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BT Supply C h a i n Solutions . Keith Sherry General Manager BT Supply Chain Solutions Microsoft 25 th February 2009. Agenda. Supply chain drivers Supply chain business challenges & their impact What is BT Supply Chain Solutions? What are the benefits?

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Bt supply c h a i n solutions

BT Supply Chain Solutions

Keith Sherry

General Manager

BT Supply Chain Solutions

Microsoft 25th February 2009


Agenda
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 Solutionshelped ourcustomers?

  • Why BT?

  • Summary and Q&A


Supply chain solutions can address six out of thetop ten CIO business priorities

Supply chain initiatives align with CIO business priorities

  • Top Ten CIO Business Priorities in 2008

  • Business process improvement

  • Attracting and retaining new customers

  • Creating new products and services (innovation)

  • Expanding into new markets or geographies

  • Reducing enterprise costs

  • Improving enterprise workforce effectiveness

  • Expanding current customer relationships

  • Increasing the use of information and analytics

  • Targeting customers / markets more effectively

  • Acquiring new companies and capabilities (M&A)

  • Supply chain drivers

  • End-to-end visibility andperformance

  • Inventory optimisation

  • Efficiency and accuracy

  • Agility and resilience

  • Real-time business information

  • Supplier and partner collaboration

  • Increase supply chain velocity

  • Reduce carbon footprint


Key supply chain challenges impacts
Key supply chain challenges & impacts

Challenge

Issue

Impact

Inventory optimisation

Visibility & Resilience

Speed & Accuracy

Shrinkage

Sustainability

Cost

  • Inability to monitor stock levels and predict demand, results in unnecessarily high inventory levels

  • Increases the organisation's working capital requirements

  • Wastage of perishable stock

  • Inability to locate and track assets, results in bottlenecks & delays

  • Lack of contingency for unexpected disruptions and demand fluctuations

  • Customer dissatisfaction & churn

  • Delayed rectification of delivery errors

  • Length, severity and impact of disruptions extended

  • Slow and unresponsive supply chains are both costly and uncompetitive

  • Pick errors result in incorrect orders

  • Customer dissatisfaction & churn

  • Additional cost to rectify errors

  • Loss of products between point of manufacture and point of sale

  • Loss & theft of reusable assets

  • 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

  • Damage to corporate reputation

  • Fuel and energy costs

  • Taxation & carbon trading costs

  • Paper-based& manual processes result in low productivity, inefficiency & high cost

  • Rising fuel and energy prices

  • Rising costs impact bottom line

  • Loss of sales & customers due to uncompetitive cost base


Poor customer service, high cost, inflexibility

Impacts the organisation’s bottom line

Key supply chain challenges & impacts

The 2,000 largest companies in the US and Europe had more than $1trillion in cash unnecessarily tied up in working capital (2006)

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)

Average cost per picking error for most wholesalers ranges from $10 to $50 (2007)

Demand-planning software problems, cost Nike $100m+ in lost sales & depressed its stock price by 20%

42% of organisations worldwide suffered at least one incident of supplier fraud/ theft of their physical assets (2008)

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)

Labour is a significant cost, typically 55% of the total cost of warehouse operations (2008)

HGVs run with no loads on European roads for about 85 billion km/yr, emitting around 100m tonnes/year of carbon (2007)


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 existingenterprise systems

Expertise in supply chain automation, solutions integration and the application of innovative wireless technologies such as RFID

What is BT Supply Chain Solutions?

Delivering improved performance through greater supply chain visibility and accuracy


Bt supply chain solutions address key areas of supply chain performance
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 reusableassets throughout my supply chain?

    • BT Asset Visibility


How do i optimise my inventory
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

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

  • What do we provide?

  • Consultation and recommendation on your specific inventory management issues

  • Combination of hardware, software and servicewith integration to your existingsystems

  • 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 modellingand flexible financial packages

  • Fully managed end-to-endservice

  • 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


How to do i manage reusable assets across my supply chain
How to do I manage reusable assets across my supply chain?

Asset optimisation

Software optimisation, routing, demand forecasting, planning

Asset management

Status, history, lifecycle management, integration with ERP/MRP/WMS

Asset information

Asset location, time, date, workflow, alarms, reporting

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

  • 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

  • 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


Solutions that deliver real benefits

Challenge

Benefits

Inventory optimisation

Visibility & Resilience

Speed & Accuracy

Shrinkage

Sustainability

Cost

Solutions that deliver real benefits

  • 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 toimproved margins


Marks spencer generated significant benefits
Marks & Spencer generated significant benefits

Aims and implementation

Benefits experienced

  • 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 suitsand 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 andcolours 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”


Why bt

Technical expertise, end-to-end capability

As much support as you need

BT Supply Chain Solutions are future-proof

We are vendor independent

Scope to manage major deployments

Expertise to providebespoke solutions

GS1 & EPCglobal

Proven track record

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

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

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


Summary and next steps
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



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