hillik rave, evp operations & engineering
TRANSCRIPT
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Feb. 2008
Hillik Rave, EVP Operations & Engineering
Supply Chain past, present and future
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Ceragon story….
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Company Profile
Ceragon Networks Ltd. is a leading provider of high-capacity
Ethernet and TDM wireless backhaul solutions.
These solutions are designed to deliver voice and data
services.
The main driver of Ceragon's business is its modular FibeAir®
product family, a cutting-edge, high-capacity solution for
wireless backhaul transport of broadband services over IP and
SONET/SDH networks.
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Ceragon Strategy – running fast on two feet
Time Time 2006 2008 2010 2012
Sales Sales
Core-SDHNew-IP
Ceragon's Sales
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Operations mission
Execute the customers’ delivery requirements
while meeting Operations’ targets in:
Quantity, Time, Cost, and Quality.
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Qty (Links)
0
20, 000
40, 000
60, 000
80, 000
100, 000
120, 000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Links
Start up
Global
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Delivery L.T. (days)
2006
0
10
20
30
40
50
60
70
80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2007
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Cost ($ per link)
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08
2007 2008
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RMA Ratio (%)
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Supply-Chain Management: Past, Present and Future
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Supply chain has evolved in stages from a set of disparate
disciplines a generation ago into an entirely different entity with
broad scope and strategic function.
A generation ago, it was defined as customer service, traffic
management, and warehousing - each function standing alone.
From there it evolved into Physical Distribution, expanded into
Logistics, morphed into Integrated Logistics and then blossomed
into Supply Chain Management.
Supply Chain - Past
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Most recently, Supply Chain Management evolved into Supply
Network Management, reflecting the web-based integration and two-
way communication that is becoming dominant today.
Supply Chain - Present
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The evolution continues today as several major forces reshape Supply
Network Management
Vast growth in global sourcing.
Nature disasters continues raising havoc with transportation.
Energy and oil pricing – manufacturing / suppliers closer to customers.
Shift of economic and military power toward China, India and Russia.
Developed countries getting older and developing countries getting younger.
Post 9/11, the importance of security.
Customs and Border Protection.
The supply chain isn’t what it used to be and never will be again.
Supply Chain - Present
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Global competition, outsourcing and poor visibility — have
increased supply-and-demand risks.
Tremendous need to transform static supply chains into
dynamic one to boost their operational responsiveness.
lack of trust and coordination, and inability to allocate profits
fairly.
Many supply chain partners have conflicting goals and
objectives.
Solutions need to be explored in order to align those goals and
objectives, perhaps in the form of incentives and contracts for
the benefit of all members of the chain.
What are the current supply networks drivers?
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Why are today’s supply networks inefficient?
Supply chains are not well integrated.
Production cannot access real-time purchasing information.
Up-to-date parts and component information is not available.
Frequent supply shortages occur because of machine breakdowns
or transportation hazards.
Short product life cycles result in high demand variability and poor
forecasting.
Complexities are present due to globalization and outsourcing.
High levels of inventories result from unforeseen events and poor
visibility.
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New management concept ―global collaboration ‖.
global perspective, security needs, stormy disruptions, collaborative
planning and more advanced business processes and systems.
A global trading company doing business in many countries, and
each country has its own information requirements, with different
formats, communication technology, compliance requirements, etc.
best practices and data integration has never been greater—and
never more visible in the executive suite.
Supply chain - future
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The future will see the emergence of many-to-many connections
between trading partners in supply chain networks, resulting in
a challenging environment for business,
As for technology, the Internet will bring about the creation of
information models that will enable supply chain professionals
to "see everything at one time."
Companies that are not among the leaders of the next version
of supply chain / network management will have lower
performance that impacts the consumer, trading partners,
finance, sales, marketing, supply chain, customer service—and
the bottom line!
Supply chain - future
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Ceragon future Models
Hubs, consolidation & order management center
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Global shipments – concept
SO
Order
Managemen
t CenterW
H
Hu
b Virt
W
HHu
bVirt
WH Hu
b
Virt
Customers
Customers
Customers
Subcontractor
Flex
Suppliers
Suppliers
Suppliers
Suppliers
Subcontractor
Remec
Customers
Ceragon
MF
G
APAC
Europe
Israel
USA
ECI, Kaitec
Filtel, UMTI
Xian Putian
Andrew, RFS
Nokia, Sagem, Saf
WH = Local WH
Hub = Gate way
WH Hu
b
Virt
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Control Tower ->Hubs –>Consolidation ->Drop shipments
End Customers
Information Flow
Physical Flow
USA Hub APAC Hub EUROPE Hub
Order Management
Center
ISRAEL Hub
EUROPESingapore Consolidation
Hub
Ceragon order
fulfillment
Drop shipment
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Ceragon IT systems planned to support future growth
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IT Future Model:
2008 – Operations IT systems
ERP System – MFG
Demand Planning Supply Planning Shipments
Collaboration - JDA
Subcontractors / Suppliers Customers
Order fulfillment Center Production trees - PDM BI
Sales force Quality Forwarders
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Demand Planning
Sales
Demand
Shaping
Baseline
Forecast
Customer Driven, Adaptive Forecasts
Customer
Withdrawals
Segmented Shipments or
Orders
Initial Demand
Plan
Sales Patterns
Customer
Orders
Sense & Respond
Adjusted
Demand Plan
Demand
Decomposition
Demand
Classification
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Supply planning & collaboration
Demand Supply Chain
NetworkConstraints
DemandForecasting
SupplySources
Process Control
Infrastructureand
History Data
DemandSupply Gap
Closure Optimization
Exception analysisWHAT IF
Update of Actual
Performance(Daily)
Marketing Information
&Parameters
InventoryReplenishment
Decisions
PO
WE
RE
D
BY
M
F
G
P
R
OP
OW
ER
ED
BY
PO
WE
RE
D
BY
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Global shipping System
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Thank you