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CONNECTING PEOPLE, HOMES AND BUSINESSES: UMNIAH TRANSFORMS JORDAN’S TELECOMMUNICATIONS SECTOR


UMNIAH

SUPPLY CHAIN MANAGEMENT KEEPS JORDAN CONNECTED 02

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From WiMax to 4G, Umniah’s supply chain management brings last mile service to homes, businesses and customers across Jordan. WRITTEN BY

OLIVIA MINNOCK

PRODUCED BY

HEYKEL OUNI

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UMNIAH

S

ince its launch in June 2005, Umniah has become a leading player in the telecommunications space, offering

high quality mobile, internet ad business solutions and transporting Jordan’s telecommunications services. Umniah, owned by the Bahrain-based telecoms specialist Batelco Group, is the third operating Telecom provider in Jordan. “Umniah isn’t the biggest provider in terms of customers but is the market leader in price. In addition, we maintain a high level of quality,” reveals Head of Supply Chain, Ahmad Almubuslat. Umniah has a commitment to procurement 04

and supply chain management as an integral part to its overall strategy, and this was what first attracted Almubuslat to move to the telco world. His career in procurement began with Royal Jordanian Airlines. “I started with no certificate, following the current policies and

its supply chain and contribute to

procedures of the company, but by 2009 I

networks across the nation,

started following leading practices and gaining

becoming Jordan’s fastest LTE

professional certification.” Almubuslat became

network for 4G and Fixed in 2016.

the first Jordanian to gain the Certified Purchas-

Of the three main markets in Jor-

ing Manager Qualification from the Institute for

dan – voice, mobile data and

Supply Chain Management, following this up

managed data services (MDS) for

with several other certifications. In 2014, he was

business – the third was largely

headhunted by Umniah. “I accepted to join the

developed by Umniah and utilises

company because of Umniah’s belief in pro-

microwave links. “In Jordan,

curement as a strategic function.”

Umniah has a very big market

Since then, Umniah has worked to manage J U LY 2 0 1 8

share for MDS across different


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industries and for individuals too,” says

did not stop there. “We have a huge

Almubuslat. “We also have a very com-

market in other governorates which are

petitive share in home internet.”

large concentrated areas. The credit

Within these segments, Umniah

goes to our quality of coverage,

works to not only deliver cost savings

together with a good service at the right

but high quality too, thanks to relation-

price,” Almubuslat explains.

ships with suppliers. “We adopted the concept of the total value of ownership,

GETTING THE PRICE RIGHT

not just cost, in order to deliver the best

Getting this “right price” is a key

value at the best price”. Within the vari-

responsibility of Almubuslat and his

ous governorates of Jordan, Umniah

supply chain team, as it’s all about

expanded in the capital, Amman, but

effectively negotiating with suppliers w w w. u m n i a h . c o m


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“WE HAD TO THINK OUTSIDE THE BOX, AND THIS WAS THE SOLUTION WE FOUND TO BRING BEST VALUE FOR US AND FOR THE MOE”

venture between suppliers and

— Ahmad Almubuslat, Head of Supply Chain

tractors to deliver the best price.

“The competition was tough, but we did something different by developing new ventures and partnerships with suppliers,” says Almubuslat. Umniah developed a manufacturers, utilising local con“We had to think outside the box,

and managing an efficient procurement strat-

and this was the solution we found

egy. “Once I joined, we agreed to develop a

to bring best value for us and for

supply chain function, which we have success-

the MoE. We then provided free

fully managed this year.” Almubuslat heads up

safe internet to all schools through

this new dedicated function, which plays an

the ministry, to support the eleva-

important strategic part for the company.

tion of Jordan’s education system.”

With this in mind, Umniah has already won some important tenders with organisations as large as the Ministry of Education (MoE), with the Connectivity Tender, a five-year contract, having been awarded in May 2016. “The main scope of the MOE Tender was to provide connectivity by establishing links for around 3,000 schools, directorate and administrative buildings in Jordan. This was almost the size of a new network, in addition to other requirements relating to attendw w w. u m n i a h . c o m

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UMNIAH

“WE BELIEVE IN EVALUATING THE TOTAL VALUE OF OWNERSHIP, NOT JUST COST” —

Ahmad Almubuslat, Head of Supply Chain

an extended value in having a real partnership in place with our suppliers: engaging suppliers at the earliest applicable stages will strengthen our sincere intention of having the ownership of all stakeholders internally and externally. “We also believe in and support our suppliers, most of which are mid-sized and easier to work with and grow. We’ve managed to develop two medium sized suppli-

