10 May 2007 | Rebecca Ellinor
Vodafone has overhauled its global procurement function to increase savings and repair communications between buying teams.
The communications giant last month introduced service level agreements between each of its operating companies in 17 countries and the corporate headquarters. Speaking exclusively to SM
, Detlef Schultz, global supply chain management director, said it is the first year the group and its divisions have jointly reached agreements on savings targets. He said a previous lack of clarity meant there was finger pointing if efficiencies were not found.
"If your success is dependent on collaborating with your colleagues you will collaborate with your colleagues. Our heads are now jointly in the noose if we don't deliver," he added.
The supply chain and the operating companies had each independently set savings targets in the past. Now Vodafone in Germany, Italy, Spain, UK, Albania, Greece, Ireland, Malta, Netherlands, Portugal, Australia, Czech Republic, Egypt, Hungary, New Zealand, Turkey and Romania must negotiate individually with Vodafone Group and agree who will save what. This is outlined in annual service level agreements and signed off by Schultz and the supply chain management head and chief financial officer at each operating company.
Schultz added the change would help unite buyers worldwide and boost the morale of individual teams: "Before, we didn't have clear expectations. We are now pulling in one direction - as one entity with one goal."Read the full interview with Detlef Schultz in SM on 7 June.