Case Study of AT&T: Supply Chain SWOT Analysis
AT&T Inc. is the largest supplier of fixed telephony in the United States, and furthermore gives broadband and membership TV administrations. “AT&T is the second largest supplier of mobile telephony service in the United States, with over 92.8 million wireless customers, just behind Verizon Wireless’ 93.2 million, and more than 210 million total customers. AT&T has approximately 290,000 employees AT&T has more than 90 million wireless customers. AT&T has more than 16 million high speed internet subscribers. AT&T has more than 2.5 million uverse subscribers Exclusive U.S. provider of iPhone 3G / 3GS / 4. As of 2018, AT&T is the 7th largest company in the United States by total revenue, as well as the 3rd largest non-oil company in the US (Behind Walmart and Bank of America). It is the 3rd largest company in Texas by total revenue (Behind ExxonMobil and ConocoPhillips) and the largest non-oil company in Texas. It is also the largest company headquartered in Dallas. In 2018, Forbes listed AT&T as the 13th largest company in the world and the 8th largest non-oil company in the world, the largest company in the world not associated with banking or oil, as well as the world’s largest provider of telecommunication. Telecom and technology giant AT&T has been around for 141 years. Although the company operates in more than 200 countries and acquires an average of five patents a day, its leaders know continued success depends on sustainability. And from there, it’s a short leap to supply chain, which they recognize is central to any sustainability initiative. In order to meet the global demands of their presence, AT&T requires bringing into force effective supply chain management and its thinking is the call of the hour. I assume that AT&T strategies are resilient enough in that regard. This report also presents some significant finding of AT&T supply chain management strategies, which is a pioneer for the industry” (AT&T,2019).
Firm’s strategic objective: “AT&T want to lead supply chain to improve company’s social and environmental impacts by integrating sustainability performance metrics into sourcing decisions for 80% of spend. AT&T’s goal is to make sure it has the best end-to-end technologies in place” (Elizabeth, 2017).
Company manage the flow of information within its supply chain as: AT&T work with industry peers to create and advance adoption of sustainability measurements that will change the ecological and social effect of innovation supply chains. Innovation and technology assumes to play a fundamental role in the progress to the low-carbon economy, better-overseeing asset use, expanding business strength and improving day by day lives. They are utilizing technology to do just this. Studies, as Global e-Sustainability Initiative’s SMARTer 2030 report, demonstrate that data and correspondences innovation can significantly diminish carbon emanations, increment business openings, and elevate access to administrations, for example, human services and training.
Supply chain management and competitive strategy: AT&T supply chain network is a part of the Dallas, Texas-AT&T Company which has branches in excess of 200 counties worldwide with the inclusion of in excess of 355 million customers. Dallas, Texas AT&T is a global organization managing in telecommunication. At the point when the organization started it monopolized the market with home telephones as no other organization was accomplishing it. A long time later the organization can offer home telephone administration as well as mobile, web, and TV plans. AT&T has two noteworthy areas; following ozone depleting substance outflows and accomplish a normal score of 80 percent or more prominent on its reasonable citizenship and manageability (C&S) scorecard. The AT&T supply chain network is headquartered in Dallas, Texas and has more than 130, 000 workers. AT&T supply chain is sorted out into three areas including America, Europe, and Asia Pacific/Middle East/Africa.
AT&T supply chain Diagram
- Plan-Laying the foundation for a supply chain network.
- Source-Getting the materials at the time required to be
- Make-Supporting product manufacturing
- Store and customize-Getting it prepared to sell
- Deliver-Getting it where it is supposed
- Return-Bringing it back when it is not required
Discussion of the industry
Consumer and retail form the two largest sectors served by AT&T supply chain. In these segments, AT&T offers numerous administrations along its inventory network including arranging, creation, sourcing, stockpiling, and esteem included administrations. AT&T production network is a worldwide innovator in contract coordinations with 8.3% piece of the pie in a divided market. AT&T production network has branches crosswise over real towns in the UAE including Ras Al Khaimah, Abu Dhabi, Al Ain, Dubai, Festival City, Fujairah, Sharjah, and Meydan. The principal target of this office is to develop through perfection. By utilizing this system, AT&T focuses to relentlessly improve the current business and accomplish gainful development in the key segments of the economy. Likewise, the supply chain network area utilizes the corporate system, First Choice Methodology to proceed with them as of now accomplished destinations and enhance their gainfulness considerably further. Likewise, the supply chain network division has the Sector Focus Program which goes for improving the skill in all the six center areas recognized. The division additionally guarantees that they streamline the clients’ business forms by creating and recreating calculated arrangements as indicated by the Strategic Products Replication program. AT&T inventory network has a progression of exercises and procedures that guarantee clients fulfillment with the administrations offered and that they profit by the production network. The principal thing that AT&T has actualized is the Parcel 2012 Production idea. This idea guarantees that there are effective arranging and transportation of its products accordingly improving productivity and bringing down expenses in the inventory network. Regarding developments and new items in the market, AT&T is thinking of various items that are gone for bringing down working expenses and improving effectiveness. AT&T is extremely enthusiastic about changes in innovation and business rehearses and guarantees that they convey the best in the market. Consistently they call several clients to their premises and acquire data in regards to what they have to change so as to fulfill their clients. AT&T has it in its way of life that each representative is constantly out to help a client in this manner guaranteeing consumer loyalty inside and out. AT&T is additionally entirely adaptable as accomplices the supply chain network and guarantee that they work together completely with partners and investors to guarantee that they convey quality administrations and products(Jim, 2014).
