Download - Bill Stankiewicz Expressdeliveries
Hi Tech & ElectronicsSupply Chain Summit 2007
Top Express Deliveries StrategiesSeptember 2007
Amsterdam
Agenda
• Vodafone Group
• Vodafone Portugal
• Express Deliveries
– How did it start
– Service Evolution
– Lessons Learned
Vodafone Group
The Vodafone Group
� Presence in 61 countries: equity interests in 25 countries and partner networks in further 36 markets
� 232 million Proportionate Customers* as of 30 June 2007 (does not include partner networks’ customers)
� Around 66,000 Employees
� Group Revenue in 2006** of £31.1 billion (around 46 billion euros)
• The world’s leading mobile telecommunications company
*Customer number adjusted by the Vodafone Group’s equity interest in each operator** 2006 Vodafone fiscal year refers to the 12-month period ended on 31 March 2007
Vodafone Portugal
� 100% owned by Vodafone Group
� Portuguese second largest telecommunications operator
(after the incumbent)
� Total operating revenue of 1,4 billion euros in 2006 *
� Around 1,700 Employees
� Around 4.8 million Customers as of 30 June 2007
• Pre-paid customers represent 79% of total customer
base
Vodafone Portugal
* 2006 Vodafone fiscal year refers to the 12-month period ended on 31 March 2007
Anos de Calendário
Customers Market share
33.2%35.7% 36.3%
31.6%
48.0% 47.1%44.4% 43.6%
20.1%19.9%19.7%20.4%
31 Mar 04 31 Mar 05 31 Mar 06 31 Mar 07
Service Revenue Market Share
34.3%36.2% 37.7%
39.2%
43.0%44.3%45.1%46.2%
19.5% 18.7% 18.0% 17.7%
2003/04 2004/05 2005/06 2006/07
� Vodafone has consistently gained market share to its competitors in the mobile
market. In the last 3 year Vodafone Portugal gained almost 5 percentage points
of customers and service revenue market share
Calculated using the information disclosed by each operator.
Vodafone Portugal
Vodafone Portugal Supply Chain
HANDSETSUPPLIERS
SIM CARDSUPPLIERS
COMPANYBUSINESS LINE
(DIRECT SALES FORCE)
CONSUMERBUSINESS
LINE
VODAFONEBRANDEDSTORES
CUSTOMERS
OWNSTORES
OTHERREAILERS
DISTANCESELLING
Vodafone Portugal Supply ChainMain structure
VMIAgent StockManagement Supply
NetworkPlanning
DemandPlanning Forecast
p^mL^ml
Web connection from VBSDailyCommunication
Vodafone Portugal Supply ChainNetwork Fulfilment
€ 1 = 2 points
Vodafone Portugal Supply ChainLoyalty programme
• Points deduction
• Permanency contract
Siebel SAP R/3 Carrier execution
Order
creation &
validation
InvoiceSales Order
CreationCollection
Customer
Places order
Stock
Capture
To
order
Picking & Packing
Delivery
By mail
Payment Received
coupon
Loyalty programmeCustomer order process workflow - initial
The signed coupon worked as a signed contract
For the permanency period
The physical process was done in warehouseWarehouses are outsourcedBut working on VF-PT SAP system
Express DeliveriesHow everything started
How everything started
• In 2002 we decided to delight our customers
– By making express deliveries
–24 hours max. Since their request into their homes!
• What would you say?
– EXPENSIVE!
–Right! We thought so too… so implemented it only for our bestcustomers
Customer Order Process Workflow - 2003
Siebel SAP R/3 Carrier execution
Order
creation &
validation
Invoice
Sales Order
Creation
Collection
Customer
Places order
Stock
Capture
To
orderPicking & Packing
Delivery
By mail
Payment Received
coupon
Shipping
Centre
selection
Televiva:
For Lisbon
or
Porto
Sales Order
Creation
Stock
Capture
To
order
If no stock,
manual switchto standard expedition
Delivery
By carrier
Based on postal code
The physical process for mail was still done in warehouseTeleviva process was done in house warehouse
Customer delivey
schedule
Customers Voice
• 2003 was the analysis year of the project
• Our customers said:
– Satisfaction with delivery time: 3,3 in a 4 level scale
0%
5%
10%
15%
20%
25%
30%
1 day 1 - 5 6 - 10 11 -15 16 - 30 + 30 N.a.
