111 Reverse Logistics as a Competitive Advantage

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Orange County Convention Center Orlando, Florida | May 15-18, 2011

]R ever se Logistics – A Competitive Edge

Pat Sar k ar CSCP, Six Sigma BB, SAP Academy, PMP, MBA

Executive IT Dir ector F ormerly Carestream (Kodak)

T!o "i#e



[ Disc#aimer

T$is pr ese%tat

io% &as created before t$e a%%ou%ceme%t o' ATTs T!o "i#e ac*uisitio% p#a%s

T$is tec$%ica# pr ese%tatio% makes %o re'ere%ce to+ a%d is %ot

cog%i,a%t o' pote%tia# im pacts 'rom+ t$e a%%ou%ced ac*uisitio%

-or i%' or matio% a"out t$e ac*uisit

io%+ p#ease co%tactt

$espokesperso%s 'rom t$e r espective compa%ies

T$is pr ese%tatio% a%d t$e 'o##o&i%g .A sessio% &i## %ot

address a%/ topic r e#ated to t$e ac*uisitio%

Rea# Exper ie%ce0 Rea# Adva%tage0 2



[ Lear %i%g Poi%ts

Lear% $o& compa%ies suc$ as -ord !otor+ Car estr

eam(Kodak)+ T!o "i#e a%d ot$ers im p#eme%ted a success'u# Supp#/

C$ai% so#utio% usi%g SAP a%d ot$er 1rdpart/ so' t&ar e

2%dersta%d t$e com p#exities o' t$e mo "i#e p$o%e o per ator

a%d r etai# i%dustr / a%d $o& t$e/ p#ace u%i*ue dema%ds o% t$e

supp#/ c$ai%

-i%d out $o& reverse #ogistics gives T!o"i#e a com petitive

edge i% t$eir 3c$a##e%ger4 str ateg/

Discuss 'or ecasti%g a%d p#a%%i%g 'or Reverse Logistics (RevLog)




[ Retur% o% I%vestme%t

A &e##imp#eme%ted Reverse Logistics so#utio% ca% r educe/our i%ve%tor / #eve#s "/ up to 56789+ 'r eei%g up &or k i%g

ca pita# 'or ot$er i%vestme%t o ppor tu%ities0




[ :est Practices

I% Reverse Logist

ics+ its importa%t to ce%tra#i,e or reducet

$e%um"er o' #ocatio%s &$ere goods are r etur %ed

T$e 'i%a# dispositio% o' t$e retur%ed goods – &$et$er

re'ur"is$me%t+ r ec/c#i%g+ resa#e+ etc0 – s$ou#d "e gover%ed "/

car e'u##/ cra'ted a#gor it$ms speci'ic to t$e c$ar acter istics o' t$e

retur%ed goods

Se#ect a%d use 1PL pr ovider s ;udicious#/




[ Ke/ Lear %i%gs

SAP ECC a#o%g &

it$ SAP SC! pr ov

ide a po&er'u# so

#ut

io% 'o

r

#ogistics ma%ageme%t a%d p#a%%i%g

-or 'or ecasti%g a%d p#a%%i%g+ "esides SAP SC!+ /ou s$ou#d

eva#uate ot$er 1rdpart/ so#utio%s speci'ic to /our i%dustr / t$at

i%tegrate &e## &it$ SAP ECC

I%tegrate SAP &it$ %o%SAP s/stems "ased o% t$e 'o##o&i%g

desig% pr i%ci p#es< Loose#/coup#ed+ As/%c$ro%ous+ R ea#time as

t$e "usi%ess %eeds it

SAP =ER (=" ;ectEve%t Repositor/) is a ro"ust so#utio% to

keep track o' #i'ec/c#e eve%ts o' /our pr oducts




Reverse Logistics ACompetitive Edge

Pat Sarkar CSCP, Six Sigma BB, SAP, PMP, MBA

EIT Director

Supply Chain, Logistics, Procurement ,

Customer Order Management &Manufacturing



Age%da

!out "eut#$%e &eleko' (

!out &-Mo!ile )S

&-Mo!ile &%e C%allenger

SP at &-Mo!ile

**li$ation +and#$a*e

&-Mo!ile Su**ly $%ain

Su**ly C%ain Overvie

Forard +ogi#ti$#

ever#e +ogi#ti$#

ev+og Planning

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"eut#$%e &eleko' (

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A"out T!o"i#e 2SA

&-Mo!ile )S i# a #u!#idiary o"eut#$%e &eleko' and a leadingirele## #ervi$e *rovider in t%e )S

20 3illion evenue 42010 Over 60M $u#to'er# i# t%e )S

62,000 e'*loyee#

3a#ed in 3ellevue, 7

On t%e e! % tt * 9:: ;t -'o!ile;$o'

http://var/www/apps/conversion/tmp/scratch_5/http:%2F%2Fwww.t-






Mobile Operator Market Share

Top Mobile Operators

3 Month Avg. Ending Mar. 2010 vs. 3 Month Avg. Ending Dec.2009

Total .S. Age 13!

