ZTE Supply Chain

July, 2017
 ZTE Supply Chain Overview 

AnnualTurnover

100+B
CNY
SupplyCenters 8+1 10000+ Employees

Qualified Major
1000+ 4 
Suppliers Factories

Customer Centric
Supply Chain
© 中兴通讯 All rights reserved
2
 ZTE Supply Chain Organization 

Supply  Chain
EVP：Pang Shengqing

Supply Chain Solutions & 
Quality Dept.
Operations Dept.
VP：Hu Jiangtao
VP：Chen Li

HR IV Dept. SC Finance Dept.

Manufacture Dept. 
Customer Order Delivery Dept. Integrated Planning Dept. Procurement Dept. 
VP：Ding Guoxing
VP：Zhou Jianfeng/Cao Jun VP：Ma Jie VP：Shu Feng
Qian Guomin

VP：Yang Jianming，Zhang Jingxin，
Guo Haitao，Ding Jianzhong

© 中兴通讯 All rights reserved

3
 Value Creation of ZTE Supply Chain 

Improve Customer Satisfaction

Agile Intelligent Win-Win High Sustainable

Delivery Manufacture Ecosystem Quality Development

© 中兴通讯 All rights reserved

4
  Global Supply Chain Network 
 Agile
GSCN based on ‘Modular and
Moving Closer to Customer Reduce Time To Market
Intelligent Repeatable Supply Nodes’

Win‐Win

High 
Quality

Sustainable

Region
Country specific

Manufacturing Supply Center Reverse Hub

Center Center
© 中兴通讯 All rights reserved
5
 Global Logistics Network
 Agile

Core logistics service 
Intelligent Establish strategic cooperation with world-

providers
Win‐Win class LSP to implement E2E delivery solution,
High utilize global logistics network to improve
Quality
logistics service level.
Sustainable
End‐to‐end delivery network

Suppliers Warehouse Factory  Supply Center Country W/H Customer

Domestic and overseas Hong Kong ShenZhen Global
Customer
IC STS
DTO
Cable Distribution  subcontractor
Connectors STS
Center
PCB
Server STO
Power  Shenzhen material 
supply warehouse DTO
Site
Engineering 
Local warehouses
material
STS
Antenna
Microwa STO
ve

© 中兴通讯 All rights reserved

6
 Supply Chain Segmentation
 Agile Each business module design differentiated solutions for different business scenarios.
Intelligent
Set up different supply chain tracks (Fast / Medium / Slow track), based on products, customer
requirement, and cost to serve.
Win‐Win
Product Market Customer
High  Overall Solution for SC Segmentation Service Level
features demand
Quality
Product Demand Valued
Sustainable standardization stability MTS MTS(Make
MTS(Make To
To Stock)
Stock) Delivery Customer

ATO ATO （Assemble

ATO （Assemble To Order）
Order） Delivery

CTO CTO（Configure To Order） Delivery

MTO forecast
Forecast MTO（Make
MTO （Make To Order）
Order）
Product Demand Risk
customization volatility ETO order
Order ETO（Engineering To Order） Customer

Operators Supplier Factory FG Warehouse Local Warehouse Customer

Government&e Lead time
nterprise
Consumer 3~30d 5~15d 3~7d 1~2d

Demand segmentation Procurement segmentation Product mode segmentation

© 中兴通讯 All rights reserved
7
 Visibility of Data& Supply
 Agile

Intelligent
Order visibility and ATP visibility
Realize real-time operation through integrated visibility
Win‐Win

HIgh What-if scenarios analysis and risk pre-alert

Quality

Sustainable

Web terminal

Smart phone terminal

PO/Contract Producting Delivery progress Shipment Inventory Engineering site

Inquery track track track Inquery status track

© 中兴通讯 All rights reserved

8
 Production Capacity
 Agile

Intelligent
• Advanced production equipments and the industry's first-class
Win‐Win laboratories.
High
Quality • Multi-Factories in Shenzhen, Changsha, Heyuan, Xi'an, India,
Sustainable Indonesia, Russia, Brazil, Venezuela, etc. to support global delivery.

Products Unit Annual capacity

Radiobasestation-RRU set 2000k+
Radiobasestation-BBU site 700K+
Microwave set 60k+
Corenetwork set 4800+
FixedAccess set 400k+
Bearer set 600k+
CloudComputing&IT set 360k+
Energy set 150k+

© 中兴通讯 All rights reserved

9
 Intelligent Manufacture
 Agile

Intelligent

Win‐wWn

Hihg
Quality

Sustainable
SMT automatic PCBA automatic Automatic assembling
assembling testing of products

