespersons from the respective companies This presentation and the following Q&A session will not address any topic related to the acquisition Real Experience. Real Advantage. 2

3 [ Learning Points Learn how companies such as Ford Motor, Carestream (Kodak), T-Mobile and others implemented a successful Supply Chain solution using SAP and other 3 rd -party software Understand the complexities of the mobile phone operator and retail industry and how they place unique demands on the supply chain Find out how reverse logistics gives T-Mobile a competitive edge in their challenger strategy Discuss forecasting and planning for Reverse Logistics (RevLog) Real Experience. Real Advantage. 3

4 [ Return on Investment A well-implemented Reverse Logistics solution can reduce your inventory levels by up to 10-25%, freeing up working capital for other investment opportunities. Real Experience. Real Advantage. 4

5 [ Best Practices In Reverse Logistics, it s important to centralize or reduce the number of locations where goods are returned The final disposition of the returned goods whether refurbishment, recycling, resale, etc. should be governed by carefully crafted algorithms specific to the characteristics of the returned goods Select and use 3PL providers judiciously Real Experience. Real Advantage. 5

6 [ Key Learnings SAP ECC along with SAP SCM provide a powerful solution for logistics management and planning For forecasting and planning, besides SAP SCM, you should evaluate other 3 rd -party solutions specific to your industry that integrate well with SAP ECC Integrate SAP with non-sap systems based on the following design principles: Loosely-coupled, Asynchronous, Real-time as the business needs it SAP OER (Object-Event Repository) is a robust solution to keep track of lifecycle events of your products Real Experience. Real Advantage. 6

7 Reverse Logistics - A Competitive Edge Pat Sarkar CSCP, Six Sigma BB, SAP, PMP, MBA EIT Director Supply Chain, Logistics, Procurement, Customer Order Management & Manufacturing

8 Agenda About Deutsche Telekom AG About T-Mobile USA T-Mobile The Challenger SAP at T-Mobile Application Landscape T-Mobile Supply chain Supply Chain Overview Forward Logistics Reverse Logistics RevLog Planning Questions? ASUG-SAPPHIRE 2011 (Sarkar, P) 8

9 Deutsche Telekom AG ASUG-SAPPHIRE 2011 (Sarkar, P) 9

10 Deutsche Telekom AG ASUG-SAPPHIRE 2011 (Sarkar, P) 10

11 About T-Mobile USA T-Mobile USA is a subsidiary of Deutsche Telekom and a leading wireless service provider in the USA $20+ Billion Revenue (2010) Over 40M customers is the US 42,000 employees Based in Bellevue, WA On the ASUG-SAPPHIRE 2011 (Sarkar, P) 11

12 Mobile Operator Market Share Top Mobile Operators 3 Month Avg. Ending Mar vs. 3 Month Avg. Ending Dec Total U.S. Age 13+ Source: comscore MobiLens Share (%) of Mobile Subscribers Dec-09 Mar-10 Point Change Total Audience 100.0% 100.0% N/A Verizon 31.2% 31.1% -0.1 AT&T (Cingular) 25.0% 5.2% 0.2 Sprint 12.1% 12.0% -0.1 T-Mobile 12.1% 12.0% -0.1 Tracfone 4.8% 5.1% 0.3 ASUG-SAPPHIRE 2011 (Sarkar, P) 12

13 T-Mobile USA, The Challenger Strategy Feb 17, 2011 Fourth consecutive highest ranking in J.D. Power and Associates Wireless Retail Sales Satisfaction Study SM. Feb 17, 2011 Recognition as J.D. Power 2011 Customer Service Champion one of only 40 companies from all industries to have earned this distinction this year Feb 03, 2011 Awarded the highest ranking for the second consecutive time in J.D. Power and Associates 2011 Wireless Customer Care Performance Study SM Volume 1 ASUG-SAPPHIRE 2011 (Sarkar, P) 13

14 The Challenger Jan 06, 2011 Today at the 2011 International CES, T- Mobile USA CEO and President Philipp Humm highlighted the company s network leadership, supported by Nielsen data confirming that T-Mobile delivered the fastest wireless data performance in the top 100 U.S. markets during the second half of The Challenger Strategy aims to make the latest wireless mobile internet services affordable and easy to use for everyone in order to become a top-three player by 2015 ASUG-SAPPHIRE 2011 (Sarkar, P) 14

15 SAP Implementation Reinvent and Grow Reorganize and Improve Major Releases SAP Upgrade to ECC SAP CRM SAP Financials IS-Retail for Stores Initial SAP implementation SAP footprint expands ASUG-SAPPHIRE 2011 (Sarkar, P) 15

