NSG Group - January 2023

TRANSPARENCY DRIVES SUSTAINABLE PROCUREMENT AT NSG GROUP

TRANSPARENCY DRIVES SUSTAINABLE PROCUREMENT AT NSG GROUP

John Wilgar, Chief Procurement Officer at NSG Group, talks about the fundamental changes the company is making to its procurement function to become more diverse and sustainable

What exactly is so exciting about glass? Well, apart from being one of the most versatile materials on the planet, it links to any and every industry you can think of. From the windows of a house, skyscraper or aircraft to protecting drivers under a transparent umbrella that screens them from the elements, glass is pretty much everywhere in some form or another.

As an integral component of innovation in the 21st Century, glass is also key in facilitating some of the major technological shifts that require devices like phones, tablets, computers, and even safety cameras mounted to the inside of vehicles behind the car windscreen.

With innovation more widespread, the industry is scaling up growth while reducing its environmental and social impact, contributing to all innovative processes in between to ensure that materials are fit for a more sustainable future of construction, technology, and automotive manufacturing and, quite frankly, any industry.

Somewhat ironically, glass must be transparent, and the same must be said when sourcing materials, particularly in terms of sustainability. As far as sourcing goes, sustainability doesn’t come without

Transparency drives sustainable procurement at NSG Group

understanding the impacts of the industry and, more importantly, how to fix them.

This is what was learned by John Wilgar, Chief Procurement Officer at NSG Group, who leads the procurement function of the business and is committed to sustainable change, adopting all necessary technologies to do so.

Founded towards the end of the First World War in 1918, NSG Group is one of the world’s largest manufacturers of glass and glazing products for the automotive, construction, and electronics industries— priding itself on this fact, in addition to being one of the major suppliers of glass to cars across the globe.

Part of the Sumitomo Group, NSG is becoming more invested in the development of glass products to meet the growing demand of the renewable energy sector, especially that of the solar energy network.

Another of the major trends supported by the organisation is the shift to electric mobility (e-mobility), which sees companies adopting more and more technological

JOHN

“SUPPLIERS LIKE SHELL ARE REALLY KEY IN ENABLING SOME OF OUR IMPORTANT PROJECTS AND ARE ALSO ABLE TO HELP US SCALE THESE ACTIONS”

WILGAR CHIEF PROCUREMENT OFFICER, NSG GROUP

solutions to reap the benefits of an allelectric power system that’s capable of supporting more advanced solutions housed behind transparent glass windscreens.

Sustainable procurement transformation aligned with NSG values

The transformation of NSG starts with the programme named ‘Shape to Shine’. Beginning back in late-2020, the initiative is partly a response to the knowledge gained from COVID-19 and other disruptions.

As Wilgar explains: “The ‘Shape’ phase lasted around 18 months and, towards the end of that period, we began to focus more on the ‘Shine’ agenda, which is about asking ‘How can NSG contribute to a more positive future?’.”

This led to the organisation’s current strategy for procurement, which is governed by the core values of the business. A digitalfirst approach enables the company to instil its values.

“We began to establish a really clear and cohesive strategy for digital transformation to aid procurement in the company,” says Wilgar. “We’re evaluating how to get more from the digital tools we have today, such as SAP Ariba, but also looking for new tools that can support us in areas like supplier connectivity or supplier risk management.”

Secondly, NSG’s procurement team is looking at its operational approach, which is traditionally driven by a set procurement matrix, to provide greater opportunities to optimise its processes through standardisation and centralised procure-topay (P2P) activities.

“We centralised those, more than 10 years ago, into shared service centres, but we believe there is scope to improve other processes, such as sourcing, category management, and supply risk management,”

JOHN WILGAR

TITLE: CHIEF PROCUREMENT OFFICER

INDUSTRY: GLASS, CERAMICS AND CONCRETE

LOCATION: LIVERPOOL, UK

Wilgar has worked for Pilkington plc and NSG Group for twenty years, joining the group in 2003 as Head of Automotive Procurement in Europe. Prior to that, John held a number of procurement roles in General Motors, working closely with GM partners such as Isuzu, Renault, and Fiat.

Since 2003, Wilgar has held various roles in capital procurement, direct materials, indirect materials & services, energy, supplier development and process & systems.

John is passionate about enabling people to reach their full potential and about sustainability.

Wilgar originates from Ireland, is married to Jo with three grown up children—Owain, Niamh, and Rhys.

Watch interview with Giorgia Arnaboldi, Senior General Manager B2B for Shell Energy in Europe

Solutions for today and tomorrow

Solutions for today and tomorrow

For businesses balancing continuity with decarbonisation goals, having a dependable and flexible energy partner has never been more important. That’s why Shell Energy is working with customers to meet the energy challenges of today, while investing in the energy solutions of tomorrow.

