Alcatel Transforms North American Enterprise Operations to Create Virtual Factory; Accepts ``Supply Chain Superstars'' Award in Frontline Solution Magazine Ceremony in Chicago.Business Editors/High-Tech Writers CALABASAS, Calif.--(BUSINESS WIRE)--Sept. 17, 2003 Alcatel (NYSE NYSE See: New York Stock Exchange :ALA) announced today that it has transformed traditional in-house manufacturing into a completely outsourced model for its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. enterprise networking The networking infrastructure in a large enterprise with multiple computer systems and networks of different types is extraordinarily complex. Due to the myriad of interfaces that are required, much of what goes on has little to do with the real data processing of the payroll and orders. site in Calabasas. As a result of this new direct order fulfillment Order fulfillment (in BE also: order fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes Order fulfillment methodology for its OmniSwitch family of data networking switches, Alcatel's North American enterprise division has reduced inventory by more then 50%, planning time by over 75%, and material liability by 80%. This accomplishment was recognized last evening in Frontline Solution Magazine's Supply Chain Week Expo at McCormick Place McCormick Place is an enormous exposition complex located in Chicago, Illinois. in Chicago when Alcatel accepted the "Supply Chain Superstar" award for its direct order fulfillment model. Alcatel has created a sophisticated "virtual factory" with Third Party Logistics Providers, Electronics Manufacturing Services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). Providers and Strategic Component Suppliers using a combination of its own Omni solutions and best-of-breed software. Through collaborative planning software Collaborative planning software helps people plan projects and activities together on the peer base. Everyone can equally contribute, assign tasks and track the progress. and established planning processes, it has established a real-time mechanism for sharing product forecast changes with partners to positively impact deliveries, inventory levels and component and capacity requirements. This combination of systems and processes allows Alcatel to uniquely manage the entire supply chain process from order to delivery, in real time, and offer a better customer experience. "The implementation of this new direct order fulfillment model has also allowed Alcatel to reduce the overall break-even cost structure by over 40%, while improving our performance to customers on deliveries and quality," said Stan Stopka, vice president of operations for Alcatel's e-Business Network Division. "Through the combination of systems and communication with our partners, Alcatel is more flexible now than when we performed the functions in-house. In completing this new borderless virtual factory, Alcatel is now uniquely equipped to quickly adapt to sudden changes in the market better than its competitors." Alcatel has also introduced a number of quality control and logistics efficiencies that allow Electronics Manufacturing Services Providers' internal manufacturing and Third Party Logistics Providers' warehouse management systems to electronically communicate with Alcatel's quality systems based in Calabasas, California Calabasas is a city in Los Angeles County, California, in the western United States. As of the 2000 census, the city population was 23,123. The city was formally incorporated in 1991. . From start of production to final assembly, testing and shipping, files of data are transmitted electronically to ensure all measures of Alcatel's quality standards are being met and reported back to Alcatel prior to every shipment. "Celestica is committed to providing its customers, such as Alcatel, with a total outsourcing offering that maximizes efficiencies and leverages the company's global manufacturing network, which translates into reduced costs and faster time-to-market for them," said Eugene Polistuk, Chairman and Chief Executive Officer, Celestica. "Alcatel has proactively embraced the total outsourcing model, recognizing the benefits it can deliver in achieving superior manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. results. "Alcatel is a pioneer in the way it has transformed networking economics. When we launched the OmniSwitch family and OmniPCX Enterprise we focused on extending the long-term viability of these products by building them with innovative, scalable architectures. Alcatel is now applying this same principle to the way our products are built and delivered," said Patrick Liot, President, Alcatel Enterprise Networking. "Our borderless direct fulfillment model allows us to adapt to any level of demand in the marketplace and leaves us well positioned long-term." Frontline Solution Magazine (www.frontlinetoeday.com) will publish a profile on Alcatel regarding its achievement in October's issue. About Alcatel enterprise networking solutions Alcatel delivers standards-based IP communications A general term for networks that use the IP protocol for voice (VoIP) and video traffic. See IP telephony. solutions to a global customer base of over 500,000 small, medium and large enterprises, government agencies, healthcare facilities, and educational institutions. Alcatel's award-winning Omni family of IP Communications solutions consists of an extensive portfolio of network switching infrastructure products and IP telephony The two-way transmission of voice over a packet-switched IP network, which is part of the TCP/IP protocol suite. The terms "IP telephony" and "voice over IP" (VoIP) are synonymous. products built to provide long-term value. About Alcatel Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of US$15.5 billion in 2002, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com |
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