16 Application Landscape Order Mgmt TMO.Com MyTMO.Com T-Star Customer Direct Call Centers IDOO (Indirect Channel) Manual Orders EDI POS (Retail Orders) Point of Sale inventory Streamline-HSO Exchanges Upgrades Static data Mappings Product Subs. Shopping cart Manual process Transactions MS Excel (Capacity planning) Budget Request. Equip. Requirements Parts Requirements Order Charges (Batch Process) SAP CRM 4.0 Product catalog CRM Orders Sales Orders Batch Process SAP POS DM POS data Management Fulfillment details (Batch Process) Asset Mgmt Insite (Planning tool) Planning Site configuration Site BOM Procurement ERP Project Creation WBS SAP ERP ECC 6.0 Finance Purchasing Material Mgmt Inventory Mgmt Revenue Samson Amdocs Billing Phone usage Inventory Management Billing CATS (Asset Mgmt) Inventory Mgmt Asset Mgmt Maintenance Mobile functions Assets (Finance) Equipment Reservations Biller Direct (Dealer invoices) Pay Invoices Shopping cart/ Reservation SAP SRM 7.0 Purchasing Vendor Master Store Replenishment Planning Human Resources SAP ECC 6.0 (HR) Employee data Reporting & BI SAP Business Objects Teradata SAP BW MS SQL Supply Chain JDA (Retail Channel) Planning Forecasting Stock Transfers Deliveries 3 rd Party ADP Performance Mgr Learning Mgr Warehouse Mgmt PKMS Whse Sys 2 Whse Sys 3 Master Data SAP MDM Customer Products Pricing SAP Non-SAP ASUG-SAPPHIRE 2011 (Sarkar, P) 16

17 About T-Mobile Supply Chain At T-Mobile, Supply Chain management is at the core of business operations with highly dynamic order management, heavy-volume warehouse transactions along with unique products and processes for wireless industry active SKU s T-Mobile Retail stores 40M+ Customers Suppliers Centralized Distribution Centers (3PL) Centralized Returns Warehouses Centralized Refurbishment ASUG-SAPPHIRE 2011 (Sarkar, P) 17

18 Business Drivers that shape our Supply chain Optimize Inventory levels at DCs and Stores Meet Order-fill SLA for every customer order Reduce Customer Care Calls for follow-up Optimize order shipping schedules and transportation costs Optimize Repair and Refurbishment planning Shorten planning cycles and reduce stock cycles Quicker reaction to changes Fast-changing order management & forecasts due to aggressive sales and marketing strategies Different channels have different sales requirements, e.g. exchange orders vs. retail orders ATP and backorder scheduling for short-supply products Customer SLA vs. transportation costs planning Customer and OEM Returns management for damaged products ASUG-SAPPHIRE 2011 (Sarkar, P) 18

19 IT Strategy to meet Business requirements Five-9 systems availability Invest in infrastructure and failover capacity Allocate annual lights-on budgets for systems upgrades Focus on applications monitoring and systematic error handling 24x7 helpdesk and app-support for Do it right Invest in strategic and road-mapping initiatives Partner with Business users to create operationally viable solutions Leverage industry best-practices to drive business and technology efficiencies Fast systems deployments Quarterly releases with careful change management planning Follow iterative software development methodology Multiple test passes with end-toend QAT and UAT Precise cutover plans and scheduled mock deployments WITCE- What is the customer experience? Be aware of customer impact when introducing changes in IT systems Create user friendly and intuitive solutions Focus on process-centric designs and end user training and support ASUG-SAPPHIRE 2011 (Sarkar, P) 19

20 Forward v. Reverse Source: Reverse Logistics Executive Council ASUG-SAPPHIRE 2011 (Sarkar, P) 20

21 SAP is at the core of Forward Logistics Frontend Applications Order Processing Operational distribution management Warehouse Management Activations Billing & Settlement Customer Care Exchanges Upgrades Insurance Direct and Web Sales Telesales Call Centers Web Sales Employee EDI B2B Dealer s & Retailers POS (Retail) Point of Sale Retail inventory SAP CRM SAP PDM Sales Orders SAP ECC 6.0 Order Management Delivery processing Inventory Management Procurement Billing and Settlement Store Replenishment Planning JDA Demand Planning Forecasting Replenishment SAP PI Deliveries Shipment confirmations Warehouse Management systems WM operations Shipping Transportation Activations and Engineering systems Activations Phone Management Billing & customer payments Biller Direct (Dealer invoices) Pay Invoices Samson Amdocs Billing Phone usage ASUG-SAPPHIRE 2011 (Sarkar, P) 21