For businesses balancing continuity with decarbonisation goals, having a dependable and flexible energy partner has never been more important. That’s why Shell Energy is working with customers to meet the energy challenges of today, while investing in the energy solutions of tomorrow.

Shell Energy provides solutions tailored to the needs of businesses across a wide range of industries. These include the reliable delivery of gas, power and renewable energy, as well as carbon credits to help compensate for emissions.

Shell Energy provides solutions tailored to the needs of businesses across a wide range of industries. These include the reliable delivery of gas, power and renewable energy, as well as carbon credits to help compensate for emissions.

Better ways to power business

Better ways to power business

In Europe, Shell Energy is working with thousands of companies to meet their energy needs competitively, while helping guide them through the energy transition. This means powering their business in a way that is more resilient, as well as helping them reduce their carbon emissions.

In Europe, Shell Energy is working with thousands of companies to meet their energy needs competitively, while helping guide them through the energy transition. This means powering their business in a way that is more resilient, as well as helping them reduce their carbon emissions.

“We’re delighted to add NSG Group to a customer portfolio that includes global brands and national local businesses,” says Giorgia Arnaboldi, Senior General Manager B2B for Shell Energy in Europe.

“We’re delighted to add NSG Group to a customer portfolio that includes global brands and national local businesses,” says Giorgia Arnaboldi, Senior General Manager B2B for Shell Energy in Europe.

One solution leads to another

One solution leads to another

A deal to supply NSG Group with natural gas is an example of how working together on one solution can unlock new opportunities. NSG Group manufactures glass which, among other things, goes into the manufacturing process of photovoltaic panels used by solar power developer Silicon Ranch, of which Shell is the majority shareholder.

A deal to supply NSG Group with natural gas is an example of how working together on one solution can unlock new opportunities. NSG Group manufactures glass which, among other things, goes into the manufacturing process of photovoltaic panels used by solar power developer Silicon Ranch, of which Shell is the majority shareholder.

“It means the natural gas we supply to NSG Group in Italy is part of a bigger picture, which ultimately supports the generation of renewable solar power in the US market,” explains Giorgia. “It’s a perfect example of how one collaboration and one solution can lead to another.”

“It means the natural gas we supply to NSG Group in Italy is part of a bigger picture, which ultimately supports the generation of renewable solar power in the US market,” explains Giorgia. “It’s a perfect example of how one collaboration and one solution can lead to another.”

“We

as renewable electricity and alternative/low carbon fuels. NSG Group is increasingly turning to our supply partners to support our decarbonisation efforts and we are excited to work closely with Shell Energy as part of this strategy.”

as renewable electricity and alternative/low carbon fuels. NSG Group is increasingly turning to our supply partners to support our decarbonisation efforts and we are excited to work closely with Shell Energy as part of this strategy.”

John Wilgar, Chief Procurement Officer at NSG Group

John Wilgar, Chief Procurement Officer at NSG Group

To learn more watch the video or click

To learn more watch the video or click

Watch interview with Giorgia Arnaboldi, Senior General Manager B2B for Shell Energy in Europe

“We believe this is an important platform to establish further opportunities together in areas such

believe this is an important platform to establish further opportunities together in areas such

says Wilgar. “I envisage centres of excellence for these processes in the near future.”

A further area NSG is acting upon is the physical footprint of the organisation. When looking at emissions reduction, the procurement team is tasked with indirect procurement functions to reduce realestate footprint and emissions, which results in the shift of premises globally and most likely a reduction as teams work more from home.

“In procurement, we are progressively changing our offices around the world to be more suitable for hybrid working and space efficiency,” says Wilgar.

This is also helped by NSG’s commitment to the Science-Based Targets initiative (SBTi), allowing the company to drill down into its Scope 3 emissions to meet rigorous sustainability milestones.

“We have a target to reduce our overall emissions 30% by the year 2030 and reach carbon neutrality by 2050 – importantly this includes Scope 3 emissions in our supply chain. We launched a sustainable supply

chain programme earlier this year, and this will help us address the Scope 3 challenge, but it doesn’t end with carbon reduction,” says Wilgar.

“We are also looking at the environmental impact of our suppliers, what they are doing to address waste and water consumption, and their actions on human rights.”

Wilgar also addresses the importance of personnel as a key pillar in sustainable digital transformation, noting that diversity, equity, and inclusion (DEI) plays a critical role in driving forward transformation and hitting its targets. Although diversity is a critical aspect of human resources from a social perspective, it is also something he has to

PROCUREMENT—

JOHN WILGAR CHIEF PROCUREMENT OFFICER, NSG GROUP

“I TRY TO VISUALISE THE IMPACT AND VALUE OF

AND OF OUR SUPPLY BASE—AS AN ICEBERG”

consider when training or upskilling staff in a digital world.

