Jul y 2017
TGI FRIDAYS: AMERICAN FARE IN THE INDIAN MARKET
TOP 10 LARGEST CHINESE INFRASTRUCTURE PROJECTS
www.businessreviewaisa.com
ONE CROWN PLACE: A SNAPSHOT OF ASIAN INVESTMENTS IN THE CITY OF LONDON
SUSTAINABILITY AT SCHNEIDER ELECTRIC
INTERVIEW WITH SINGAPORE COUNTRY PRESIDENT DAMIEN DHELLEMMES
FOREWORD
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WELCOME TO THE July edition of Business Review Asia. Our lead feature this month comes from Damien Dhellemmes, Country President for Singapore at Schneider Electric. He talks to us about everything from company ethics and sustainability to its expansion and the allure of Singapore as a place to do business. While Singapore is an attractive location for many European multinationals to invest, London likewise is drawing the attention of many Asian companies. We go behind the scenes at the One Crown Place development to see why it has generated so much interest from Asia. Tom Bryant, Director, Residential, London, CBRE and Henry Robinson, Director, London Development, CBRE and Project Management Lead for One Crown Place answer our questions. When it comes to building, China doesn’t do infrastructure by half – our top 10 charts the biggest projects underway in the country. Our exclusive company interviews include a chat with TGI Fridays India, where American cuisine has been subtly transformed to fit the Indian market. Find out how it has taken off and what expansion plans are in place for the future. As always, tweet your feedback @BizRevAsia
Enjoy the issue!
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F E AT U R E S
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PROFILE
One Crown Place: A snapshot of Asian investments in the City of London TECHNOLOGY
Sustainability at Schneider Electric
22 14 LIST
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C O M PA N Y P R O F I L ES
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FOOD AND DRINK
Colliers International Alex Drew CONSTRUCTION Head of Procurement & SRM
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CATHAY PACIFIC
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C O M PA N Y P R O F I L ES Colliers International CONSTRUCTION
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TGI Fridays India FOOD AND DRINK
Xanadu Mines MINING
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PT Telkom Indonesia TECHNOLOGY
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PROFILE
One Crown Place: A snapshot of Asian investments in the City of London
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::ecalP nworC enO nnaisA no tohspans A eeht ni stnemtsevni nnodnoL fo ytiC Combining modern, cutting-edge architecture housing with a mix of high-spec offices, One Crown Place is certainly attractive. But why has this development attracted Asian investors? Wr itten by: NYE LONGM AN
IT IS NO secret that London is one of the world’s most attractive locations for real estate investment. And with the British Pound hitting 30-year lows, opportunities for foreign investors to snap up great real estate deals seem to be ever plentiful. We speak to Tom Bryant, Director, Residential, London, CBRE and Henry Robinson,
Director, London Development, CBRE and Project Management Lead for One Crown Place to find out what all the fuss is about. International appeal “London is a global city with a truly international appeal – and we are confident the world-class product 9
PROFILE on offer at One Crown Place will attract interest from various global markets,” says Bryant. “The barrier to entry for investing in London is also much lower than other countries popular with Asian investors, such as Australia,” adds Robinson, “In addition, there’s also a trend for Asians to acquire retirement homes or properties to finance their children’s education in Britain.” For foreigners looking to invest in London, there are a variety of reasons that do so much more than just sweeten the deal, Bryant explains: “These include its robust economy; London accounts for 13 percent of the UK’s population, but 23 percent of its GDP.” “There are 8.67 million people living in London, of these 1.8 million rent and 70,000 earn over £100,000, which shows the depth of the high end rental market. The UK also has a very transparent legal structure which protects property owners.” London therefore offers a heady combination of factors which contribute to its position as real estate gold mine for Asian investors. Combining high economic performance and world-class 10
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amenities (well worth the 13 hour flight from Changi Airport), alongside a healthy demand for high-end real estate, London presents the close to ideal investment environment. But how are international companies making sure that all this potential isn’t going to waste? “As a global property firm, CBRE works on a wide range of similar projects, and the combined expertise of the CBRE teams will ensure it continues to work on large scale mixed-use schemes in the future,” Bryant explains. One Crown Place Nestled in London’s historic Sun Street conservation area, One Crown Place consists of 246 private apartments, a boutique hotel, 140,000 square feet of premium office space and retail units totalling 7,000 square feet. An additional level of character is provided in the form of the last remaining Georgian terrace in the area, which has been restored to contain a clubhouse for the residents and the onsite boutique hotel. The site is also a stone’s throw from the City’s top universities and financial district. The development is ideally placed for local transport links, within five
ASIA INVESTMENTS
“There are 8.67 million people living in London, of these 1.8 million rent and 70,000 earn over £100,000, which shows the depth of the high end rental market” TOM BRYANT Director, Residential, London, CBRE
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minutes of both Moorgate and Liverpool Street stations. The development was primarily designed by award-winning Kohn Pedersen Fox Associates (KPF) Robinson describes the Sun Street conservation area as: “An ‘urban island’ whose buildings are a microcosm of historical and modern South Shoreditch. The 19th century workshops and warehouses that once served this prolific area for the furniture and printing industries border today’s creative community that form a vital part of this vibrant area.” “One Crown Place sits at the centre of this melting pot of influences and cultures, combining the Georgian terrace with two statement towers in what will be a signature new landmark for the City of London.” With an investment landscape friendly to international interest, London is naturally one of the choice cities for Asians looking to invest in real estate, whether for profit or personal use. While some uncertainty remains in the UK capital over the effects of its exit from the European Union, CBRE remains undaunted by the prospect. Bryant says, “London has many positive attributes that remaining unaffected by the outcome if the EU referendum. As a result buying property in London remains attractive to investors.” 13
TECHNOLOGY
Sustainability at Schneider Electric W R I T T E N B Y: N Y E L O N G M A N
Business Review Asia speaks to Damien Dhellemmes, Country President for Singapore at Schneider Electric. We discuss everything from company ethics and sustainability, to its expansion and the allure of Singapore
TECHNOLOGY
1. What does it mean for Schneider to be recognised as one of the world’s most ethical companies for the seventh consecutive year? “The World’s Most Ethical Companies list has been published annually by the Ethisphere Institute since 2007. It honours companies that excel in three areas: promoting ethical business standards and practices internally, enabling managers and employees to make good choices, and shaping future industry standards by introducing tomorrow’s best practices today. “Since 2011, Schneider Electric has appeared every year in the World’s Most Ethical Companies list and in 2017, Schneider Electric is one of the only two companies honoured in the “Diversified Machinery” category. It proves that Schneider Electric considers ethical challenges very thoroughly and addresses them with impact and efficiency, in line with our corporate values.”
