Supply Chain Network Design For A Telecom Provider - Anylogistix Supply Chain Optimization Software

9/20/22, 1:56 PM Supply Chain Network Design for a Telecom Provider – anyLogistix Supply Chain Optimization Software
EN
SUPPLY CHAIN NETWORK DESIGN FOR A

TELECOM PROVIDER
Supply Chain Network Design
Inventory Optimization
OVERVIEW:
Deloitte CIS, a member firm of Deloitte Touche Tohmatsu Limited, the largest global professional services network, was approached by
a major telecom company to address a supply chain network design challenge.
The telecom company operates a countrywide transportation network that provides B2C (business to customer), B2B (business to
business), B2O (business to operator), and B2G (business to government) telecom services. The company has a single-tier logistics
network with approximately 150 warehouses, 2,500 points of sale, and about 20,000 operational sites holding inventory for USD$16M
to USD$160M. The company has about 145K SKUs, 100 suppliers, and uses both its own and rented transportation.
CHALLENGE:
The telecom company initiated the project as its warehouse capacity utilization was only 25%, mostly due to the inefficient use of
space and overstretched transportation routes.
Deloitte CIS was tasked with designing an optimal supply chain network model that would consider future demand forecasts and
inventory optimization targets while maintaining a high level of logistics service at operational sites and points of sale.
https://www.anylogistix.com/case-studies/supply-chain-network-design-for-a-telecom-provider/ 1/4
The goal of the project was to answer the following questions:

What was the optimal hierarchy for the telecom company’s network, 1- or 2-tier? EN
What were the costs and effects of implementing various inventory optimization policies in an optimized supply chain?
Warehouses of what capacity and in what locations would the telecom company need, considering future demand and inventory
optimization targets?
What would be the optimal supply chain transformation plan, including inventory relocation and a timeline of warehouse
closings?
SOLUTION:
Deloitte CIS chose anyLogistix (ALX) to address the telecom company’s supply chain optimization challenges because it allowed them to
find results quickly, was easy to use, and offered increased flexibility for complex problems versus other supply chain tools.
Deloitte CIS saved time and effort through anyLogistix’s seamless integration of network optimization analytics and simulation
technology. anyLogistix also enabled Deloitte CIS to uncover a deeper level of detail in their supply chain model to address limitations
unseen at the strategic level.
The project began by building and calibrating a baseline model of the telecom company’s current logistics network based on data taken
from the company’s ERP system. The Deloitte CIS team created a baseline model with approximately 99% accuracy, which gained
approval from key stakeholders.
Next, utilizing anyLogistix, Deloitte’s team designed six what-if scenarios with different supply chain structures and inventory policies.
The team then ran optimizations on each scenario which led to the discovery of the best option for the telecom company based on cost,
service level, and implementation risks. They also created visual dashboard reports for each scenario to validate results with
stakeholders.
OUTCOME:
Using anyLogistix, Deloitte consultants created a step-by-step roadmap of transition from the current supply chain design to the target
state. They also developed recommendations on inventory policies for different supply chain optimization scenarios.
The project resulted in a significant increase in logistical efficiency:

Total logistics costs reduced by 9%.
Number of warehouses reduced by 28%.
Transportation costs reduced by 5%.
Total inventory level reduced by 18%.
Inventory turnover increased by 26%.
anyLogistix is a new tool on the market, bringing together classic supply chain design capabilities with dynamic simulation
in one platform. It allowed us to successfully complete a logistics network optimization project for one of our clients. We
hope ALX to significantly expand our capabilities for detailed supply chain analysis.
Andrey Semenov
Deloitte CIS EN
The consultants also provided a supply chain performance dashboard to experiment and evaluate various improvement scenarios.
The project was completed by Deloitte CIS. View the pdf presentation.
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9/20/22, 1:56 PM Supply Chain Network Design for a Telecom Provider – anyLogistix Supply Chain Optimization Software

SUPPLY CHAIN NETWORK DESIGN FOR A

The goal of the project was to answer the following questions:

The project resulted in a significant increase in logistical efficiency:

← Back to case studies

MORE CASE STUDIES

Fast Moving Consumer Goods Supply Chain Risk

Supply Chain Design and Optimization for Coca-Cola HBC

Multinational FMCG Corporation Performs Supp

supply chain software

supply chain modeling

design for supply chain

supply chain optimization

planning supply chain

how to mitigate risk in supply chain

risk management in supply chain

reliability in supply chain

how to calculate safety stock in supply chain

how to use analytics in supply chain

manufacturing capacity planning

Cookie Policy Privacy Policy

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