Case Vodafone Essay

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Procurement Transformation at Vodafone: Case Exercise Read the article and answer the questions. Engaging change Rebecca Ellinor, Supply Management, 19 July 2007 Detlef Schultz, global supply chain management director of Vodafone, tells Rebecca Ellinor how the company has transformed its procurement Detlef Schultz bursts into the room bright-eyed, energetic and animated. The scene is set. As we whirl our way through the interview, he bangs on the table and occasionally throws off his glasses, sending them whizzing down the desk. Surprising, but not for effect and not as a sign of aggression. He is just passionate about procurement. And it isn't for my benefit. I get the impression this is exactly what he's like all day, every day. And he needs to be. Schultz was hired in 2003 to lead the transformation of procurement at Vodafone Group. As global supply chain management director he has already done much to overhaul purchasing. But he believes he has around three years left in "lovely Newbury" to complete his plan. So what is his aim? "We don't want to be average - just another purchasing department - we want to be the benchmark. We want people to look up to the status we have achieved, not just within Vodafone, but everywhere. I want everyone to talk about us and how we do supply chain and I want to leave a legacy that will be valued for another decade at least." Global Pricing Schultz runs the strategy and operation of Vodafone Group supply chain management in three major areas: network infrastructure, IT and services. The purchase of handsets is handled by marketing. He leads a 150-strong function that is supported by teams across the globe. The heads of the purchasing departments at each operating company, such as Vodafone UK, report into him. But they are also his customers. Immediately conscious of this tension, Schultz was wary about

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