2. How do your employees embody your ethical values? “At Schneider Electric, we see ethics and good governance as 16
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two of the key drivers of our growth and competitiveness. They are managed through our Principles of Responsibility, a set of guidelines designed to provide the Group’s employees with a framework for responsible behaviour. This document was formulated in line with the company’s principles of governance, the 10 Principles of the Global Compact, the Universal Declaration of Human Rights, and international labour standards. Our
S U S TA I N A B I L I T Y AT S C H N E I D E R E L E C T R I C
Principles of Responsibility have been translated into 30 languages and sent to all Group employees. “The “Responsibility & Ethics Dynamics” programme also helps Schneider Electric employees to manage any ethical issues that may arise. The programme is regularly communicated and audited internally, and serves as an indicator of ethical performance in the Planet & Society Barometer, the company’s sustainability scorecard since 2015.”
3. What are your current sustainability goals for the next year? How about the next five? “Schneider Electric has made 10 commitments for sustainability aligned with the Planet & Society barometer, Schneider Electric’s sustainability scorecard since 2005. These commitments are in line with the twodegree trajectory and contribute to the UN Sustainable Development Goals. “At Schneider Electric, we build 17
TECHNOLOGY
Damien Dhellemmes
energy management and automation technologies that ensure life is ‘on’ everywhere, for everyone and at every moment. We’re facing a critical point of transition for the industry, in which the business and societal landscape are being transformed by urbanisation, digitisation and industrialisation. “Building on Schneider Electric’s long experience in sustainability, we are leveraging the company’s technologies and solutions to achieve 18
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our COP21 commitments by 2030. We want to build an ecosystem that helps customers reduce their own energy consumption by 30 percent through active energy efficiency and sustainability solutions. We also want to offer products and solutions that provide clean and affordable energy.
4. What Asian markets are you present in? We are currently present in 13 markets
S U S TA I N A B I L I T Y AT S C H N E I D E R E L E C T R I C
across the East Asia region, including the “ASEAN 10”: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Vietnam, Singapore, Thailand and The Philippines, as well as Mongolia, South Korea and Taiwan.
5. Do you have any expansion plans in Asia? “Asia Pacific is now our second largest region and contributed 27 percent of Schneider Electric’s global
revenue for Financial Year 2016. “In 2015, Schneider Electric announced 65 million euros (S$102 million) worth of new investments in Singapore. From a technology perspective, the investment comes at a time when Asia is going through unprecedented growth in technology adoption and connectivity, driven by smart urbanisation, industrial automation and the rise of the Internet of Things (IoT). “Schneider Electric’s investment in this region helps governments and industries leverage new technologies to achieve efficiencies – most importantly energy efficiencies. Reliable and safe energy is a cornerstone to sustainable urbanisation and it plays a key role in the quality of the lives of urban dwellers. With our investments, Schneider Electric is establishing a Software Industry Solutions Centre and a Software Regional Hub that will support organisations in Singapore and around the region with energy management, automation and software technologies. “We are excited because this is a real opportunity for Schneider Electric to help chemicals, food and 19
TECHNOLOGY beverage, mining and metals, oil and gas, transportation, water and waste water, and utilities companies leverage technology to enhance productivity and safety while making sure that they remain sustainable in their business activities. “Scientists and engineers at our Software Industry Solutions Centre will also work with industry players to develop and deliver customised software solutions to help solve industrial companies’ most critical issues. This is a crucial step we are taking to help organisations capitalise on the future of manufacturing in the age of Industry 4.0 and it is also symbolic of Asia as the centre of growth in industrial controls and automation.
6. What are the specific sustainability/ethics challenges that Asian markets present? “We have seen a variety of sustainability challenges in different markets in Asia. For Singapore, one of the key challenges is to achieve productivity growth while improving energy efficiency. “As the world of energy is 20
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transforming, with the convergence of IT and energy technologies, Schneider Electric believes that the Internet of Things (IoT) will be the next frontier for organisations to achieve efficiencies and meet their sustainability goals. In fact, IoT will unleash a wave of automation that makes sustainability more easily attainable than before. “For instance, software downloaded on smart devices can switch appliances and lights on and off automatically when they sense the presence of people. These machines, appliances, devices and software form the ecosystem of the IoT – where software and hardware speak to each other through the Internet – can make urban systems more efficient; including water, transportation systems, gas, electrical networks, which is a huge part of energy consumption. “Further, the electrical systems of buildings, as well as data centres that host the smart infrastructure, can be connected to smart grids, which can detect the power usage in a neighbourhood, district or city and redirect the power to where it is needed the most from areas where it is not used.
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China is heavily investing in infrastructure in a bid to tra infrastructure leads to stronger economic growth, and Ch
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URE PROJECTS
anscend its “middle-income country” status. Enhancing hina is pumping large amounts of money into the following W r i t t e n b y : S TA F F W R I T E R
10.Beijing South Railway Station > $6.3 BILLION
The Beijing South Railway Station is Beijing’s main bullet station for lines going east, south and northeast. It has roots dating back to the Qing Dynasty, however it was recently regenerated and reopened in 2008. Located in the Fengtai District, the station comprises of four floors. Covering an area of 499,200 square metres, the station is as big as a football court.
09.Silk Road > $6.5 BILLION Modernisation of China’s historical Silk Road route is expanding commerce to regions of China, Europe and the Middle East by linking rail, roads and industrial parks. China is seeking new market outlets to maximise its industrial capacity in steel and heavy equipment – a efficient Silk Road route. Current economic developments have reinforced partnerships with other countries looking to benefit from joint commerce. The road is a vehicle to trade and oversea infrastructure investment opportunities for China.
CHINESE INFRASTRUCTURE PROJECTS
08.Xiluodu Dam > $6.76 BILLION The 1999 China West Development policy set to elevate the economy of six provinces, five self-ruling regions and one municipality. Xiluodu Dam, Sichuan, is part of this plan. The dam is the second largest in China and the fourth largest in the world. Constructed in December 2005 and finished in 2013, the dam sits on the lower Jinsha River and the upper level of the Yangtze River. Its signature double curve arched wall lies between the provinces of Yunnan and Sichuan. 25
06.Hong Kong-Zhu > $10.6 BILLION
From the South China Sea, t over the PRD Estuary, betwe the west side and Hong Kon Hong Kong-Zhuhai-Macau B crossing bridge and tunnel a Hong Kong to Macau in 30 m former three-hour journey. In demands of passengers and within Hong Kong, the mainl bridge is set for completion
07.Su-Tong Yangtze River Bridge > $7.89 BILLION
In 2008, the world’s second longest cable bridge opened for traffic, spanning 1097 meters over the Yangtze River between the cities of Nantong and Changshu. The River Bridge has six lanes and two inverted bridge towers standing 306 meters (making them the third tallest bridge towers in the world). This bridge transports visitors from the economic zone of Yangtze River Delta to Nantong, the first of fourteen cities open to international trade and tourist centres. Commuting between Shanghai and Nantong is now a one-hour drive, compared to a four-hour ferry ride. 26
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CHINESE INFRASTRUCTURE PROJECTS
uhai-Macau Bridge
the 24-mile bridge crosses een Zhuhai and Macau on ng on the east side. The Bridge combines a sea allowing travellers to make minutes, compared to the nstigated by the increasing d land freight transporters land and Macao, the by the end of 2017.
