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AT&T Wireless Services in 1994 70% manufacturing was outsourced. Global presence was wide but not deep as only 10% of this revenue came from the global sales. Financial losses to 20% of the revenue Cash-to-cash cycle was 10 weeks.
AT&T Wireless Services in 1994 70% manufacturing was outsourced. Global presence was wide but not deep as only 10% of this revenue came from the global sales. Financial losses to 20% of the revenue Cash-to-cash cycle was 10 weeks.
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AT&T Wireless Services in 1994 70% manufacturing was outsourced. Global presence was wide but not deep as only 10% of this revenue came from the global sales. Financial losses to 20% of the revenue Cash-to-cash cycle was 10 weeks.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PDF, TXT или читайте онлайн в Scribd
• SCOR Model • What? • Span it operates • Limitations & Assumptions • AT&T Wireless Services • Learnings SCOR MODEL SCOR – MANAGEMENT PROCESSES “Supplier’s suppliers to Customer’s customer” SCOR – LIMITATIONS & ASSUMPTIONS Limitations • Sales and Marketing • Research and technology development • Product Development • Some elements of post delivery customer support Assumptions • Training • Quality • Information Technology • Administration AT&T WIRELESS SERVICES McCaw Cellular Communications: AT&T Wireless Services in 1994 • 70% manufacturing was outsourced. • Global presence was wide but not deep as only 10% of this revenue came from the global sales. • Transition from B2B business model to a consumer- product model. • Problem getting the right product at the right place at the right time • Huge amount of inventory in pipeline. About 3 to 4 months. Plus the product life cycle was reducing in this segment. • Wireless Services division: Financial losses to 20% of the revenue • Cash-to-cash cycle was 10 weeks. AT&T SERVICES – LEVEL-1 METRICS AT&T SERVICES – LEVEL 2 • Pre-Implementation • Complex supply chain network • Sourcing lead times was over 200 days for some products • High conformance to forecast production requirements • High forecast errors ranging from 40 – 80% • Change in supply chain • Demand driven supply chain • Usage of common components • To Combine manufacturing and distribution operations located in Mexico • Reduction of supplier base and strengthen the partnership with chosen few suppliers AT&T SERVICES – LEVEL 3
Specific elements improvement.
• Real time information on available to promise quantity: integration with scheduling and inventory management system • Electronic order handling
• Ship complete orders
• Handle 90% order on FIFO basis
AT&T SERVICES – LEVEL 4 BENEFITS - POST IMPLEMENTATION • Immediate financial improvements just by closing down and consolidating the SC into a make-to-order environment • By the second year of implementation • Gross margin was improved by 10% of revenues – resulted in $200 million worth of savings • Significant reduction in inventory – 55% reduction in inventory • Improvement in cash flow – cash-to-cash cycles were reduced by about 70% • Improvement in delivery performance – cycle times were reduced by 80% (12 weeks to 2 weeks) LEARNING
• Need for fact-based analysis
• Identification of strategic performance advantages • Top management involvement • Need for continuous updation of • Value proposition • Benchmarks • Refining supply chain REFERENCES
• SCOR Overview 9.0- Supply Chain Council.
• www.supply-chain.org • Handbook on Supply Chain Management • Evolving Enterprise: Volume 1-Lionheart Publishing. • www.ism.ws Thank You