So"rce# co$Score Mobi%ens

Share &'( o) Mobile S"bscribers

eri!on <1;2= <1;1= -0;1"T&T #Cingular$ 25;0= 5;2= 0;2Sprint 12;1= 12;0= -0;1T%Moile 12;1= 12;0= -0;1Tracfone 6;8= 5;1= 0;<

Dec*09 Mar*10 +oint ,hangeTotal Audience 100.0% 100.0% N/A




&-Mo!ile )S, &%e C%allenger Strategy

-eb 1/ 2011 Fourt% $on#e$utive %ig%e#t ranking in >;";Poer and ##o$iate#? 7irele## etail Sale# Sati#a$tionStudySM;

-eb 1/ 2011 e$ognition a# J.D. Power 2011 Customer Service Champion@one o only 60 $o'*anie# ro' allindu#trie# to %ave earned t%i# di#tin$tion t%i# year

-eb 03/ 2011 arded t%e %ig%e#t ranking or t%e #e$ond$on#e$utive ti'e in >;"; Poer and ##o$iate#? 20117irele## Cu#to'er Care Peror'an$e StudySM @

Aolu'e 1



T$e C$a##e%ger

an 0/ 2011 &oday at t%e 2011 Bnternational CS, &-Mo!ile )S CO and Pre#ident P%ili** Du''%ig%lig%ted t%e $o'*any?# netork leader#%i*, #u**orted!y Eiel#en data $onir'ing t%at &-Mo!ile delivered t%ea#te#t irele## data *eror'an$e in t%e to* 100 );S;'arket# during t%e #e$ond %al o 2010;1

The Challenger Strategy aims to make the latest wirelessmobile internet services affordable and easy to use foreveryone in order to become a to!three layer by "#$%



SAP Imp#eme%tatio%

7655 R ei%ve%t a%d >r o&

7656 Reor ga%i,e a%d Im pr ove

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7668 SAP CR! 06

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MgmtHumanResources

OrderMgmt

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Call Centers

IDOO

cart

MSExcel

(Capacityplanning)

Equip.Requirements

artsRequirements

!."

Insite

(lanningtool)

Sitecon#guration

Site $OMrocurement

CreationWB

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Management

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S% ECC."

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arty

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ManualOrers

rouctcatalogCRM Orers

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inance

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t &-Mo!ile, Su**ly C%ain 'anage'ent

i# at t%e $ore o !u#ine## o*eration#it% %ig%ly dyna'i$ order 'anage'ent,%eavy-volu'e are%ou#e tran#a$tion#along it% uniGue *rodu$t# and*ro$e##e# or irele## indu#try

5666 active SK2s

7666 T!o "i#e R etai# stor es

6! Customer s

5666 Su pp#ier s

Ce%tr a#i,ed Distr i "utio% Ce%ters (1PL)

Ce%tr a#i,ed Retur%s Far e$ouses

Ce%tr a#i,ed R e' ur "is$me%t

3 i " i t% t % S l % i



3u#ine## "river# t%at #%a*e our Su**ly $%ain

= ptimi,e I%ve%tor / #eve#s at DCs a%d

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Ca##s 'or ' o##o&u p

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=ptimi,e Repair a%d R e' ur "is$me%t p#a%%i%g

S$orte% p#a%%i%g c/c#es a%d reduce stock c/c#es

.uick er r eactio% to c$a%ges

-astc$a%gi%g order ma%ageme%t ( 'or ecastsdue to aggr essive sa#es a%d mar k eti%g

str ategies

Di'' er e%t c$a%%e#s $ave di'' er e%t sa#esr e*uir eme%ts + e0g0 – exc$a%ge orders vs0r etai# or der s