05.Wenchang Space Centre (HSLC) > $12 BILLION
Wenchang Space Centre is one of two spacecraft launch sites of Xichang Satellite Launch Centre. Completed in 2014, the 3,000acre site is located 800 metres from the South China Sea. Built on an undeveloped corner within Wenchang’s municipality, the Centre is to be China’s largest launch site, capable of twelve launches per year. The port accommodates staff with living quarters, while the public can tour the space launch facility. 27
04.Harbin-Dalian High-Speed Railway > $14 BILLION
China achieves another world record with the first alpine high-speed railway, operating at high altitudes and extreme low temperatures. Winter travellers enjoy slower speeds of 200 kilometres per hour with summer speeds increasing to 300 kilometres per hour. Travelers average 78,000 daily since opening in December 2012. Travel time between
03.Jiaozhou Bay Bridge > $16 BILLION
Engineers met the challenge of constructing the world’s longest bridge, a structure that extends for 26 miles across the sea. Unique cable-stayed anchoring suspends Jiaozhou Bay Bridge with a single cable throughout the entire span. This structure is designed to withstand cyclones or magnitude eight earthquakes. Completed in January 2011, the six-lane bridge carries over 300,000 vehicles a day. It connects the old city of Qingdao on the south coast of the Shandong Peninsula, west of the Huangdao District. 28
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CHINESE INFRASTRUCTURE PROJECTS
02.Beijing Shanghai High Speed Railway > $35 BILLION
The world’s longest high-speed rail project connects three municipalities; Beijing, Shanghai and Tianjin. It also connects four provinces; Hebei, Shandong, Anhui and Jiangsu. With 24 stations, the High Speed Railway is the busiest railway route providing access to China’s best-known trade and industry areas. Passenger trains started running in 2011 after 38 months of construction. Over 1.9 million employees work on the 1,300-kilometre railway, and over 200,000 passengers travel daily.
01.Pearl River Delta (PRD) / $322 BILLION As one of the largest populated urban areas in China, Pearl River Delta (PRD) comprises of 11 cities, including zones of Hong Kong and Macau. These cities are linked with a series of tunnels, bridges, roads and high-speed railways. As of 2016, PRD’s population recorded over 68 million people with a gross domestic product (GDP) of $1.3 trillion. The population will reach 80 million by the year 2030, with a projected GDP of $2 trillion, as China’s economy shifts from agriculture to manufacturing and services. To give you an idea of PRD’s size in land mass and population, it is larger than Tokyo. 29
TGI FRIDAYS: AMERICAN FARE IN THE INDIAN MARKET Written by Dale Benton Produced by James Pepper
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TGI FRIDAYS SUCCESSFULLY TRANSPORTS ITS RECOGNISABLE GLOBAL BRAND TO INDIA, NAVIGATING THE UNIQUE CHALLENGES OF AN EVERCHANGING MARKET
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s a franchisee, striking the balance between having the freedom to create your very own offshoot of a brand versus the need to maintain specific aspects of a mother company’s DNA can be quite the juggling act. For TGI Fridays’ India franchises, it’s a juggling act that is reaping the rewards. “The philosophy of TGI Fridays has been that you have certain DNA structural dynamics of the brand that keeps it one global brand,” says Rohan Jetley, Promoter and CEO of TGI Fridays India. “However, the ability to act locally is an equally important part of our approach.” For TGI Fridays India, the franchise must contend with establishing the recognisable global brand not just in the one Indian market, but smaller markets throughout the whole of India. These sub levels of inner markets naturally bring with them a heightened degree of complexity – complexity that Jetley and TGI Fridays must successfully navigate in order to succeed and grow.
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question then becomes: do you At the time of writing, TGI Fridays India indigenise the products you sell to currently has 12 operating assets and consumers to become successful 15 restaurants throughout the country. in a particular country, or continue Managing the different complexities to import them internationally? that each asset brings with it continues The answer to that question is an to remain as one of the biggest answer shared by both Jetley and challenges that Jetley must overcome. TGI Fridays International, and it’s an “Across the different cities, they answer dictated through the structural have different food, makeup and business languages and model of the company. cultural dynamics, TGI Fridays is so to cater to designed in a modular each city and its way that promote preference requires efficiency and quality a lot of intuitive with American dishes. Number of understanding of Jetley admits to employees at TGI the market; even incorporate more Fridays India within these markets Indian foods and those preferences recipes would not be are changing,” he says. impossible, rather inconvenient. “You have to have your ear to the The challenge with indigenising ground and have a good pulse on the products stems from two elements; markets and its changing trends, and consumer expectation and also identify the different complexities TGI Fridays’ commitment across the cities. Not many other to quality. countries have this challenge.” “Consumers TGI Fridays is recognised globally walk into a TGI as an Americana food and beverage Fridays with an restaurant. As a franchiser, the element of
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“CONSUMERS WALK INTO A TGI FRIDAYS WITH AN ELEMENT OF ESCAPE FROM INDIA AND INDIAN FOOD. IF WE INTRODUCE INDIAN FOOD WITHIN THAT ESTABLISHED MENU I FEEL IT RUINS AND DESTROYS THE PURITY OF THE TGI FRIDAYS THEME” escape from India and Indian food. If we introduce Indian food within that established menu I feel it ruins and destroys the purity of the TGI Fridays theme,” he says. “Indian foods have a lot of complexities and are chef driven; to try and systemise it with a TGI Fridays recipe wouldn’t do it justice and to the quality that we are committed to delivering.”
