Download - IBM Order Management for Communications Inventory and Supply Addendum

© 2012 IBM Corporation© 2012 IBM Corporation

Order Management for Communications – Supply Chain Insight

Smarter Commerce

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Communications services providers, like all retailers, face significant challenges in meeting modern multi-channel supply chain needs

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$1.2 TrillionValue of excess merchandise stockpiled in retail supply chains configured for long lead times

70%Of supply chain officers state the lack of visibility has a significant impact on their supply chain health

60%Of retailers lack the control over shipment status and cost for their inbound freight to be cost effective


Technology is the Enabler of the Supply ChainInsourced (In House):

– Low core competency in management of people and resources– High overhead and physical plant costs, inability to efficiently scale

Outsourced (3rd Party Logistics Provider):– Efficiency in scaling and providing ‘over the top’ services extending beyond simply

shipping the product or providing the service– Lack of control of the value in the supply chain – difficult to switch suppliers

Hybrid:– Outsourced physical fulfillment and commodity services - Insourced control over

the value of the supply chain– Fulfillment partner provides the physical resources to fulfill product using the

software solutions provided by the CSP where all the customer experience value lies.

– Relatively easy to add and/or switch suppliers

The evolution of the supply chain in communications is largely the same as in most other industries

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Products

Multiple Customer SegmentsConsumerDistributionCorporate

Multiple ChannelsStore / RetailCatalog / Call CenterCommercial / ContractorWebsite Kiosk

Multiple Fulfillment MethodsWarehouseBig Box RetailersSuppliers Drop-ship3PL NetworksCorporate Stores

Multiple EnterprisesBrandsDivisionsBusiness UnitsAcquisitions

Multiple CatalogsProductsServices

Multiple Product ChoicesConfigurationGuided Selling

CSPs and other multi-channel retailers are constantly having to support new and more varied fulfillment methods

Services

OUTSOURCED

OUTSOURCED

LARGE PARTNER

VENDOR SMALL PARTNER

INSOURCED


Advantages of owning the ‘value’ of the supply chain – and letting the ‘commodities’ of the supply chain go

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No longer dependent upon a single point of failure in the supply chain – multiple sources for fulfillment mean less downtime and backlogs to customers

Allows organization to push down requirements to its suppliers / partners and eliminate those partners that cannot meet organizational standards

Receive ‘commodity’ services from 3PL and carrier partners such as backorder, shipment and delivery notification allowing the organization to make operational decisions based upon that data

Ability to control the software and associated operating procedures used by supply chain partners thus driving up efficiency and driving down cost to an even higher degree.


inboundsupply

retailstock

distributioncenter

direct shipwarehouse

on vehicleretailstorefront

Order management gives all participants in the supply chain have equal access to all supply and demand information at all times

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resellerkiosk

call center /catalog

online / white labelretail

mobileapp

set topprovider / partner

channels

supply

order management

SUPPLY: global levels, status, detail and insight is available across all locations regardless of the enterprise physically in possession of the inventory.

CHANNELS: all channels, whether organic or third-party have real-time access to all sourcing information and logic, whether through native integration or an extensive set of APIs allowing simple integration to legacy channel sales systems.


G l o b a l S u p p l y L o c a t i o n s

Inventory insight, analytics and intelligent sourcing allows order management to source optimally in real time from any supply to most optimally meet the customer need.

Buy online, pickup in the store; drop-ship direct from partner or vendor; buy in one store, pickup in another store; etc. and more.

Actionable insight into the global supply chain allows providers to make smart choices that better support their customer’s experience

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Customer DirectWarehouse

Regional Dist. Centers

Vendor Supply Centers & Enroute

SupplyFlow-Through Dist Centers

Back-of-StoreStockrooms

VAS CenterReturns/Repair…

order management recognizes an issue

O r d e r M a n a g e m e n t I n t e l l i g e n t S o u r c i n g

global supply is evaluated for best fulfillment option

supply is sourced and fulfillment

commitments are kept


Order management pipelines graphically manage entire fulfillment process

Series of transactions and statuses that guide an document through fulfillment

Rapidly incorporate fulfillment process changes without any programming effort

Control and monitor external activity data flow and communication with partner fulfillment systems

Real-time visual business process and fulfillment event management to minimize customer impact

Quickly adapt to changing fulfillment models


Global inventory visibility creates awareness into available inventory

Consolidate inventory information from multiple systems inside or outside the four walls of the company

Flexible views of Inventory –Views by type of supply

and demand

Real-time promising of inventory – owned or un-owned

Choose alternate location(s) when inventory not available


Intelligent sourcing engine determines complex fulfillment

Splitting order as needed – Fulfill:– By Line– By suppliers etc.– By different internal systems

Source from: – Multiple locations – Drop ship from partners– Service partners

Source by:– Priority– Geographical location– Inventory cost– Handling cost– Transportation cost– Reduced no. of shipments (merge

in transit etc.)

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Enable transfers in stock-out situations

Intelligent sourcing engine determines the most optimal location

Source or drop ship from channel partner

Select new location if inventory is not available

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Analytics-led intelligent applications will help CSPs to evolve beyond catalog-driven order management

Intelligence “ON” the process– Enable users to respond to trends

through dashboards and key performance indicators

– Example: Backorders against the order promise date and alerting analysts ahead of time if backorder date may be missed so that service representatives can offer alternatives to the customer

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Reverse logistics improves efficiencies of managing the returns process

Central Order Repository–Buy, pick-up and return anywhere

Directed Workflow–Return to stock

• Exchange process• Inspection

Return to supplier

Component put-away

ReturnsStaging

Stage Returns

Destroy Returns

DestroyWeb Sales

Records

Catalog SalesRecords

Return To Sales Floor

SalesFloor

Return To Stock

Stockroom / Warehouse

Return To Supplier, Auth. Center, etc.

Shipping CustomerServiceReturns

Customers


OptimizeSupply chain planning by

identifying the best options for sourcing, production,

and inventory

AnalyzeSupply chain performance

with insights from real-time and predictive analytics

AutomateSupply chain execution

through extended supply chain visibility, collaboration

and logistics

IBM provides Comprehensive & Integrated solutions into supply chain insight which allow companies to…

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