Vodafone has selected Ericsson to manage the supply and distribution of spare parts for its mobile networks across several of its major European operating companies including
Under the multi-million Euro deal, Ericsson will assume responsibility for the logistics, warehousing, repair and replacement of multi-vendor spare parts in the selected operating companies. This is expected to deliver greater cost efficiencies to Vodafone through lower average prices for the management process of spares, as well as enhanced service levels.
The agreement will cover the end-to-end management of spare parts for 2G, 3G and transmission equipment in the selected European operating companies.
The initiative forms part of Vodafone’s cost reduction strategy as each Vodafone operating company currently runs its own spare parts operation. It will also enable the company to focus more on its core business of enhancing network performance, as well as delivering more attractive services to customers.
Working under service level agreements, Ericsson is tasked with taking advantage of its expertise in the managed service sector to deliver an enhanced and added-value service to Vodafone operating companies.
Other benefits to Vodafone include the harmonization of the spare parts supply process, greater price transparency for the provision of services, as well as removing the need for further investment in stocks of spare parts for the future. The agreement is also expected to deliver greater savings by channeling spare part purchases in all participating operating companies through a single supplier.
The deal will be effective from April and the service will be implemented in the participating Vodafone operating companies in the course of this year. During that time, Vodafone will also have the option to further extend the agreement to additional operating companies.
Vodafone is the world’s leading international mobile communications group with operations in 25 countries across five continents and over 200 million proportionate customers by the end of January 2007, as well as 36 partner networks, including Cytamobile-Vodafone in