SEAMLESS SUPPLY CHAIN No restaurant franchisee can be successful without a highly efficient
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and quality driven supply chain, and for TGI Fridays India, the supply chain industry in India is riddled with two major problems: the supplier shortage and technology gap. TGI Fridays has a series of nonnegotiable standards with regards to the products it buys from suppliers. These standards set out specifications that suppliers must comply with, including food safety sanitation procedures and certain back end behaviours and the way the materials are handled. The problem here is that the food
FOOD AND DRINK
industry in India hasn’t evolved to a point where the end user can demand a certain amount of food safety procedures, allowing suppliers to base their expenses on demand and ultimately having no procedures in place. “It’s very much a sellers’ market. We have an environment with one or two suppliers that can cater to your specifications and standards,” says Jetley. “It makes it difficult for us to create any lateral movements with the suppliers and hinders any negotiations
on prices or timeframes as, quite frankly, there’s nowhere else I can go.” An ever-present conversation for the food industry globally is that of cold storage, and in India this has been a historical issue. As a powerstarved country, adopting and using refrigerated transport storage proves a very costly process; resulting in only a limited number of companies being able to utilise cold storage. Technological advancements, including
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satellite feeds and remote data, is removing a lot of the issues surrounding cold storage.
TECHNOLOGY Technology across the food and beverage industry is transforming the way companies and chains interact and market to consumers. The rise of tablet and mobile devices has seen restaurants follow suit and develop apps designed to tap into this empowered generation of consumer. In India, consumer interaction is handled a little differently. “Around 50 percent of smartphone users don’t have internet on their phone unless they are in a Wi-Fi enabled hotspot. Reliability on online applications right now is a little bit premature,” says Jetley. The company uses a loyalty system in which customers earn and store points within each TGI Fridays restaurant. These points are updated and stored through text messages. This works through a simple exchange of
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data, data in which TGI Fridays uses to tailor specific promotions and deals towards specific consumers based on their activity and food choices. “It’s about gathering data, building loyalty and providing value to your customers with discounts and special offers,” says Jetley. But it’s not just consumer focused uses of technology that Jetley is concerned with. The company is currently implementing a major ERP system into its back-end processes. This technology will significantly improve the supply chain as well as adherence to recipes and costs of running the restaurants. “This ERP system isolates any margin of error from purchasing raw materials to selling it in the restaurant. This is just about to go live and will have a significant impact in terms of creating efficiencies in labour, food costs, beverages etc.,” he says.
CHANGING FACE Maintaining an element of the structural DNA elements of TGI Fridays stretches beyond the food and beverages cooked and prepared in the
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“I FEEL IT’S EASY TO BUY MARKET SHARE, BUT AT THE END OF THE DAY REAL VALUES MATERIALISE WHEN YOU SHOWCASE AND JUSTIFY INVESTMENTS THROUGH THE BOTTOM LINE WHICH IS REALLY THE HALLMARK OF ANY BUSINESS”
FOOD AND DRINK
kitchens and featured on the menus. Part of what makes TGI Fridays such a recognisable brand is the signature style and decor throughout its restaurants the world over. The company is currently reworking its entire restaurant design to take the company “back to its roots” as a singles bar in Manhattan back in the 60s. This is a deliberate choice in India as the global split between food and beverage across TGI Fridays sees 70 percent of sales in food. In India, the split is exactly 50-50. “TGI Fridays in India is recognised party place, visited by the younger generation. This interior design direction compliments our positioning in India specifically,” says Jetley. TGI Fridays is not the only restaurant chain in India, nor will it be the last, but
Jetley believes the company stands tall, and will continue to stand tall, above other major players because of its operating business model. The company has zero third party investment of private equity funding – all of capital investments are funded through internal accruals. This is unique to India, with the major restaurant chains often funded through third party investments. “I feel it’s easy to buy market share, but at the end of the day real values materialise when you showcase and justify investments through the bottom line which is really the hallmark of any business,” he says. “That’s when speculation meets reality and that’s what differentiates us within our consumer competitive portfolio.”
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Real estate in one of Asia’s fastest growing economies
Written by Leila Hawkins Produced by James Pepper 43
Colliers International is a real estate organization with franchises in pretty much every continent on the globe. Since 1996 it’s been firmly established in Vietnam, where thanks to the recent easing up of property legislation, it’s become a more attractive time than ever to invest
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ut of Vietnam’s population of 95 million, 65 percent are under 30, most of whom are well educated and have a high level of computer literacy. Thanks to this Vietnam boasts one of the fastest growing economies in south east Asia. In 2015 three substantial revisions were made to property laws, which dramatically opened up the market to investors from other countries. Before this it wasn’t possible for foreign-owned enterprises to own 100 percent of a company without a joint venture partner, whereas now they can purchase assets and have total control of the equity. This new legislation has also made it possible for foreigners to purchase residential properties without having to do it via power of attorney or setting up a company first.
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“Now you can just purchase and own 100 percent of the shares of the company that owns that building, and the transaction can take a day” INTEGRATED ENGINEERING AND TOTAL FACILITY MANAGEMENT SOLUTIONS.
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CONSTRUCTION
Another big change is that foreignowned entities are now able to buy and then sublease their spaces out. David Jackson, General Director and owner of the Colliers International’s Vietnamese branch explains: “At lower levels, serviced offices can sublease space to other people, and at more advanced investment levels it means they can look at sales and leasing the buildings. “The government is clear that they want foreign investment,” he continues. “Transactions are quicker. Before if you were looking to transact on an office building you’d have to go to the Ministry of Investment, the Ministry of Finance, the Ministry of Construction. Now you can just purchase and own 100 percent of the shares of the company that owns that building, and the transaction can take a day. There’s confidence and help to grow business here. It’s a good place to come.” Investor profiles The majority of the foreign nationalities investing in corporate
real estate here are Korean and Japanese. Typically they’ll also buy land where they know there will be development in years to come. “ They’re investing here heavily and have been for some time,” Jackson explains. “They’re confident, they know the market as it’s close to them, and they’re also involved in the construction projects.” In terms of residential real estate, there is currently a boom. Around 75 percent of the buyers are speculators and investors, who are buying properties and then flipping them to other parties before having to make the final payments on the exchange. “The best way to describe it, as somebody said to me the other day, is rather than buy a bottle of shampoo you buy a small sachet,” Jackson says. “It’s a quick, easy money, flip mentality.” Insider tips For a first time property buyer, Jackson says the most important thing is to have a clear set of criteria, whether the purchase
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is for somewhere to live, or for a financial investment. “There are lots of different ways for the investment to happen, but I would look at whether I am purchasing it just because I like the development and I’d like to have the credibility of living there, at the yield, and how much the rent and value would be. “Also how much investment needs doing, whether the project is sound or managed properly. A lot of people here buy newer projects, but I’m not necessarily convinced about paying a higher price because it’s new on the market. There are probably better deals to be looked at where you can understand how they’re structured when they’re a bit more mature.” It’s also key to bear capital appreciation in mind - whether a property will gain or lose value in the future, something that he says Vietnamese buyers have a good understanding of. The real estate of Vietnam Given the country’s population, Colliers’ workforce is mostly young, which influences its approach to recruitment. “We do a lot in terms of social media, our office looks young and funky, and people can see that it’s part of an international organization,” he says. “Additionally, a lot of staff work here by referral.” In this region, the commercial real estate
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“Every year for the last three years we’ve doubled in size and revenue. The company is growing all the time, it’s very positive”
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market is extremely competitive, but Jackson explains Colliers has good, longstanding partnerships with customers which is what sets it apart. “What’s good for us is our accountability. We’re very quick in terms of our structure, we reorganize and assist our clients because it’s very much a personal business. We have long term relationships with clients and they know we’ll go 120 percent to make them happy.” Jackson is already envisaging changes like the residential burgeon slowing down while other
CONSTRUCTION
65%
Proportion of Vietnam’s population aged under 30, helping to drive economic growth
market sectors grow, along with factors like the elections every five years. “We have to be quick to adapt,” he says. “There are lots of investments happening, a lot of real estate and construction. We have to be sensitive to the market and to what our clients require. If I see that the industrial sector might be growing we’ll train and bring people up to speed so we can take advantage of that.” He cites areas like IT and communications, in particular social media apps which will need
addressing more and more in the coming years. But for now Colliers is thriving. “Every year for the last three years we’ve doubled in size and revenue,” Jackson says. “The company is growing all the time, it’s very positive.”
