Vodafone Procurement & Connectivity: Transformation Success
Vodafone Procurement & Connectivity has undergone a series of industry-leading transformations over the last 16 years. But one thing has never changed – how deeply the business values its people.
The organisation is led by Ninian Wilson, one of the most recognisable and respected names in the world of procurement and a man who knows the importance of workforce talent.
“I know I've had a great day when we have done something amazing with our people and our staff, or a member of the team has done something amazing and gone the extra mile,” he says.
“It reminds you how important – even in a digital procurement and connectivity company with all the digital tools we've got – how important people are.” This emphasis on relationships has enabled Ninian to build an expert team, reaching out after years spent working together at Royal Mail and Cable & Wireless to Richard Boyce, now Head of Service Delivery at Vodafone Procurement & Connectivity.
Richard’s career spans a wealth of sectors, countries and supply chains, from Singapore to Luxembourg, from automotive to aviation. This rich career history, which includes Richard awarding the first 3G mobile contract in Australia, has given him an expert perspective on the changing needs and dynamics of global procurement. He too echoes the importance of people at Vodafone.
“There’s that absolute power of getting it done together,” he says. “ I think bringing together people with different backgrounds and different perspectives, building a really diverse workforce, is absolutely critical to maximise what you want to get done in terms of a project, to deliver revenue, sales and delight customers.”
People power journeys and transformations, and what is now known as Vodafone Procurement & Connectivity has undergone a remarkable journey, evolving from a traditional procurement division to a digitally advanced, AI-driven function which not only supports Vodafone Group but also other telco customers and partner operators. Ninian has been at the helm of Vodafone's procurement since 2009.
As a standalone business within the Vodafone Group, he has a complete focus on developing its services, offering those services to new partners, but always keeping the customer experience at the heart of everything it looks to achieve.
An ongoing digital transformation journey
When Ninian took charge of Vodafone Procurement Company, the department had already undergone various changes, but the next phase of its evolution was a leap into digital transformation. “Nine years ago, we decided that we would like to go through our next level of transformation, which was going digital,” he says. This move laid the groundwork for the organisation to adopt digital tools and processes, modernising procurement operations across the company.
A significant shift in recent years has been the use of AI technologies. “With the advent of generative AI, large language models, the opportunity to transform more mundane tasks and automate them is startling,” says Ninian.
Richard agrees, expanding on how Vodafone Procurement & Connectivity is embracing AI to fuel autonomous procurement. “I think the rise of AI is a great thing for those that seize it, exploit it, utilise it and deliver the value that it promises,” he says. “Whether that is dictating customer-focused emails in a basic sense or really delivering autonomous procurement, which is a direction that we're actively focused on into the future.”
By taking away basic category management, RFP and procurement tasks, procurement at Vodafone will be better equipped to upskill staff to focus on areas like core transmission, radio access networks and global brand deals – areas Richard cannot see automation coming in.
“Those are areas where there's always going to be a need for the experts,” he says. “AI will play a supporting role, not a leading one.”
Pursuing this AI transformation is about so much more than just traditional operational efficiency: it is about positioning Vodafone Procurement & Connectivity as a forward-thinking company and staying ahead of the technology curve.
The introduction of the Vodafone Procurement & Connectivity
Another major development in Vodafone’s procurement journey was the more recent creation of Vodafone Procurement & Connectivity (VPC). This addition paves the way for expanding into managed services in the roaming, international VOICE and IPX, an area Ninian is particularly excited about under the leadership of Kenneth Graham, a key figure in the new-look organisation.
The formation of the VPC represents an exciting step for the team in Luxembourg, where much of the company’s procurement operations are based. It also marks a step forward in Vodafone’s digital story as it blends traditional procurement with cutting-edge technology.
Connectivity Integration
This strategic shift aimed to streamline operations and better serve its global customers marked an exciting evolution for the company. Leading this transformation is Kenneth, the MD Wholesale & Products at Vodafone Procurement & Connectivity.
In 2023 Vodafone made the decision to bring together its international voice, IPX, and roaming services under one umbrella, alongside its Luxembourg-based Vodafone Procurement Company.
One of the key benefits of this integration has been the improved alignment of skills and resources within Vodafone. By bringing together procurement, roaming and voice services under a single function, the company is able to maximise the potential of its people. "We now have the procurement operations team and the roaming and voice operations team all part of one function, which means we can better leverage that talent and that experience for overall benefit," explains Kenneth.
This consolidation has allowed it to offer a more cohesive approach to customer service and provide customers with a unified solution. "Today we've got one joined-up unit that can better serve our customers, have one conversation and deliver a more streamlined service capability," he adds.
Enhancing customer focus
A major outcome of the integration has been a sharpened focus on customer satisfaction. Kenneth describes seeing strong results from this change, not only in internal efficiencies but also in how it interacts with its customers.
"What they're seeing now is a Vodafone Procurement & Connectivity business which is even more customer-focused. We supported our Vodafone colleagues and now provide services to telco customers. By bringing everything together, we're enhancing how we support our customers," he says.
