Virgin Media - Building Connections that Really Matter

Project Partners

Global Engineering, Repair & Logistics

B U S I N E S S I N T E RV I E W

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Building Connecti ns that Really Matter We discuss the value of forging key business partnerships with Steve Rounsley, who leads the Virgin Media Supply Chain, and Anthony McLaughlin, his Director of Supply Chain Strategy.

Written by Anna McMahon • Produced by Jennifer Davies

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Having worked i within various Automotive, A Defence, to fast-m and tech, Steve spent the last career at Vi e is responsible for the planning, purchasing, logistics, and lifecycle management of all products needed to provide services to consumer and business customers, as well for Virgin Media's engineering community, in the management of the network infrastructure. Steve says, "Virgin Media aims to give its customers the best connectivity and entertainment experience, powered by our ultrafast network, which offers the UK’s fastest widely available broadband speeds. “With the usage of our connectivity continuing to increase, we keep investing and providing value to our customers. We spend more 4

in supply chains s sectors, from Aerospace and moving consumer e Rounsley has 10 years of his irgin Media. than ÂŁ1billion on our network each year, and our average broadband speed is more than two and a half times the national average. So, whether it is a settop box, a broadband router, mobile phone, or a high-tech piece of network equipment, in supply chain, we are focused on providing services and products

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network repair partner in MMX Communications.”

to our customer which enhance their experience, while at the same time, supporting profitable growth for Virgin Media as a business.”

Virgin Media Supply Chain is a relatively small team, outsourcing operations to bestof-breed partners. Steve explains, “We have one logistics partner focusing on our warehousing and distribution, and that is Kuehne+Nagel. We then have one Customer Premise Equipment repairer – we call it TRR, which stands for Test, Refurbishment and Repair. Our partner is CTDI, who operate from Scotland. We have one mobile TRR partner, which is a company called Unipart, and we have one

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Virgin Media is the UK brand of parent company, Liberty Global.

Steve has spent the last five years looking at ways to leverage the company’s global supply chain footprint by reviewing operations in each country to drive efficiencies.

He says, “What we wanted to do was bring about a greater focus on our people and the customer.

Virgin Media launched its purpose around building connections that really matter. That is now instilled in everything we do. We want people to focus on this, whether within our organisation or our outsourced partners. At the same time, we took the opportunity to make our supply chain more locally-focused. We asked how we could realise the full potential of all our individuals, our teams and the technology around us, to become the best at what we do for our customers.”

The company’s new supply chain strategy has been steered by Anthony McLaughlin, a seasoned supply chain strategist, who has been on the journey with Steve for the majority of the last decade.

It is based on embedding this philosophy within the organisation, and working with partners that identify strongly with the journey that Virgin Media is on.

The strategy is built on five strategic objectives:

1. Belonging How do we make our company an amazing place to work, with people aspiring to join, so when they are here, they don't want to leave? How do you bring your real self to work, where you have a sense of belonging and wellbeing?

2. Bigger and Better How do we build upon how we operate? Getting better at what we do is important, but even more so is establishing innovation in our DNA.

3. Eco Warriors We have made huge progress on the environmental agenda, but how do we continue to drive step-change and become the most sustainable supply chain in our sector?

4. Integrated Planning How do we extend and connect our ecosystem even more to support profitable growth, and put ourselves in a position where we are driving even better decisions for our customers and efficiency for the business?

5. Tech-volution The final part of the jigsaw. We are a company that embraces technology. In supply chain, we have established visibility, control and differentiation through our technology platform. Now is the time to evolve our digital supply chain in focused ways, to evolve our operating model, and drive a technology-first approach.

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We support the lifecycle of your technology CTDI is a full-service, global engineering, repair and logistics company.

Together with our customers we create highly technical, fully integrated and sustainable supply chain solutions.

www.ctdi.eu

Global Engineering, Repair & Logistics

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Payment Terminal Network Infrastructure

Modem Gateway

Set-Top Box

Notebook

Mobile GREEN SERVICE

Smart Home

We support our customers achieving their environmental strategies with our GREEN SERVICE PROGRAM    

Carbon neutrality by 2030 Circular economy Renewable energies Sustainable logistics www.ctdi.eu 9

“We have one logistics partner focusing on our warehousing and distribution, and that is Kuehne+Nagel. We then have one Customer Premise Equipment repairer – we call it TRR, which stands for Test, Refurbishment and Repair. Our partner is CTDI, who operate from Scotland. We have one mobile TRR partner, which is a company called Unipart, and we have one network repair partner in MMX Communications”

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Anthony adds, “The strategy is underpinned by creating a network of partners to operate on our behalf to serve our customers, as well as collaborate.

