B2 b assignment 1


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B2B Strategy

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B2 b assignment 1

  1. 1. 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.inKaransinh Zala
  2. 2. Company ProfileWe’ve 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 communicationsneeds. In 25 years, a small mobile operator in Newbury has grown into a global business andthe seventh most valuable brand in the world. We now operate in more than 30 countries andpartner with networks in over 40 moreIn an increasingly connected world, it’s no longer just about being able to talk and text. Ournetwork allows people to share images and videos as soon as they’re captured; to sharethoughts and feelings as soon as they’re created. And because we now do more than justmobile in many markets, more customers look to Vodafone for great value in their fixed line andbroadband services too.Vodafone understands that businesses need a communications partner with solutions that scaleand adapt as their business needs change. They may need a few smart phones for voice andemail on the move. Or they may require a fully integrated solution that enables sharing ofdocuments, video conferencing and access to corporate applications from any location.Whatever their size and whatever their need, we are constantly looking for new, innovative waysto 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 andservices we offer. The cornerstone of our commitment to global social investment is theVodafone Group Foundation. Funded by annual contributions from the Vodafone Group, theFoundation and its network of 27 country foundations supports the community involvementactivities of Vodafone and funds selected global initiatives directly.True to our origins, Vodafone has always committed to deliver useful and inspiring innovation. In1991 we enabled the world’s 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 bythe desire for sustainable innovation, we recently introduced Vodafone Money Transfer whichallows customers in emerging markets to send and receive money safely and easily using theirmobile phone. We’ve also caused a stir in the industry with the Vodafone 150 – our mostaffordable ultra low cost handset yet.We’re a brand that loves change – if it’s not happening naturally then we’re creating it ourselves.It’s in our DNA to push forward, to create a better future, to never rest and find new ways thathelp people communicate. That’s the lifeblood that runs throughout Vodafone. We are driven toempower people.To find that spark that empowers you is why we are in business. That’s what we meanwhen we say ‘power to you’.Karansinh Zala
  3. 3. Supply Chain ManagementOneSCM is the name given to the supply chain community at Vodafone. It was created toprocure products and services for a large variety of applications to help run our business, such asequipment 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 suppliesmanagement before moving to the creation of a single global team and the setup of a centralizedprocurement organization. Several projects have received industry awards including ourapproach 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 geographiesKaransinh Zala
  4. 4. The Vodafone supply chain journey continues with 6 areas of focus:(1) People:organisation, skills, career development(2) Customer obsession: customer centric KPI’s(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, unlockjoint value(6) Sustainable supply chain: continued focus on environmental and ethical procurementSupplier managementHow we engage and collaborative with our supply chain partners is governed by our SupplierManagement 2.0 programme. The program is one of the key tools we use to help build strongrelationships 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 frameworkthat spans multiple disciplines from our earliest engagement through to ongoing compliance andperformance management.Supplier qualification: a pre-requisite before we will engage with a supplierSupplier Segmentation: a series of reviews conducted across our supply base that helpsdifferentiate how we engage with suppliers.Supplier performance evaluation: a series of assessments across our local markets and groupfunctions based on nine core performance pillars, utilising Net Promoter Scoring to underpin ourgoal of supplier performance excellence.Supplier optimisation: the process through which we work with our suppliers to identify anddeliver improvement, collaborating to set priorities and define clear expectations balancedbetween short term actions and longer term roadmaps.Supplier audits: through our general risk assessments, supplier self-assessments we identifyhigh-risk suppliers who are then scheduled for a more detailed audit and follow upKaransinh Zala
  5. 5. Supplier AwardsDuring our annual Supplier Conference we recognise outstanding performance from our partnersin supporting Vodafones continuous drive for greater operating efficiency and delivering greaterbenefits to our customers.All suppliers working with Vodafone must comply with the Vodafone policies andrequirements.Business PrinciplesVODAFONE 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 eachday. 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 suppliersKaransinh Zala
  6. 6. Health, Safety & Wellbeing RequirementsHelping employees stay safe, fit and healthy is a top priority for Vodafone. It contributes toproductivity, reduces absenteeism and creates an attractive working environment for ouremployees. There are specific requirements relevant in high risk situations and also details of theminimum set of health and safety key performance indicators we expect suppliers to have.Tools For SupplierseSourcingThe sourcing tool opens up access to our negotiation and inquiry processes (RFx, Auctions). Theprocess is interactive - suppliers have the potential to see how their offers compare to theircompetitors and can improve these offers to win Vodafones business.Supplier QualificationQualifies suppliers to do business with Vodafone, provides capability for suppliers to answerquestions on their capabilities and provide evidence of their compliance to our policies andstandards.Vodafone Business-to-Business HubVodafone is committed to reducing cost and complexity and requires its suppliers to connect toits B2B Hub. The B2B hub is an electronic business to business interface which allows theexchange of purchase orders, purchase order amendments, invoices and goods receipt noticeselectronically.Karansinh Zala