Supply Chain Management

Vodacom SA operates a world-class warehouse facility in Midrand handling on average more than 167 000 units per day, 98% of which are delivered within 48 hours to major centres. This allows Vodacom SA to provide stock to our extensive distribution network on a “just-in-time” basis.

The Group’s supply chain management initiatives focus on reducing costs and minimising inventory while ensuring product availability.

We negotiate handset pricing centrally and are also able to leverage Vodafone’s global procurement muscle to secure the benefit of volume-based pricing and low-cost handsets. In the year, handset sales totalled 5.5 million, up 8.3% on the prior year. In Vodacom’s continued efforts to drive penetration, sales of the Vodafone ULCHs (ultra low cost handset) increased 30%, now representing 20% of all handset sales.