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
Click here to watch our video ‘Inspired by you’ 11
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