ATP a%d "ackorder sc$edu#i%g 'or s$or t

su pp#/ products

Customer SLA vs0 tra%sportatio% costs p#a%%i%g

Customer a%d =E! Retur%s ma%ageme%t' or damaged pr oducts



B& Strategy to 'eet 3u#ine## reGuire'ent#

-ive s/stems avai#a "i#it/

G I%vest i% i%'r astr uctur e a%d

' ai#over ca pacit/G A##ocate a%%ua# #ig$tso%

"udgets 'or s/stems upgrades

G -ocus o% a pp#icatio%s mo%itor i%g a%d s/stematic error$a%d#i%g

G 7x $e# pdesk a%d ap p

su ppor t 'or

-ast s/stems de p#o/me%ts

G .uar ter #/ r e#eases &it$ car e' u#

c$a%ge ma%ageme%t p#a%%i%gG -o##o& iterative so' t&ar e

deve#opme%t met$odo#og/

G !u#ti p#e test passes &it$ e%d

to e%d .AT a%d 2AT

G Precise cutover p#a%s a%dsc$edu#ed mock de p#o/me%ts

Do it r ig$t

G I%vest i% strategic a%d r oad

ma ppi%g i%itiatives

G Part%er &it$ :usi%ess users tocreate o per atio%a##/ via"#e so#utio%s

G Leverage i%dustr / "est pr actices to dr ive "usi%ess a%d tec$%o#og/e'' icie%cies

FITCE F$at is t$ecustomer ex per ie%ce H

G :e a&are o' customer im pact&$e% i%tr oduci%g c$a%ges i% ITs/stems

G Create user 'r ie%d#/ a%di%tuitive so#utio%s

G -ocus o% pr ocessce%tr ic desig%s a%d e%d user tr ai%i%g a%d



-or&ard v0 Reverse

Source: ever#e +ogi#ti$# He$utive Coun$il



SP i# at t%e $ore o Forard +ogi#ti$#

-r o%te%dA pp#icatio%s

=r der Processi%g

= per atio%a#distr i"utio%

ma%ageme%t

Fare$ouseActivatio%s

!a%ageme%t:i##i%g

Sett#eme%t

Cu#to'er CareH$%ange#)*grade#

Sale#

&ele#ale#

7e! Sale# '*loyee

"ealer # Ietailer#

"B

323

POS4etail

Point o Sale etail inventory

S% ECC."

Deli3ery processingIn3entory Managementrocurement

$illing anSettlement

StoreRep!

nishment

/D%

Demanlanning

orecastingReplenis,m

ent

Shipmentconirmations

0are,ouse

Managementsystems

0M operationsS,ipping Transportation

$tivation# and

Cngineering

#y#te'#

$tivation#P%oneManage'ent

pa"ments

3iller "ire$t4"ealer

invoi$e#

Pay Bnvoi$e#

Sa'#on

'do$#

3illingP%one u#age

S%

S%

S%

S

a ! e s

O r d e r s

%eiveries

Bi!!ing & customer




Dig%lig%t# o Forard +ogi#ti$# in SP

-or&ard Logistics

!u#tip#e ' r o%te%d s/stems co%%ected to SAP ECCcreate orders 7x

aria%t Co%' igur atio% to address d/%amic rate

p#a%s a%d product co%' igur atio%s

ATP c$ecks &it$ customi,ed su"stitutio% #ogic

' or u%avai#a"#e pr oducts

Product A##ocatio% to ma%age s$or t

su pp#/ pr oducts

JDA is i%ter ' aced &it$ SAP 'or ' or ecast

a%d r e p#e%is$me%t p#a%%i%g



SP i# at t%e $ore o ever#e +ogi#ti$#

-r o%te%dA pp#icatio%s

Retur% =rdersFare$ouseR ecei pts

R etur %sI%s pectio%s

R epair (R e' ur "is$me%t

-ees (

Customer Cr edits

Cu#to'er Care

Care eturn# andarranty:in#uran$e

S% ECC."

S%%O

Repair anre'ur&is,mentplanning

3iller "ire$t4"ealer

invoi$e#

dJu#t $redit#

Online andtele#ale# eturn#

Repairs an Re'ur&is,ments

Return ees an Creitsmanagement

Receipts

pa"me

nts Sa'#on 'do$#

"ealer # Ietailer#

Return

%e!iveries

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"B I 323eturn#

etail

Store eturn#

0are,ouse

Managementsystems

Return ReceiptsReturns inspections an'ollo9-on processes

S%

R

e t u r n

S a ! e s O r d e r s

S

%

S%




Dig%lig%t# o ever#e +ogi#ti$# in SP

Reverse Logistics

Retur%s are created ' r om mu#ti p#e ' r o%te%d s/stems

Customi,ed #ogic to #i%k retur% orders

&it$ 'u#'i##me%t or der s

=E! Repairs ma%aged via su"co%tracti%g pr ocess Customi,ed process to ad ;ust actua##/

r eceived products a%d record *ua#it/ usi%g

retur% codes



ever#e +ogi#ti$# C%annel#

ever#e +ogi#ti$# Su**ly and "e'and $%annel#are9

7arranty, Htended 7arranty

3uyer?# e'or#eOver#to$kEe Produ$t#

eur!i#%ed Kit#e$y$lingBn#uran$e

d



Co%' ide%tia# a%d Pr o pr ietar / I%' or matio% o' T!o"i#e 2SA 7B

R ever se Logistics < T= :E usi%g SAP SC!AP= &it$ -or ecasti%g a%d P#a%%i%g

SAP ECCSAP SC! AP= SAP PI

Sku:=!