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CAVERNS, MEASURED BY MAN Written by John O’Hanlon Produced by Mariana Lee
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Xanadu Mines is indeed defining the value hidden in the soil of Mongolia, and discovering enough copper and gold to build untold numbers of pleasuredomes
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n 10 February 1922, the People’s Government of Mongolia signed a landmark resolution that brought a significant coal deposit in Nalaikh city under state control. By the end of the year, exploration on the deposit was complete, ushering in what is today considered the birth of the mining sector in the country. In the 96 years that have followed, the mining industry has undergone
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a number of transformations as its role in Mongolia’s economy has steadily grown into one of its leading sectors of growth, responsible for producing 21 percent of its GDP, 70 percent of its total industrial output and 90 percent of its export product. Coal, copper and gold form the principle reserves that are mined in abundance across Mongolia. The country hosts approximately ten percent of the world’s known
MINING
2010
The year that XANADU MINES was founded
coal reserves at an estimated 162 billion tonnes. It took Mongolia a while to shake down since shaking off Soviet influence in 1990 and ceasing to call itself a people’s republic, but today this huge, sparsely populated country is democratic, peaceful and stable. Its readily accessible mineral wealth has started to attract major mining companies seeking new resources and with copper and gold prices firming up following a four-year downturn, Mongolia is looking increasingly attractive. Since it floated on the Australian Stock Exchange in May 2010, the Australian exploration company Xanadu Mines has been singlemindedly pursuing its goal of adding value to its properties in the South Gobi district of Mongolia. Its Managing Director and CEO Dr Andrew Stewart has long held the view that Mongolia had the edge on other comparable regions: “In exploration, a good principle is to have a counter cyclical approach,” he says. “That might seem like a truism but very few companies actually do it.” The lean years which saw large projects mothballed and investment drying up are coming to an end, but when Xanadu acquired its assets, he and his team saw their opportunity to get established ahead of the curve. “We like Mongolia because it is a very underexplored exploration location, even though it has been shown to host some of the biggest
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MINING
“We like Mongolia because it is a very underexplored exploration location, even though it has been shown to host some of the biggest copper deposits in the world”
copper deposits in the world,” adds Stewart. He points for evidence to Rio Tinto’s massive Oyu Tolgoi project, only 100 kilometres from Xanadu’s flagship Kharmagtai project in the south of the country. With the cost of bringing it into production estimated at close to $10 billion, the Oyu Tolgoi mining project represents the largest financial undertaking in Mongolia’s history. Discovered in the early 2000s, the mine’s copper production is projected to come in at 450,000 tonnes per annum for the next 50 years. Stewart’s commitment to Mongolia is only matched by his excitement. “Mongolia is God’s gift to explorers! A junior company like Xanadu can explore relatively cheaply,” he says. There are comparable reserves in the world, but most of these are located in remote jungle,
ANDREW STEWART MD & CEO
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Andrew Stewart Managing Director & Chief Executive Officer BSc, PhD, MAIG, MSEG & MAICD
Dr Andrew is an exploration geologist with over 15 years’ experience in mineral exploration; primarily focused on project generation, project evaluation and exploration strategy development throughout Asia and Eastern Europe. Andrew has particular expertise in porphyry copper-gold and epithermal gold deposits, but has worked across a diverse range of commodities. He holds a BSc (Hons) from Macquarie University and a PhD from the Centre of Ore Deposits and Exploration Studies at the University of Tasmania. During his time at Ivanhoe Mines and Vale, Andrew held various technical and management positions in Mongolia and Indonesia and has been involved in several green fields discoveries. After providing technical and program management for Vale in Indonesia and Mongolia, Andrew joined Xanadu Mines as Chief Geologist leading the gold and base metals project generation and evaluation team in Mongolia. Andrew has been Managing Director and Chief Executive Officer of Xanadu Mines since 2016 and prior to that had been Chief Executive Officer.
at high altitude, places with high rainfall or, like the beleaguered Grasberg mine in Indonesia, beset with political disruption. While Xanadu’s peers are drilling at a cost of up to $600 a metre, Xanadu’s costs come in at around $100, thanks to the open nature of the terrain plus the fact that all of the roads, power, water and other services that are required are already in place. “Particularly at Kharmagtai, this is the benefit gained from the infrastructure that goes in when one of the world’s biggest mining
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companies builds a tier one asset next door to our project,” he admits. All three projects that Xanadu is developing are in highly prospective deposits. The gold element is a critical differentiator between these Mongolian resources and others in South and Central America for example. “These porphyry copper resources we see in Mongolia are probably the biggest gold resources globally,” he says. These are precisely the type of deposit that the major mining
MINING
21%
Proportion of Mongolian GDP generated by mining
companies are turned on by at a time when there is a scarcity of new resources on the one hand while on the other global economic uncertainties are encouraging investors to take refuge in gold. Kharmagtai, with a 30-year mining licence and a registered water resource, is the most active currently, and he estimates that it will take another year to define. The deposit starts at the surface, giving the opportunity for early production upside from an open pit, but in the longer term there is a great deal more value deeper down. Xanadu’s local drilling contractor Litho Resources has already gone down 650 metres, with some excellent intercepts, but by mid-2018 he expects it to reach as far as a kilometre below ground. Eventually Kharmagtai could rival or surpass Oyu Tolgoi, he believes. “Kharmagtai is a big deposit and getting bigger,” he explains. “We are getting a lot of interest from strategic investors. With the shortage of genuine discoveries out there the majors are on the hunt for new assets. Xanadu is very much an exploration company and our job is to provide those assets for the future.” A second project on the South Gobi porphyry belt, Oyut Ulaan (Red Mountain), is close to Kharmagtai, and here the emphasis is on gold rather than copper. It is at an earlier stage of
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“With three of them in a single company, Xanadu, this represents a fantastic portfolio. Most companies would die to have just one of them!” ANDREW STEWART MD & CEO
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exploration. The third is in the north of the country – Sharchuluut Uul. The point is that Xanadu is not just sitting on a single project but three entire mineral districts that have never been explored at depth, and each promise potential mining opportunities of upward of 30 years duration. That is precisely what the majors are looking for, and the fact that they promise returns at relatively low capital investment adds to their juiciness. “We have three projects, each of which would support a single company,” Stewart concludes. “With three of them in a single company, Xanadu, this represents a fantastic portfolio. Most companies would die to have just one of them!”
