10th Apr 2007 09:00
Vodafone Group Plc10 April 2007 10 April 2007 VODAFONE SELECTS ERICSSON FOR EUROPEAN-WIDE MANAGED SERVICES CONTRACT FOR ITS NETWORK SPARE PARTS Agreement set to deliver greater efficiencies to Vodafone Vodafone has selected Ericsson to manage the supply and distribution of spareparts for its mobile networks across several of its major European operatingcompanies including Germany, Spain and Portugal. Under the multi-million euro deal, Ericsson will assume responsibility for thelogistics, warehousing, repair and replacement of multi-vendor spare parts inthe selected operating companies. This is expected to deliver greater costefficiencies to Vodafone through lower average prices for the management processof spares, as well as enhanced service levels. The agreement will cover the end-to-end management of spare parts for 2G, 3G andtransmission equipment in the selected European operating companies. The initiative forms part of Vodafone's cost reduction strategy as each Vodafoneoperating company currently runs its own spare parts operation. It will alsoenable the company to focus more on its core business of enhancing networkperformance, as well as delivering more attractive services to customers. Working under service level agreements, Ericsson is tasked with taking advantageof its expertise in the managed service sector to deliver an enhanced andadded-value service to Vodafone operating companies. Other benefits to Vodafone include the harmonisation of the spare parts supplyprocess, greater price transparency for the provision of services, as well asremoving the need for further investment in stocks of spare parts for thefuture. The agreement is also expected to deliver greater savings by channellingspare part purchases in all participating operating companies through a singlesupplier. The deal will be effective from April 2007 and the service will be implementedin the participating Vodafone operating companies in the course of this year.During that time, Vodafone will also have the option to further extend theagreement to additional operating companies. Commenting on the deal, Detlef Schultz, Vodafone Global Director for SupplyChain Management said: "This initiative is another example of how Vodafone islooking for more and more innovative ways to deliver on its cost reductionstrategy in Europe. By agreeing this managed services contract with Ericsson, wewill be even better placed to focus on our customers and give them an evenbetter mobile experience." Hans Vestberg, Executive Vice President and Head of Business Unit GlobalServices, Ericsson, said: "Vodafone has truly been in the forefrontdemonstrating their innovative approach which has been a key success factor whendeveloping this solution. This agreement will bring further benefits fromleveraging on economies of scale and skill across several countries. We areextremely proud to extend our partnership with Vodafone, breaking new groundtogether. This is an evolution of Ericsson's managed services capabilities,enabling operators to outsource their entire supply chain of spare parts. Thisis also to date one of the biggest contracts for multi-vendor spare partsmanagement." - ends - For further information: Vodafone GroupInvestor RelationsTel: +44 (0) 1635 664447 Media RelationsTel: +44 (0) 1635 664444 About Vodafone: Vodafone is the world's leading international mobile communications group withoperations in 25 countries across five continents and over 200 millionproportionate customers by the end of January 2007, as well as 36 partnernetworks. For further information, please visit http://www.vodafone.com About Ericsson: Ericsson is shaping the future of Mobile and Broadband Internet communicationsthrough its continuous technology leadership. Providing innovative solutions inmore than 140 countries, Ericsson is helping to create the most powerfulcommunication companies in the world. Read more at: http://www.ericsson.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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