14 DAY TRIAL // Mobile operator Vodafone has selected Ericsson to manage the supply and distribution of spare parts for its mobile networks across major European markets such as Germany, Spain or Portugal.
The two companies have signed a multi-million Euro deal according to which Ericsson will be responsible for the logistics, warehousing, repair and replacement of the spare parts in the selected operating companies. Through the agreement, Vodafone is expecting to achieve greater cost efficiencies due to lower average prices for the management process of spares and enhanced service levels. The initiative is a part of Vodafone's cost reduction strategy and each of the mobile operator's companies is currently running its own spare parts operation.
Commenting on the deal, Detlef Schultz, Vodafone Global Director for Supply Chain Management said: "This initiative is another example of how Vodafone is looking for more and more innovative ways to deliver on its cost reduction strategy in Europe. By agreeing this managed services contract with Ericsson, we will be even better placed to focus on our customers and give them an even better mobile experience."
Through the initiative, the company will be able to focus more on enhancing its network and delivering more exciting services for its customers. Benefits include the harmonization of the spare parts supply process, greater price transparency for providing services and eliminating the need of further investment in stocks of spare parts in the future. The deal will be effective starting this month and Vodafone will have the option of further extending the agreement to additional companies throughout this year. The mobile operator declined to reveal any financial details.