Virgin Mobile USA Case Study

"A key factor in Virgin Mobile's growth has been our ability to expand our logistics and distribution capabilities, and Brightpoint has played an important role in our success."

Tim Evans
Vice President of Supply Chain and Logistics
Virgin Mobile USA

In the hypercompetitive wireless industry, a new mobile operator is faced with multiple challenges, including the formidable task of fulfilling orders from "big box retailers" as it launched its nationwide service.

The supply chain needed to be highly efficient and quickly scalable. By avoiding unnecessary capital investments in facilities and technical infrastructure, Virgin Mobile can leverage a variable cost model to address needs in an unpredictable market environment.

Customer Challenge

Virgin Mobile's objective at launch was to redefine and set the pace for the wireless prepaid category by targeting the U.S. youth market with innovative devices and unique marketing solutions.

To launch its products and services into the national retail channel, Virgin Mobile chose to outsource aspects of its supply chain operations to a company with experience providing solutions to both the retail and wireless industries. After a diligent outsourcing selection process, Brightpoint was chosen to provide a suite of integrated supply chain services such as freight management, inventory management, packaging and assembly, EDI hosting, and fulfillment services.

Solution Overview

Brightpoint now manages the inbound deliveries from Virgin Mobile's suppliers, warehouses inventories in a Brightpoint-owned distribution center, manages the packaging and assembly in accordance to Virgin Mobile's "Bill of Materials," facilitates receipt of retail orders and invoicing via EDI, and shops orders to Virgin Mobile's authorized retailers, distributors and end users.

Partnering with Brightpoint, Virgin Mobile was able to ramp up quickly without carrying the burden of investing in its own facilities. Additionally, Virgin Mobile retained management of aspects of its Supply Chain that it deemed critical while outsourcing aspects that it felt best leveraged Brightpoint's expertise and capabilities.