Supply Chain Redesign in Telecommunications

Company Information
Regional Bell Operating Company serves customers in a nine state region of the US. The Supply Chain organization is responsible for managing procurement and distribution of parts and supplies for new construction and network maintenance

Business Problem

• Need to reduce fixed supply chain costs
• Supply chain logistics operational costs and support systems were not competitive

TPG Challenge

• Determine financial/resource needs to improve competitiveness
• Evaluate outsourcing options for selected supply chain functions

Results

• Guided an internal team through a supply chain strategy and outsourcing implementation effort over a two-year period
• Outsourcing over 800 procurement, planning, logistics and warehousing personnel
• A follow-on effort involving inventory centralization reduced field inventories by approximately 20% with a one-time capital purchase reduction (avoidance) of more than $50 million