Customer centricity through innovative supply chain management
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TURKCELL: DRIVING SUPPLY CHAIN MANAGEMENT EFFICACY THROUGH TECHNOLOGY AND COMMUNICATION WRITTEN BY
MARCUS LAWRENCE PRODUCED BY
JUSTIN BRAND
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TURKCELL
Ali Türk, Executive Vice President of Supply Chain Management at Turkcell, discusses how Turkey’s largest mobile operator is driving efficiency with customers at the forefront
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T
urkcell, the largest mobile operator in Turkey, has undergone a significant shift in its procurement and supply chain op-
erations driven by a radical ideological change to the business itself. “Turkcell is a unique company, a digital operator,” says Ali Türk, Executive Vice President of Supply Chain Management at the firm. “We are dealing not only with the mobile part, but also the commerce part: it’s one entity.” With a focus on establishing a high quality internal infrastructure, technology and network infrastructure, and meaningful, functional digital services, Turkcell has undergone a structural change that highlights the importance of procurement to its wider strategy. As part of supply chain management’s realignment as a strategic function, Turkcell established a dedicated procurement committee to drive positive change. Meeting every
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week alongside the CEO, Murat Erkan,
enabling a consistent thread for supply
the committee makes key decisions
chain management strategy to follow
on the company’s biggest purchases.
throughout the organisation.
While these make up 3% of the firm’s
These structural adaptations are
purchases at large, their combined
bolstered by the application of disrup-
volume equates to 80% of the total
tive technologies, driving efficiency
made by Turkcell. “All of the company’s
and transparency at Turkcell. However,
top executives are fully involved in
Türk stresses that digital transforma-
these processes, and they acknowl-
tion is, to Turkcell, a tool rather than
edge and evaluate all of the aspects
a goal. “Digital transformation is a must
of procurement investments and
to survive in our era,” he says. “It ena-
strategy.” Not only that, but a unifica-
bles us to focus on optimising costs
tion of operations between teams has
in a sustainable structure, to increase
been achieved through the adoption
revenues, and to increase the level
of agile management methodologies,
of quality we offer our customers.”
“ Turkcell is a unique company, a digital operator” — Ali Türk, EVP Supply Chain Management, Turkcell
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A particular area of interest for Türk is
says. Once those needs are defined,
robotic process automation (RPA) and
they each collaborate with Turkcell’s
the benefits it could have for internal
ICT department to drive the gradual
teams. He adds that the application of
rollout of RPA through specific digi-
this technology will be based on what
talisation departments. “For example,
those teams themselves view as the
supply registration, fee operation, cal-
areas that would benefit most from
culation of monthly payments, opera-
automation, and the freeing up of staff
tion of the tender process, opening
from repetitive tasks that it would en-
site acquisition and scrap sales orders;
able. “We have procurement depart-
they’re all operational issues and ritual
ments, logistics departments, real
issues,” says Türk. “Right now, we are
estate, construction and site acquisi-
developing some use cases and we
tion departments, and they are each
will forward those tasks to RPA.”
highlighting their requirements,” he
In addition to its RPA ambitions, w w w.t urkc e l l. com . t r
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Turkcell has deployed artificial intel-
ply chain management chatbot that will
ligence (AI) technology to enable price
streamline communications between
estimations for services and network
internal departments. The chatbot
site acquisitions. “Right now, we are
stands to mitigate time spent chasing
managing approximately 20,000 value
answers to various questions across
sites and we have a huge site acqui-
multiple teams, particularly when it isn’t
sition team that oversees the hiring
clear who might be best placed to pro-
of those sites,” says Türk. With AI,
vide those answers. “We will eliminate
Turkcell is using Big Data and analyt-
these unproductive elements” says
ics to drive intelligent land acquisition,
Türk, “and we will address our teams
selecting sites that offer the best value
to focus more on strategic business
to the company: maximising efficiency
operations.” He adds that digitalised
whilst simultaneously cutting costs.
