Hi Tech & Electronics
   Supply Chain Summit 2007


Top Express Deliveries Strategies
           September 2007
          ...
Agenda

•   Vodafone Group


•   Vodafone Portugal


•   Express Deliveries


     – How did it start
     – Service Evolu...
Vodafone Group
The Vodafone Group

• The world’s leading mobile telecommunications
  company
           Presence in 61 countries: equity ...
Vodafone Portugal
Vodafone Portugal

    100% owned by Vodafone Group
    Portuguese second largest telecommunications operator
    (after t...
Vodafone Portugal

    Vodafone has consistently gained market share to its competitors in the mobile
    market. In the l...
Vodafone Portugal Supply Chain
Vodafone Portugal Supply Chain
  Main structure


                                  COMPANY
  HANDSET                     ...
Vodafone Portugal Supply Chain
  Network Fulfilment



                                            VMI
                   ...
Vodafone Portugal Supply Chain
Loyalty programme


                    € 1 = 2 points
Loyalty programme
      Customer order process workflow - initial


                                                 Stock...
Express Deliveries
     How everything started
How everything started

•   In 2002 we decided to delight our customers
     – By making express deliveries
        –24 ho...
Customer Order Process Workflow - 2003


                                                    Stock
Customer Order      Shi...
Customers Voice

•   2003 was the analysis year of the project
•   Our customers said:
     – Satisfaction with delivery t...
Overall Satisfaction

40%
                                     Delivery Service                                10



     ...
Express Deliveries
     The evolution
Actual Clube VIVA Workflow
 Customer Delivery Schedule


Customer
                                                        ...
Actual Clube VIVA Workflow
 Customer Delivery Schedule

                                  Phase 1                         ...
Actual Clube VIVA Workflow
 Customer Delivery Schedule
                                                                   ...
Actual Clube VIVA Workflow
 Customer Delivery Schedule
                                                                   ...
Actual Clube VIVA Workflow
 Customer Delivery Schedule

                                             Stock    Orders
Custo...
Actual Clube VIVA Workflow
Customer Delivery Schedule

                            Stock      Orders
    Shipping     Sale...
Actual Clube VIVA Workflow
Customer Delivery Schedule

                                                                   ...
To amend
   Evolution Summary of Express Deliveries




  Initial
               2002              2004             2005  ...
Express Deliveries
     Lessons Learned
KPI´s evolution




                     Initial    2004    2005   2006
Mail delivery rate   100%       75%     99%    99%...
Lessons Learned

•   For customers is more important to be trustworthy than to be quick
     – Ex : 8% of deliveries were ...
Lessons Learned

•   Replacing inventory by information integration allowed us to:
     – Reduce unnecessary billing
     ...
Future developments

•   6 Sigma analysis of the process focusing on:
     – Impossible to schedule delivery with customer...
Not Always better service means
         higher costs!

THANK YOU!

                                         Mafalda Alves...
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Bill Stankiewicz Expressdeliveries

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Best Regards,

Bill Stankiewicz
Vice President and General Manager
Shippers Warehouse of Georgia
Office: 678-364-3475
Williams@shipperswarehouse.com
http://www.linkedin.com/in/billstankiewicz2006
http://www.slideshare.net/BillStankiewicz.
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Sustainable Consumer Packaged Goods member
CPG Branding and Forum Member
Please consider the environment before printing this e-mail
“Change doesn\'t start on the surface. It\'s generated from consciousness.”
Deepak Chopra
http://bill-stankiewicz.blogspot.com/2009/07/shippers-warehouse-in-top-70-food.html
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Bill Stankiewicz Expressdeliveries

