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Flagship Case Study
Blockchain
in the supply chain

What is it…

This project is part of Telefónica’s strategy to transform its supply chain from a cost center to a business differentiator, based on three main concepts:

As regards the third concept, through our transformation programme, using blockchain coupled with the IoT and other technologies, we are achieving unprecedented levels of visibility and traceability throughout the customer-premises equipment (CPE) supply chain in Brazil, the largest market.
  • Millions of seriated devices in Brazil each year.
  • Tens of contractors and thousands of fieldwork technicians.
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1 Omni-channel logistics services to shorten delivery times, broadening the options and enhancing the customer experience. 2 Promote the circular economy, optimising the recovery capabilities of mobile and customer- premises equipment. 3 Apply Blockchain and other technologies to one of our 3 supply chains -customer- premises equipment- gaining visibility in real-time and traceability extended to our Tier I and Tier II manufacturers (components) and field technicians.

Why it is important…

Home-premises equipment (STBs, routers, etc.) are an essential part of the connectivity services we offer. Specifically, this initiative represents:

1 A new relationship model with our Tier I (device manufacturers) and Tier II manufacturers (component manufacturers), building relationships of trust and making the business more flexible by: » Improving provisioning time flexibility. » Possibility of load balancing at source between operations. 2 Greater control of material and operating efficiency (logistics and field): » Real-time stock control in every layer of the supply chain; from the component manufacturer to the customer. » Increase stock management efficiency, in the field and warehouse. » Reduce safety stock throughout the supply chain. » Improve effectiveness in the field by reducing NFF (No Fault Found) rates. 3 Promote a sustainable supply chain: » Maximum reuse of CPE, extending their life cycle and increasing collection efficiency. » Possibility to block any item at any point of the supply chain if quality or compliance problems are detected (corporate social responsibility policies). » Reduce logistics efforts – impact on carbon footprint.

Our goals…

In line with our global targets, this transformation project seeks to achieve maximum business and environmental efficiency in provisioning, installation and recovery of customer-premises equipment. To do this we have set the following challenges:

image/svg+xml Extend to the other two Telefónica supply chains (Network Rollout and Retail – mobile devices and accessories). Launch the project in the rest of the group’s operations up to 2021. Fully roll-out the project in Brazil in 2019 , achieving. » Flexibility in provisioning times » Reduce the need for safety stock » Improve recovery efficiency

What we have achieved so far…

The project was launched in Brazil in 2018, starting with the transformation of the provisioning process and signing agreements with our Tier I manufacturers. This has enabled us to increase the flexibility of our provisioning, giving the business the capability necessary to comply with its business plan.

image/svg+xml We aresupporting theentire transformationof processes in 2019 withtechnology (BlockChain)in order to upscale thebenefits. Several actions to improvevisibility in the field have alsobeen initiated, which has enabledus to improve our planningcapabilities and thereby helprationalise stock.

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