Conceptualization of Vodafone's Supply Chain
Supply chain management (SCM) is considered an important source of competitive advantage which requires to partnering-up with key functions to serve customers, optimally (Min et al. 2019). Before conceptualizing Vodafone’s supply chain, it is important to distinguish between the manufacturing and services supply chain and understand the meaning of the service supply chain. The key difference between both supply chains is that the manufacturing supply chain focuses on the delivery and distribution of tangible goods, while the service supply chain (SSC) deals with intangible services (Thakur, & Anbanandam, 2016). Hence, SSC is said to be a special type of supply chain in which products and services are delivered to the customers, where the key focus is on providing improved service quality and customer satisfaction (He et al. 2016).
According to (Elgazzar, & Elzarka, 2017), the service supply chain (SSC) is still less analyzed by researchers and scholars, therefore there is a lack of understanding of the concept of SSC and suitable models used to assess the performance of SSC. Initially, service supply chains were considered as a complementary element of manufacturing supply chains, but over time scholars have argued that service supply chain differs in terms of standardization and procedures, from the traditional SCM (Liu et al. 2019), as shown in Table 2:
Table 2: Difference between SSC and MSC
(Source: Liu et al. 2019)
Unlike the manufacturing sector, services cannot be analyzed based on tangible features and specifications. Therefore, the intangible nature of SSC makes it difficult to understand the integration and coordination between supplier and customer, which is essential for a SCM (Elgazzar, & Elzarka, 2017). Furthermore, the concept of SCM has evolved, over time (Mukhamedjanova, 2020), where different definitions are presented in Table 3 (Appendix).
Additionally, a basic SCM entails components like: suppliers, manufacturers, distributors, retailers, and customers. Where, the key goal of any SCM (whether product or service SCM) is to maximize the profit and satisfy the needs of the customers (Saleheen, & Habib, 2022). The flow of SCM is shown in Chart 2:
Chart 2: Flow of SCM
(Saleheen & Habib, 2022).
The conceptualization of the supply chain of Vodafone, is based on the supply chain of a telecommunication company, as shown in Chart 3. Telecommunication firms have strategic partnerships with other key companies (Ahmad, & Saifudin, 2014).
(Source: Ahmad, & Saifudin, 2014).
According to (Wang et al. 2015), Service Only Supply Chains (SOSCs) are supply chain systems where products are the services. SSCM is defined as a network of suppliers, service providers, consumers, and other supporting units that perform the functions and transactions required to produce quality services. Like many service industries, SOSC is a relevant SCS for the telecommunication industry (Wang et al. 2015), as shown in Chart 4 (Appendix). Therefore, the key components of Service Only Supply Chains (SOSCs) for telecommunication firms include service providers, customers, network infrastructure, service delivery process, etc. (Wang et al. 2015; Hussain, et al. 2016), as shown in Chart 4:
Chart 4: Main components of SSC
(Source: Hussain, et al. 2016)
Based on Figure 4, the key components of the Vodafone service supply chain will include:
- Suppliers: The supplier firms that provide the necessary services of Vodafone to the service organization (Wang et al. 2015)
- Supplier Management: This component manages the relationships with suppliers to ensure that a timely and quality supply of services is provided to the users (Hussain, et al. 2016).
- Supplies/Services: The services or products provided by suppliers to the service organization (Vodafone).
- Service Organization: It is the essential component of the service supply chain (SSC) that finally delivers services or products to the end users or customers (Hussain, et al. 2016; Wang et al. 2015). In this case, Vodafone will be the service organization.
- Network Infrastructure: This includes the technological infrastructure of the service, which includes cables, satellites, towers, and routers, etc, that help to deliver the telecommunication services (Wang et al. 2015). The concept of Supply chain management (SCM) is a global phenomenon, which is based on a global network of information systems, that integrate to include both upstream supplier’s networks and downstream channels, to provide services to the customers (Maralov, et al. 2019).
- Customer Management: This component manages the customers, and aims to understand customer's needs and provide them with satisfactory services/products (Hussain, et al. 2016)
- Services/Products: This is the final offering (home internet service/5G service) that is provided by the service organization to customers.
- Customers: According to (Wang et al. 2015), people or entities that receive and use the services offered by the service organization (Vodafone).
