SCM Micromaxx and Rim, BlackBerry

BlackBerry

BlackBerry is committed to ensuring that the management of supply chain activities is socially and environmentally responsible. As a multinational company it recognizes that supply chain operations reach many parts of the globe and a diverse range of communities, each with their own culture and business norms

There are certain standards of employment and environmental performance that must be respected wherever they operate or have business relationships. These standards are encapsulated in our Supplier Code of Conduct Supplier compliance with the BlackBerry Supplier Code of Conduct and Responsible Minerals Policy is an expectation for doing business and is fundamental to supplier engagement activities. This Code is made up of five sections. Sections A, B, and C outline standards for Labor, Health and Safety, and the Environment, respectively.

Section D outlines the elements of an acceptable system to manage conformity to this Code. Section E adds standards relating to business ethics. BlackBerry continues to be an active participant in the Electronic Industry Citizenship Coalition (EICC) and the Global e-Sustainability Initiative (GeSI). Supply chain social responsibility Implementation BlackBerry uses a risk-based approach for monitoring supplier conformance to Supplier Code of Conduct. In fiscal 2012, BlackBerry established an enhanced process for evaluating supplier social and environmental responsibility (SER) risk and prioritizing suppliers for assessments.

The first step is a high-level risk assessment based on such factors as supplier location, commodity, relationship and history. The high-level risk assessment intended to be conducted annually on identified supplier list. The output of this assessment is a prioritized list of suppliers, who will be required to complete detailed self-assessments. BlackBerry intends to use the EICC-ON system to gather this information. BlackBerry supports a common industry solution to supplier SER management and is actively engaged in the continued development of the system through work with EICC.

Freely chosen employment in our supply chains BlackBerry supports the principle of freely chosen employment and does not support the use of slave labor in any of its forms, including forced labor and child labor. Supply chain carbon reporting BlackBerry is participating in the EICC’s carbon reporting system. Through this system it will survey many of direct suppliers of materials, which will give insight into the carbon emissions associated with BlackBerry’s supply chain.

It will help us to identify areas for improvement and opportunities to work with suppliers on projects to reduce carbon emissions. It will also help to raise awareness within supply chain of the impact of carbon emissions on the environment and the benefits that can be gained through reduction programs. Conflict minerals BlackBerry does not support the use of minerals that are illegally mined, transported or traded, nor metals derived from such minerals, including gold, tantalum (columbite-tantalite), tin (cassiterite) and tungsten (wolframite).

Learn more about BlackBerry work to address conflict minerals Supply chain conflict minerals due diligence BlackBerry is an active participant in the piloting of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. They launched program in early 2012 with a request sent to more than 170 direct suppliers of materials to provide information regarding their minerals sourcing practices. The results will enable to have a greater understanding about the sourcing practices of our suppliers.

Public-Private Alliance for Responsible Minerals Trade

In 2011 the US State Department launched the Public-Private Alliance for Responsible Minerals Trade. This is a joint initiative between governments, companies and civil society to support supply chain solutions to conflict minerals challenges in the DRC and the Great Lakes region of Africa. BlackBerry has joined this initiative, which aims to help the governments of the DRC and other countries in the region break the link between the illicit minerals trade and ongoing violence and human rights abuses. Supplier diversity

The BlackBerry Supplier Diversity Program works to create mutually beneficial business relationships with diverse suppliers that strengthen communities. The goal is to provide opportunities to diverse suppliers who satisfy purchasing and contractual standards. Diverse businesses include small businesses, businesses owned by veterans, minorities or women, and those in historically underutilized business zones. Sourcing areas of the corporation are encouraged to identify and include diverse suppliers and consultants in the procurement process. BlackBerry Supplier Diversity Program

BlackBerry’s Supplier Diversity Program aims to achieve corporate diversity goals while enabling growth in the communities in which they operate by providing opportunities for qualified small, diverse and women-owned businesses. They strive to create vendor–buyer relationships that allow diverse organizations to continue to develop, while offering quality products at competitive prices. Included in program are:

• Minority-owned businesses certified by the National Minority Supplier Development Council in the U. S. and by the Canadian Aboriginal and Minority Supplier Council in Canada
• Women Business Enterprises certified by the Women’s Business Enterprise National Council in the U. S. and by WeConnect in Canada
• Small Businesses certified by the U. S. Small Business Administration
• Veteran-Owned and Service Disabled Veteran-Owned businesses certified by the U. S. Small Business Administration
• Historically Underutilized Business (HUB) Zone businesses certified by the U. S. Small Business Administration