Overall Satisfaction
Delivery Service
Base: 1294 interviews
1-
Po
or
10
-V
ery
Go
od
1% 0% 0% 1%
5%4%
7%
28%
20%
34%
8,478,47
0%
10%
20%
30%
40%
1 2 3 4 5 6 7 8 9 10
1
2
3
4
5
6
7
8
9
10
Média
Express DeliveriesThe evolution
Actual Clube VIVA WorkflowCustomer Delivery Schedule
Siebel SAP R/3 Transporter’s Information Systems
Customer
Places order
• Coupons were abandoned
• The whole process has gone digital
• Web offer was introduced on
Vodafone.pt with on line catalogue
• Customers can easily make the orderthemselves
WEBCall
Center
Web
Actual Clube VIVA WorkflowCustomer Delivery Schedule
• Points deduction
• Permanency contract
Siebel SAP R/3 Transporter’s Information Systems
Order
creation &
validation
Shipping
Centre
selection
Customer
Places order
Phase 2
• Centralize all Televiva warehouses in
the main operation
• Actual structure:
•2 outsourced warehouses for
the entire VF operation
•No dedicated warehouse
•Divided by brand
• 2 small warehouses in the
islands: Madeira & Azores
WEB
Call
Center
Web
Phase 1
• A regional expansion was done
based on in house warehouses
proliferation
• The warehouses localization was
based on regional decisions to get
closer to customer and reducedelivery time
• Stock ruptures problems arose
• Cost duplication
• Customer added value was not quickdelivery
Actual Clube VIVA WorkflowCustomer Delivery Schedule
• Points deduction
• Permanency contract
Siebel SAP R/3 Transporter’s Information Systems
Televiva:
4 warehouses:
outsourced (2)
Islands (2)
Order
creation &
validation
Shipping
Centre
selection
Sales Order
Creation
Customer
Places order
Stock
Capture
To
order
• Done previously to invoicing
•Instead of sending handsets to
carrier we are sending ordersinformation
• On a daily basis system pulls out all
the orders created in that day
• Creates a web table and sends it to
carrier via xml
• Carriers incorporates information into
their routing system
• Some orders will already have
delivery date agreed with customer
WEB
Call
Center
Web
Orders placed
Informed to carrier
Actual Clube VIVA WorkflowCustomer Delivery Schedule
• Points deduction
• Permanency contract
Siebel SAP R/3 Transporter’s Information Systems
Order
creation &
validation
Shipping
Centre
selection
Sales Order
Creation
Customer
Places order
Stock
Capture
To
order
Customer delivey
schedule
• Possible to be done in VF call centre
• Carrier time schedule is incorporated
in Siebel
•Assistant can choose on line
with customer time and place ofdelivery
• No scheduling to:
•Weekend and holidays
•If is an island postal code
•If no stock available
•In these cases delivery date is
left blank
WEB
Call
Center
Web
Orders placed
Informed to carrier
Done by carrier
No scheduled deliveries
Actual Clube VIVA WorkflowCustomer Delivery Schedule
• Points deduction
• Permanency contract
Siebel SAP R/3 Transporter’s Information Systems
Order
creation &
validation
Shipping
Centre
selection
Sales Order
Creation
Customer
Places order
Stock
Capture
To
order
Customer delivey
schedule
• On a daily basis carrier pulls from its
system sheduled deliveries for the
day after the following day
• Sends information directly to
outsourced warehouses via WEB
• Warehouse stores information on
local database in dispatch area
WEB
Call
Center
Web
Orders placed
Informed to carrier
Deliveries
scheduled
Actual Clube VIVA WorkflowCustomer Delivery Schedule
Siebel SAP R/3 Transporter’s Information Systems
Shipping
Centre
selection
Sales Order
Creation
Stock
Capture
To
order
Customer delivey
schedule
• By the end of the day carrier picks up stock for the deliveries
• During the night makes their internal transfers
• Delivery confirmation is uploaded by palm on the moment of delivery into carrier
system
• Carrier uploads information into web for on line research
•By VF back office
•By VF call centre
•By the end customer himself
Web
Orders placed
Informed to carrier
Deliveries
scheduledInvoice
Picking & Packing
Delivery
By carrier… Delivery
confirmation
Actual Clube VIVA WorkflowCustomer Delivery Schedule
Siebel SAP R/3 Transporter’s Information Systems
• The carriers along with the palms started using portable ATM
• ATM supported on GPRS supplied by VF
• Payment is done directly into our bank account with no need of cash transportation or
bank transfers
Web
Deliveries
scheduledInvoice
Picking & Packing
Delivery
By carrier… Delivery
confirmationCollection
Payment Received
Cash delivery
ATM payment
Evolution Summary of Express Deliveries To amend
delivery
Initial Stage
Regional expansion to
entire country
2004
Centralization
2005
Informationsand
Systems
integration
2006
Pilot in Lisbon
And Porto
2002
Express DeliveriesLessons Learned
KPI´s evolution
Initial 2004 2005 2006
Mail delivery rate 100% 75% 99% 99%
% Returns 10% 9% 6,50% 6%
Cost evolution initial -6% -16% -12%
Lessons Learned
• For customers is more important to be trustworthy than to be quick
– Ex : 8% of deliveries were asked for the following 2 days
• Integration really works
– By scheduling directly with customer on order moment
–Reduction of outbound calls by carrier – cost reduction
–Single contact to customer
• Communication is needed
– Everybody accessing the same information and giving the same inputs to customers makes life really easier for everybody
And easy is cheap…
Lessons Learned
• Replacing inventory by information integration allowed us to:
– Reduce unnecessary billing
– Unnecessary shipping
• Replacing mail delivery by a premium delivery system
– Reduction of returns
– Customer satisfaction increase
Operational Costs Reduction
Future developments
• 6 Sigma analysis of the process focusing on:
– Impossible to schedule delivery with customer
– Although is scheduled final delivery fails
• Express Deliveries will be applicable to:
– Web Sales
– Telemarketing Sales
– …
Not Always better service meanshigher costs!
THANK YOU!
Mafalda Alves Dias
Logistics Manager – Vodafone Portugal
+ 351 919 406 565