Description

The South African telecommunication industry experienced significant changes during the last thirty years. Implementing lean production and developing supply management, had a profound influence on the relationships between telecommunications companies and their suppliers, specifically network infrastructure suppliers. Vodacom South Africa (SA) has several key network infrastructure suppliers. Key network suppliers are considered suppliers of the network infrastructure (when implemented), allowing a cellular site easily initiated. It is the initial and most critical effort, when property leases for a new cellular site is acquired and the site is connected and integrated in Vodacom’s core network.
The main objective of this research is to identify the Supply Chain Management concerns of key network infrastructure suppliers Vodacom encounters. The magnitude of these concerns are evaluated, and ways overcoming it to improve shareholder value.
The concerns were identified through guidance from the literature review, analysing data from data warehouses, and interviews in the supply chains of two key network infrastructure suppliers. Questionnaires were designed to assist with structured interviews, using data from these research instruments, including open-ended questions, to develop transcripts for analysis and completion.
This study is descriptive and explanatory, which contains both quantitative and qualitative elements, in a sequential design, being quantitative dominant. This infers the study is initiated with a quantitative analysis to direct the researcher to “where?” concerns exist. This is followed by qualitative analysis to determine “why?” and “how?” concerns exist. Nine hypotheses were formulated on both supply chains, guiding the research.
The findings of this research indicate the geographic location, age and size of the business and hold no bearing on the supply chain concerns of key network infrastructure suppliers. The relationship between functional departments in the supply chains and their main customer in developing credible demand is a significant concern.
The findings indicate the following main supply chain concerns facing Vodacom:
• Criteria for expected lead times and a gauge for sufficient orders completed, are absent.
• A backlog (accumulation) of work orders exist in key functional departments.

• When a fair criterion is established based on fair historical performance, the key network infrastructure suppliers do not meet the lead-time expectation.
• The acquisition of property on which to build a cellular site is delayed due to incapableness to conclude due to the cost of the lease between supplier and Telkom.
• Postponement of compliance by Environmental Authorities (EIA), due to electromagnetic emissions concerns.
• Connectivity to the cellular site is affected by lack of collaboration and skills to deal with Vodacom product fulfilment in Telkom’s supply chain.
• A demand error ratio exists between Telkom and Vodacom for leased line connectivity to the cellular site.
• The Vodacom demand plan for cellular site connectivity is not influenced by business and market requirements.

Notwithstanding the above, the study recommends:
• Improving collaboration between Vodacom’s marketing department.
• Provide a plan to improve knowledge of environmental legislation and processes within municipal authority’s framework.
• Improve skills and the availability of tools in the Telkom value chain
• A plan for effectively connecting functional departments of both value chains to the demand chain of Vodacom.

The study challenges the telecommunications industry to provide network coverage to rural areas, and the investment granted to extend cellular coverage through infrastructure receded due to the global economic crisis. This crisis adversely affected the South African industry. Despite these challenges, leaders in the South African telecommunications industry remain positive about the future, and endeavour to meet the network rollout challenges.
This study is significant as it improves operations and financial margins for Vodacom. The study provides recommendations required to extend mobile network infrastructure to rural areas. This provides data and voice access to the masses, which improves on the digital divide, contributing to the socio economic situation of citizens in South Africa.