Agility offers effective logistics solutions to the telecommunications sector

Global logistics leader becomes part of the telecommunications supply chain operations in emerging markets

As the complexities and competition surrounding the telecom industry increase, more companies are looking to outsource their supply chain operations. Especially important in the telecom industry are speed to market, scalability and regulatory knowledge, which are critical to success in emerging markets where the highest opportunities for growth currently lie.

Players in the telecom industry are striving to achieve higher profit margins and retain clients through value-added services that differentiate them from the competition. Operators in the telecom industry demand the highest reliability levels of equipment availability. Service and equipment delivery are often tied to service level agreements (SLAs) that have stringent performance metrics with specific penalties for non-compliance – these can be severe.

The heart of the problem is that in a desperate race to adhere to strict SLAs, many telecom companies invest heavily in inventory management systems, planning and design tools, warehouses and service technicians; however, they hardly ever recover from the cost of losing a competitive edge in the core competencies of their business ethos: product development, innovation and sales.

Agility, as a global logistics leader, supports the telecommunications businesses enabling them to focus on their core business objectives.

The challenges

Telecom companies face a number of inefficiencies in their supply chain that increase costs and cause delays. Topping the list is inefficient supply chaindesign, followed by factors such as poor visibility into inventory, long cycle times, inconsistent customer service, inventory obsolescence and the significant costs of infrastructure.

There are several areas where these companies face challenges including infrastructure support, multifaceted Inventory management and visibility, global information systems, transportation and measurement of the supply chain performance.

To overcome these obstacles and turn the supply chain into a competitive advantage, companies from the telecommunications sector have turned to Agility as a global supply chain partner. This partnership includes inbound shipments from origin warehousing through to spare parts management and strives to create value via an end-to-end view on the telecom’s supply chain.

Agility works as a partner

Most telecom companies require an infrastructure that can provide the framework for business operations and covers everything from facilities to personnel within the supply chain. In emerging markets, the availability and quality of physical infrastructure are inconsistent. For global businesses, physical infrastructure is a primary consideration because it may dictate which markets to enter, speed of availability and overall inventory investment. However, infrastructure also requires large amounts of capital and if not properly optimized, can have a negative impact on profitability.

Companies can work around this problem by utilizing Agility’s infrastructure in terms of facilities and personnel. Optimization of facility location and rapid fulfillment capability is a first, vital step in laying the groundwork for a world-class, pre- and post-sales program that can consistently meet the demands of telecommunication companies’ Service Level Agreements (SLAs) with their customers.

These agreements often apply the same standards across geographies. Response times that average two hours or less are often required regardless of the transportation challenges in countries with limited or poor roads. A thorough assessment of each country’s geography that can be serviced was done – the design that Agility did is flexible and adaptable to the changing demands for each project.

Telecommunication companies require full inventory visibility of their entire product in the supply chain. The requirement is to not only measure the inventory up until the time it leaves the manufacturing plant but also includes multifaceted inventory management and visibility that focuses on:

• outbound transportation to the customer,
• distribution centers,
• field inventory at each location,
• outbound shipments to point of service,
• field stocking locations,
• field technician receipts,
• field return units,
• inventory at the repair depot.

Because Agility understands that inventory control and accuracy directly impacts service delivery, revenue opportunities and efficiency, Agility can meet and exceed the requirements above through integrated information technology capabilities.

Agility’s integrated IT solutions manage all warehousing processes, including receiving, put-away, replenishment, picking, packing, labeling and shipping. Agility’s product handlers use mobile, radio frequency (RF) communications equipment to receive, put-away and pick. Using RF communications, in combination with bar coding, increases productivity and data accuracy while improving inventory visibility.

Telecommunication companies use Agility’s web-based portal, which enables them to view and manage inventories. With this control in place, a higher profit margin can be achieved when obsolete parts are minimized, and technicians are immediately deployed with the right parts.

The primary benefits that these companies have derived from Agility’s inventory control abilities are improved service levels and Field Implementation productivity. A secondary benefit is efficiency in inventory level.

Companies in this sector understand that information technology infrastructure is a central enabler to service their supply chain and a requirement for establishing a world-class program. Integration of information technology internally to operations and externally to customers, suppliers and carriers ensures supply chain control, reduces transaction costs and increases cross-functional synergy in the fulfillment of service.

Difficulty in integration of information systems for these companies is determined by how many points of access are involved.

Agility is able to supply an end-to-end solution that encompasses all the activities from shipment at origin to parts that were sent back from destination for repairs. For Agility customers, this creates full visibility of stock through their supply chain. This integrated system can track everything from trunk stock inventory to the customer’s total service history. Agility also ensures real-time visibility of information and notifications that can increase their ability to accurately meet SLA requirements.

Performance measurement

During the integration of projects, companies also integrate Key Performances Indexes (KPI) into the process.

The KPI measurements include the full supply chain activities from the time the goods leave origin until the goods reach their final destination. With this data on hand, companies are able to make vital decisions on streamlining processes to enable them to see results at the bottom line. This can include anything from increased inventory turns to reduced inventory redundancy up until enhanced delivery services. This will ensure that the projects get executed within the agreed Service Level Agreements with their customers.

As part of the success of the overall integration of the supply chain from origin to destination, telecom companies using Agility often realize that they need to revisit their transport and freight aspects of their business. Agility has been able to address these needs on local levels and on a global basis via its access to local experts in more than 550 Agility locations worldwide.

Freight management

Agility also offers global freight management solutions delivering space allocations, on-time service performance, and flexibility that telecommunication companies demand.

As for sea freight, Agility is one of the leading forwarders in the world, striking the optimum balance between transit time, service, reliability and price within a portfolio.

Agility also optimizes road freight within the agreed scope. With Agility’s road network spanning from Moscow to Madrid, from Ireland to Dubai – the Road Freight Services span entire regions, embracing Europe, North Africa, the Middle East and Central Asia. Agility manages more than 6,000 vehicles and have been able to comply with all SLA agreements and requirements.

Bottom line impact

Companies in the telecommunications sector can adopt a new approach to competitive strategy, which involves adopting an end-to-end supply chain perspective of process improvement. If a company was seeking to find ways to move beyond simple cost reduction, to value creation for the end customer, in order to contribute to increasing market share, revenue, and profits. They can start with the variables that mean the most to financial managers: those that comprise the fundamental equation of Economic Value Added.

Agility promises to be a true partner to companies in the telecommunications sector with services that cover:

• Infrastructure Support
• Multifaceted Inventory Management and Visibility
• Global Information Management
• Measurement of Supply Chain performance
• Freight Management
• Bottom-line Impact

Agility believes its focus on personal service and passionate attention to detail in these key areas will bring out results that will not only enhance the supply chain process, but will also boost profit margins and customer retention through value-added services especially in emerging markets where a reliable supply chain partner is a key driver to the success of any project.