Vodafone Ukraine – Brochure 2020

VF Ukraine: Procurement prowess in the Ukraine telco space Project partner

VF Ukraine: Procurement prowess in the Ukraine Telco space Oksana Glavachek explores how procurement allows VF Ukraine to be ready for the rapid evolution of the telco sector...

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D al e Bent on Hey kel Ouni

VODAFONE UKRAINE

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T

he evolution of procurement is not a novel concept, with businesses the world over investing

in their procurement functions to take them away from being a support function while transforming into a key cog within business strategy. The unique nature ofthis procurement evolution does not come from the fact that we know it is happening, it comes from the how and, most interestingly, it comes from the why. Why is procurement shifting and evolving and how does it change from industry to industry?

Oksana Glavachek, Chief Procurement and Administrative Officer at Vodafone Ukraine, details how the rapidly evolving telco industry and the market demands in Ukraine have created great challenges for companies and their procurement functions and even greater opportunities.

“The Telco industry is one of the most

tance to invest in a 3G spectrum distri-

investment-hungry industries in the world,”

bution. This reliance, she knows, left

she explains. “To establish a Telco Com-

Ukraine staying with 2G ‘rather long’ and

pany you have to make a huge investment

in 2015 Ukraine launched 3G.“The whole

in setting up a network first of all and

world had already reached the mature

then you must make significant annual

LTE level so we were a little behind,”

investments in the expansion and mainte-

she adds. “But since then things have

nance of that network due to continuous

changed and Ukraine started to make up

technology development and tougher

for the lost. In 2017, we deployed LTE in

market competition.”

1800mhz, 2600mhz in 2018, and 900mhz

Glavachek points to Ukraine’s reliance

spectrums in 2020. Such rapid growth

on a 2G cellular network thanks to a reluc-

required significant investment from the

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company and brought particular chal-

development in the communication and

lenges to procurement.”

IT world. The largest share of any spend

With rapid growth in demand, and as

in the telco space is in the network build-

the second largest mobile operator in

ing and so attention turns to the supplier

Ukraine, VF Ukraine needed a procure-

market. “The market for RAN, Core and

ment function that was both robust and

Transmission is dominated by a few of the

agile enough to cater to the ever-grow-

world’s biggest vendors and this makes it

ing business needs. Glavachek highlights

difficult to negotiate,” explains Glavachek.

that procurement in the telco industry

“RAN, the main part of a network, has only

is defined by two principal factors: the

four vendors that have divided the world

investments made in building up a net-

market and each of them possesses signi-

work and the speed of technology

ficant market share worldwide.”

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ZTE Corporation is a global leader in telecommunications and information technology. Founded in 1985 and listed on both the Hong Kong and Shenzhen Stock Exchanges, the company has been committed to providing integrated end-to-end innovations to deliver excellence and value to consumers, carriers, businesses and government and enterprise network customers from over 160 countries around the world to enable increased connectivity and productivity.

“As you can imagine this creates an

became increasingly digitally enabled

additional obstacle for procurement in

through the internet and smartphones,

Telco. After a vendor acquires his market

the telco industry witnessed genera-

share in one or multiple segments they

tional shifts of mobile networks. Each

practically become a Single Source Sup-

shift meant that the assets forming the

plier. The competition becomes impos-

networks were completely renewed in

sible, price negotiations with the vendor

a way that felt like a new set of require-

prove increasingly tough and procure-

ments and demands. For the procurement

ment requires the utmost measures to

functions, the challenges continued to

keep a relevant price.”

be magnified. “We could not allow procu-

The other key principle, the speed of technology growth in communication and IT, is a challenge faced by many, but

rement to relax,” she explains. “It forces procurement to think and act ahead.”

The need to think ahead and be ready

it's one that the telco market in particu-

for the future is something that Glavachek

lar feels the biggest impact. As the world

feels VF Ukraine has something of an 7

advantage on, given the country’s late

In order to enable this greater collaboration,

adoption of some of the latest technologies.

procurement needs to be more than just

“We are lagging behind other countries

purchasing or tenders running function

in launching new technologies but it ena-

and Glavachek recognises this. She high-

bles us to leverage the global experience

lights that procurement represents the

of Vodafone right here in Ukraine. There

whole end-to-end supply chain manage-

are strict requirements as to the speed

ment, consisting of logistics, contract man-

of new technologies when launched, and

agement, stock management and analyt-

even now when we have not been fully

ics and performance management. This

informed of the selected 5G spectrum

represents that shift away from being a

procurement is already starting the

simple support function and this is further

tenders in order to provide competitive

exemplified through the absorption of

advantage for business.”

administration, allowing for more agility

During her time with the company, Glavachek has worked hard with her teams to elevate procurement at VF Ukraine, change the perception of procurement and even make the company’s own function rival that of other major telco functions.

Achieving this position is easier said than done, but Glavachek can be proud of what she has been able to achieve for both the business and the function itself. For her, it starts with procurement being at the very top. “It is important for procurement to be a part of the board because it provides the CPO a chance to see the company strategy and look at global company targets,” she says. “It also allows the CPO to better understand the synergy of functions that helps achieve those global targets collaboratively.”

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“ The Telco industry is one of the most investment-hungry industries in the world” — O K S A N A G L AVA C H E K , C H I E F P R O C U R E M E N T A N D A D M I N I S T R AT I V E O F F I C E R AT V O D A F O N E U K R A I N E

and cost effectiveness across the organisation.

In the procurement and supply chain ecosystem, the strength of your partnerships with suppliers and vendors is crucial. As Glavachek has highlighted already, in the world of telco those partnerships require more nuanced and work in order to find the right solution at the right price that provides the right outcome that works for all involved. Supplier relationships are not easy, but Glavachek and VF Ukraine understand that a continuous dialogue with the vendors proves crucial in succeeding. “Procurement should always be open and hungry for knowledge. Procurement should learn how to listen because if we are ready to listen then vendors will tell us about new insights and future innovations,” she says.

“The basic procurement principles, combined with the readiness to learn and evolve prove absolutely key in building successful long term relations with suppliers.”

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“ The basic procurement principles, combined with the readiness to learn and evolve prove absolutely key in building successful long term relations with suppliers” — O K S A N A G L AVA C H E K , C H I E F P R O C U R E M E N T A N D A D M I N I S T R AT I V E O F F I C E R AT V O D A F O N E U K R A I N E

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Elsewhere across the company, Glavachek points to the impending implementation of 5G and how the company will continue to leverage that global Vodafone experience to ensure it continues to ride this wave of growth successfully.

That commitment to learning and evolving has and will continue to be the key to succeeding for VF Ukraine as the telco market’s rapid growth shows no signs of slowing. Over the next 12 months, Glavachek will look to continue on a journey of consolidation and digitalisation across the procurement process in order for the business to become more efficient and agile.

“If I’m not mistaken, the Dalai Lama once said ‘Sit as comfortably as you can for long, your leg will inevitably numb.

You need to reposition yourself’” she says. “So in my opinion, the capability to change is vital to achieving success for the company.”

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