“It’s really about creating the conditions for our people to realise their full potential and promote a fully diverse, inclusive workforce in procurement,” Wilgar says. “For example, we implemented a female focus group to help us understand the barriers for women to progress to top positions in the function.”

“We’ve been expanding our mentoring and trainer training programmes, including things like mental resilience to support our people through very difficult and challenging periods. We also make sure each person in procurement has a personal development plan.”

DID YOU KNOW?

Today, around a third of our global Procurement team are women with around a quarter in management positions. This has to change—a more diverse team will better reflect the world we live and operate in and enable us to bring more and better ideas forward”

A sustainable future influence by suppliers

One of the points discussed with Wilgar— one that rears its head in many sustainability discussions—is around cost. At an integral point of the supply chain, much of the precedence is taken by cost optimisation and ensuring viability of products from a financial standpoint. But, as sustainability is often a costly shift to make, it’s interesting to see how businesses like NSG are able to transition to new and greener pastures,

particularly when, like NSG, 50% of spend is tied in the upstream supply chain.

One of the important activities that Wilgar must undertake is foresight; seeing the costs and understanding the wider global implications of the company’s sustainability agenda.

“I try to visualise the impact and value of procurement and of our supply base as an iceberg: the traditional financial measures are clearly visible above the waterline, but

JOHN WILGAR CHIEF PROCUREMENT OFFICER, NSG GROUP

increasingly, the greater part of this impact and value is below it,” says Wilgar.

“In other areas like supplier innovation, speed-to-market risk management, and sustainability, suppliers—both current and new—will contribute greatly to these new aspects of value creation for the company.”

This is where he highlights Shell Energy as a key partner in the activities at NSG. Shell Energy is a key enabler of the company’s targets and broadening its scope for other aspects, such as energy security and carbon reduction.

Specifically, NSG has been working to introduce alternative fuels such as hydrogen that will power the production of glass as well as biofuels as drop-in replacements for their fossil fuel counterparts. It is in areas such as these that partners like Shell can help NSG accelerate on its path to decarbonisation.

“Suppliers like Shell are really key in enabling some of our important projects, bringing technical capability and in some cases financing. They are also able to help

us scale these actions on a global stage to realise our potential in different regions,” says Wilgar.

“We’re very pleased to be working with them initially in Europe, but hopefully in other regions in the future. Shell is a company that shares our core values for doing business in an ethical way and contributing to the communities in which they work.”

With many fruitful years to come, NSG will delve further into the capabilities of technology for streamlining procurement, allowing the team to take a more strategic approach to sourcing sustainable alternatives, and adhering to its SBTis.

Growing the team and the technology it uses will allow NSG’s procurement colleagues to specialise in certain areas of the business to establish a much higher level procurement function and take the helm on further strategic processes like category management, risk management and mitigation, sustainable sourcing, and so on.

“It’s also my goal that the makeup of our procurement function is much more diverse than it is today. Not only in terms of gender, but in other aspects, such as ethnicity, sexual orientation, or importantly, diversity of thought,” says Wilgar. “Today, around a third

“WE CENTRALISED PROCURE TO PAY ACTIVITIES MORE THAN 10 YEARS AGO INTO SHARED SERVICE CENTRES, BUT WE BELIEVE THERE IS SCOPE TO IMPROVE OTHER PROCESSES”

of our global Procurement team are women with around a quarter in management positions. This has to change – a more diverse team will better reflect the world we live and operate in and enable us to bring more and better ideas forward”

JOHN WILGAR CHIEF PROCUREMENT OFFICER, NSG GROUP

“The same principles apply to our supply base. My hope is that the impact and value of procurement—and, indeed, our supply base—is measured more in terms of those below the waterline activities and less on the purely traditional financial measures.”

This holistic view of sustainability in procurement will allow NSG to address all areas, from environmental impacts through technical innovation in the industry to meeting social needs both at work and beyond.

With the automotive industry ingrained into him, Wilgar fully appreciates the pressures that lie ahead, but is also excited for the e-mobility revolution, which will provide more challenges and opportunities for NSG. Electrification has become a testbed for technology that ties in with the demand for a supplier of both theoretical and physical transparency.

“WE’RE EVALUATING HOW TO GET MORE FROM THE DIGITAL TOOLS WE HAVE TODAY, SUCH AS SAP ARIBA”

DID YOU KNOW?

Almost half of NSG Group’s total carbon emissions are in the supply chain. To achieve its Science-Based targets NSG must engage fully across the entire value chain.