22 Highlights of Forward Logistics in SAP Forward Logistics Multiple frontend systems connected to SAP ECC create orders 24x7 Variant Configuration to address dynamic rate plans and product configurations ATP checks with customized substitution logic for unavailable products Product Allocation to manage short-supply products JDA is interfaced with SAP for forecast and replenishment planning ASUG-SAPPHIRE 2011 (Sarkar, P) 22

23 SAP is at the core of Reverse Logistics Frontend Applications Return Orders Warehouse Receipts Returns Inspections Repair & Refurbishment Fees & Customer Credits Customer Care Care Returns and warranty/insurance exchanges SAP ECC 6.0 SAP APO Repair and refurbishment planning Biller Direct (Dealer invoices) Direct and Web Sales Online and telesales Returns SAP CRM Return Sales Orders Return Order Management Return Delivery processing Repairs and Refurbishments Return to OEMs Return Fees and Credits management SAP PI Receipts Billing & customer payments Adjust credits Samson Amdocs Dealer s & Retailers Return Deliveries Billing Fees & credits EDI & B2B Returns Retail Store Returns SAP PDM Warehouse Management systems Return Receipts Returns inspections and follow-on processes ASUG-SAPPHIRE 2011 (Sarkar, P) 23

24 Highlights of Reverse Logistics in SAP Reverse Logistics Returns are created from multiple frontend systems Customized logic to link return orders with fulfillment orders OEM Repairs managed via subcontracting process Customized process to adjust actually received products and record quality using return codes ASUG-SAPPHIRE 2011 (Sarkar, P) 24

25 Reverse Logistics Channels Reverse Logistics Supply and Demand channels are: Warranty, Extended Warranty Buyer s Remorse Overstock New Products Refurbished Kits Recycling Insurance ASUG-SAPPHIRE 2011 (Sarkar, P) 25

26 Reverse Logistics : TO BE using SAP SCM-APO with Forecasting and Planning Master Data Sku BOM Vendors Locations..etc Sales Orders Insurance Orders AWRE Orders Web Sales Return Orders Purchase Orders PO STO Subcontract PO Return PO SAP ECC Stocks Unrestricted Blocked Sub Contracting Delivery Sales Returns STO Sub Contracting Planned Orders* Purchase Requisitions* Production Orders* CIF Master Data Transactional Data (real time) SAP SCM APO Demand Planning Forecasting Supply Network Planning Production Planning Build Plan* Alert Monitor SAP PI Acc. Inventory Liquidations Yield Buyer s remorse Repair Costs TSW LDC Legend Existing interfaces ( no change) Existing Functionality New Functionality SAP Std. integration New interface (.csv files) * - scope TBD Confidential and Proprietary Information of T-Mobile USA 26

27 Serialized Inventory Tracking with SAP OER Confidential and Proprietary Information of T-Mobile USA 27

28 Power of SAP and how its works to our advantage Centralized processing Flexibility to adapt changes quickly Control over core processes Consistent pricing and master data management Real-time visibility Real-time access to SAP data Real-time inventory sync and ATP checks Real-time customer communication Scalability High-volume order flow without interruption Streamlined integration with partner systems Continuous systems enhancement to meet Business requirements Reliability End-to-end data integrity & security Sox and Audit compliance Accurate financial postings ASUG-SAPPHIRE 2011 (Sarkar, P) 28

29 Road ahead Adopt Service oriented architecture(soa) to connect to frontend and WMS systems drive consistent, adaptable, robust systems integration Upgrade SAP ECC to EHP-4 drive standardization, adopt new features in forward and reverse logistics, create better user experience Implement Customer and Supplier collaboration scenario for planning and order management drive visibility, inventory optimization and better partner communication Implement Supply Chain reporting and analytics solutions drive on-demand reporting and KPI monitoring ASUG-SAPPHIRE 2011 (Sarkar, P) 29

30 Key Learning points SAP systems can be adapted to meet complex business requirements make sure that business drivers and challenges are well understood and incorporated into system solutions SAP cannot be a standalone system make sure to utilize the power of Netweaver to create a well-defined ecosystem Customize the systems to meet business needs only if you cannot avoid it make sure that decisions are driven by cost/benefit analysis Invest in building right teams focusing on right areas make sure to align people, processes and systems when designing and developing solutions ASUG-SAPPHIRE 2011 (Sarkar, P) 30

31 Q & A Contact: Insert B-Card Thank you! ASUG-SAPPHIRE 2011 (Sarkar, P) 31

32 [ Thank you for participating. ] Please remember to complete and return your evaluation form following this session. For ongoing education in this area of focus, visit SESSION CODE: 0111 Real Experience. Real Advantage.