contracts and digital signatures will
The company is also developing a sup-
significantly streamline its dealings
with contractors and landlords. Türk’s team manages around 20,000
regulators to go digital and, thanks to mobile and biometric signatures, the
contracts with landlords which, until
completion time for contract signa-
now, has been done through physical
tures will be decreased from 10 days
copies, meaning turnaround times are
to between six and 10 hours. No cargo
protracted, cargo and courier costs
costs, no courier costs, no lost
mount up, and there is significantly in-
documents. The processes will be
creased risk of delays caused by lost or
fully optimised.”
damaged paperwork. “In Turkey there
Across its supply chain, Turkcell’s
are regulations that limited us to using
application of disruptive technologies
hard copies for contractual documents,”
is supported by a meaningful, hands-
says Türk. “We got approval from the
on approach to vendor management 11
E XE CU T I VE PRO FI LE
Ali Türk Ali Türk joined Turkcell as the Senior Vice President of Supply Chain Management in May 2016 and was appointed as the Executive Vice President of Supply Chain Management in March 2017. After graduating from the Industrial Engineering Department of Istanbul Technical University in 1999, Türk completed the Istanbul Technical University Executive MBA program in 2001. Between 2002 and 2007, Türk held various management positions responsible for logistics planning, warehouse and supply chain management processes at Ülker Group Companies. He worked at Ceva Lojistik between 2007 and 2011 as Warehouse and Value Added Operations group manager. Joining Turkish Airlines in 2011 as Cargo Operations Vice President, Mr. Türk has served
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that ensures their respective offerings meet Turkcell’s needs in the fullest capacity. “We regularly evaluate our suppliers’ operational, commercial and quality perspective capabilities,” says Türk. “Also, for effective vendor management, meeting regularly is crucial. I don’t expect the vendors to only come to us, but we also visit them at their own premises and facilities to help us understand how they operate.” With the added insight provided by Turkcell, Türk notes that the key driver
“ You have to change people’s perspectives. Change means that it’s changing to good, not bad” — Ali Türk, EVP Supply Chain Management, Turkcell
of this approach is encouraging its w w w.t urkc e l l. com . t r
TURKCELL
vendors to evaluate their processes and inspire innovation. Not only that, but operational stability is also supported by this focus on establishing effective lines of communication. “At times we generate new projects which impact our business methods and processes, and every time that happens it’s known by all parties,” Türk adds. Furthermore, supplier-enabled innovation has been defined as a key performance target for each procurement specialist at the firm, ensuring that 14
innovative opportunities are actively sought whilst working with suppliers.
“ For effective vendor management, meeting regularly is crucial” — Ali Türk, EVP Supply Chain Management, Turkcell
Tying everything together is an unerring commitment to effective change management. “If you want to be successful on this transformation journey, change management is the most crucial part,” enthuses Türk. “You have to change people’s perspectives. Change means changing to good, not bad. The next era should be better than before.” To drive this positive attitude to shifts in operations and the application of new technologies, Turkcell operates what
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Türk calls Supply Chain Management
take forward,” says Türk. “We tell our
Bootcamps that bring together the
staff that, as we’re changing everything,
talents of different teams across the
they have to adapt quickly, but we em-
SCM spectrum at the firm. The focus
phasise that they are managing these
is primarily on generating innovative
innovative projects. They’re driving the
ideas and making employees a part of
change, and that’s crucial.”
the transformation process, with the additional benefit of cross-functional collaboration at these events and establishing strong lines of communication between different teams. “The bootcamps have generated a lot of projects so far, and some of those have already been approved by our boss to w w w.t urkc e l l. com . t r
Turkcell Küçükyalı Plaza Aydınevler Mahallesi İnönü Caddesi No:20 Küçükyalı Ofispark B Blok – Maltepe İstanbul, Turkey T +90 212 313 10 00 www.turkcell.com.tr