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SUPPLIER RELATIONS

ers to become huge, competitive

Maintaining healthy relationships

companies in Jordan. We also

with suppliers and getting them

develop relationships with manu-

behind Umniah’s vision is essen-

facturers. I have the choice

tial. Umniah promotes Early

between buying equipment then

Procurement Involvement (EPI).

awarding another supplier the

“Umniah believes in the value of

installation, versus developing a

procurement and the value our

venture under our supervision.

team brings to the organisation

While the latter can initially be cost-

through gaining better offers,

lier, I choose to manage that

time to market and margins, and

long-term business relationship as

it’s important to engage at an

it works out better overall in terms

early stage,” Almubuslat explains.

of pricing in this specific case.”

“This was also reflected on the supplier side by implementing Early

END-TO-END BENEFITS

Supplier Involvement, specifically

Efficient supply chain manage-

for the strategic projects. There is

ment not only makes savings, but

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ensures consumers get what they want, when they want. “There are

Jordan also has a special geo-

some strategic items like SIM

graphical nature. “We have a lot of

cards and CPE (consumer-prem-

mountains and valleys, which

ise equipment such as routers) for

might limit what one site can cover

example that we need to have

in terms of area, so we’ve

available at all times,” explains

increased our number of sites. We

Almubuslat. A close eye is kept

also changed our CPEs to provide

on quality. “We’re buying the net-

CPEs that deliver the best value by

work equipment at the best price,

having excellent indoor coverage

but the customer will not be able

at the best price. This was initiated

to benefit properly from our net-

by the Supply Chain department,

work unless we have a good CPE

working alongside engineering and

that can deliver the service with

marketing teams.”

such a quality and speed.” J U LY 2 0 1 8

In terms of quality challenges,

New network licences were also


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introduced to improve CPE cover-

“Adapting the current assets in

age, since different licences

delivering the latest technology

available on the same site may give

guaranteed the best time to mar-

better service to individuals or

ket and the best value. For

companies. “We explored the

instance, we have upgraded

market through our suppliers to

some existing sites to host LTE

check which licences were worth

Fixed Technology.”

investment and found a licence that enhances coverage for the

STRATEGIC FUNCTION

customer. The price was peanuts

Batelco Group has recently

compared to the value of the ser-

revamped the Procurement Poli-

vice delivered to the end user.”

cies in order to assure having the

Service quality has also been

best value for money in an agile

improved with the delivery of a

frame. A collaborative process

new 4G network for Jordan.

within Umniah ensures each conw w w. u m n i a h . c o m


UMNIAH

tract awarded is compliant and shortens the approval process. “We always ensure full compliance with the Policies and Procedures, of both the Batelco Group and Umniah Mobile Company,” says Almubuslat. “Before making any strategic step we get the blessings of the Group and the board. We conduct pre-delivery inspection and on delivery inspection, and after that, we have multiple acceptance levels within a reasonable timeframe to 12

assure that what is delivered is in line with what is requested.” In addition, it is important Umniah ensures compliance with requirements from third parries including government entities. This is mandatory at all stages of the supply chain journey. “Umniah Mobile Company is the first telecom operator to join the Golden list under the Customs Department,” Almubuslat adds. Umniah uses internally approved contract templates which act as framework agreements with key suppliers.

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“WE HAVE A HUGE MARKET IN ZARQA WHICH IS A LARGE, CONCENTRATED AREA. THE CREDIT GOES TO OUR QUALITY COVERAGE, TOGETHER WITH A GOOD SERVICE AT THE RIGHT PRICE” — Ahmad Almubuslat, Head of Supply Chain


“Awarding has become much more agile than before; this will enable us to enhance the time to market. We place a new annex/ addendum for the new scope with the associated pricing and then issue the Purchase Order.” Strategic sourcing is a key function under Umniah’s Supply Chain department. “We continually scan the market and conduct due diligence of benchmarking, not only in terms of pricing but also value, features and new technologies tobe included.” Umniah Mobile Company is always keen to maintain its position as the price leader in the market, and this can be sustained and accompanied with better quality through a proactive Supply Chain department.

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+96262002000 www.umniah.com

Umniah - Brochure 2018  
Umniah - Brochure 2018