TDC Tackles Supply Chain Management
An optimized supply chain = millions in profits for Denmark's leading telco
Leading Danish telecommunications provider TDC is looking to supply chain management (SCM) to propel the company to even greater heights. To TDC’s customers, a more efficient supply chain will mean faster deliveries and better service; for the company, it will translate into profits in the hundreds of millions (in Danish kroner).
Market leadership, top performance and a "customer culture" are the goals; in concrete terms, this means achieving two-day lead time, 1 million broadband customers and zero customer failure, all by 2008.
TDC has a broad definition of supply chain, viewing the supply chain as the "engine" of the entire system, not simply a discipline for warehouse workers and purchasing. As such, the company is looking at the total delivery process.
The company's goal is to be able to track the costs associated with its supply chain management efforts. More than 100 managers and staff participate in supply chain management projects that the company estimates will yield an annual profit in the hundreds of millions. These profits will begin posting in 2009.
The SCM experts spend a lot of time communicating at ground level in order to promote the process of change and to keep the SCM efforts rooted in reality. They often stress that SCM is not just aimed at the bottom line. Several of the SCM projects, for example, have employee satisfaction incorporated as a KPI. The idea is that workplace satisfaction is a good indicator of whether, as a TDC employee, you are delivering the customer's desired solution on time, every time. This may be the real reason that supply chain management is so convincingly underway at TDC.
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Faster deliveries and better customer service, which translates into profits in the hundreds of millions for TDC.
“We have begun an array of automated reports, which has freed up around 80 percent of our time for analysis, with the remaining 20 percent still spent on data acquisition. In addition, we perform serious statistical analysis as a central step in our delivery process optimization efforts. We have a good partnership with SAS in all of these areas.”
Supply Chain Manager of TDC Services
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