B2B Assignment 1

Procurement Strategy of Vodafone Global

INSTITUTE OF MANAGEMENT, NIRMA UNIVERSITY Sarkhej Gandhinagar Highway, Ahmedabad 382 481 Phone: (02717) 241900/01/02/03/04 Fax: (02717) 241916 Email: edp@imnu.ac.in Website: www.imnu.ac.in

Karansinh Zala

Company Profile
Weve come a long way since making the first ever mobile call in the on 1 January 1985. Today, more than 371 million customers around the world choose us to look after their communications needs. In 25 years, a small mobile operator in Newbury has grown into a global business and the seventh most valuable brand in the world. We now operate in more than 30 countries and partner with networks in over 40 more In an increasingly connected world, its no longer just about being able to talk and text. Our network allows people to share images and videos as soon as theyre captured; to share thoughts and feelings as soon as theyre created. And because we now do more than just mobile in many markets, more customers look to Vodafone for great value in their fixed line and broadband services too. Vodafone understands that businesses need a communications partner with solutions that scale and adapt as their business needs change. They may need a few smart phones for voice and email on the move. Or they may require a fully integrated solution that enables sharing of documents, video conferencing and access to corporate applications from any location. Whatever their size and whatever their need, we are constantly looking for new, innovative ways to help our business customers grasp every opportunity in a simple and straightforward way. Our commitment to the community in which we operate extends beyond the products and services we offer. The cornerstone of our commitment to global social investment is the Vodafone Group Foundation. Funded by annual contributions from the Vodafone Group, the Foundation and its network of 27 country foundations supports the community involvement activities of Vodafone and funds selected global initiatives directly. True to our origins, Vodafone has always committed to deliver useful and inspiring innovation. In 1991 we enabled the worlds first international mobile roaming call. In 2002, with Vodafone Live! we set a new standard for mobile communications with internet access on the move. Fuelled by the desire for sustainable innovation, we recently introduced Vodafone Money Transfer which allows customers in emerging markets to send and receive money safely and easily using their mobile phone. Weve also caused a stir in the industry with the Vodafone 150 our most affordable ultra low cost handset yet. Were a brand that loves change if its not happening naturally then were creating it ourselves. Its in our DNA to push forward, to create a better future, to never rest and find new ways that help people communicate. Thats the lifeblood that runs throughout Vodafone. We are driven to empower people.

To find that spark that empowers you is why we are in business. Thats what we mean when we say power to you.

Karansinh Zala

Supply Chain Management

OneSCM is the name given to the supply chain community at Vodafone. It was created to procure products and services for a large variety of applications to help run our business, such as equipment for our networks, corporate services and IT infrastructure. The OneSCM community unifies the supply chain teams of Vodafone across all of our markets. The transformation to OneSCM began with programmes such as spend analysis and supplies management before moving to the creation of a single global team and the setup of a centralized procurement organization. Several projects have received industry awards including our approach to sustainability and staff development. The OneSCM team consists of three areas: 1. Vodafone procurement company: Our centralised strategic procurement function with global accountability for all strategic activities related to suppliers 2. Operations teams: Local teams in our markets with local accountability for customer management and commercial savings realisation in those markets 3. Enablers team: A central team with global accountability for overall operational effectiveness of supply chain across categories and geographies

Karansinh Zala

The Vodafone supply chain journey continues with 6 areas of focus: (1) People: organisation, skills, career development (2) Customer obsession: customer centric KPIs (3) Global scale: buying partnerships, geographies (4) Operational excellence: demand management, end-to-end performance management (5) Supplier relationship management: joint governance, transparency of activities, unlock joint value (6) Sustainable supply chain: continued focus on environmental and ethical procurement

Supplier management
How we engage and collaborative with our supply chain partners is governed by our Supplier Management 2.0 programme. The program is one of the key tools we use to help build strong relationships as we seek to create greater value, increase innovation and improve efficiency. Our approach contains a set of processes that combine to establish a global assurance framework that spans multiple disciplines from our earliest engagement through to ongoing compliance and performance management. Supplier qualification: a pre-requisite before we will engage with a supplier Supplier Segmentation: a series of reviews conducted across our supply base that helps differentiate how we engage with suppliers. Supplier performance evaluation: a series of assessments across our local markets and group functions based on nine core performance pillars, utilising Net Promoter Scoring to underpin our goal of supplier performance excellence. Supplier optimisation: the process through which we work with our suppliers to identify and deliver improvement, collaborating to set priorities and define clear expectations balanced between short term actions and longer term roadmaps. Supplier audits: through our general risk assessments, supplier self-assessments we identify high-risk suppliers who are then scheduled for a more detailed audit and follow up

Karansinh Zala

Supplier Awards During our annual Supplier Conference we recognise outstanding performance from our partners in supporting Vodafone's continuous drive for greater operating efficiency and delivering greater benefits to our customers.

All suppliers working with Vodafone must comply with the Vodafone policies and requirements.

Business Principles
VODAFONE BUSINESS PRINCIPLES
Vodafone wishes to have a reputation for integrity; therefore it is essential that we can be judged by our actions. As these Business Principles make clear, this depends upon the conduct of every individual in Vodafone. All of us must be familiar with these Principles and apply them consistently and rigorously in business activities each day. It is important that the conduct of a few, whether through misplaced zeal or short-term expediency, should not damage the reputation of the many in Vodafone. All of us are responsible for the application of the Principles across the Company, and we must lead by example. Our actions are expected to be ethical at all times and we should ensure that all those involved in our operations are aware of the Statement of Business Principles and act in accordance with its provisions.

Code of Ethical Purchasing

Vodafone has a significant role to play in managing our business carefully and responsibly, which is why we have adopted a set of core values to govern our activities and interactions with all our stakeholders across the world, including our suppliers

Karansinh Zala

Health, Safety & Wellbeing Requirements

Helping employees stay safe, fit and healthy is a top priority for Vodafone. It contributes to productivity, reduces absenteeism and creates an attractive working environment for our employees. There are specific requirements relevant in high risk situations and also details of the minimum set of health and safety key performance indicators we expect suppliers to have.

Tools For Suppliers

eSourcing
The sourcing tool opens up access to our negotiation and inquiry processes (RFx, Auctions). The process is interactive - suppliers have the potential to see how their offers compare to their competitors and can improve these offers to win Vodafone's business.

Supplier Qualification
Qualifies suppliers to do business with Vodafone, provides capability for suppliers to answer questions on their capabilities and provide evidence of their compliance to our policies and standards.

Vodafone Business-to-Business Hub

Vodafone is committed to reducing cost and complexity and requires its suppliers to connect to its B2B Hub. The B2B hub is an electronic business to business interface which allows the exchange of purchase orders, purchase order amendments, invoices and goods receipt notices electronically.

Karansinh Zala