Objectives:

• Actively seeking out certified diverse suppliers that can provide competitive, high-quality goods and services with business models that align with our business strategy.
• Seeking the inclusion of diverse suppliers as a part of our strategic sourcing and procurement process.
• Communicating the value of supplier diversity both internally and externally to stakeholders.
• Leveraging our supplier diversity results to help meet the supplier diversity expectations of our customers. Networking Project managers, commodity managers, buyers and contractors are encouraged to attend diverse supplier trade fairs and expositions to identify and establish business relationships.

BlackBerry endeavours to meet with diverse businesses at procurement conferences in order to explain purchasing processes and expectations and to communicate our needs for products and services. Mentoring BlackBerry offers a mentoring program where employees have the opportunity to provide assistance to diverse suppliers in the areas of business planning, product/service pricing, financial planning, marketing, technical knowledge, brochures, the bidding process, paperwork simplification and workflow. We also encourage some of our largest suppliers to mentor diverse suppliers.

Supplier diversity affiliations BlackBerry is committed to growing our diverse supplier network through partnerships with the following organizations and other local diversity councils:

• U. S. Small Business Adminstration (SBA)
• National Minority Supplier Development Council (NMSDC)
• Women Business Enterprise National Council (WBENC)
• Canadian Aboriginal and Minority Supplier Council (CAMSC)
• Women-Owned Enterprise Connect, CA (WeConnect – Canada) Value Chain Analysis (VCA)

Primary Activities Inbound Logistic Automated Receiving Systems

RIM has implemented sophisticated automated receiving systems to speed up the receiving process and reduce facility footprint and storage space requirements. Delegate Raw Materials Acquisitions RIM works its OEM (Original Equipment Manufacturer) partners to delegate the raw materials acquisition process but provides some supervision for quality control purposes. Operations Utilize OEM’s Economic of Scale RIM outsources production to third-party OEM partners to utilize their economies of scale while removing the burden of production management from the firm.

Internal Design

The design and conceptualization of current and future product is done internally at RIM, utilizing industry-leading industrial design teams and engineering.

Outbound Logistic Economical/Stylish Packaging

In order to save money on shipment an entice customers Blackberry use eye-catching packaging that takes up less physical space and weight less. This reduces shipping costs and environmental effect while attracting customers to the firm’s products, Worldwide Blackberry Store To control the firm’s brand image RIM sells Blackberry products through first-party retail establishments and through authorized retailers.

Direct shipment Blackberry. com online orders are shipped directly to consumers form storage facilities in China. This minimizes inventory buildup in more costly warehouse locations in the Canada. Marketing and Sales RIM is marketing the company’s products and solutions in order to generate revenue, and increase the market and mind share for the organization. Planning, developing, implementing and executing the company’s go-to-market and sales strategies and programs, including product advertising/promotion; telemarketing; e-commerce marketing; specific product/product line marketing; and multiple channel programs.

Planning, developing and coordinating all internal and external communications programs. Building awareness of RIM services and products in all key segments. Creating content, setting style and supporting all company websites. Assessing, analyzing and maintaining the supply to demand ratio. Services Creates the first and last impressions our customers have of our business. Deliver a consistently superior experience across all areas where the customer is engaged. Provide BlackBerry device, software, account, andtechnical support to millions of end-users. Support Activities

General Administration RIM general administrator tracks and reconciles global benefits invoices, ensures financial guideline compliance, prepares monthly reports and participates in continuous improvements projects. Human Resource Management RIM Human Resources team consists of dynamic, forward thinking professionals who are located in each region. Being passionate about RIM allows the team to be creative and resourceful when finding the right people to join our team. This passion also drives us to enhance our skills of driving employee engagement on a global scale.

The Recruitment Specialist establishes and fosters a consultative relationship with RIM hiring managers through close working relationships with various business units. Research, Technology and System Development Research and Development BlackBerry smart phone plans to open a research and development operation. RIM has more than 30 million subscribers. In the third quarter of 2012, it shipped more than 10million devices. Patent Filling Blackberry believes in the importance of protecting its intellectual capital by filling patents in U. S and worldwide for its inventions and innovations.