  1. 1. Hi Tech & Electronics Supply Chain Summit 2007 Top Express Deliveries Strategies September 2007 Amsterdam
  2. 2. Agenda • Vodafone Group • Vodafone Portugal • Express Deliveries – How did it start – Service Evolution – Lessons Learned
  3. 3. Vodafone Group
  4. 4. The Vodafone Group • The world’s leading mobile telecommunications company Presence in 61 countries: equity interests in 25 countries and partner networks in further 36 markets 232 million Proportionate Customers* as of 30 June 2007 (does not include partner networks’ customers) Around 66,000 Employees Group Revenue in 2006** of £31.1 billion (around 46 billion euros) *Customer number adjusted by the Vodafone Group’s equity interest in each operator ** 2006 Vodafone fiscal year refers to the 12-month period ended on 31 March 2007
  5. 5. Vodafone Portugal
  6. 6. Vodafone Portugal 100% owned by Vodafone Group Portuguese second largest telecommunications operator (after the incumbent) Total operating revenue of 1,4 billion euros in 2006 * Around 1,700 Employees Around 4.8 million Customers as of 30 June 2007 • Pre-paid customers represent 79% of total customer base * 2006 Vodafone fiscal year refers to the 12-month period ended on 31 March 2007
  7. 7. Vodafone Portugal Vodafone has consistently gained market share to its competitors in the mobile market. In the last 3 year Vodafone Portugal gained almost 5 percentage points of customers and service revenue market share Customers Market share Service Revenue Market Share 48.0% 47.1% 44.4% 46.2% 45.1% 43.6% 44.3% 43.0% 35.7% 36.3% 33.2% 39.2% 31.6% 36.2% 37.7% 34.3% 20.4% 19.7% 19.9% 20.1% 19.5% 18.7% 18.0% 17.7% 31 Mar 04 31 Mar 05 de Calendário 06 31 Mar 31 Mar 07 2003/04 2004/05 2005/06 2006/07 Anos Calculated using the information disclosed by each operator.
  8. 8. Vodafone Portugal Supply Chain
  9. 9. Vodafone Portugal Supply Chain Main structure COMPANY HANDSET BUSINESS LINE SUPPLIERS (DIRECT SALES FORCE) OWN STORES CONSUMER VODAFONE BUSINESS BRANDED CUSTOMERS LINE STORES OTHER REAILERS SIM CARD DISTANCE SUPPLIERS SELLING
  10. 10. Vodafone Portugal Supply Chain Network Fulfilment VMI Agent Stock Management Supply p^mL^ml Network Planning Demand Planning Forecast Daily Web connection from VBS Communication
  11. 11. Vodafone Portugal Supply Chain Loyalty programme € 1 = 2 points
  12. 12. Loyalty programme Customer order process workflow - initial Stock Customer Order Sales Capture Picking & Delivery Payment Places creation & Order Invoice Collection To Packing By mail Received order validation Creation order • Points deduction coupon • Permanency The physical process was done in warehouse contract Warehouses are outsourced But working on VF-PT SAP system The signed coupon worked as a signed contract For the permanency period Siebel SAP R/3 Carrier execution
  13. 13. Express Deliveries How everything started
  14. 14. How everything started • In 2002 we decided to delight our customers – By making express deliveries –24 hours max. Since their request into their homes! • What would you say? – EXPENSIVE! –Right! We thought so too… so implemented it only for our best customers
  15. 15. Customer Order Process Workflow - 2003 Stock Customer Order Shipping Sales Delivery Capture Places creation & Centre Order By mail Creation To order validation selection order Picking & Payment Invoice Collection Televiva: Packing Received For Lisbon Stock coupon Sales Capture or Order Porto Creation To Customer Delivery order delivey schedule By carrier Based on postal code If no stock, manual switch to standard expedition The physical process for mail was still done in warehouse Televiva process was done in house warehouse Siebel SAP R/3 Carrier execution
  16. 16. Customers Voice • 2003 was the analysis year of the project • Our customers said: – Satisfaction with delivery time: 3,3 in a 4 level scale 30% 25% 20% 15% 10% 5% 0% 1 day 1-5 6 - 10 11 -15 16 - 30 + 30 N.a.
  17. 17. Overall Satisfaction 40% Delivery Service 10 34% 9 Média 8,47 8,47 8 30% 28% 7 1- Poor 10- Very Good 6 20% 20% 5 4 10% 3 7% 5% 4% 2 1% 0% 0% 1% 0% 1 1 2 3 4 5 6 7 8 9 10 Base: 1294 interviews
  18. 18. Express Deliveries The evolution
  19. 19. Actual Clube VIVA Workflow Customer Delivery Schedule Customer • Coupons were abandoned Places order • The whole process has gone digital WEB Call Center • Web offer was introduced on Vodafone.pt with on line catalogue • Customers can easily make the order themselves Siebel SAP R/3 Transporter’s Information Systems Web
  20. 20. Actual Clube VIVA Workflow Customer Delivery Schedule Phase 1 Phase 2 Customer Order Shipping Places creation & Centre • Centralize all Televiva warehouses in • A regional expansion was done order validation selection based on in house warehouses the main operation proliferation • Points deduction • Actual structure: • Permanency • The warehouses localization was •2 outsourced warehouses for Call contract based on regional decisions to get the entire VF operation Center closer to customer and reduce delivery time WEB •No dedicated warehouse • Stock ruptures problems arose •Divided by brand • Cost duplication • 2 small warehouses in the islands: Madeira & Azores • Customer added value was not quick delivery Siebel SAP R/3 Transporter’s Information Systems Web