!aster Data Stock s 2%r estr icted

:#ock ed

Dema%d P#a%%i%gAcc0 I%ve%tor/

TSF

e%dor sLocatio%s 00etc

Sa#es =r der s I%sura%ce =rders

FAFRE =r der sFFe" Sa#es

FRetur% =rders

Purc$ase =r der s

P=

ST=

Su"co%tract P=

FRetur% P=

Su" Co%tr acti%g !aster Data Li*uidatio%s

Lege%d

Existi%g -u%ctio%a#it/

Ke& -u%ctio%a#it/

SAP Std0 i%tegr atio%

Ke& i%ter ' ace ( 0csv 'i#es) scope T:D

C I -

-or ecasti%g

De#iver/Mie#d

Sa#es Supp#/ Ket&or k FRetur%s Tr a%sactio%a# P#a%%i%g :u/er )s r emor seST= Data (rea# time)

FSu" Co%tr acti%g

R e pair CostsP#a%%ed =rders Pr oductio% P#a%%i%g

Purc$ase R e*uisitio%s

Pr oductio% =rders:ui#d P#a%

LDC

Existi%g i%ter ' aces

( %o c$a%ge)

A#ert!o%ito



SerialiLed Bnventory &ra$king it% SP O

Co%' ide%tia# a%d Pr o pr ietar / I%' or matio% o' T!o"i#e 2SA 7



AS2>SAPP?IR E 7655 (Sarkar+ P) 7@

Poer o SP and %o it# ork# to our advantage

Ce%tr a#i,ed pr ocessi%g

G -#exi"i#it/ to adapt c$a%ges *uick #/

GCo%tr o# over core pr ocesses

G Co%siste%t pr ici%g a%d master data ma%ageme%t

Rea#time visi"i#it/G Rea#time access to SAP data

G Rea#time i%ve%tor / s/%c a%d ATP c$ecks

G Rea#time customer commu%icatio%

Sca#a"i#it/

G ?ig$vo#ume order '#o& &it$out i%terr uptio%

G Str eam#i%ed i%tegr atio% &it$ part%er s/stems

G Co%ti%uous s/stems e%$a%ceme%t to meet:usi%ess r e*uir eme%ts

R e#ia"i#it/

G E%dtoe%d data i%tegr it/ ( secur it/

G

Sox a%d Audit com p#ia%ceG Accur ate 'i%a%cia# posti%gs



oad a%ead

Adopt Ser vice or ie%ted arc$itecture(S=A) to co%%ect to' r o%te%d a%d F!S s/stems – drive co%siste%t+ adapta"#e+ ro"usts/stems i%tegr atio%

2pgrade SAP ECC to E?P – drive sta%dardi,atio%+ adopt%e& ' eatur es i% ' or&ar d a%d r ever se #ogistics+ create "etteruser ex per ie%ce

Im p#eme%t Customer a%d Supp#ier co##a"oratio% sce%ario ' or p#a%%i%g a%d order ma%ageme%t – drive visi"i#it/+ i%ve%tor /optimi,atio% a%d "etter part%er commu%icatio%

Im p#eme%t Supp#/ C$ai% reporti%g a%d a%a#/tics so#utio%s – dr iveo%dema%d r e por ti%g a%d K PI mo%itor i%g



Key +earning *oint#

SAP s/stems ca% "e adapted to meet comp#ex "usi%ess

re*uireme%ts – make sure t$at "usi%ess drivers a%d c$a##e%ges are&e## u%derstood a%d i%corporated i%to s/stem so#utio%s

SAP ca%%ot "e a sta%da#o%e s/stem – make sure to uti#i,e t$e po&er o' Ket&eaver to create a &e##de' i%ed ecos/stem

Customi,e t$e s/stems to meet "usi%ess %eeds o%#/ i' /ou ca%%otavoid it – make sure t$at decisio%s are drive% "/ costN"e%e' ita%a#/sis

I%vest i% "ui#di%g rig$t teams ' ocusi%g o% rig$t areas – make sureto a#ig% peop#e+ processes a%d s/stems &$e% desig%i%g a%ddeve#opi%g so#utio%s



. A

Co%tact< I%ser t :Car d T$a%k /ou O



Thank you for participating.P#ease remem"er to com p#ete a%d retur% /our

eva#uatio% ' or m ' o##o&i%g t$is sessio%0

-or o%goi%g educatio% i% t$is area o' ' ocus+ visit && & 0 as u g 0 c o m0

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111 Reverse Logistics as a Competitive Advantage

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