Achieving Dominance at Higher Levels of Progress

It became a joint sales opportunity for CellStar and its selected business ally,
Yantra. CellStar was to provide the seamless end-to-end delivery system with
the necessary process improvements, including fail-safe electronic linkage. Yantra
would introduce mechanisms that would improve the capability of the ERP
system and link it with suppliers and customers. The software and systems
company would also provide a business-rules-driven fulfillment and returns
engine, with rapid integration into CellStar�s business processes and systems.
Together, they would introduce the necessary visibility into the key threads in
the new system, as well as provide event monitoring and early notification of
any systemic problems.
Through the partnering that was to occur, CellStar believed it could provide
an unmatched value proposition for the potential business customers and eventual
consumers. The potential increase to CellStar revenue was estimated to be
$33 million by 2004. The business allies began by drawing process maps of the
end-to-end system that was to be enhanced and preparing a business case foundation
for the eventual actions.
The new processes
would be aimed at wireless carriers and meet their need for complex
logistics services, while introducing a �converting pipeline� that included capability
to handle all fulfillment services and reverse logistics (a key element
in the offering). Among the operational impacts, the system would control onhand
inventory and reduce selling, general, and administrative (SG&A) costs.
Particular attention was given to the proposed reverse logistics pipeline,
described by one of the process maps, depicted in Figure 6.4. Bringing special
capabilities in this important process step helped distinguish the final offering
in the eyes of the wireless customers. Through the Gatekeeper program, Yantra
provided a total call center and equipment fulfillment solution, with the ability
to link into suppliers and customers for necessary information. One unexpected
benefit of this solution was that the refurbished units in the replacements mix
increased from 20% to 38%, which helped to meet the large demand backlog.
The overall intention was to create a distinctive advantage for CellStar, using
technology as a strategic asset, which was accomplished and helped the firm
expand its sales effort into other business areas.
The partnering that took place has been a success, as the new capabilities
met or exceeded the intended objectives. CellStar introduced its new offering
under the banner name �Omnigistics.� It was presented as a set of solutions that
provided depth and breadth to a customer�s logistics strategy, turning the supply
chain into a competitive advantage. The suite included forward logistics, with
procurement and inventory management, order processing and reporting, fulfill-