Question

What are the procurement and distribution components of the supply chain of AT&T? And how it affects AT&T distribution strategy in case of entering a new market or or getting into e-commerce?

Answer 1

Procurement components of AT&T

AT&T works with around 60000 vendors of its own. They place their vendors in basically 4 categories, which are- domain, strategic, tactical and transactional. Domain level vendors are highest level of vendots. AT&T collaborates with them for a longer term and maintains good relations at no cost. Tactical vendors are replacable if AT&T deems it necessary and transactional vendors are only used for short-term contracts or on-the-spot solutions.

Distribution components of AT&T

AT&T uses 3 supply chain compoents to handle its distribution. The consumer group handles the distribution of handsets, tablets, devices, set top boxes etc. AT&T has around 2500 stores nation wide comprising of agents and retailers. This supply chain components is looked over by 2 distribution centres.

The other component, called network group maintains the logistics, plannning and sourcing of the AT&T Wireless Network. This group uses again 2 distribution centres and 5 satellite stations across the nation

The third component helps the sales team perform its functions such as hardware support, data support etc.

Affect of AT&T's current Supply chain if it enters a new market or e-commerce.

Firstly, we can analyse what are the supply chain barriers which a company can face when entering a new market. These can be-

1. Lack of distribution centres

2. Lack of stores (brick and mortar)

3. Lack of knowledge of the geography

4. Political conditions or legalities in different regions

5.Culture of the new market

6. Availability of the near site vendors

The entering of AT&T into a new market will not be causing too much trouble for the company because of-

1. Available distribution centres in the city

2. Available brick and mortar stores nation wide

3. Availability of vendors nation-wide

4. Good knowledge of the geography

Because AT&T already fulfills the criteria of developing a good supply chain, it will not have a lot of trouble getting into e-commerce. Only additional things required wil be-

1. Developing an e-commerce website

2. IT team to manage the site.

3. Data analytics team to analyse the customers and their behaviour who are ordering online

4. A team handling digital marketing