The coming year will see work continuing at Kharmagtai to understand the depth and potential of that system. At the same time exploration will continue at Oyut Ulaan, while Sharchuluut Uul, he confidently hopes, will emerge as a major new district in the north of the country. The demand for copper from Japan, China and Russia, with ready logistical access to all of these markets, boosted by the global thirst for gold, will make Xanadu Mines a tempting target for the majors, though he does not by any means rule out the possibility that the company might build its own mines either alone or in partnership.
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PT Telkom Indonesia (Persero) Tbk
ALOLEK ATAT MOKLET NATUJNALREBEK ytilibaniatsuS mokleT ecnanrevoG
TELKOMGROUP’S DIGITAL TRANSFORMATION INTO A GLOBAL TELECOMS POWERHOUSE Written by Stuart Hodge Produced by James Pepper
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PT Telkom Indonesia (Persero) Tbk or TelkomGroup, is working to become a fully digital telecommunications service provider, and has a masterplan to be a major player in the global market by 2020
T
elkomGroup’s new stateof-the-art headquarters in the Indonesian capital of Jakarta epitomises everything which the company is evolving into – and helps to reinforce its goal of being the “king of digital in the region”. And according to Telkom Indonesia’s Chief Technology Officer, Abdus Somad Arief, it is well on course to achieve that aim. He reckons the company is almost where it wants to be in terms of ‘digitising’ itself but that is by no means the only goal for the group. “Our target is that we expect to be in the top ten for telecommunications company in the region, in terms of market capitalisation,” he says. “We have two main areas in which to develop, the first is the legacy business. We are building an international backbone, from Europe to the United States, as well as a domestic backbone – and one
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of our long term goal is to be the international hub between those two continents and this region. “By hub, we mean that in two main senses: traffic, as in voice traffic and so on; and the network itself. So we will provide networks from Europe and around the world, and will also be monetising or bringing networks to Indonesia, to ensure that this will be our global hub,” Abdus continues. “We have a roadmap to see that dream through, and we are now on the way to getting there, step-by-step. “Firstly, we want to become one of the top ten tier network providers in the world, and we believe it will be achieved by 2020. “And secondly, through the network development, which should be finished by next year,” Abdus explains. Essentially, TelkomGroup is transforming into a completely digital telecommunications
TECHNOLOGY
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company. Hence, the company is restructuring its operations to focus on its end-to-end digital business portfolio. That process of change will involve a revamp of both infrastructure and infostructure as the company looks to grow. The infrastructure improvements will focus on increasing the network capacity to deal by supplementing the existing network with additions to what the company refer to as the “backbone network infrastructure”. The group’s latest figures show it has built more than 106,000 kilometres’ worth of fibre-optic backbone network, domestically and internationally. In the domestic sector, the network can serve the needs of people all over Indonesia, and in the international sector, the group is working with 19 other global operators. Notably, the company recently succeeded in completing the installation of high-capacity cable under the sea, all the way from the French city of Marseille in Western Europe back to Dumai in Indonesia, ensuring a strong connection between the continents.
23,876 Number of employees at Telkom Indonesia The infrastructure improvements, meanwhile, are focused on core system modernisation and a restructuring of the company’s IT provision to ensure it can cope with the network growth. But even more important than any of that, is the culture the company is trying to ingrain as it goes through this process of growth and ‘digitisation’. “Now we are changing a lot,” says Abdus. “How are we looking to do that? Well firstly by bringing in new blood.
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“Our vision is that our programme will be the international telecommunication hub between Europe, the United States and this region” Starting off last year, we replaced retiring employees with mostly people from the new generation who are empowered to go to the next level. “Our staff are the main engine of what we’re trying to do. Since they have come in, these new employees have been pushed to work hard and to bring new thinking, in terms of the business and in terms of the process. “We give them freedom to explore their ideas and then share them with existing employees,” Abdus continues. “And it’s worked until now because
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we’ve provided them with the environment to think outside the box. “Secondly, a change has happened in terms of the culture itself. In all of the working environments, the business processes and the tools that we have, we are going digital every step of the way. “Internally, we are digitising ourselves, including all of our technicians in the field, which
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TECHNOLOGY
are also already speeding up in that regard. Externally, we are empowering our customers, so that they can be more efficient. “There is less need for use of our contact centres and that kind of thing and this how we are digitising both people and the process and we are probably 80-85% towards being fully digitised.” And the group’s new Jakarta HQ, which the company invested around $125 million (US) in, is a prime example of that new approach. “It’s a fully digital building,” explains Abdus. “So, the whole environment and the atmosphere is fully digital, from the design of the colour and layout, to the apps which are used in the building. Everything is fully automated and we also build connectivity every day by using apps. “By having this facility and by bringing in new blood with a digital perspective into the company, we are sure that we can quickly achieve our goals.” And the latest set of annual company results would certainly
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seem to back up that assertion. For the financial year of 2016, Telkom’s revenue successfully increased 13.5 percent year on year, means that profits increased by nearly the same amount and the company added 21 million new customers into the bargain. “We are optimistic because we achieved very good results in 2016,” says Abdus. “It’s the first time since 2009 that we’ve achieved more than 10 percent growth for the company’s revenue, EBITDA
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Digitalization is everyone’s business Today, both new and more traditional players are under pressure to innovate faster, more flexibly and with fewer resources. People want new and innovative services with a great user experience. And they want them to be available at any time –on any device. Right now there’s a new generation of disruptive and digitally-driven businesses out there showing the world how it’s done. They are agile and adaptable , and their success is fueled not only by software and technology but by the fact that they do first, fail fast and learn fast. These digitally native companies are going horizontal in industries that have traditionally been vertical. And they’re changing everyone’s business. For Nokia, at its core this digital evolution is about expanding the human possibilities of technology. The Cloud with a silver lining Digitalization, the Internet of Things and soon 5G are enabling a whole world of new services. The possibilities are endless, but they require new ways of thinking and doing. The successful transition to digital business requires not only new ways of thinking but new kinds of platforms and applications, cloudbased platforms and applications. Cloud allows businesses to focus on their core business faster and with lower up-front investments. The Nokia cloud portfolio builds platforms that connect people, businesses and a world of new devices. From mobile and any type of fixed network to the service platforms, it’s the only cloud portfolio to truly deliver end to- end solutions. And it’s helping businesses, enterprises and governments change how they operate with agile services made possible by cloud technology. End-to-end is only the beginning Today’s networks were designed to handle personal communication and content like voice, video, and web browsing on computers and handheld devices. The Internet of Things is already here, and both the opportunities and challenges it brings will continue to grow with the introduction of 5G and the massive traffic
