Last week, we have covered how mobile dealers must address constrained supplies and delayed internal processes when it comes to meeting mobile mania demand, especially during annual launches of flahship devices from giant manufacturers.
Here we cover the third item that dealers should be aware of and how to use data when it comes to understanding and monitoring supply chains to better serve customers.
3. Skewed incentive models
Finally, dealers who earn significant commission from connecting customers onto new plans are often incentivised to withhold limited stock, if they believe a future customer will purchase a more lucrative plan, or with added accessories and insurance. This commission model may work for most of the year, but flagship launch times are when stock needs to move fast to win a greater allocation from the manufacturers. This hoarding of stock is a real issue, and ultimately results in the telco being at risk of losing out if their customers can access product from competitors.
As we’ve explored, the centre of the supply chain management process has a deep dependence on wireless technology and data holds the key to the solution. The challenge during these periods is when manufacturers use real-time data to monitor mobile phone activation time: this shows when a phone is activated by a customer, who is selling the most phones, and in turn, which of their channels can sell-through more units quickly.
One solution to help solve these unusually complex issues, which are unique to the telecommunications industry, is to introduce advanced analytics solutions that use data-driven statistical algorithms to optimise individual store replenishments. This turns big data into store level allocations that reward retail stores and partners that sell the quickest.
Using a highly customer-centric automated approach based on robust data benefits both carriers and retailers, and helps optimise the performance of the end-to-end supply chain through aligning incentives. It promotes internal cohesion between teams and reduces any associated delays and conflicts because stock replenishment decisions are fully automated through pre-agreed policy settings.
Further, a gamification concept is introduced for retailers who are monitoring their supply chains and ensures the focus is on sales velocity. Developing a specially designed dealer portal means staff can access data directly in real-time and they have the ability to instantly check stock levels and allocate products where needed. This removes issues with incentive models and misaligned sales strategies, so it’s win-win for everyone – especially customers.
Retailers are compared against peer stores, and this transparency introduces a competitive element. This helps shift incentives to “sell more and you get more” as opposed to dealers hoarding stock for more profitable customers – and risk slowing sales velocity. Store performance is increased and teams can focus on ensuring they’re delivering exceptional customer service.
This unusually complex issue illustrates the unique challenges the telco industry is facing around product allocation and inventory during flagship launch times. Optimising supply chain data analytics is just one example of how telcos and retailers can use the right technologies and platforms to strategically manage and drive the supply chain to improve the customer experience. These peak sales periods are critically dependent on the wireless supply chain working efficiently, and all parties at the table working cohesively. By harnessing a bespoke, solutions-based approach, they can align incentives and maximise visibility end-to-end to keep one step ahead of competitors.
Dr Gregory Hill, Head of Analytics, Brightstar Global Services
