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BT Supply Chain Solutions Keith Sherry General Manager BT Supply Chain Solutions Microsoft 25 th February 2009.

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Presentation on theme: "BT Supply Chain Solutions Keith Sherry General Manager BT Supply Chain Solutions Microsoft 25 th February 2009."— Presentation transcript:

1 BT Supply Chain Solutions Keith Sherry General Manager BT Supply Chain Solutions Microsoft 25 th February 2009

2 Agenda Supply chain drivers Supply chain business challenges & their impact What is BT Supply Chain Solutions? What are the benefits? How has BT Supply Chain Solutions helped our customers? Why BT? Summary and Q&A

3 Top Ten CIO Business Priorities in 2008 1. Business process improvement 2. Attracting and retaining new customers 3. Creating new products and services (innovation) 4. Expanding into new markets or geographies 5. Reducing enterprise costs 6. Improving enterprise workforce effectiveness 7. Expanding current customer relationships 8. Increasing the use of information and analytics 9. Targeting customers / markets more effectively 10. Acquiring new companies and capabilities (M&A) Supply chain drivers End-to-end visibility and performance Inventory optimisation Efficiency and accuracy Agility and resilience Real-time business information Supplier and partner collaboration Increase supply chain velocity Reduce carbon footprint Supply chain initiatives align with CIO business priorities Supply chain solutions can address six out of the top ten CIO business priorities

4 Key supply chain challenges & impacts Slow and unresponsive supply chains are both costly and uncompetitive Pick errors result in incorrect orders Loss of products between point of manufacture and point of sale Loss & theft of reusable assets Customer dissatisfaction & churn Additional cost to rectify errors Additional cost incurred Velocity of supply chain adversely affected, leads to customer dissatisfaction & churn Compliance with Corporate CSR goals Legislation and sustainability initiatives to decrease carbon footprint Paper-based & manual processes result in low productivity, inefficiency & high cost Rising fuel and energy prices Damage to corporate reputation Fuel and energy costs Taxation & carbon trading costs Rising costs impact bottom line Loss of sales & customers due to uncompetitive cost base ChallengeIssueImpact Inability to locate and track assets, results in bottlenecks & delays Lack of contingency for unexpected disruptions and demand fluctuations Inability to monitor stock levels and predict demand, results in unnecessarily high inventory levels Customer dissatisfaction & churn Delayed rectification of delivery errors Length, severity and impact of disruptions extended Increases the organisation's working capital requirements Wastage of perishable stock Cost Sustainability Inventory optimisation Visibility & Resilience Speed & Accuracy Shrinkage

5 A recent study showed that in the year leading up to the announcement of a supply chain disruption, organisations experienced 7% lower sales growth, 11% higher costs, and a 14% increase in inventories (2005) The 2,000 largest companies in the US and Europe had more than $1trillion in cash unnecessarily tied up in working capital (2006) Average cost per picking error for most wholesalers ranges from $10 to $50 (2007) HGVs run with no loads on European roads for about 85 billion km/yr, emitting around 100m tonnes/year of carbon (2007) 42% of organisations worldwide suffered at least one incident of supplier fraud/ theft of their physical assets (2008) Labour is a significant cost, typically 55% of the total cost of warehouse operations (2008) Impacts the organisation’s bottom line Poor customer service, high cost, inflexibility Inventory carrying costs rose 9% last year; transportation costs were up almost 6%; overall, American businesses spent $1.4 trillion on logistics last year (2007) Key supply chain challenges & impacts Demand-planning software problems, cost Nike $100m+ in lost sales & depressed its stock price by 20%

6 What is BT Supply Chain Solutions? End-to-end asset visibility solutions Inventory management & optimisation Real time business information & analytics Fully managed services: combining professional services, hardware, software and integration from BT and our broad portfolio of technology partners Integration of end-to-end solutions with existing enterprise systems Expertise in supply chain automation, solutions integration and the application of innovative wireless technologies such as RFID Delivering improved performance through greater supply chain visibility and accuracy

7 BT Supply Chain Solutions address key areas of supply chain performance How do I optimise my inventory? ▬ BT Inventory Management How to do I best manage reusable assets throughout my supply chain? ▬ BT Asset Visibility

8 BT Inventory Management is a broad set of warehouse management solutions that provide increased control and visibility of inventory in warehouse, production, depot, store, yard and other stock holding environments How do I optimise my inventory? Receipt & put away Receipt of goods into facility, guided put away Stock count Stock check, accuracy, real time stock levels Pick, pack & despatch Voice driven picking and Pick Accuracy Verification (PAV) to customer order Benefits Improves and automates inventory management, stock checking and despatch processes Increases visibility and control of inventory Automates paper-based systems, increasing workforce effectiveness Ensures accurate and efficient order picking Integrates supply chain workflows with your IT infrastructure One stop shop for the entire solution Provides vendor/supplier independent solutions What do we provide? Consultation and recommendation on your specific inventory management issues Combination of hardware, software and service with integration to your existing systems Source, provision and management of the most appropriate technology partners for your needs Fixed and mobile wireless, barcoding, RFID and voice operated hardware and software solutions Full ROI modelling and flexible financial packages Fully managed end-to-end service