  21. 21. Actual Clube VIVA Workflow Customer Delivery Schedule • Done previously to invoicing •Instead of sending handsets to carrier we are sending orders Stock Orders information Customer Order Shipping Sales Capture placed Places creation & Centre Order Creation To Informed order validation selection • On a daily basis system pulls out all order to carrier the orders created in that day • Points deduction • Permanency • Creates a web table and sends it to Call contract carrier via xml Center Televiva: • Carriers incorporates information into WEB 4 warehouses: their routing system outsourced (2) Islands (2) • Some orders will already have delivery date agreed with customer Siebel SAP R/3 Transporter’s Information Systems Web
  22. 22. Actual Clube VIVA Workflow Customer Delivery Schedule • Possible to be done in VF call centre Done by carrier Stock Orders Customer Order Shipping Sales Customer • Carrier time schedule is incorporated Capture placed Places creation & Centre Order delivey in Siebel Creation To Informed order validation selection schedule •Assistant can choose on line order to carrier with customer time and place of • Points deduction delivery • Permanency Call contract • No scheduling to: Center No scheduled deliveries •Weekend and holidays WEB •If is an island postal code •If no stock available •In these cases delivery date is left blank Siebel SAP R/3 Transporter’s Information Systems Web
  23. 23. Actual Clube VIVA Workflow Customer Delivery Schedule Stock Orders Customer Order Shipping Sales Customer Capture placed Deliveries Places creation & Centre Order delivey To Informed order validation selection Creation schedule scheduled order to carrier • Points deduction • On a daily basis carrier pulls from its • Permanency system sheduled deliveries for the Call contract Center day after the following day WEB • Sends information directly to outsourced warehouses via WEB • Warehouse stores information on local database in dispatch area Siebel SAP R/3 Transporter’s Information Systems Web
  24. 24. Actual Clube VIVA Workflow Customer Delivery Schedule Stock Orders Shipping Sales Customer … Centre Order Capture placed delivey Deliveries Picking & Invoice Delivery Delivery To Informed Packing By carrier confirmation selection Creation schedule scheduled order to carrier • By the end of the day carrier picks up stock for the deliveries • During the night makes their internal transfers • Delivery confirmation is uploaded by palm on the moment of delivery into carrier system • Carrier uploads information into web for on line research •By VF back office •By VF call centre •By the end customer himself Siebel SAP R/3 Transporter’s Information Systems Web
  25. 25. Actual Clube VIVA Workflow Customer Delivery Schedule Cash delivery … Deliveries Picking & Delivery Delivery Payment Invoice Collection scheduled Packing By carrier confirmation Received ATM payment • The carriers along with the palms started using portable ATM • ATM supported on GPRS supplied by VF • Payment is done directly into our bank account with no need of cash transportation or bank transfers Siebel SAP R/3 Transporter’s Information Systems Web
  26. 26. To amend Evolution Summary of Express Deliveries Initial 2002 2004 2005 2006 Stage Centralization Mail Pilot in Lisbon Regional Informations delivery And Porto expansion to and entire country Systems integration
  27. 27. Express Deliveries Lessons Learned
  28. 28. KPI´s evolution Initial 2004 2005 2006 Mail delivery rate 100% 75% 99% 99% % Returns 10% 9% 6,50% 6% Cost evolution initial -6% -16% -12%
  29. 29. Lessons Learned • For customers is more important to be trustworthy than to be quick – Ex : 8% of deliveries were asked for the following 2 days • Integration really works – By scheduling directly with customer on order moment –Reduction of outbound calls by carrier – cost reduction –Single contact to customer • Communication is needed – Everybody accessing the same information and giving the same inputs to customers makes life really easier for everybody And easy is cheap…
  30. 30. Lessons Learned • Replacing inventory by information integration allowed us to: – Reduce unnecessary billing – Unnecessary shipping • Replacing mail delivery by a premium delivery system – Reduction of returns – Customer satisfaction increase Operational Costs Reduction
  31. 31. Future developments • 6 Sigma analysis of the process focusing on: – Impossible to schedule delivery with customer – Although is scheduled final delivery fails • Express Deliveries will be applicable to: – Web Sales – Telemarketing Sales –…
  32. 32. Not Always better service means higher costs! THANK YOU! Mafalda Alves Dias Logistics Manager – Vodafone Portugal Mafalda.dias@vodafone.com + 351 919 406 565

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