Supply chains that flow
Performance and profitability Supply chain performance is under the spotlight as never before. Not just because recent geographic and political events have very publicly disrupted supply chains, but because it is clear that improving supply chain performance can transform your business and enhance competitiveness. Global visibility and end-to-end management of inventory and assets can help fulfil service obligations to customers and partners, strengthen the balance sheet and improve risk management. Accurate, timely information about what is selling enhances forecasting and response to market trends. Better information about location and flow of goods helps keep expenditure under control. Effective supply chain management underpins carbon reduction, and the full traceability required to comply with regulatory requirements or ethical and environmental accountability. All of these help to manage operational costs, enhance customer service and improve profitability. Supply chain executives see increasing the profitability of their companies supply chain and reducing total supply chain costs as their top priorities. PricewaterhouseCoopers 1 Better supply chain performance is also on national political agendas. With spending constrained in many countries, the public sector is embracing the need to procure, control and manage its assets more effectively Accurate, timely, actionable information Then there is the problem of getting the right information. The world s supply chain is awash with data, as connected devices, assets & inventory proliferate. The problem is the lack of accurate, timely data. According to Forrester Research, the process of data exchange today is so error-prone that, on average, 30% of product data is incorrect across the supply chain 2. The real challenge is how to efficiently, cost effectively and securely collect, access, share, store and interpret supply chain data. And then turn it into actionable intelligence that will drive innovation, deliver competitive advantage and improve the bottom line. Companies that focus on improving their supply chain performance consistently outperform their peers financially. PricewaterhouseCoopers 3 With its experience of global networking, infrastructure and service provision combined with security expertise and track record of successful system integration BT is ideally qualified to help solve these key supply chain challenges. We are committed to investing in innovation in our portfolio of supply chain solutions and to developing sector focused solutions for our customers. Of course, there are many challenges to address. Natural disasters and political upheaval have highlighted the physical vulnerability of today s complex global supply chains. Counterfeiting, piracy and theft remain international problems that no organisation can address alone. Increasingly volatile patterns of demand, driven in part by the growing appetite of mobile consumers and omnichannel shopping, make it harder to plan and forecast accurately, or achieve the right balance between inventory and cost. 1 Next-generation supply chains: Efficient, fast and tailored PWC, 2012 2 Use New Supply Chain Visibility Technologies To Improve Customer Service And Return On Assets Forrester Research 2012 3 Next-generation supply chains: Efficient, fast and tailored PWC, 2012 2
BT Trace BT Trace is a portfolio of practical applications that leverage industry leading technologies, global networks, infrastructure and industry standards to provide supply chain solutions for our customers. The BT Trace portfolio of solutions accesses and manages information and assets at different points throughout the supply chain. It includes: BT Global Trace to drive operational efficiency with end-to-end supply chain visibility BT Warehouse Trace to optimise space, inventory, equipment and people BT Asset Trace to optimise reusable mobile assets to improve operational efficiency BT Inventory Trace to optimise inventory, maximise availability and minimise costs BT Trace for Retail to increase sales and improve customer service with Radio Frequency Identification (RFID) solutions BT Trace for Health also provides two specialist solutions for health care providers. One tracks mobile assets such as IV pumps, portable X-ray machines and defibrillators throughout the hospital. And a second tracks patient records around a single site. IT applications that provide increased visibility into forecasting, inventory levels and supply chain risks are being adopted into supply chain organisations in an effort to manage volatility and create greater flexibility in the supply chain. KPMG 4 4 Supply Chain Complexity: Managing Constant Change KPMG 2011 3
Solution Summary Key features Typical benefits 5 BT Global Trace Global Trace provides secure sharing of near real-time data to enable supply chain collaboration across organisational, geographic and systems boundaries for more informed decision making and faster response time to changing environments. The Global Trace event capture application interfaces integrate with internal enterprise systems to securely collect, store, interpret and share high volume, granular information (SKU level) about the movement and status of goods and assets along your supply chain. Based on open industry standards, it converts user data from multiple sources into EPCIS format to provide the answer to four questions: what, where, when, and why? Comply with legislative and regulatory regimes Meet SLAs and avoid penalties for noncompliance Recall products efficiently Manage reverse logistics cost-effectively Protect against counterfeiting Protect shrinkage/ damage of high value items Enter & operate efficiently in emerging markets BT Warehouse Trace Warehouse Trace combines best practices for warehouse management with a highly adaptable, cloud-based architecture, so that users can modify and tune processes to match their unique and changing needs. Core functionality includes receiving, put-away/flowthrough, inventory management, order processing, replenishment, pick/pack, loading and shipping. Advanced features include: Advanced fulfilment Container Management Yard Management Slotting Management Performance Management 99.9% inventory accuracy 40% increase in productivity 80% reduction in lost/misplaced product 53% increase in order picking accuracy 17% reduction in labour costs 40% increase in productivity 6 BT Asset Trace Asset Trace enables organisations to manage RTIs and other mobile re-usable assets. It uses barcodes and/or RFID tags and readers to identify and track each asset within a single closed loop environment. Asset information gathers data from individual devices including location, time and date to give full traceability. Asset management provides accurate status reports and lifecycle management tools. Asset optimisation provides routing, demand forecasting and planning functionality to help maximise your reusable asset base and forecast future demand. 99% data accuracy in managing assets 93% equipment and assets effectiveness 80% accelerated reaction time 60%+ reduction in operational expenditure 40% reduction on loss of equipment and underutilised assets 7 5 For organisations adopting these solutions. 6 Warehouse management figures from HighJump Software www.highjump.com 7 Asset management figures from Omnitrol www.omnitrol.com/ 4
