Telefónica Germany & NTS Retail: A long-term solution partnership
Telefónica Germany and NTS Retail have enjoyed a solution partnership for more than 20 years. Telefónica is one of the leading CSPs in Germany. Among other things, the company operates a nationwide branch network with around 1,000 of its own stores and partner locations under the O2 brand. The company uses the NTS Retail software solution for sales processing at the point of sale and for managing branch logistics across its sales channels.
To mark the 20th anniversary of our collaboration, we spoke to Philipp Wahden (Project Manager & Business Owner Trade Marketing) and Peter Sommer (Application Owner WinCash) from Telefónica as well as with our VP Account Management, Bernd Steinwender, about the key milestones in this long-standing partnership.
Philipp, Bernd - you have been working closely together on numerous retail projects for many years. How did this solution partnership between Telefónica and NTS Retail come about?
Philipp: At the beginning of 2000, we intensively expanded our branch network. We were looking for a solution that met the special requirements of our industry and could be implemented quickly. We looked around at other telecommunications companies and came across NTS Retail.
Bernd: Our solution has already been used by telco customers such as A1, Orange, and Swisscom. With each project, it was further adapted to the special requirements of this industry. This resulted in a specialization for the telecom industry early on.
How did the implementation project proceed and what were the priorities?
Philipp: Due to the tight time frame, we chose a multi-stage approach. The initial project objectives were to implement the checkout system and central store management, including stock management.
Bernd: Our standard solution with the most important integrations to ERP and the financial accounting systems went live after 20 weeks. Further integrations and customer-specific extensions were then implemented in a subsequent phase.
Numerous projects have been implemented during the course of the long-standing partnership. What were the highlights?
Philipp: The NTS Retail system already offered a good solution for stock management in the stores. In addition, we needed central store logistics as a link between the stores and our ERP system. This solution, which NTS Retail implemented for us, includes dynamic replenishment planning, the management of digital delivery bills and simplified product range management for our franchise partners.
Peter: This franchise solution enables us and our partners to optimally manage O2 commission goods and our own products in a standardized system. In addition, comprehensive controlling of all store processes, including inventory cost evaluation and goods movements, has been made possible. Last but not least, the NTS Retail system also provides the basis for all commission calculations.
To what extent did Telefónica's requirements influence the development of NTS Retail's standard solution?
Bernd: Requirements from customer-specific projects are always incorporated into our standard development, such as Telefónica's logistics requirements. The great advantage for our customers is that they continuously benefit from new developments following a telco-specific product roadmap.
What are the advantages of using NTS Retail for Telefónica Germany?
Philipp: Bernd has already mentioned the roadmap aspect: That also explains why we have been using the NTS Retail solution for over 20 years. The solution has grown with us. Ultimately, this approach guarantees a high level of investment security and sustainability.
Peter: When implementing new initiatives in areas such as omnichannel and green stores, NTS Retail is part of our solution concepts. With the complete digitalization of receipt handling, we offer our customers a high level of convenience. At the same time, we can make an important contribution to a sustainable approach to our environment.
Philipp: The software solution is one aspect. But we also regularly draw on the expertise of NTS Retail as project specialists. When it came to outsourcing operational activities and ensuring a comprehensive transfer of know-how, their retail experts supported us with the onboarding of new colleagues.
What retail initiatives are you currently focusing on?
Philipp: We are moving away from the use of monolithic applications towards an open system architecture. The open APIs of the new NTS Retail platform offer us even more flexibility in the future to further develop our retail solutions ourselves and implement new service offerings for our customers.
Peter: One example is the introduction of the fiscalization regulation ‘KSV – Kassensicherungsverordnung’, which is legally required in Germany since 2020. These services were implemented in the NTS Retail platform and are now available to all sales channels as managed services.
Looking back on the many years of cooperation: What is important in such a partnership?
Peter: We operate in a dynamic retail environment that is constantly changing. This makes it incredibly important for us to work with partners who understand our business and have the agility to adapt to changing conditions with us.
Philipp: Both companies have undergone a permanent process of growth and development over the last 20 years. There are phases of product innovation or organizational realignment that are accompanied by technical challenges or changes in the collaborating teams. Occasionally, it takes time to move from ‘storming’ back into performance mode. This requires patience and trust on both sides.
Thank you, Peter, Philipp, and Bernd for this interview!