AGV automatic Automatic products

Automatic packaging
logistics testing

© 中兴通讯 All rights reserved

10
 In-depth Collaboration- Lead to Win-Win
 Agile • In-depth collaboration with customer, Stay close to customers to meet customers demand and improve
Intelligent customers satisfaction.
• Focus on 100+ strategic and core suppliers, achieve collaborative innovation, build long-term and stable
Win‐Win
partnership to ensure supply safety and enhance porcurement competitiveness.
High
Quality

Sustainable

Partner Contractor

ODM/
Customer Operator
R&D/product
OEM
Supplier
design
MKT&
Solution
Configuration Design R&D Collaboration

Order Visibility Smart factory

Sub- Total cost competitiveness
SKAM/JOT contractor
Order Customer High-level exchange of visits
Smart
Integrated Planning management ZTE logistics
Supplier High Quality
Full Turnkey solution
E2E Visibility
Government&
B2B IT Integration Enterprise
Other third Workshops/CTO Day
parties

© 中兴通讯 All rights reserved

11
 B2B Platform Integration
 Agile
Supplier: Customer:
Intelligent
• Realize B2B with ZTE, provide real time PO • B2B with suppliers and customers, build up
Win‐Wn visibility platform to customer, realize demand,
fulfillment status visibility, especially in-transit
ATP, and order fulfillment status visibility
Hihg visibility for drop shipment by suppliers
Quality • Pre-alert of abnormality via mobile application
• Pre-alert and develop mitigation plan or computer
Sustainable

Visibility Platform

B2B/Visibility to ZTE B2B/ Visibility to Customer

Supplier

EMS Distribution Center/Hub ZTE WH Customer/

Logistic Service
Provider Channel

© 中兴通讯 All rights reserved

12
 Quality Management System
 Agile • China's first ISO9001 certified communications enterprise
Intelligent • The first batch to join the QuEST Forum forum communications enterprises, served as co chairman of

Win‐Win the Asia Pacific region and greater China

High • ISO14001
Quality • HSAS18001 • OHSAS18001
• QC080000 • ISO9001:2015
• ISO27001
• ISO9001:1994 • CMM / CMMI • ESD • ISO14064 • TL9000
• TL9000
Sustainable

1995 2002 2005 2008 2010 2012 2017

2001 2003 2007 2009 2011 2015

• ISO9001:2000 • QUEST Forum • CSR • GeSi • IEC61340-5-1 • IS050001

• 6Sigma • BS25999
• ISO/IEC17025 • GRI

ISO9001 TL9000 QC08000 ANSI/ESD Lab ISO14001 OHSAS18001 ISO27001

© 中兴通讯 All rights reserved
13
 Build ZTE's Brand with Excellent Quality
 Agile
Manufacturing Process
Intelligent
• Utterly examine and verify at new product introduction stage
Win‐Win • Improve product E2E testing scope
High  • Standardize product reliability testing and verification
Quality
• EMS/ODM/JDM product quality guarantee
Sustainable

Material Quality
Delivery Assurance
• 0 batch quality problems
• Service Quality Agreement
• Optimize and keep up with quality standard
• Logistics transportation safety
• Key process quality control of suppliers
• Key delivery point quality control
• Material reliability control
• L2 subcontractors quality control
• Level 2 materials supplier quality control

Quality Mindset Quality Culture Management System

© 中兴通讯 All rights reserved

14
 Supply Chain Product Safety 
 Agile
• Establishing product safety committee with Vodafone to promote product safety
Intelligent managemnt system construciton
Win‐Win • Pass the final audit of ISO28000 certification (less than 5 companies passed the
High
Quality
certification in China)
Transport & warehouse
Sustainable
safety management Reverse safety
Manufacturing & repair management
safety management

Material safety
management Supply Chain
Product Safety
Supplier safety
management

© 中兴通讯 All rights reserved

15
 Export Control Compliance
 Agile

Intelligent ZTE is committed to comply with Global Export Control

Win‐Win
Laws and Regulations
High
Quality

Sustainable
ZTE Requirements for Partners
1. Compliance with all applicable national laws and 1. Comply with all applicable domestic and foreign
regulations including economic sanctions and export export control laws and regulations
controls. 2. Take the initiative to provide effective export
2. All the entities and employees on behalf of ZTE must control classification information and related
comply. support documents
3. Violation of export control laws and regulations will 3. Proactively provide all kinds of documents relating
be severely punished. to the products and transactions involved
4. ZTE cooperates with partners in compliance with 4. Actively participate in ZTE's export control
regulations compliance training

© 中兴通讯 All rights reserved

16
 Sustainable Development of Supply Chain 
 Agile

Intelligent
Supplier Code of Conduct
and
Win‐Win CSR training

High  Carbon footprint reduction

Quality

Sustainable Circular economy

Reuse, recycle, resell,

remanufacture

Value sharing supply chain

(Local development)

Disaster relief
(Guaranteed Communication)

Global citizen
(Charitable donations)

© 中兴通讯 All rights reserved

17
THANKS!