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Case Studies > Vodafone Leverages Economies of Scale and Scope Across Its Global Trading Network

Vodafone Leverages Economies of Scale and Scope Across Its Global Trading Network

Technology Category

Platform as a Service (PaaS) - Data Management Platforms
Analytics & Modeling - Predictive Analytics
Platform as a Service (PaaS) - Connectivity Platforms

Applicable Industries

Telecommunications
Software

Applicable Functions

Procurement

Use Cases

Supply Chain Visibility
Predictive Replenishment

Services

Cloud Planning, Design & Implementation Services
System Integration

The Challenge

Vodafone faced the challenge of managing a complex operating environment with diverse levels of organizational maturity and processes that needed to be aligned across its global operations. The company needed a flexible, scalable supply chain solution to accommodate a growing network of global trading partners. Vodafone aimed to leverage economies of scale and scope across multiple operating units by obtaining visibility and control across its distributed trading network. The company also sought to resolve issues around data and process standardization to capture benefits associated with price transparency and strategic sourcing.

About The Customer

Vodafone Group is one of the world’s largest mobile communications companies, serving more than 400 million customers and 50 partner markets with operations in over 30 countries. The company has a significant presence in the European marketplace and is expanding into new markets. Vodafone's growth has brought challenges, including managing a complex operating environment with diverse levels of organizational maturity and processes that need to be aligned across its global operations. The company has established the Vodafone Procurement Company to transform its global supply chain and procurement strategies.

The Solution

Vodafone partnered with E2open to design and build a strategic solution for seamless information sharing, process management, and exception handling. Central to the solution is E2open’s cloud-based platform, which provides a consolidated view of demand and inventory information across Vodafone’s operating companies and trading partners. The platform facilitates any-to-any data exchange, catalogue management, and harmonization of master data and buying behavior across operating companies. Vodafone also implemented an automated vendor managed inventory (VMI) program, including replenishment and financial reconciliation across all suppliers. The Vodafone Procurement Company was established to develop standardized, transparent procurement and sourcing processes, with a global team of category managers and suppliers responsible for managing and executing procurement agreements.

Operational Impact

Reduction in purchasing costs through global product configurations and demand aggregation.
Increased flexibility to fulfill international demand with consolidated, real-time views of global inventory.
Greater supply assurance with automated replenishment and consolidated global forecasting.

Quantitative Benefit