Supply Chain at Nar (Mobile Telecommunications)

About Nar

Established in 2007 and the third mobile communications operator functionning in Azerbaijan

2 million customers

635 employees

80% of geographical penetration

Official sponsor of the 1st European Olimpic Games

Supply Chain in Service Industry

Some nuiances of Service Sector

Services are intangible

Services are intangible. They cannot be seen, felt, tasted or touched in the same manner astangible goods. The customer usually bases its judgment on peripheral cues andexperiences.

Services are heterogeneous

Services are heterogeneous. No two customers or employees are precisely alike. Human interaction makes defining quality a challenge and it may vary from one customer to the next.

Services are simultaneously produced and consumed

Services are simultaneously produced and consumed. Mass production is difficult. Customer satisfaction is in “real time” with the customer “observing” and“participating” in the process.

Services are perishable

Services are perishable. They cannot be saved, stored, resold or returned. More importantly,they cannot be inventoried. A service company may use inventory management (e.g., for spares) but this accounts for a very small part of the overall service operations.

Key Success Factors for Service Sector

Matching the supply with demand

Minimisation of waiting time for customers

Minimisation of idle time for resources

Maximisation of performance for employees and other resources

Maximisation of experience for customers

Trends in Service Supply Chain

Services are increasingly about the the management and supply of information

Information can replace inventory

Services are increasingly outsources, as organizations focus on core activities

The combination of automation and outsourcing has enabled the development of virtual service organizations and networks

Key Company Challenges at Nar

Customer Centricity

1. Ensure delivery of highest quality of service for Nar customers2. Enhance customer orientation and focus on segment needs 3. Establish end-to-end accountability for the customer experience

Time to Market

1. Speed up deployment of new value propositions to the market 2. Enhance foresight and ability to react to market changes 3. Accelerate decision-making and approval procedures

Efficiency

1. Invigorate and streamline key processes 2. Eliminate duplications and unnecessary rework 3. Establish governance and clarify roles and responsibilities

Capabilities

1. Develop effective teams, both functional and cross-functional 2. Strengthen functional capabilities3. Leverage experiences and best practices in the Company

Key Supply Chain Challenges at Nar

Internal Customer (employee) and External Customer (vendor) Satisfaction

On time delivery of ordered goods and services is very imporatant in every industry including Telecomunnications. As the many orders affects the CUSTOMER (CONSUMER) SATISFACTION this becomes a competitive advantage

Proactive and Speedy Operations

1. Support the business with the deployment of strategic actions 2. Proactive and speedy reactions towards market changes 3. Simple decision-making and approval procedures

Efficiency and Effectiveness of Supply Chain. SIMPLIFICATION

Establish/streamline key Supply Chain processes to achieve Effectiveness and Efficiency and SIMPLICITY. Effectiveness is the extent to which a customer’s requirements are meat. Efficiency is the measure how economically a company's resources are utilized

Human Capital and Corporte Culture

It is quite a challenge to find a seasoned supply chain specialist (manager) in our Country. It is even more challenging to find a person matching your set of values and norms. So, one of the challenges of the company is to find right people and develop needed functional capabilities with the organization

Conclusion

Customer Experience and Telecommunications

Customer experience is the internal and subjective response customers have to any direct or indirect contact with a company.

Customer experience encompasses every aspect of a company’s offering

The quality of customer care

Advertising & packaging

Product and service features

Ease of use

Reliability

A successful brand shapes customers’ experiences by embedding the fundamental value proposition in offerings’ every feature

The brand ethos at Nar is 'connecting people to people and people to the world. Being generous, full of life and inspiring.' It informs customers about the company's sensitivity toward customer satisfaction

The difference between CEM and CRM

What is Employee Experience?

It is a life within the organization encompassing those with managers, colleagues and the physical environment but also including those with customers. 89% of negative customer experience comes from customer service employees.

Increased employee engagement has resulted in 15% increase in Customer Satisfaction and 21% increase in Revenues at Nar

Main Functions of Supply Chain Department @ Nar

High level supply chain structure in Telecoms

Procurement

Logistics

Procurement activities are planned well ahead. Annual Integrated Procurement Plan is prepared together with internal customers. CAPEX and OPEX purchasings are clearly divided between category managers(buyers). The main KPIs in time, quality and cost related

Responsible for the movement of materials through the Supply chain

Main functions of Logistics

Transportation

Warehouse Management

3rd and 4th Party Logistics

Reverse Logistics

Information Systems and Supply Chain

ERP

Best business practices - Incorporation of processes evaluated as the best in the world

Comprehensive- Integrating as many business computing func-tions as possible, with a single database

Modular- An open system architecture allowing incorporation of those modules needed for the organization

External linkage - Capable of linking external organizations, especially within supply chains

CRM

CRM is the management of the relationships between the providing organization and its customers.

Customer service provides information from the customers and has the ability to give customers real-time information on productavailability, price, and delivery. By expanding beyond the core organization, a need to monitor performance is needed. Some of the key measures of effective supply chain management include cost,service,productivity, use of assets, and quality.This is often implemented through monitoring customer perceptions and identifying best practices as benchmarks to evaluate supply chain performance.