We are striving for an end-to-end customer-focused value chain, and all our partners understand that philosophy and are on this journey with us. This has been demonstrated time and time again by our partners in driving innovation into automated fulfillment solutions, intelligent and autonomous test solutions, and final-mile services for our customers, which create real value.”

Virgin Media works handin-hand with Liberty Global when designing and delivering products and services in the UK. Steve explains, “From a supply chain perspective, you have to go to the global market and ask a supplier to make a product on your behalf to serve multiple territories. You are talking about a global manufacturer that can deliver volume to the market.

That works well, but we also have a local focus. We have teams in Virgin Media supply chain purely focused on Virgin Media's UK customer base. This is back to the supply chain philosophy of putting our customers at the heart of everything we do.

Supply chain localisation works towards our goal of being a more customer-centric organisation.”

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Proudly ensuring Virgin Media customers stay connected at a time when it matters the most We empower our customers and are determined to shape the world of logistics by connecting people and goods, through innovative and sustainable solutions.

Kuehne+Nagel is proud to be Virgin Media's partner of choice, ensuring their customers have access to the latest technologies at a time where online communications have become more important than ever.

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Many factors are considered when evaluating which approach to take and Steve recognises the value in understanding varying customer demographics, and the importance of segmentation.

He says, “In the UK, we are demanding when it comes to the delivery experience, increasingly so since the pandemic. We want to go online, place an order, and have it delivered in a timeframe that works.

“Virgin Media has operated throughout the coronavirus pandemic, and Steve says if he has learned one thing it is that the company has a fantastic group of people working there�

New consumer customers receive a broadband router or set-top box to either self-install, or have an engineer install for them, which means their services can be up and running as soon as possible. Some of our customers want it delivered to their door, 13

while others prefer to click and collect at one of 7,000 locations across the country at their convenience. UK customers also want to be able to track their orders and make changes if they decide to have it redelivered to a different place or at a different time. The ability to provide different selfserve and proactive support options when a customer needs our help is also important.

Working in global operations, you see these market nuances all the time. At Virgin Media, it is all about making sure we give our customers choice and understanding their changing needs.�

Virgin Media has operated throughout the coronavirus pandemic, and Steve says if he has learned one thing it is that the company has a fantastic group of people working there. He says, “Now more than ever, staying connected is vital. Our purpose of building connections that really matter could not have been better placed to deal with Covid-19. We recognised that we needed to change some of the ways that we interacted with our customers, and our outsourced partners have done an amazing job in sustaining high levels of performance

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“Our strategy, our p partners put us in a to capitalise on oppo present themselves, opportunities are as people as they are te Anthony McLaughlin

Director of Supply Chain Strate

people and our prime position ortunities which , recognising those s much about echnology�

egy & Solutions

despite all the challenges.

The interconnectivity we have created between ourselves, our outsourced partners and product supply partners, and the technology we have deployed, have been pivotal in successfully managing the extended supply chain, so that we keep our customers connected to what they need and love.�

There has also been a tremendous focus on what more we can do for customers through these difficult times. Steve explains, “In the consumer space this year, we have provided free broadband speed upgrades to more than a million customers and introduced a wide range of measures to help our customers stay connected and entertained during the pandemic, including providing 15

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50 TV channels and 10GB of mobile data – both at no extra cost. This is on top of a range of measures to support vulnerable customers, such as providing annual package reviews, more flexible bill management, and in November, we are launching a new ‘Essential broadband’ plan for customers receiving Universal Credit.”

As for the future, Anthony acknowledges the continued unpredictability but says there are at least three things we can assume with some degree of

certainty. He says, "Further supply chain disruptions, in some form, are inevitable, as is the likely frequency of them occurring.

Customer expectations will continue to change rapidly as we move through the next ways of the digital revolution we find ourselves in. As such, the speed at which we need to plan will only increase, as will the complexity. If you accept this position, then you need to continue to find ways to equip your people to plan and execute smarter and faster, if you want to emerge ahead of the pack.”

This is an area where the supply chain team at Virgin Media will continue to put a lot of focus.

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“Whether we are improving our game around predictive analytics, or moving beyond that into AI technologies, or how, for instance, digital twin can develop our scenario planning and decisionmaking capabilities” Anthony points out that evolving the digital supply chain and taking people on that journey is key. Steve concludes, “Our strategy, our people and our partners put us in a prime position to capitalise on opportunities which present themselves, recognising those opportunities are as much about people as they are technology.

Whether we are improving our game around predictive analytics, or moving beyond that into AI technologies, or how, for instance, digital twin can develop our scenario planning and decision-making capabilities, we have the opportunity to do some great things for our people and our customers in the future.”

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For further information on Virgin Media, visit www.virginmedia.com

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www.virginmedia.com

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