VODAPHONE

Vodaphone

Table of Contents

Introduction1

Supply Chain Management at Vodaphone1

Operation Capabilities2

Definition of Issues2

Competition2

Technology and Demand3

Regulatory changes in UK3

Services3

Financial Crisis4

Fixed-line Telephone4

Annotated Input-Transformation Output Diagram4

Input-Transformation-Output Diagram5

Operations System of Vodaphone5

System Supply Network of Vodaphone6

Components6

Conclusions and Recommendation7

New Strategic Directions7

References9

Vodaphone

Introduction

In terms of revenue, Vodaphone was the largest mobile telephone operator in the UK. However, the competitors were entering the market due to which the challenges for Vodaphone increased because of which they have to strengthen their supply chain management. Therefore, Vodaphone was expected to formulate a strategy that was known as “total communications in terms of supply chain management” (Strang 2011, pp. 1). A system to provide the best mobile telephone communication services to the customers in the UK and worldwide, however, the company also offers other services such as television services and broadband.

Supply Chain Management at Vodaphone

It seems that in the coming years, the concept of Supply Chain Management is destined to remain "fashionable." The globalization of companies, the widespread transfer of production to China, India and other developing countries, the struggle to reduce costs amid growing competition, and as a consequence, the need for rapidly deployable and bringing more economic impact information systems have led to the fact that in recent years business development strategy become inseparable from the development strategy of its supply chain. Development of Supply Chain Management at Vodaphone is most prominent in actively growing. That is where a particularly important role in the provision of planning, minimization of logistics costs, strict control of production costs and marketing channels.

Since Vodaphone is a service company, it does not have any inventory in a distribution network of physical assets based on intuitive determinations purchasing manager, who decides what items to buy, when to buy and in what quantities. However, in terms of supply chain management, the company has to ensure that services are provided to the customers on a timely basis for which informal systems should not be used. This is because they tend to create problems that may result in higher costs and a disruption in production and supply of services to the customers (Brodie 2011, pp. 100).

Operation Capabilities

SCM operations can enable Vodaphone to implement process and design and use the best processes in terms of technology to ensure customer satisfaction.

Service lifecycle management enables management by improving diagnostics, feedback as well as risk analysis. Information is shared through supply chain and action can be taken against the failures that occur.

Systems can be reconfigured and decision can be made by intelligent agents who take action without the interference from humans. Unique solutions can be developed for the customers to retain them.

Definition of Issues

Competition

Since the market was also growing, more competitors had entered the market which included Virgin Media and Sky Broadcasting. Besides this, there were many other companies such as Carphone Warehouse that were investing heavily in digital content. Moreover, Google and Android had also made investments in the field of communication. Therefore, relations with the supplier have to be strengthened to ensure growth.

Technology and Demand

Besides the competition, the company also ...