9 BT Asset Visibility tracks reusable assets and their contents across the supply chain, providing visibility into the location, availability, condition and performance of assets essential to maintaining a high velocity supply chain How to do I manage reusable assets across my supply chain? Asset information Asset location, time, date, workflow, alarms, reporting Asset management Status, history, lifecycle management, integration with ERP/MRP/WMS Asset optimisation Software optimisation, routing, demand forecasting, planning Benefits Cost reduction through optimising the quantity and utilisation of assets across the supply chain Provides event-driven information alerting you to important or time/status-specific information to drive right asset, right place, at right time Demand planning for future events to optimise asset supply; allowing the creation of scenario-based models Provision & management of the most appropriate technology partners to deliver a tailored solution What do we provide? End to end visibility of assets in the supply chain Mobile data capture technologies tailored to your process and workflow requirements Management Information Systems to control your asset inventory and lifecycles Optimisation solutions to maximise ROI on asset investment Combination of hardware, software and service with integration to your systems Fully managed end-to-end service

10 Solutions that deliver real benefits ChallengeBenefits Cost Sustainability Inventory optimisation Visibility & Resilience Speed & Accuracy Shrinkage Optimises invested capital: assets, goods, products & materials Reduces safety stock: enterprises need less ‘buffer’ inventory Reduces wastage of perishable stock Increases stock turns Improves asset cycles: transparent tracking of assets facilitates optimisation Improves response time to rectify errors & notify customers Improves ability to respond to disruptions & demand fluctuations Increases supply chain velocity and responsiveness Increases employee productivity and accuracy Reduces shipment/delivery errors and associated costs Reduces customer churn through enhanced customer service Improves operational cost control Reduces the need for investigations into inventory and asset shrinkage Improves the organisation’s carbon footprint Demonstrates awareness & action against climate change Reduces liability for environmental taxes, fines & levies Reduces fuel and energy consumption Reduces transport cost through improved asset utilisation Improves employee productivity & thus supply chain velocity Reduces overall organisational cost base, leading to improved margins

11 Benefits experiencedAims and implementation Marks & Spencer generated significant benefits Marks & Spencer is the UK’s largest clothing retailer by turnover, as well as being a multi-billion pound food retailer and supplier of home ware M&S has over 400 stores in the UK with nearly 12.5 million square feet of retail space M&S has wholly owned stores in Ireland and Hong Kong and almost 200 stores managed under franchise arrangements in 30 territories M&S Vision: “To offer the sizes our customers want – Right Garment, Right Store, Right Time” Identify restocking requirements and replenish in- store stock accurately and quickly Covers twenty departments including men's suits and lingerie 20 suppliers, with 40 factories, in 20 countries apply RFID labels to garments RFID tags are integrated into detachable barcode labels Stock-counting in 120 stores and 11 distribution centres with mobile RFID readers Improved effectiveness of stock distribution and merchandising Increased the range of garment sizes and colours available in its stores Improved customer satisfaction M&S found that stock-files and overnight replenishment meant ▬ Increased sales ▬ Better availability “Sales results very encouraging” “Customers like improved size availability”

12 Why BT? BT has extensive experience delivering large-scale supply chain solutions based on barcode and RFID technologies Global solutions and managed services based on the most appropriate technology and integration with the right commercial structure BT Supply Chain Solutions are future-proof We are vendor independent Scope to manage major deployments Expertise to provide bespoke solutions GS1 & EPCglobal As much support as you need Technical expertise, end-to-end capability Our knowledge of data capture technology means that we can deliver innovative, cutting edge and niche projects BT is a leading participant in GS1 and EPCglobal Robust customer engagement model, with the ability to offer credible managed and co-managed solutions Solutions are scalable in anticipation of your future needs BT have in-depth relationships with a broad range of best in breed technology partners BT has a proven track record in delivering large-scale supply chain projects internationally Proven track record

13 Summary and next steps BT Supply Chain Solutions help you: ▬ Achieve end-to-end visibility and performance ▬ Improve efficiency and accuracy ▬ Collect real-time business information ▬ Increase supply chain velocity ▬ Improve productivity ▬ Improve customer service ▬ Realise cost savings ▬ Enable legislative and Corporate Social Responsibility Compliance BT has the proven skills and capabilities to help you achieve operational efficiency, enhance customer service & reduce costs

14 Thank you


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