Analysis of service supply chains in

the telecommunication sector

1. Analysis of service supply chains in the
telecommunication sector Project Supervisor: Dr. Cherian
Samuel By- Ashish Sethi - 10406EN004 Anchit Patni 10106EN009 Krati Parakh - 10106E023 Dube Dheeraj
Prakashchand - 10106EN043
2. Timeline Literature Review (August) Study of System
Dynamics (September) Learning Vensim and STELLA
(September-October) Telecom Sector Survey and Model
Development (October-November)
3. Supply chain management Sequence of processes
involved in the production and distribution of a commodity
Basic activities involved in supply chain management: 1. 2. 3.
4. 5. Procurement of raw materials Production of parts
Assembly Delivery Marketing Need for managing the supply
chain: 1. 2. 3. Integral parts of a firms strategy Lower the cost
Increasing the contribution margins Everyone is a customer as
well as a supplier
4. Types of supply chains: 1. Inventory supply chains 2.
Examples automobiles, FMCGs Service oriented supply chains
In the service sector: Examples - mortgages, insurance
policies and home health care Not in the service sector:
Example - equipment manufacturers
5. Relevance of service oriented supply chains
Largest contributor to the GDP Relative lack of research in
service supply chains Demand for customized goods and
services Rise of e-commerce
6. System Dynamics Analyzing how structural changes in
one part of a system might affect the behavior of the system as
a whole. System: A collection of elements System structure:
Relationships and connections System behavior: The way in
which system elements vary with time Feedback: Result of
actions taken on an element trail back to the element itself,
which may be positive or negative Stocks and flows Delays
7. Supply-Demand-Price Model
8. Simulation results Equilibrium inventory level
Equilibrium price Equilibrium (a) inventory and (b) price levels
with stepped input
9. Comparing (1) - without step and (2) - with step input
Sensitivity Analysis for Price Change Delay (1-5 weeks, 2-10

weeks, 3-15 weeks)

10. The Telecom Sector
11. Source: www.equitymaster.com
12. Consumer Redressal System Point of First Contact:
BPOs Calls Queries Complaints (50%) (50%) Network VAS (25%)
(20%) Sales and Marketing (15%) Billing Courier (25%) (10%)
13. Network Related Problems Hardware malfunction or
fiber cuts Requires electronic and manual investigation
Resolution by vendors Inadequate capacity to handle traffic
Economic analysis Tradeoff between costs of construction of
new site and loss of potential and existing customers Risk
because of legal and bureaucratic hurdles
14. Model Equations
15. Assumptions DT = 1/25 hours Average call duration
= 3*DT 5 mins Delays at the BPO, SPOC and Company
SPOC = 0.25 hours, or 15 minutes. Delay at technical
department = 2 hours. Average delay to resolve by the
vendor = 5 hours (fiber cuts) Fraction of FTR = 0.4 Fraction
of TDR = 0.2
16. Simulating the model
17. Future Direction Improving the NPR model
Sensitivity analysis Integration of supply chains relating
different departments Outsourcing
18. Thank You!