SWOT Analysis: AT&T’s supply chain network bolsters three functions in AT&T. A consumer group handles handsets, tablets, gadgets, set-top boxes and other client confronting items that are conveyed to AT&T’s 2,500 stores across the country and different telecoms and specialists. This group is served by two appropriation centers. AT&T’s system consumer group the coordination, arranging and sourcing related with keeping up the organization’s remote system just as its 22-state wireline establishment correspondence business (Scott, Lundgren, and Thompson, 2011). The group is served by two organization possessed conveyance focuses and five organization satellite focuses, Harden says. The third supply chain network group bolsters the endeavors of the organization’s business association in oversaw administration equipment and video and information premise hardware and furthermore performs arranging, sourcing and coordination exercises for the whole organization. The principal powers change on the production network methodologies and exercises incorporate changes in innovation, changes in business procedures and exercises, changes in the economy incorporating changes in costs, and expanded challenges. Every one of these elements is a risk to the advancement of AT&T and therefore will massively influence corporate system and activities(Hitesh, 2018).
Supply chain SWOT analysis
Company’s organizational and management structure
AT&T Company utilizes various techniques to guarantee that they remain at the highest priority on the rundown of coordinations organizations around the world. One of the methodologies they have set up is to put the client as the principle center and guarantee that their clients get quality merchandise and ventures. So as to do this, AT&T has guaranteed that they have the best costs in the business and have many particular administrations offered to specific clients. The SCOR model which is an abbreviation for Supply chain activities reference is a reference demonstrate in-supply chain network tasks and the executives. The principal center supply chain network process is arranging. In this stage, request and supply issues are examined and intended to guarantee goals are met. The following stage in the SCOR model is sourcing. This stage investigates material and framework procurement, and guarantees that there is adjusted correspondence along the inventory network to guarantee effective receipt, check and exchange of products. The third stage is the creation stage. This stage chiefly manages the creation and assembling issues and exercises. Make stage is trailed by the conveying stage which investigates warehousing, request the executives, and transportation. Aside from that, the SCOR demonstrate has the arrival stage which is the last stage. This stage manages the return of blemished items, compartments, and bundling. With respect to AT&T Company, the SCOR display is a system that causes them to guarantee that they increase the value of the supply chain network amid the make stage and guarantee that they acknowledge the return of deficient products from clients. AT&T Company deals with the whole inventory network and gives different administrations including warehousing, esteem included administrations, counseling arrangements, production network the board, transportation, and conveyance. By offering these administrations, the organization guarantees that they proficiently manage products from the supplier to the end customer without third parties. “The company manages all communications and supply chain activities to ensure efficient and timely delivery of goods. Operations management and logistics decisions are a core determinant of the supply chain activities. They determine the amount of resources to be used to accomplish supply chain activities, the manner in which goods are packaged, the route to be used in transportation and many other activities associated with the supply chain. AT&T Company is organized into three main departments; finance, human resources, and logistics departments. The three departments work hand in hand to ensure efficient execution of business transactions and have common goals geared towards ensuring profitability of the organization and delivery of quality products” (Sople, 2012).
