Vodafone selects Ericsson for European-wide managed services contract for its network

[Nikos Kartalis]

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 Germany, Spain and Portugal.

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.

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 2007 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.


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