Solution Summary Key features Typical benefits 8 BT Inventory Trace Inventory Trace is a complete solution that provides the ability to count, manage and track inventory. Designed specifically for enterprises that manufacture, produce and/or transport goods, BT Inventory Trace uses RFID and/or barcode technologies to track items moving through the organisation. Turns captured data into actionable business information Information in near real time Empowers and enhances existing enterprise systems Can process significant volumes of data Can be deployed across open networks 99% inventory accuracy 9 50% reduction in pick error rates 10 30%+ increase in stock availability 11 30%+ increase in employee productivity 12 10%+ reduction in inventory 13 BT Trace for Retail Trace for Retail combines RFID technology and wireless connectivity in a solution that allows retailers to accurately track and monitor every item from the point it arrives at their warehouse/distribution centre to when it is displayed in store. Stock count and movement reports by item Stock replenishment reports by item and item groups Replenishment reports by item across store-groups Full integration with existing enterprise systems including point of sale systems Available as a fully managed service 60% to 80% reduction in out of stock items RFID enabled stock counting is 99.9% accurate Improvements of 75% to 92% in the speed of stock counting Improvement in customer service typically by 50% 14 3% to 20% sales uplift 15 BT Trace for Health Trace for Health comprises two solutions. One quickly locates key mobile clinical equipment and patient transport items. The second enables employees to find individual patient records across the hospital site. Track mobile assets: Central database of assets uses existing wireless network RFID tags are built to withstand operational demands of health service Track patient records: Unique identification of patient records via RFID tag Records easily located wherever they are Improved patient experience 5% to 10% reduction in inventory 16 Increased employee productivity Better patient care Enhanced productivity Improved compliance with data protection legislation Site-wide network of tracking pads for real time monitoring 8 For organisations adopting these solutions 9 BT 10 BT 11 http://www.syncron.com/en/solutions/global-inventory-management/ 12 http://www.syncron.com/en/solutions/global-inventory-management/ 13 Supply Chain Optimization (Hidden Opportunities to Increase Cash Flows and Working Capital) 14 Retail inventory figures from Avery Dennison www.rbis.averydennison.com 15 IDTechEx 16 Worcestershire Acute Hospitals NHS Trust 5
BT Global Trace Greater visibility across the supply chain increases efficiency and flexibility. There is no doubt that a single view across all systems and data speeds up processes and identifies significant events, allowing us to respond in new and better ways to our customers, and they, in turn, deliver a better service to their customers. Steve Brown, Divisional General Manager, TNT Special Services BT Asset Trace With our earlier system, managing traceability was a bottleneck in our production line, and even led to delays in the delivery of products. Now it is all carried out in real time simultaneously along with the filling of the containers. The system means greater reliability in the delivery of products to our distributors. It also improves the traceability of products, giving us access to data via standard office IT applications. Enric Hernandez Monton, Department of Engineering and Maintenance BASF, Espanola BT Trace for Health Using RFID we will be able to reduce our overall inventory by five to 10 per cent through optimum utilisation. That provides substantial cash releasing benefits. Jeremy Thomas, Chair Medical Equipment Committee and Chair Investment Committee Worcestershire Acute Hospitals NHS Trust 6
BT as a supply chain partner The BT experience of complex data interactions over our global network combined with our worldwide infrastructure and service provision aligns precisely with the demands of modern supply chain systems. Combined with our security expertise and track record of successful system integrations, BT is ideally positioned to help solve today s key supply chain challenges. We offer customers the opportunity to embrace the future, exploiting advances in technology to handle large data applications using our BT Cloud Compute infrastructure and network. We are committed to developing sector-focused solutions and investing in innovation in our supply chain portfolio. BT has the right qualities to be a trusted partner in the global supply chain. They include: Experience and expertise. We have proven experience of delivering large-scale supply chain solutions. Industry collaboration. We play an active part in setting and promoting global standards through participation in organisations such as GS1 and EPC global, and other industry and academic organisations including the National Retail Federation, ELUPEG, ECR Asia Pacific and Tsinghua University. End-to-end global capability. A truly global organisation, BT has the resources and infrastructure to set up and run large scale supply chain solutions around the world; we serve the needs of customers in more than 170 countries. Security expertise. We are one of the largest security and business continuity practices in the world with over 1,300 security professionals globally, helping governments and businesses secure their information and processes. World class consulting and integration. BT is an expert in systems integration and in data capture technology and can design innovative solutions for specialist needs. Our global professional services community numbers 4,500 and is recognised by industry analysts as being world class. Easy deployment. Our solutions are available as fully managed services, where BT assumes responsibility for regular service delivery, maintenance and upgrades, making it easier for you to implement and scale as needed. Innovation and future proofing. We work with the leading technology providers; we monitor and review developments in IT and design all our solutions to evolve as your needs change or technology advances. BT has spent more than 5 billion on R&D across its products and services over the last five years and employs 8,000 scientists and technologists globally. 7
Offices worldwide The telecommunications services described in this publication are subject to availability and may be modified from time to time. Services and equipment are provided subject to British Telecommunications plc s respective standard conditions of contract. Nothing in this publication forms any part of any contract. British Telecommunications plc 2012 Registered office: 81 Newgate Street, London EC1A 7AJ Registered in England No: 1800000 bt.com/globalservices PHME 65824