MICROMAX

Micromax is one of the leading Indian Telecom Companies with 23domestic offices across the country and international offices in HongKong, USA, Dubai and now in Nepal. With a futuristic vision and an exhaustive R&D at its helm, Micromax has successfully generated innovative technologies that have revolutionized the telecom consumer space. Micromax is on a mission to successfully overcome the technological barriers and constantly engender life enhancing solutions The company’s vision is to develop path-breaking technologies and efficient processes that incubate newer markets, enliven customer aspirations.

Distribution Strategy

Micromax managed to make dealers pay in advance by offering them more margins. It offered higher margins of 15 %margin, which is higher than the industry average of 6-10%. Micromax managed this hurdle through strategy of more margins for advance payment. It is not a new strategy to offer such kind of discounts for advance payments (cash discounts), but to make a retailer accept such an offer is indeed a remarkable feat . To increase penetration in the Indian telecom market, Micromax is bundling with telecom operators such as Aircel.

For better accessibly and prominence in the market, Micromax is coming up with 150 experience zones (exclusive stores)across the nation, in addition to ensuring bigger presence at the multi branded stores.

Corporate Level strategies

Expansion strategy

• Resource allocation:heavy investment in R&D, lately heavy investment in brand building.
• Wide portfolio catering to diverse segments.
• Business Level strategies:
• Unique Fusion of Cost Leadership and Product Differentiation.
• Following a Frontal and Flanking attack strategy.
• Products are mostly in the embryonic and growth stages.

Functional Level Strategies

• Product Innovation
• Rapid channel expansion
• Targeting widest customer base ( Rural + Youth)
• 360 Degree advertising
• Innovative advertising
• Effective and accurate segmentation
• Excellent Supply Chain management (Delivering value to each channel member).

KEY ELEMENTS OF SCM

• Easy access to rural markets in India by product innovation in form of dual sim phones and 30 day battery life phones
• Offering margins and commissions to distributors
• Lean, cash-based supply chain means Micromax has to be much more accurate and faster in its forecasting compared to its bigger competitors.
• Time-to-market from the design to production stage is around 3 months as compared to the 18 months taken by larger guys
• It puts new designs on the shelves by leveraging with China.

Primary Activities Inbound Logistic Commission and Margin Offerings Micromaxx has implemented simple discounts and margins to distributors to speed up the receiving process and reduce facility footprint and storage space requirements.

Delegate Raw Materials Acquisitions Micromaxx partners to delegate the raw materials acquisition process from China but provides some supervision for quality control purposes. Operations Utilize OEM’s Economic of Scale Micromaxx outsources production to third-party OEM partners to utilize their economies of scale while removing the burden of production management from the firm. Internal Design The design and conceptualization of current and future product is done internally as well as externally , utilizing industry-leading industrial design teams and engineering.

Outbound Logistic Economical Packaging Micromax uses a push mail service called easy mail. Idea was to package the phone pack like a parcel Worldwide Stores To control the firm’s brand image Micromaxx products through first-party retail establishments and through authorized retailers in India, China, Srilanka and Nepal Direct shipment Micromaxx. com online orders are shipped directly to consumers form storage facilities in China,gurgaon. This minimizes inventory buildup in more costly warehouse locations . Marketing and Sales

Micromaxx is marketing the company’s products and solutions in order to generate revenue, and increase the market and mind share for the organization. Planning, developing, implementing and executing the company’s go-to-market and sales strategies and programs, including product advertising/promotion; telemarketing; e-commerce marketing; specific product/product line marketing; and multiple channel programs. Planning, developing and coordinating all internal and external communications programs. Building awareness of services and products in all key segments.

Creating content, setting style and supporting all company websites. Assessing, analyzing and maintaining the supply to demand ratio. Support Activities General Administration Micromaxx general administrator tracks and ensures financial guideline compliance, prepares monthly reports and participates in continuous improvements projects. Human Resource Management Human Resources team consists of dynamic, forward thinking professionals who are located in each region. Being passionate allows the team to be creative and resourceful when finding the right people to join our team.

This passion also drives us to enhance our skills of driving employee engagement on a global scale. The Recruitment Specialist establishes and fosters a consultative relationship with hiring managers through close working relationships with various business units. Research, Technology and System Development Research and Development Plans to set up a research and development centre in China by the year-end at an investment of Rs 50 crore. The centre will help customise phones at the manufacturing level company, since we import from China. The software development will continue in Gurgaon.