The document discusses the transformation of Vodafone's supply chain management. It outlines Vodafone's global scale and the creation of the Vodafone Procurement Company (VPC) to centralize strategic sourcing. The VPC now manages over $44 billion in annual procurement and acts as the strategic sourcing center for Vodafone, standardizing contracts and processes. Going forward, the vision is for the VPC to further expand its role by generating revenue through new business lines like partner markets, third-party sales, and supply chain financing.

2. Supply Chain
Management
Transformation
Detlef Schultz
Global SCM Director
CEO Vodafone Procurement Company
19 September 2013

3. Outline
1. Vodafone Overview
2. SCM at Vodafone
3. The Journey
4. Vodafone Procurement Company (VPC)
5. Vision for the Future
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4. Vodafone Overview
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5. There are
7.1bn people
in the world
Of which…
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6.3 bn have access to clean drinking water
5.7 bn have access to electricity
2.8 bn have internet access
2.1 bn have broadband access
1.2 bn have a fixed line telephone
3.2 bn have 6.8 bn mobile subscriptions
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6. Vodafone
Scale of world-wide business
£13.2 bn EBITDA
(FY 12/13)
Operating in over 30
countries
50 partner markets and
affiliates
£44.4 bn Revenue
(FY 12/13)
448 m proportionate
customers (FY 12/13)
Source: Vodafone Annual report
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7. SCM at Vodafone
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8. Services
Marketing,
Indirect
SCM operates along the entire telecom value chain
Network & IT
Equipment
Devices
Network &
IT
Operations
External touchpoints
Diversity & number of stakeholders
Ability for broader value creation
Commercial complexity
Homogeneity
Standardization
Centralization
CRM,
Retail
Content, Value
added services
Enterprise
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9. OneSCM: One Company, Local Roots
Vodafone Procurement Company
(VPC)
Luxembourg
Local Market SCM Teams
All Local Markets
Operations and Enablers Team
Luxembourg, UK, China
Shared Services Centres
Budapest (Hungary), Ahmedabad and Pune (India)
Accountability for all strategic
category activities related to
suppliers, savings and trading
operations as well as Partner
Markets and 3rd party business.
Local accountability for
stakeholder management and
commercial savings realisation
in Local Markets
Accountability for overall
operational effectiveness of
supply chain across categories
and markets
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10. The OneSCM Organisation
Legal
HR
Finance
Vodafone SCM
Local Market SCM
Local market
execution & operations
Europe: 5 Regions
Central
Southern
Western
Northern
Turkey
AMAP
(Africa Middle East and
Asia Pacific)
Operations & Enablement
Strategy and Governance
Supplier Management
Systems & Tools
Health, Safety &
Sustainability
Purchasing Operations
Enabling engine
Vodafone Procurement Company
Strategic category
management
Networks
Services
IT
Terminals
Verizon Collaboration
Partner Markets
Shared Services
Supporting
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Global Categories

11. The Journey
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12. 2003
Foundation/
Co-ordination
2004 – 2007
Category
Organization
2008 – 2010
Centralization/
Consolidation
2011 – 2015
Net Profit
Contribution
• Spend visibility
• Supplier
Performance
Management
• e-sourcing
• Scattered
reporting lines
• Corporate Social
Responsibility
• Category
management –
Co–location
• Subject matter
experts
• Business
partnering – Scale
• OneSCM with
central reporting
• Savings tracking
• Systems, tools &
processes
• Category
management –
One location
• VPC as strategic
sourcing centre
• Value Creation
• Risk Management
• Strong back office
capabilities
• SCM Academy
• Leverage
synergies beyond
boundaries
• VPC targeting new
areas of spend
• 3rd Party business
• Operational
excellence
Vodafone’s Supply Chain Transformation
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Paradigm ShiftCatch up
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13. The Vodafone
Procurement Company
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14. • Global sourcing strategies
• Strategic category management
• Supplier relationship mgmt.
• Order processing & fulfilment
• Global demand management
• Operational relationship
with suppliers and local
stakeholders
• Local sourcing
• Local demand planning
• Commercial
relationship &
contracting with VPC
• Order processing &
delivery
The Strategic Sourcing Centre in Vodafone
Vodafone Market Vodafone Procurement
Company
Supplier
Goods/Services delivered direct
VPC Procures
goods/services
from supplier
Over 22,000
Catalogues
Over 4500
Contracts
Over 230,000
Purchase Orders p.a.
An independent entity with its own P&L
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Procures
goods/services
directly from the
VPC

15. VPC is key to generating value beyond volume aggregation
Enterprise wide Licence
Agreements
Drive Standardization
Working Capital Improvement;
Supply Chain Financing
Stronger Risk Management
Strategic Supplier and Category
management
Supply Chain Innovations
(Pay-as-you-grow, Bulk Ordering)
Driving Strategic Collaborations
(ex: Verizon)
Supply Chain Innovations
(Pay-as-you-grow, Bulk Ordering)
Driving Health and Safety Driving Sustainability
Drive Strategic Collaborations
(ex: Verizon, Partner Markets)
Support revenue generation:
Enterprise Sales Collaboration
Drive Health and Safety Drive Sustainability
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16. Vision for the Future
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17. The VPC is an entrepreneurial procurement platform
• Partner Markets
• 3rd Party business
• Close collaboration with Enterprise
• Industry collaboration
• Supply Chain Financing
• Commercialise supplier services
Net Profit Contribution to Vodafone
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18. Thank you
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