Telstra Activates Workforce to Address Retail Increases and Natural Events
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Telstra’s Innovative Workforce Strategy: Transforming Supply Chain Management
Telstra, Australia’s leading telecommunications provider, is utilizing a thorough enterprise resource planning (ERP) transformation to flexibly manage its workforce across various supply chains. This project, which is part of Telstra’s extensive supply chain renewal, is essential for handling peak retail times and reacting to natural disasters. By incorporating SAP Integrated Business Planning (IBP) and streamlining ERP systems, the company is creating a more agile, resilient, and efficient supply chain.
Quick Overview
- Telstra is improving workforce mobility as a key component of a wider ERP transformation.
- The company has unified several outdated ERP systems into one SAP S/4HANA-driven system.
- Telstra’s three unique supply chains now function within a cohesive technological ecosystem.
- Enhanced workforce mobility has increased efficiency, enabling rapid staff reallocation during peak demands or crises.
- The ERP transformation is projected to yield over $50 million in IT platform benefits by the fiscal year 2026.
Unified Supply Chain Management: A Fresh Chapter for Telstra
Recent developments in Telstra’s supply chain management have resulted from a multi-year effort aimed at streamlining its technological infrastructure. Directed by Jenni Decker, Principal of Supply Chain Planning, Retail, and Industrial, the company adopted SAP Integrated Business Planning (IBP) as a standard technology layer across all its supply chains. This initiative is further bolstered by the integration of ERP systems and the incorporation of artificial intelligence (AI) and machine learning within the device supply chain.
Three Unique Supply Chains, One Unified Strategy
Telstra manages three separate supply chains:
- Spare Parts Supply Chain: This chain is tasked with supplying spare parts to resolve network issues.
- Build Supply Chain: This chain aids in the construction and maintenance of Telstra’s network, including 5G deployments.
- Devices Supply Chain: This supply chain is responsible for providing mobile phones, modems, and accessories to wholesale, retail, and enterprise clients.
Previously, these supply chains functioned independently, each with distinct technologies and processes, resulting in inefficiencies. The absence of a cohesive system meant that similar challenges necessitated redundant solutions within each supply chain. This inefficiency became a critical area for enhancement as Telstra initiated its transformation journey.
Transitioning from Outsourcing to Insourcing: A Strategic Change
Around five to six years ago, Telstra opted to insource its supply chain operations after over a decade of outsourcing to two different partners. This decision aimed to reclaim control over its processes and capabilities, which had significantly diverged during the outsourcing phase. The insourcing initiative set the foundation for the current ERP unification and supply chain planning enhancements.
ERP Unification: Streamlining Operations with SAP S/4HANA
A key element of Telstra’s transformation is the unification of its ERP systems. In partnership with Accenture, Telstra successfully integrated three distinct legacy ERP systems (Oracle and SAP ECC) into a single, combined corporate ERP based on S/4HANA Private Cloud Edition, hosted on Microsoft Azure. This new system, known internally as ‘SAPphire’, represents a substantial shift towards standardized and simplified operations throughout the organization.
The SAPphire rollout commenced with Telstra’s international operations in April 2022, involving roughly 200 finance users. This was succeeded by a broader implementation for its domestic operations in July 2023, which now accommodates approximately 2,500 users across finance, procurement, and supply chain roles in 14 countries. Telstra anticipates that the SAPphire initiative will generate over $50 million in IT platform benefits by FY26, including $9 million in recurring annual savings.
Workforce Mobility: A Transformative Advantage for Telstra
A major advantage of the integrated supply chain planning and ERP systems is the improved workforce mobility. With all supply chains utilizing the same technology, Telstra can agilely reallocate personnel between supply chains in response to demand. This ability has been vital during peak retail times, like Black Friday and Christmas, as well as during natural disasters when demand for network repairs surges.
Jenni Decker emphasized that this workforce mobility not only benefits Telstra but also offers significant career development avenues for employees. Team members can now acquire experience across various supply chains, enhancing their skills and expanding their industry knowledge.
Conclusion
Telstra’s extensive overhaul of its supply chain management, through the introduction of SAP IBP and the consolidation of ERP systems, has resulted in notable enhancements in efficiency and workforce mobility. The capacity to dynamically shift personnel across supply chains during peak and emergency situations has proven transformative for the organization, allowing it to more effectively support its growth trajectory and deliver improved services to its customers. This transformation is expected to significantly impact the company’s financial performance, with substantial IT platform benefits anticipated by FY26.
Q: What is the primary aim of Telstra’s ERP transformation?
A:
The main aim of Telstra’s ERP transformation is to simplify and standardize operations across finance, procurement, and supply chain management. This is accomplished by merging multiple obsolete ERP systems into a single SAP S/4HANA-based system, facilitating more effective and integrated operations.
Q: How does the new supply chain management system benefit Telstra?
A:
The updated supply chain management system allows Telstra to flexibly reallocate its workforce across different supply chains in line with demand. This adaptability is especially advantageous during peak retail seasons and natural disasters, enabling the organization to react more swiftly and effectively to evolving circumstances.
Q: What financial benefits are anticipated from the SAPphire program?
A:
Telstra expects the SAPphire program to yield over $50 million in IT platform benefits by FY26, along with an additional $9 million in recurring annual benefits. These savings arise from the consolidation and simplification of operations throughout the organization.
Q: What impact has workforce mobility had on Telstra’s workforce?
A:
Workforce mobility has granted Telstra employees enhanced career development opportunities. Staff members can now gather experience across various supply chains, improving their skills and expanding their industry acumen. This mobility also facilitates faster and more effective responses to evolving business demands.