Richard agrees, describing how this unique joint venture is fundamentally changing the business operating model and creating new opportunities to delight customers. “You're used to working in a model where you have centralised technology, centralised procurement, centralised decision making,” he says. “Now you're in a role where there are still operating companies and that is the model, but you've also got customers that don't necessarily want to follow the same technology roadmap or timelines.”
Richard describes this as part of the broader shift to servitization we are seeing across industries, stating that colleagues who can embrace that pivot “are probably setting themselves up in their career for the rest of their lives.”
This customer-first approach mirrors Vodafone's vision of delivering better services and products while responding to modern customer needs. The team structure means employees, including more than 400FTEs, who were once confined to niche roles now have a wider remit and can share ideas and solutions from different parts of the business.
The Luxembourg connection
Vodafone’s strong ties to Luxembourg have been central to its strategy, with the country serving as a hub for both its procurement and connectivity operations. Vodafone also has a significant relationship with the Luxembourg government, with Tomorrow Street – a joint venture between Vodafone and Technoport (Luxembourg Government technology incubator)– playing a key role in attracting and supporting young tech companies.
"The partnership with the Luxembourg government is extremely important for us," explains Kenneth.
"Tomorrow Street is focused on helping scale innovative technologies into Vodafone while also attracting tech talent and companies to Luxembourg. This is a significant opportunity for us, both in terms of innovation and contributing to the local ecosystem."
Vodafone brings such phenomenal value here as a partner in part due to its scale, according to Richard. “We have an incredible amount of scale in Vodafone, whether it's in roaming services or procurement services, not least of which just looking at the 24 billion euros of spend that we manage out of this building every year,” he says.
“What I want to deliver for our customers is very simple, using that 24 billion as leverage. How do we provide for our customers that are typically smaller than the Vodafone Group? How do we provide them with an advantage in the markets that they operate in? By bringing expertise.”
This expertise according to Richard looks like category and industry knowledge, negotiation support and other means to deliver best value across their markets so these companies can maximise their CapEx budget, minimise their OPEX costs and gain true advantage against their competition.
Vodafone is also establishing a logistics hub in Luxembourg, further solidifying its commitment to the region. “It’s a fantastic opportunity to leverage the benefits of Luxembourg and show our continued commitment to the country," he says.
Expanding services and new markets
Ninian’s vision for Vodafone Procurement & Connectivity is focused on expansion. As a business within the Vodafone Group, it has the chance to offer its services to new customers and markets. The new logistics hub project is designed to service European markets, but Ninian says similar projects are being considered to serve Vodafone’s African markets, marking a significant push into new geographical territories.
“This is where digital meets physical – supply chain meets customer,” he says, explaining how digital tools are being pushed into the physical supply chain to offer more value to customers. “For us, this is the next part of the transformation journey,” he adds.
Going beyond to deliver more value is key here. The capacity of technologies like AI to automate tedious and simple processes is only one piece of the puzzle, as Richard elaborates: “It's not just a case of looking at all of the simplistic stuff and digitising that. I think you need to start looking at how you digitise some of the more complex processes as well.”
He uses AI here as an example, with its capacity to interrogate databases, the internet and other resources to generate a procurement strategy. This automation is useful, saving hours of labour that would’ve been spent compiling the strategy.
But how useful in practice is that strategy if it is not tailored to Vodafone Procurement & Connectivity’s unique needs or is the same strategy that anyone can access using AI?
“We don't want everybody else's results,” Richard says. “We want results that are unique, which means furthering that algorithmic machine learning. AI has to learn what we do and how we do it.”
A strategic vision for Vodafone's supply chain
The Vodafone’s pan-European Logistics Hub is the culmination of several years of smart planning aimed at transforming how Vodafone manages its supply chain, particularly its logistics. Group Head of Logistics at Vodafone Procurement & Connectivity, Reinhard Plaza Bartsch, explains that the journey began with Vodafone deciding to take greater control over its logistics operations. "Stage number one was to actually implement logistics in Vodafone as a whole," he says.
The company had previously outsourced much of its network deployment to third parties, but by insourcing these activities, the company is looking to gain better visibility over its inventory and optimise key performance indicators like stock levels and cash flow.
Reinhard explains the second stage involved refining the company’s demand and supply planning processes.
Vodafone began working more closely with its network organisation to forecast equipment demand and plan inventory levels more precisely. "We’ve rolled this out across the whole of Europe with close to 70% adoption rate year to date," he says.
The role of the pan-European logistics hub
Reinhard describes the purpose of this new centre as consolidating Vodafone’s physical inventory, which is currently spread across various locations, into a centralised, highly efficient warehouse. "We’re bringing in a new pan-European hub in the middle of Europe, which will work in tandem with much smaller warehouses in the different markets where we operate," he explains.
The pan-European logistics hub in Luxembourg will span 36,000m sq and serve as a key hub for Vodafone’s network equipment and devices. When planned operations begin in early 2026, it will lead to better stock consolidation and a more efficient supply chain.