www.nokia.com
volumes it will bring. For over a generation Nokia has been leading the industry as the prime provider of secure, high-quality and scalable carriergrade networks. For us, endto-end includes our AirFrame data center solution, networking with our SDN and transport portfolios, a comprehensive portfolio of application software, lean operations and management through our OSS and CloudBand MANO solutions, and a comprehensive suite of cloud services. Increased operational excellence Technology is evolving at breakneck speed. But what’s even more important is that so, too, are the ways in which services and networks are built and operated. Cloud, NFV and SDN take operability to a whole new level with common platforms, programmability and automation. Applications and services will be continuously delivered without long planning and development cycles. And cloud also allows for real-time responsiveness to feedback and changing needs. With the Nokia cloud portfolio, customers can upgrade and grow existing solutions and deploy new revenue -generating services in days, not months, as it is with traditional systems. The automation and elasticity provided,for example, by our AirFrame data center solution, CloudBand and Nuage SDN portfolios enable networks to respond faster, deliver more consumer value and become morecompetitive compared to today’s systems. The Revolution into Digital Business Nokia’s end-to-end cloud portfolio and services are ready for production right now. And right now Nokia is helping customers in all sectors to grow revenue by creating new models for old services, enabling new revenue generating applications and by literally changing how they do business. Nokia is the partner for the digital transformation. It’s the partner for moving business to the cloud. And together with its partners, clients and end users, Nokia is building the foundation for 5G and beyond.
and net income in a single year. “The changing technological landscape affected that in the intervening time, but in 2016 we achieved all of our targets and our financial results were above the market average in Indonesia.” He clearly believes the future is bright, and after almost three decades of service to TelkomGroup, it doesn’t seem like Abdus is going to be looking for a new challenge anytime soon. “Of course we are all very proud to represent Telkom Indonesia,” he adds. “Myself and my
Service provider networks are at the epicenter of digitization. You need to be faster, more efficient, grow through new services and security obsessed. Here are some suggestions for how to do it. Cisco Open Network Architecture provides an optimal solution to the challenges which service providers need to address the requirements of digital business.
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Š2017 Cisco Systems, Inc. All rights reserved.
Delivering a New & Improved Digital World
TECHNOLOGY
colleagues have a very tight emotional relationship with the company. “Although we’ve brought in some new blood to replace retiring employees, the general turnover of employees is very low and most of us have a long history with this company, such as myself, having worked here 27 years. “Almost all of the executive team have a long history with the company, and are changing together with
the business. “In the last five years, we are very proud of what we’ve achieved and also have a very positive view about the company’s business in the future.”
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STOP. THINK. TRANSFORM. Written by Wedaeli Chibelushi Produced by Charlotte Clarke
WE REACH BACK TO 2005, WHEN SHELL BEGAN A HUGE SUPPLY CHAIN TRANSFORMATION. HOW FAR HAS THE COMPANY COME? 79
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“
More upstream, profitable downstream”. In 2005, Shell used this mantra to distil its new strategy. With upstream initiatives, the energy and petrochemicals group searches and recovers oil and gas. Shell develops the way it refines and delivers products to customers via its downstream initiative. In short, Shell’s mantra means that if it boosts production, its income from refining will also go up. A supply chain transformation was key to realising this strategy. As a result, Shell restructured its supply chain, with various end goals. These include standardising practises and technologies, generating stable cash flows and putting demand-driven best practices front and centre of operations. 12 years on from the new strategy launch, and Shell considers the supply chain transformation a success. It’s ready for the next step, i.e. transferring the new strategy to its operations in emerging markets, namely Asia. Shell’s transformation journey has been long, but it can be broken down into distinct parts:
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‘IMPROVING RELATIONSHIPS WITH SUPPLIERS WAS A KEY ASPECT OF SHELL’S TRANSFORMATION PLAN’
S U P P LY C H A I N
3PL TO 4PL Before 2005, Shell was using third party logistics (3PL) to buy products. However, this meant that it lacked command of the procurement process. Shell collaborated with Accenture to build a fourth party logistics operation (4PL), which Shell calls Logistics Management Services (LMS). LMS supports Shell’s upstream operations, covering production, wells and projects. It is also a single-client platform, which provides a Shell-tailored solution. Furthermore, Shell is able
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Patrick Steppe, born in 1967, is chairman of the Board of Management of Lekkerland AG & Co. KG. In the position as Chief Executive Officer (CEO) he is responsible for sales and marketing, purchasing, category management of all product groups, strategy, business development, human resources (HR) and communications as well as the management of all national companies in the Lekkerland Group.
For more information please go to: www.lekkerland.com +49 2234 1821-0 | +49 2234 1821-445 | info@lekkerland.com
Changing together. Growing together. Shell and Lekkerland have been partners on an international level for more than 30 years. We talked to Patrick Steppe, Chief Executive Officer of Lekkerland AG & Co. KG, about the secret of successful cooperation like this. What distinguishes the relationship between Shell and Lekkerland? We both really want this cooperation to be successful and everybody involved does everything necessary to make it happen. One example are the international quality standards we set. We committed on these common standards and every Lekkerland employee in every country performs them precisely.
Change is normal. To Lekkerland it is also important to continuously improve. Change is normal. We therefore develop new solutions and services in order to support our customers even better. One example is multitemperature logistics that we introduced from 2012 on. Today, we are able to deliver all products – ambient, fresh and frozen – to Shell filling stations in just one stop. This reduces not only the kilometres driven, it also saves time and temporal expenditure for the shops.