As-is supply chain
Strategic supply chain costing and performance measurement: “AT&T Company uses all the seven principles of strategic cost management. These principles include defining clear and consistent objectives, provision of tools and knowledge for success, having excellence as the only performance target, understanding the impact of true costs during decision making, reducing organizational complexity, having rational management decisions, and commitment in business. AT&T Company uses these principles to engage in various cost reduction techniques to ensure that they offer the best prices in the industry. One of the cost reduction techniques used is to manage all activities across the entire supply chain. In doing this, the company uses its warehouses, resources, and transportation thus minimizing contracting and sourcing costs. In addition to this, AT&T has a simplified organizational structure which ensures that less revenue is used to pay managerial staff. This also reduces the number of required assets and office space thus cutting on costs. In order to have effective strategic cost management, the company is supposed to adopt a number of tools that will help increase efficiency and accountability. The first tool is value chain management concept. Understanding the industrial value chain of a company will help managers to identify core and dummy activities along the chain thus giving them easy time when making decisions along the value chain. Another tool that can be adopted is the target cost accounting. Understanding target costs will help managers to set fair prices for products while still maintaining a good profit margin. Product life cycle is also another tool that can be used to make decisions. Understanding the life cycle of a product will help managers to make the right cost decisions of the product. Another tool for strategic decision making is activity based costing/management. This helps managers to focus their attention on activities that improve customers’ value and the resulting profits achieved. The last tool for strategic cost management is competitive advantage analysis. Understanding the competitive advantage of a firm will help managers to use this advantage when setting product costs thus enhancing cost management. Since AT&T manages all activities along the supply chain, they do not have specific guidelines on how to select suppliers. However,AT&T has various trusted providers from which it gets its buys and items for inside use. So as to gauge its encouraging in sourcing, consumer loyalty, and coordination forms, AT&T Company utilizes worker supposition reviews, consumer loyalty studies, and investors sentiments for rating. AT&T additionally utilizes these studies to gauge the execution of its supply chain network. These appraisals demonstrate the reaction time of the supply chain network, and impeccable request satisfaction as mentioned by the customers. The money to money process duration and the supply chain network stock days are dictated by the inward estimations by the coordination office. From online research, it is apparent that AT&T Company is performing great in the market and has adjusted all coordinations tasks as to the vital objectives set by the enterprise” (Arlbjørn, 2010).
Competencies and outsourcing: The Central skills of AT&T Company incorporate powerful correspondence components, expanded advancements and better approaches for executing business, capacity to execute the greater part of their transacting business on the web, presence of a strong management team, and in-house consultancy. These are the principle abilities of the firm since they help it to proficiently lead exchanges and have upper hand over their rivals. AT&T gives redistributing administrations in business procedures and data arrangements and does not re-appropriate. A portion of the risks related with redistributing incorporate loss of efficiency on the off chance that the item may require master learning amid disappointment, a poor result of administration quality, and loss of business information in the event that the required item was to add to a business’ upper hand. A make-or-purchase analysis is a way toward choosing whether an organization will take part in-house generation of a thing or will purchase the thing remotely from a seller or maker. The choice taken amid this examination is dictated by two principle things; the expense of the thing and the accessibility of assets and generation limit. At the point when an organization chooses to purchase a thing as opposed to building it is called redistributing (Sean, 2018).
Supply chain rationalization: Supply-base improvement or right measuring is the way toward analyzing providers of an organization to decide the correct blend and number of suppliers that will effectively serve an organization. It incorporates decreasing or adding the number of suppliers to guarantee dependability and effectiveness in provisions. In AT&T Company, it is obvious that it has an improved supply base. This is basically in light of the fact that it has not many authorize providers for its inward crude materials and items. AT&T Company likewise participates in business with different providers having a place with their clients for the procurement of products for transportation. Job moving is the capacity of gatherings in the supply chain network to change jobs and even dismantle more jobs from their underlying jobs. Job moving is the center structure on which AT&T Company is based on and causes it to deal with all jobs in the supply chain network from the receipt of products to their conveyance to the end client( Jennifer, 2017).
To-be supply chain
Supply chain relationships: For good connections between the organization and the clients, at&t should guarantee that they have decides that suitably recognize a client, distinguish all client-focused exercises, incorporate both manual and online correspondence in their frameworks, and guarantee that there are procedure and application coordination. AT&T should recall uncommon events for the clients, compose individual messages to old clients, and make follow up calls. To the providers, the organization should guarantee that they keep up both manual and online correspondence channels, guarantee that they pay on schedule, share critical data with respect to the market prerequisites, keep up honesty on data, for example, evaluating, and give enough lead time when requesting products. Aside from that, the organization should guarantee that they keep up great associations with their rivals. They should guarantee that they know them, realize what they are doing as far as item separation and guarantee that they are in great terms with them. Effective coalitions between organizations or teams are made when the two parties consider the five standards of associations. The main standard expresses that parties should concentrate less on the field-tested strategy and spotlight more on how the organization will function. They are likewise expected to create rules pegged on coalition advance and not exclusively to collusion objectives. Notwithstanding that, they are additionally expected to use contrasts to make esteems, energize community oriented conduct by going past administration structures, lastly oversee interior partners properly.
