Martin Karlsson, Head of IT Tools and Systems, Group Sourcing at Ericsson

1. Ericsson
Sourcing
Martin Karlsson
Head of IT Tools and Systems, Group Sourcing at Ericsson

2. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 2
Networked
Society
http://www.ericsson.com/thinkingahead/networked_society

3. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 3
Progress
1875 1975 2000
10
30
50
15 years
50 billion connected devices
25 years
5 billion connected people
100 years
1 billion connected places
20
40
Connections (billion)
2020

4. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 4
Then…

5. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 5
…and now

6. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 6
35,000
25,000
$5B 64,000
2.5 b
1 b
180
50%
114,000
Subscribers
managed by us
Subscribers
supported by us
Services
professionals
LTE smartphone traffic
handled by our networks
Employees
Countries with
customers
R&D
Employees
Patents
In R&D
$35B Net Sales
MOBILE
INFRASTRUCTURE
OSS&BSS
SERVICES
MEDIA DELIVERY & IPTV
Ericsson at a glance

7. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 7
strategic direction 2014
Establish leadership
in targeted areas
OSS&
BSS
Industry&
Society
TV&
Media
IP
Networks
2 Expand business in
new areas
Excel in 3
core business
Radio,Core &
Transmission
Telecom
Services
1
IS/IT
Services
M2M
Analytics
Modems
Mobile
Enter-prise
Cloud
Future/
Emerging
Present/
Large

8. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 8
Sourcing Development
3.0
1.0
Foundation for Sourcing
Contract negotiations, logistics & order handling,
focus on bottom line
2.0
Develop categories & suppliers
Develop category excellence &
superior supplier value
3.0
Frontline
commercial function
Value based sourcing part of sales
1.0
2.0

9. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 9
Ericsson Sourcing:
4 strategic focus areas
3.0
1.0
2.0

10. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 10
Ericsson Sourcing 1.0
Foundation
› Around 35 000 suppliers
› More than 5 000 000 invoices
› Around 1 400 Sourcing professionals
› More than 60% of what we sell we source
5
Business Units
10
Regions
1 Global Support Office
1 Global Sourcing Process

11. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 11
Ericsson Sourcing 2.0
Develop Categories & suppliers
Category Management
› Optimized supplier base
› Cross functional collaboration
› Category strategies
› Commercial development
Supplier Relationship
Management (SRM)
› SRM Framework
› Supplier strategies
› Segmentation
› Value creation

12. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 12
Ericsson Sourcing 3.0
Frontline Commercial Function
Sourcing Business Partner
Sourcing Business Partners contributing to top line
by adding value to customers
Responsible Sourcing
Consumer awareness and customer
requirements turned to an asset by building trust
Partnering
A way to handle the exceedingly diversified and competitive
environment and financing situation to get the right mix
Leadership and competence
Only with the right leadership and competence
can Sourcing contribute to the business

13. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 13
Case studies

14. Zycus Horizon Presentation 2014 | Ericsson Internal | 2014-11-04 | Page 14
Summary
3.0
1.0
Foundation for Sourcing
Contract negotiations, logistics & order handling,
focus on bottom line
2.0
Develop categories & suppliers
Develop category excellence &
superior supplier value
3.0
Frontline
commercial function
Value based sourcing part of sales
1.0
2.0

15. Grabbing the
opportunities
Increasing profitable top line by
adding value to customers through
understanding the company’s business
and the customer agenda