"The consolidation of stock and inventory allows you to reduce your cash position because you will buy more on a just-in-time basis," Reinhard continues. “The centralised hub will also bring increased agility, allowing Vodafone to manage inventory dynamically across multiple markets.
If demand spikes in one market, stock can be redirected from others to meet the need, enhancing Vodafone's ability to respond to market conditions.
Reinhard also repeats the importance of resilience in modern procurement and supply chain operations.
"We’re bringing resilience by creating a central hub that allows us to work in tandem with smaller warehouses," he says. This setup will reduce Vodafone’s reliance on individual local warehouses, which in the past could lead to stock shortages in certain regions.
Future-proofing with technology & automation
The hub is not just about consolidating physical assets, as it also represents a technological leap forward for Vodafone. The new facility will incorporate cutting-edge technologies to streamline operations and improve efficiency.
One key idea is the use of a mobile private network to enable connectivity inside and outside the warehouse. Sensors will track inventory in real time, eliminating the need for manual scanning and providing up-to-date information about stock levels.
It will also feature automated guided vehicles (AGVs) for handling standardised equipment, which reduces the need for human labour in certain tasks. "We’re also looking into implementing AGVs for a certain part of our equipment, which again removes the human labour from the type of activity but allows us to reinvest capacity more in the controlling and the exterior of the warehouse," Reinhard explains.
Other advanced technologies, such as AI-driven surveillance systems, will improve security by monitoring the movement of trucks and personnel entering and leaving the site.
A key foundation to the success of the project is a Vodafone digital control tower, which will provide full visibility of stock throughout the entire supply chain.” For us, what is extremely important is to have full traceability of our stock along the whole end-to-end supply chain," Reinhard says.
“This digital layer will not only track inventory within the logistics centre but will extend its reach to partner warehouses and the final point of installation.”
Benefits for Vodafone's customers
While the Vodafone’s pan-European Logistics Hub is designed to enhance Vodafone’s internal processes, Richard is keen to add the benefits customers will experience. By improving inventory management and reducing stock levels, Vodafone can pass on cost savings to its customers.
"Your stock holding can reduce, you will be much tighter on the cash that you need and will only spend it when you really require it rather than building stock overall," he explains.
The enhanced transparency provided by the control tower will also give customers greater visibility into the status of their orders, helping them avoid any delays in the roll-out of their own networks. Vodafone’s ability to manage stock across different markets will also make sure customers receive equipment when they need it, even if demand fluctuates in unpredictable ways.
This focus on delivering exceptional customer experiences continues with the onboarding of Vodafone Italy and Spain as new customers. “They are customers to be treasured and nurtured, to prove our value,” says Richard.
“Because when they see the value that Vodafone Procurement & Connectivity provides, they’ll want more of it. We provide them exquisite customer service, but most importantly the knowledge and expertise that underpins greater savings.”
Lessons in transformation: vision & humility
Reflecting on Vodafone’s procurement transformation, Ninian knows there are plenty of challenges facing organisations wanting to embrace similar journeys.
“You've got to get the buy-in from the people you work with and get those individuals excited about the change that's coming,” he says. Ninian also feels setting a clear vision and alignment across the organisation was critical to Vodafone’s success, particularly as they navigated the many hurdles of digital transformation.
One quality is never far from his thoughts through the process, and this is the importance of remaining humble and being able to admit when things could be done differently. “It’s one of the hardest things to do as a line manager…when things aren’t going as well as you’d like them to go, being able to step back a little bit and say, ‘Oh, this isn’t quite working, let’s stop it’,” he says.
Acknowledging when something is not working and having the discipline to pivot or halt a project is essential in avoiding wasted effort and ensuring continued progress.
The ability to do this is driven by humility and self-awareness, traits that are refined through continuous learning – something that Richard is a strong advocate for.
I think you learn your entire life,” he says.
“The moment you decide, subconsciously or consciously, to stop doing that, I think it's time to move into something else, perhaps retirement. Life is all about continuous learning. And I learn new things every single day at Vodafone.”
The human element
Despite the advancements in technology and operations, Ninian is quick to add the human element remains crucial to Vodafone’s success. It is people, not just technology, that keep him energised and passionate about his work.
Richard is on the same page, citing people as his biggest inspiration and integrity as his strongest value. “I think integrity is who you are, right?” he says.
“I think if you're that kind of a person, integrity and ethics guide you always. You know what’s right and what isn’t.”
As Vodafone Procurement & Connectivity looks ahead, the leadership team are united in continuing a decade and a half of innovation, by never resting on what they have achieved so far, and accepting there is always a new technology or process to embrace or a lesson to learn.
“We're learning new processes and ways of doing things, which you don't necessarily have to do with internal clients, but you certainly have to do with external customers,” says Ninian. “So for us, this is the next part of the transformation journey, transforming how we work, what we say and the processes we use to give a fantastic service to our customers.”
Explore the latest edition of Procurement Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.
Discover all our upcoming events and secure your tickets today.
Procurement Magazine is a BizClik brand