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ADTRAN: The Network Access Company
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Telecommunications Multi-billion dollar industry
Voice and digital data transmission Carrier and End User
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Where we are today Product portfolio - 1,400
16 year profitability history 2004 revenue - $454 million 2004 units produced million 1,674 employees Huntsville, Alabama
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“Disruptive” Market Strategy
Identify proven, high-volume market opportunities Out-engineer the competition Re-engineer/cost-reduce products Drive for market share leadership
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Solid Customer Base Carrier Global Enterprise
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The Winning Edge Engineering innovation Manufacturing efficiencies
In-house silicon development Instrumental in industry standards development Proven engineer development program Culture of cost engineering Released 241 new products in 2003 Manufacturing efficiencies Advanced supply chain management High-volume production Superior customer support Attentive pre- and post-sales technical support Comprehensive training programs Supportive installation and maintenance programs 2Mbps DSU/CSU 39%: Worldwide Wide Area Networks Market Share and Forecast, 2000, Gartner Group, October 9, 2000 64 Kbps DSU/CSU 46%: Worldwide Wide Area Networks Market Share and Forecast, 2000, Gartner Group, October 9, 2000 TDM IAD 59%: Packet IADs Capitalize on TDM’ Legacy, In-STAT MDR, April 2003 HDSL/HDSL2 70%: Internal Company Estimates based on actual equipment sold and number of installed lines 64%: North America: Access Systems, 2002, Gartner, Inc. July, 2002 ISDN 87%: Internal company estimates DDS 93%: Internal company estimates
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Supply Chain Overview 200 Employees Planning Purchasing
Transportation / Logistics Manufacturing / Outsourcing Raw Material / Finished Goods Warehouses Finance Systems
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Supply Chain Mission & Strategy
Charter To Be A World Class Telecommunications Supply Chain Focused On Customer Service, Quality And Financial Performance Mission Our Mission Is To Develop And Implement “Best In Class” Supply Chain Processes and Strategies
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OUTSOURCE MANAGEMENT
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OUTSOURCING CONSIDERATIONS
Global Services Supply Chain Align Outsourcing Strategy with Corporate Strategy Define Scope Manufacturing Supply Chain Management / Logistics BPO Define Specific Objectives Tactical Reduce Operating Costs; Reduce Capital Expense; Demand Variability Management; Supply Chain Optimization Strategic Leverage CM Core-Competency; Improve Internal Business Focus; Shared Risks; Supply Chain Leverage; Global Footprint Benefits DF Model
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OUTSOURCING CONSIDERATIONS
Service Provider Selection Considerations Global Footprint; Process Maturity; Sectors Serviced; Scope of Services; Certification / Industry Specifics; Process Controls; IT- System Capabilities, Integration Opportunities; Supply Chain - Organization, Annual Spend, Processes Partnership Model Drives Best Long-Term ROI Involvement in business goals and development of associated strategy Improves Risk Management Contingency planning Associated Communication Flow Process Robust data exchange Focused resources Supply Chain Initiatives Cost reduction Enhance flexibility / Reduce liability
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ADTRAN GLOBAL MANUFACTURING
PARTNERING FOR SUCCESS
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Supply Chain Logistics
MIGRANE
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Negative Impacts Asia Trade Lane Capacity-Congestion
Supply Chain Complexity Security Regulations-Initiatives Carriers Market U.S. Logistics Infrastructure
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Offensive Logistics Strategy
Leveraging your transportation spend Plan what-if scenarios with executive management Partner only with 1-2 major service providers Take control of your inbound freight spend
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Offensive Logistics Strategy
Offer incentive based contracts Share capacity forecast with primary carriers, daily, weekly, monthly Plan alternate ocean methods to intercept or transfer containers on the west coast
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Offensive Logistics Strategy
All water routes through the Panama Canal to East Coast Ports Negotiate flat all-in rates to include surcharges, with tiered pricing negotiated in advance for Peak Set clearly defined performance expectations with carriers
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Offensive Logistics Strategy
Maintain high corporate visibility at VP and CEO level Campus visit and supply chain operations tour Establish penalties for damaged, late, bumped freight
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