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Vodafone puts repair and logistics contract out to tender 06 July 2015

Unipart, DHL, Ingram Micro Mobility and Brightstar said to be among those bidding

According to reports in the UK, Vodafone has launched a tender process for its repair and logistics contract. Mobile news suggests that the telecoms operator is in talks with DHL, Ingram Micro Mobility (IMM), Brightstar and incumbent service provider Unipart Technology Logistics (UTL), holders of the business for more than 10 years.

Vodafone is insisting that costs for the service must fall. Reports suggested that a £30.0 million per year initial offer from UTL was rejected by Vodafone, resulting in a wider tender process. UTL are reported to have a 15.0% margin from the current £40.0 million per year deal.

It has been claimed Vodafone has received offers valuing the contract at between £15.0 million and £20.0 million per year during the first round of discussions.

UTL has worked with Vodafone for more than 15 years, managing numerous business categories, including car kit installation, accessories, repairs, logistics and call-centres.

The two companies collaborated in 2006 on a joint investment to build the site in Nuneaton. Vodafone is understood to receive around 3,000 faulty handsets a day, which are then collected and repaired in Nuneaton before being re-dispatched.

UTL claims to repair more than 100,000 handsets every month through its numerous mobile repair contracts which also include Virgin Mobile.

The tender process for IMM is reportedly being managed by Director of Service Mark Howard who spent five-years at Vodafone, latterly until 2013 as Head of Supply Chain and Logistics. Brightstar’s buyback business, formerly Mobile Phone Exchange (MPX) already manages Vodafone’s handset recycling programme, refurbishing more than 15.0 million devices a year.