Perfect Asset Lifecycle Management for ICTs: Getting Visibility, Insigh and Control of Critical Assets Brian Hodges Brent Bauer Yvonne Sabatini
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Introducing Yvonne Sabatini • Director, Sourcing & Logistics • Deep Supply Chain, Asset Management Experience & Advanced Inventory Planning • Recognized as establishing “Best In Class” Supply Chain… except for one element, ALM, to close out that last mile
XO Communications • Established in 1996 • Headquarters in Herndon, VA • Serve 85 U.S. Markets • Approximately 3000 employees • Operates one of the largest IP and Ethernet networks in the US • Industries first 100G coast-to-coast Network
Services • Wide Area Networking Services • Network-enabled cloud connectivity • Unified Communications / VOIP • Internet Services • Security Services • Managed Services • Wholesale Service
The Network
Network Reach • 20,000-route mile national inter-city network • 1.2 million metro fiber miles • More than 4,000 on-net buildings • More than 1,000 unique central offices • Extensive reach providing data services through a variety of options to business locations in North and South America, Europe, Africa, and Asia/Pacific regions
Perfect ALM is a Journey
Asset Management Potential • According to Gartner Group and PWCC Asset Management consulting best practices, a company that effectively and efficiently implements an asset management program including automation of this process can anticipate a saving of 15-20% of the Total Cost of ownership for those assets managed. • This equates to a huge competitive advantage, due to our size & scope.
Asset Management Goal • The goal of the Supply Chain Management Team was to create an Integrated Asset Management solution that will allow management and staff to use efficient and effective asset management techniques to reduce the total cost of ownership, improve company productivity, and support efforts to provide superior world class services to our customers.
Asset Management Challenges • Aging network infrastructure. • No accurate database of network element install base. • Complex warranty and repairs processes. • Manually process to RMA and Warranty repair network Assets. • Inabilities to provide asset information to process accurately updates warranty and repair information needed for common language equipment identifier (CLEI) that keeps track of part, revision and other pertinent hardware information. • Extensive gray market purchases that impact warranty and repair processes.
How We Managed Assets Before: • Time-consuming manual efforts to track assets for R&M, warranty, sparing and fixed assets to name a few. • We measured the Supply Chain at an item and quantity level managed in an Oracle based application and through homegrown solutions with no mobile solution. • Data was in multiple (non-integrated) systems which required several reporting solutions. • Reconciliation was also manual and time consuming. • Spares were handled by a third-party solution.
Business Case • We needed to optimize CAPEX and OPEX at every stage of the Asset Lifecycle. • We needed to track assets at a unique asset id and manufacturer’s serial number. • We needed to reconcile data between field mobile scanning, ERP, and OSS systems to achieve an accurate database of record. • We needed robust planning that allowed asset life cycle management to enable ease of identification and redistribution of assets to reduce lead times. • We needed a logistics hierarchy setup for excess asset re-utilization to offset capital spend and minimize shipping costs by always redistributing assets within local markets and regions first before pulling from the distribution center.
Our Evaluation and Selection Process • We wanted an Asset Lifecycle Management partner who: Nimble, collaborative partner willing to expand their application to support our requirements. Had deep Communication Service Provider experience. Had a secure mobile solution to collect data at any point in the supply chain. Could integrate with ERP, OSS, BSS, and legacy systems. Could reconcile the asset data from multiple sources to create an accurate asset database of record. Could optimize CAPEX and OPEX through efficient sparing, warehousing, and both forward and reverse logistics.
Why Fulcrum Technologies CATS • For over 18 years, Fulcrum has been the leader for Asset Lifecycle Management (ALM) in the Communication Service Provider Space. • CATS provides powerful, flexible, intelligent mobile scanning solutions to track and manage your physical or virtual assets. • CATS can be closely integrated into any Supply Chain flow with all major back-end ERP systems such as Oracle, SAP, and Salesforce. • CATS can reconcile and verify any and all asset data regardless of the source, ensuring the integrity of your asset database and reducing the need for physical audits.
The ALM Implementation • Worked closely with Fulcrum to define our business requirements and configure the CATS solution to meet our specific needs • Integrated CATS with several legacy ERP, Financial and OSS systems, for flow through and reconciliation of data with these other systems • Data Migration?? • Worked with Fulcrum to extend their core CATS product to address much more Supply Chain Management functionality than what was in the core product • Min/Max • Requisitions • Advanced Inventory Planning
The ALM Architecture
The ALM Implementation Integration to back-end systems: • We have implemented CATs with direct interfaces to our (ERP) financial and (OSS) operations systems. Business Intelligence from End-To-End: • Previously done in-house • Switched to CATS ARM to get more color, depth, reporting • Provides visibility, insight, and control.
The ALM Logistics Diagram
ALM Benefits • CATS ALM allows us to track all supply and demand elements against Min/Max planning which automatically allows replenishments to occur at accurate levels. • CATS allows us to track assets real time through the use of the mobile application and Bluetooth scanning solution. • CATs has a feature that allows a logistics hierarchy setup for excess asset re-utilization which offsets capital spend and minimizes shipping costs by always redistributing assets within local markets and regions first before pulling from the distribution center.
ALM Benefits • The CATs solution automatically identifies excess based on M/M levels, supply and demand and redistributes equipment according to the logistics network hierarchical structure defined by the consumer. • Warranty data is now being maintained in CATs and allows ease of identification, reconciliation and negotiations for managing the proper service levels. • Repair pricing for vendors is managed in CATs and analysis of items and assets allows us to determine the most cost effective solution for selecting a repair vendor.
ALM Benefits • We now have one ordering system for inventory which is CATs. • CATS has enhanced the Repair process with the ability to maintain the part status for sparing, advanced replacement and maintenance that allows our field techs ease of identification for managing physical and system activities. • The impact to productivity has also been huge – saving us an estimated 50% reduction in work through the use of the customized mobile application. • The spares program has been brought in house and we are now able to report at an asset level, maintain Min/Max levels, and manage supply and demand for sparing independent of forward logistics.
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