Sharing information across the supply chain: AT&T Company utilizes various data frameworks in its supply chain network. The main framework is the ERP system which oversees stock and business exchanges. Another framework that is being utilized by AT&T is the distribution center administration framework, which helps in dealing with the section and exit of merchandise and crude materials in the stockroom. AT&T has the live request following framework (LOTS), which helps in the following merchandise when they are on travel to the client. These frameworks help to give constant data which helps the administration in basic leadership. They likewise help in making transaction processing proficient and financially savvy. Then again, the organization has acquainted internet business with its mail transportation administration for the proficient conveyance of data. AT&T utilizes the web in following their GPS empowered travel vehicles while transporting merchandise to the client (Celine, 2013).
Discussion and Analysis
The to-be AT&T supply chain process structure should have a great deal of data frameworks which will oversee exchanges progressively. This will assist the organization with increasing proficiency in transaction executives and administration delivery. Having modernized frameworks all through the supply chain network will likewise push the directors to effectively follow exchanges and products over the supply chain network. This will likewise assist the organization with reducing activity expenses and influence more benefits from the business. As a rule, there are three principal sorts of supply chain network mapping; demand density, sales territory, and customer distribution centers mappings. Demand density supply chain mapping includes the utilization of a computerized guide to demonstrate the geocoded client positions in a predetermined zone. This pictorial data gives information that is utilized by an organization in overseeing dispersion systems which can’t be given by negligible numbers. Utilizing this technique, clients can be mapped as to client deals volume, client type, and numerous different variables. The business domain mapping gives a mapping of the appropriation of clients in a predetermined territory. This pictorial data causes organizations to evaluate their effect in new markets, survey their effect on new administrations and items, and improve asset use in deals and advertising. This sort of mapping likewise causes an organization to realize how to dispense deals delegates in the diverse territories and expertise to arrange their transportation. Then again, the client (conveyance focuses) designation mapping is a pictorial portrayal of the clients that will be overhauled from the particular circulation focuses. The time or separation interim from clients to the circulation focus causes organizations to know whether they have to include more dispersion focuses or lessen the disseminations focuses. This improves administration delivery and diminishes transportation costs. The utilization of these three kinds of mapping will help AT&T to improve its administration delivery , improve time interims between conveyance of products, help in the ID of new market openings, and help in dispersion the executives. Also, utilization of supply chain network mapping helps in the appraisal of the effect of new items in the market, evaluation of the effect of entering new markets, decrease conveyance expenses, and improve basic leadership process in the supply chain network (Trent, & Roberts, 2010).
Conclusions:
In conclusion, it is evident that AT&T has a well-managed supply chain and is the best organization to lead supply chain activities.The capacity to deal with all exercises and exchanges over the whole supply chain network gives AT&T a higher competitive advantage over its rivals (Sople, 2012). Aside from that, this framework streamlines correspondence and stream of merchandise from one phase of the supply chain network to another. The introduction of advancement goods and administrations causes AT&T to have proficient procedures and administrations along these lines making it the most favored organization for supply chain network undertakings.
Recommendations
AT&T should join endowments or limits to their cargo and transportation charges. This will draw in more client into their framework and furthermore help keep up old clients. AT&T should consolidate a great deal of web and internet business utilization in their supply chain network procedures to empower for a productive and financially savvy method for exchanging data and payment. AT&T should present difference variance analysis and other effective cost estimation systems. They are likewise expected to computerize cost and execution estimation utilizing data framework programming. The organization should fuse data frameworks in the whole supply chain network to use the benefit of the web. This will help in making the framework mechanized in this way expanding effectiveness and lessening on working expenses. AT&T should utilize electronic methods for correspondence through coordinated ERP and the executives programming to enhance effectiveness and speed of correspondence along the supply chain network. AT&T should utilize framework incorporation over all the utilitarian offices and divisions in order to make a constant domain for effective progression of data. AT&T should guarantee that they have the prescribed procedures in all the key exercises and useful divisions. This will help in guaranteeing that their vital objectives are lined up with the departmental objectives and exercises. Improving their partners and building relationship, so it encourages the organization to additionally grow. Given the pattern in Asian telecom development in the current, it’s a smart thought for AT&T to grow their telecom chain in Asians advertise, be it in India, and China. Improvement of their procedure dependably calls essentially. AT&T should provide consistent enhancements and learning’s stressing on diversity programs and workers responsibilities and their concentration on workers with extraordinary necessities.