Which additional services do you offer – to Shell and other customers? Lekkerland is much more than just a wholesale and logistics partner. We offer solutions along the whole supply chain (order to cash process), including e.g. inventory management, purchasing, storage, reception and picking orders, distribution, service level monitoring and information flow. Of course, comprehensive consulting, optimising shops – e.g. through category management, shelf or range optimisation – or developing holistic shop concepts are also part of our services. All services are tailored to meet the needs of our customers. As a 360 degree service partner we are able to offer Shell all product categories from a single source: tobacco, food, non-food, beverages, oils and lubricants and so on. Depending on the needs of the Shell shops, we also deliver their own brands, e.g. oil. In addition, in some countries we support Shell with customised category management or the further development of food service offerings. And we are always there to consult with our long-term experience in the convenience segment. Are there any new projects or services you currently develop for customers throughout Europe? There always are. Lekkerland wants to offer solutions that allow
its customers to stay ahead of the competition. The aim is to make shops even more appealing for end consumers and thus successful.
We offer solutions along the whole supply chain. One example are our new holistic shop concepts that we currently test in different countries. The “Frischwerk” concept e.g. is a solution for filling station shops in Germany. The shops have a very attractive atmosphere and a design that is totally new for filling stations. We integrated a complete bakery and a broad range of fresh products as smoothies or salads. There are also digital focus walls with advertising that changes depending on the time of day. However, it is not only outer appearance that counts: The concept comprises all aspects that are important for the business, e.g. all hard and software, digital solutions to manage the shop, training sessions for employees, recipes for bistro products, marketing plans, category management, quality manuals and so on.
Your success is our motivation Lekkerland supplies about 90.000 filling stations, kiosks, convenience shops and quick service restaurants in Europe. We not only deliver the products but also develop tailor-made solutions - from holistic shop concepts to individual logistics services. Our vision is to become the preferred 360 degree concept provider for all channels of on-the-go consumption and all aspects of the convenience business. The success of our customers is our motivation.
About 4,800 Employees
About 90,000 Points of sale in 6 countries
â‚Ź13 billion Revenues in 2016
For more information please go to: www.lekkerland.com
S U P P LY C H A I N
to maintain close control of the outsource provider. It is able to build long-term strategic relationships with the provider, granting access to the provider’s best people, technology and innovation. Ultimately, by losing its old practice and negotiating with Accenture, Shell was able to take back control of the business. LEKKERLAND Lekkerland had been the supplier of many Shell filling station shops in the past already. As a result of the transformation, in 2007 Shell closed a framework contract with the German-based company as their wholesale and logistics partner in several European countries.. Almost ten years later, Shell and Lekkerland have now signed a new international framework agreement for six countries that includes supplying more than 2,500 filling stations across Europe. Lekkerland delivers food, tobacco, and non-food products to Shell’s stores with the same quality standards throughout Europe. Depending on the country, Lekkerland also
provides support on matters such as category management and the further development of the food service offering. “We are very delighted that our long-term partner Shell continues to place its absolute trust in us,” said Patrick Steppe, Chief Executive Officer of Lekkerland AG & Co. KG. On an international level, Shell is one of the largest customers of the 360-degree full-service concept providers for on-the-go consumption. TECHNOLOGY Shell adopted an SAP and APO sales system as its single platform for supply chain planning. For its lubricants business, Shell worked with supply chain company E2open. E2open provided Shell with Demand Sensing (DS) and Multi-Enterprise Inventory Optimisation (MIO), the former able to adapt to shifts in consumer behaviour and market influences. From this, it produces the most likely prediction of future short-term demand. On the other hand, MIO uses advanced mathematics and daily
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SHELL
‘SHELL WORKS WITH A WIDE VARIETY OF SUPPLIERS, FROM HOUSEHOLD NAMES SUCH AS MARS TO LOCAL SUPPLIERS’
S U P P LY C H A I N
granularity to produce more informed inventory targets. These targets mirror real-world market conditions, even in volatile markets. Combined, the solutions allow Shell to improve forecast accuracy. Excess inventory has been reduced, which has in turn improved working capital use and free cash flow. By using a single-instance ERP system, Shell was able to globally implement DS and MIO relatively quickly. This change had significant results. The majority of Shell’s finished product portfolio is now demand sense, while users can go about their daily and weekly planning tasks without disruption.
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SUPPLIER COLLABORATION Improving relationships with suppliers was a key aspect of Shell’s transformation plan. Shell works with a wide variety of suppliers, from household names such as Mars to local suppliers. In order to get the most out of relationships with these firms, Shell now holds comprehensive internal reviews on how to improve current situations. Additionally, the company developed the Shell Diverse Supplier Pipeline Management System in 2014. The programme aims to make sourcing easier and more transparent for ethnic minority and female-owned businesses and smaller potential suppliers. If a supplier meets Shell’s procurement needs, the system records basic details about the supplier into the Supplier Pipeline database and sends the potential vendor a link to add more information. This technology also tracks the progress made by diverse businesses introduced to Shell stakeholders. Prelude FLNG, a floating liquefied natural gas platform in Australia, provides a modern example of Shell building effective relations with suppliers. Shell built effective bonds with main contractors to design and build this ground-breaking project. Through its transformation, Shell has proven how important supply chain is to wider company changes. By restructuring its supply chain, it has been able to demonstrate “more upstream, profitable downstream” in action. The company has modified its supply chain in several key areas, and thus primed it to make huge strides in Asia and beyond.
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SEPT
BITEC, BANGKOK, THAILAND www.asiapowerweek.com
JOIN US AS WE CELEBRATE 25 YEARS AS ASIA’S PREMIER POWER EVENT PRELIMINARY EVENT GUIDE NOW AVAILABLE Make sure you join us as we cover every aspect of the power generation industry with more than 8,000 industry professionals from around the world. Benefit from a world-class event packed with technical tours, panel discussions, workshops, business matchmaking, three exhibition days with over 200 international exhibitors and multiple networking events, all under one roof, PLUS more than 50 conference sessions covering themes such as:
$ TRENDS, PROJECTS AND PLANNING
FINANCE AND INVESTMENT
OPTIMIZING PLANT OPERATION
POWER TECHNOLOGIES
DIGITALIZATION
INTEGRATION, STORAGE AND DISTRIBUTED GENERATION
RENEWABLE ENERGY
RENEWABLE ENERGY TECHNOLOGIES
Asia Power Week is the leading force in delivering a platform to meet, share, inform and learn about the latest advances in thinking and in technology for the Asian power industry. Register by 18 August to SAVE with the Early Bird at www.asiapowerweek.com Owned and produced by:
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