Tellabs Outsources North American Spares Management Service

Taps joint solution from MCA Solutions, DHL and Click Commerce Combine to speed spare parts delivery to customers

Taps joint solution from MCA Solutions, DHL and Click Commerce Combine to speed spare parts delivery to customers

Philadephia, PA — September 27, 2004 — Telecommunications equipment provider Tellabs has tapped MCA Solutions, DHL and Click Commerce for a joint outsourced solution to help facilitate the company's North American spares management service and speed spare parts delivery to customers.

Headquartered in Naperville, Ill., Tellabs offers solutions for telecom service providers in more than 100 countries. The company, which had 2003 revenues of $980 million, has made the strategic decision to outsource its North American spares management service in order to expedite its spare-part delivery timeframes and ensure the highest level of service to its customers.

Click Commerce software automates return processes and powers returns management systems. Click said its solution, which integrates with enterprise software systems and portals, reduces the number of manual touch points in the returns system by automating the decision-making process. Additionally, the solution is intended to improve the accuracy and accountability of the information being processed and can serve as a foundation for the after-sales service process.

DHL is serving as Tellabs' third-party logistics supplier for its global parts operations, providing the physical infrastructure. Through its network of warehouses, inventory control measures and transport services, DHL said it will ensure that Tellabs provides its customers with timely and effective delivery of spare parts. It offers a single-company solution for Tellabs' global customers' critical inventory needs. DHL's Global Strategic Parts Center (SPC) network consists of over 360 facilities strategically located to manage pre-positioned inventory and provide time-critical, same-day delivery. DHL said that the SPCs operate around the clock to provide non-stop international logistics services.

MCA manages Tellabs' parts planning and optimization with its service planning and optimization (SPO) software suite, providing new strategic parts centers provisioning, inventory forecasting and contract coverage analysis. The MCA SPO solution integrates with enterprise software systems as well as DHL's fulfillment system, providing end-to-end monitoring and management of mission-critical materials, the provider said.

"It is exciting that Tellabs, because it opted for a hosted solution, was able to realize the value inherent within MCA SPO in a very short timeframe," said Dr. Morris Cohen, founder and chairman of MCA and Matsushita Professor at the Wharton School of the University of Pennsylvania. "Rapid deployment of outsourced solutions is the direction of service supply chain management."

"Improving the processing of returned materials enables Tellabs to recognize cycle time reductions for its customers," said Michael Ferro, CEO of Click Commerce. "Using technology to enable strategic partnerships in their after-sales service process translates into superior customer service and satisfaction."

"Tellabs is a great example of a company transforming its service strategy through technology and leveraging of outsourcing," said Jon Guyett, logistics director for DHL, Americas. "Our partnership with MCA allowed us to rapidly deliver an industry-leading solution that integrates service planning and execution."